56 Garth Saloner, Innov. New Tech., 1990, supra, at 137-138; Joic Competition with Switching Costs, Rand J. of , Spring 1988, at 123-137.
57 Stanley M. Besen and Joseph Farrell, J. of Perspectives, Spring 1994, supra, at 118; Joer. Rev., Dec. 1986, supra, at 946.
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61 There is the opportunity of no less than specific leverage on processor chip or technology height, in the event that Os top are a whole lot more fragmented. That it opportunity isn’t managed within this short-term to have a variety regarding explanations, such as the generally advertised alliance anywhere between Microsoft and Intel that produces independent remedy for the latest equipment layer irrelevant.
62 The os’s gateways are the most useful layers to have influence. Nevertheless program is also leveraged off their availability points about and therefore solid network externalities install. For example, towards house buyer, Intuit has leverageable strength on good community externalities which have attached to one to product in the computer system-person program. (This really is discussed during the increased detail someplace else contained in this temporary.)
63 In many respects Microsoft’s strategy of targeting, linking and leverage is little different from that employed by MITI and Japanese keiretsus to target and capture American markets. Microsoft’s leverage comes from technical ties in markets it dominates, while Japanese companies’ leverage comes from the installed base of buyers it creates in Japan. In both cases, the leverage can be applied by forward-pricing into the target age competition in that market. , L. D. Tyson, Who has got Bashing Exactly who.? Trade Disagreement for the High-Tech Opportunities, at 55-57, 99-101 (1992).
65 Amy Cortese, Second Avoid, Chi town, Business Week, Aug. 1, 1994, at 24 C 120 million MS-DOS customers (including 55 million Windows users)»). Select plus Operating-system Analysis, Computer Reseller News, at 223 (DOS installed base of 110.1 million).
67 See Amy Cortese, Business Week, Dec. 19, 1994, supra, at 35 (Ex. __) («Computer makers. have been startled to learn that they will be asked to swallow a huge price hike for their use of Windows 95 — to as much as $70 per PC vs. roughly $35 today.»).
68 Find including O. Casey Corr, IBM versus. Microsoft — Application Superbowl — IBM so you can Start The latest Form of Os/dos, however, often Microsoft Make Effective Goal, Seattle Times, March 29, 1992, at C1 (system sales are «the cash cow that has fueled Microsoft’s aggressive entry into nearly every field of personal computing»); id. («DOS, which comes installed on computers at the factory, has provided profits to finance Microsoft’s transgenderdate development of applications such as the Excel spreadsheet and Word, a writing program.»); Laurie Flynn Rachel Parker. Stretching their Arrive at, InfoWorld, August 7, 1989, at 43 («the Microsoft strategy has been to fund expensive applications development and marketing with its profits from the recurring DOS royalties it receives.»).
70 See Cara A. Cunningham, IBM and you will Microsoft Wage Unlock Doc against. OLE Look for, InfoWorld, Aug. 15, 1994, at 25 (Microsoft has an «army of evangelists. that goes out and sells the [OLE] technology and swarms over developers»).
71 Richard Brandt, Microsoft Feels like a keen Elephant Rolling As much as, Squashing Ants, Business Week, Oct. 30, 1989, at 148 (Ex. 3).
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74 Compare Andrew Reinhardt, First Thoughts: Brand new Extras getting Excel, Byte, Feb. 1, 1991, at 136 with Microbytes, Byte, Feb. 1, 1991, at 20.
76 Ethan Winer, Very first, Yes; Feeble, Zero, PC Magazine, ming language] interpreter [is] bundled with DOS. at no extra cost, [it] is known and used by more people than any other programming language for personal computers.»).
77 Michael Csenger Adam Griffin, Microsoft 100 % free For once?, Governing Still Lets Organization Use Programs With the Its OS’es, Network World, July 25, 1994, at 4 (Ex. 23); see also John Markoff, Microsoft’s Coming Scarcely Restricted, N.Y. Times, July 18, 1994, at D1 (Ex. 24) (describing Microsoft’s 14 year «campaign[] to expand the definition of what computing functions belong inside the computer operating system.»).