An interesting example of strategic behavior comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). YOU ARE REQUIRED TO READ THE ARTICLE BELOW

http://news.google.com/newspapers?id=rZxOAAAAIBAJ&sjid=HBUEAAAAIBAJ&pg=6732,188074&dq=apple+partnership+with+microsoft&hl=en  

Facing tough anti-trust scrutiny from government agencies, Microsoft provided financial support to Apple in order to ensure Apple’s survival and, therefore, to ensure that competitiveness in the industry remains. Moreover, the partnership with Apple provided an additional market for Microsoft’s products – the MS Office and the IE products were to be bundled with the MAC OS as one of the conditions for this financing.

ANSWER THE FOLLOWING QUESTIONS BELOW THOROUGHLY…

1. Discuss this case in the context of market structure and strategic behavior.

2. What market structure do these firms operate in?

3. Why did Microsoft need to preserve competitiveness in the industry?

4. What was Microsoft afraid of in the event that Apple did not survive?

ALL ANSWERS MUST BE PROPER GRAMMAR, PRONUNCIATIONS AND SENTENCING…YOU MAY USE ONE OUTSIDE SOURCE, BUT IT MUST BE SCHOLARLY FORMATTED IN APA FORM CITED THROUGHOUT PAPER WITH AN REFERENCE PAGE.

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