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Microsoft runs that show

2007-06-06 10:52:40

(Score:5, Informative)

by puppetluva (46903) on Thursday April 19, @05:37PM (#18804661)

There is no contest here: Microsoft runs the show because they are virtually an

OS monopoly for the vast majority of customers that Dell has.

Role play it out. If MS refused to let Dell sell Windows, then Dell would die

(or shrink significantly). If Dell refused to sell Windows, then Dell would die

(or shrink significantly). Microsoft has plenty of other vendors to sell their

OS, Dell doesn't have plenty of in-demand OS's to sell (trust me- I wish linux

counted, but that is nowhere near the volume business of selling XP/Vista).

For future scenarios, this is the basic rule of supply chain economics. Think

of this chart.

Producer -> MiddleMan -> Distributor

As you go towards the right, your power increases in all cases EXCEPT where

someone to the left has a monopoloy (or somewhat close to it). Wallmart is all

the way to the right and all they sell are commodities, that's why Wall mart

can gouge their suppliers. Dell wishes they were in the same boat, but they

have a monopoly to the left.