Essay Example
|
|
Structure of an Essay and an Outline |
For this class, you will write an essay that relates to any topics in Industrial Organization. Some rules apply:
Essay Introduction
Supporting Paragraphs
Conclusion
Some points
An Example of an Outline
Introduction:
Supporting Paragraph 1:
Supporting Paragraph 2
Supporting Paragraph 3
Conclusion
|
Written Essay |
The Rise of Microsoft The iconic symbol behind Microsoft is the computer genius Bill Gates. While he studied at Harvard University during the 1970s, the first personal computer, Altair 8080, was being sold through mail order kits from the magazine, Popular Electronics. This basic computer ignited the imaginations of engineers, hobbyists, and tinkers as small computers became available within the financial means of the public. Subsequently, Bill Gates dropped out of Harvard University to establish his software company, Microsoft. He began writing software for the Altair computer. This software became Bill Gates’ niche because he believed he could make money by copyrighting software. Computer programmers during the 1970s believed they should pay for hardware but not software. They freely exchanged programs and software. One reason for this dichotomy is computer hardware is a standard good while software borders being a public good. This means sellers and producers of public goods have trouble limiting the distribution of their product to paying consumers. Consequently, free loaders can enjoy consuming the public good without paying for it. Furthermore, computer programmers who develop new software face high fixed costs while distributing and selling the software has a marginal cost close to zero because a person can copy a program freely onto a floppy disk that is relatively cheap. (The modern internet allows the distribution of software for free). Economic theory suggests the market price should equal the product’s marginal cost, which in this case would be close to zero. Thus, software companies could have trouble recouping their fixed cost of developing the software. However, Microsoft successfully copyrighted its software and earned enormous profits in the process. The leader in the computer industry in the 1970s was International Business Machines (IBM). As sales of the personal computer ignited, IBM focused on mini and main frame computers because IBM’s management thought the personal computers were a fad. Unfortunately, IBM’s management was bureaucratic, slow, and cumbersome. The mini and main frame computers are machines that start as the size of refrigerators and can span a whole room. IBM’s customers were large corporations, government agencies, and universities because they were the only ones who could afford them. Unfortunately, IBM was wrong, and the personal computer was not a fad. Accordingly, it did not switch its focus on software and personal computers until it was too late. Microsoft was too large and too far ahead to overtake. The 1970s witnessed the rise of another innovative computer company, Apple Computers. This company introduced the public to a Graphical User Interface (GUI), or we would call it an operating system that uses graphics, icons, and a mouse. However, Apple Computers focused on hardware, and Apple’s software came freely with the machine. However, this created a hole and opportunity in the market. Apple Computers were relatively expensive. It catered to the higher end of the market while numerous computer companies were literally dumping low-cost personal computers onto the market. Most of these computers came with Microsoft software already installed on the machines. Hence, Bill Gates focused on software, and ported his software to run on a large variety of machines which increased his market share to roughly 90% of the market. Bill Gates entered the computer industry at an opportune time, and he discovered his niche. He successfully earned enormous profits by copyrighting software even though software comes close to being a public good. Consequently, he became one of the richest men in the world with a net worth approximately $40 billion. Observations
Final Note I use English grammar software to check my grammar. Although the software has problems and glitches, I find it to be a useful crutch. I use the software to replace the English teachers who have given up on me. Grammarly rated my Bill Gate’s essay at 88 out of a hundred, which is very good for me. This is a B+. I believe Ginger grammar checker is free. It is not that good, but it is better than Word’s grammar checker. |