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Economics Of Innovation: Management

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Question:

Write an essay on Economics of Innovation?

 

Answer:

Introduction

Economic is study of the consumption, production and distribution of the goods and services. It is study of the data, chart and pivot table. It shows the how society fulfill their basic need and desire i.e. survival which requires food, clothes and shelter. Economic is depending upon the demand and supply of the goods and services. The economics of standard is study about the role of standard in the competitive process. It helps to industry or organization diffusion. The ole of the standard in the public sector company is to support the standard development of the organization. Diffusion is a hypothesis, which shows the how advancement and new technology spread throughout the cultures and the society. The diffusion explains the why and how practices and new ideas adopted for the spreading for long period.

An operating system software components of a mobile or computer, which is responsible for the coordination and management of the activity and sharing the resources of the mobile and computers. The operating system is an application program, which runs on the machine. It handles the details of the operation of the hardware of the computer or mobile. It makes easier to write application and manage the details about the application. The computer or mobiles include all most same types of operating system. It provides large number of services for application users as well as application program. The operating system operates the services like application of system call and program interface. The users can request for the services from the operating system, received the result from the operation and pass parameter. The users can type the command and using the graphic with the interaction of the operating system. The technology diffusion is the process by which of new ideas, technology, new process and new management spread with the economic. The technology helps to development and growth of the economy of the globe (Rosefielde, 2013).

Literature Review

The windows and the apple both are the operating system. The contribution of this assignment is too empirically and theoretical study which affect of the operating system on the product of the price for the retailers as well as whole sellers. The effect of operating system has focus on the competition between manufacturers but it does not effect on the retailer’s price. As per (Costantini and Mazzanti, 2013), the empirical research shows the price of the manufacturer in the market. In this assignment, operating system shows the effects of the operating system across different mobile and computers as well as laptops. The assignment makes further contribution by the estimating the dynamic development of the operating system. The windows 98 upgrade from window 95. The windows 98 called windows 97 previously but now it upgrade. The company believes that users want to use potential resources at low cost for the web technology.

Development of Window Operating System

Now a day’s Window is very essential for every individuals as well as corporate. It makes easily work. Microsoft launched the windows 1985.

Microsoft launched Window 1.0 – 2.0 at 1990. It shows the fundamental aspect of the operating system. It allow to users to click to access the windows.

Windows 98 founded in June 1998; it comes with number of new technology. It is the first windows, which helps to access the internet explorer. The users found that there is no difference between assessing the documents.

Windows 2000 founded in February 2000, it launched specially for the laptop system or business desktop to run the software, which is, connect with internet explorer. The uses of the windows were printing the documents, access the internet site, access the file and network resources (Wessner, 2012).

Windows XP founded in October 2001. In this operating system, the users can connect internet through wireless network. It was best selling product at that time in the market.

Windows Vista was found in November 2006. It was more reliable, secure and easy to operate than Windows XP. It detached the problem in the hardware before the computer operates. It helps to protect the generation threat and helps to run the program faster than XP.

Window 7 was found in October 2009. It came with latest technology like start – up time, multi-touch support, improved performance and internet explorer 8. It also helps for virtual hard disk and improved windows.

Windows 8 launched in 2012. It is totally difference from the Windows 7. The users can get confused to operate this operating system. The computer can start within second rather than minutes. It was advanced technology.

The Microsoft also launched some operating system in the mobile devices.

Windows Mobile was found in April 2000. It designed to operate similar desktop in the mobile as well as for look attractive for the phones. Windows Mobile 6.5 designed for the enterprise mobile and computing the devices.

Microsoft launched Windows Phones in November 2010. The consumer of these mobile phones more than the computers. These phones helps to users to access the internet explore in the mobile itself.

The Microsoft Company launches the upgraded window with the technology within the market. The company wants to update their operating system with new version and try to make easy to operate and carry.

Development of Apple Operating System

The project started in 1978. The objective of this operating system was that to low cost computers, and easy to use by users on the average cost. It was for average consumers. The Apple used the Xerox Alto concept to make the operating system. Apple made operating system like menu bar, drag and drop, pop – up menus and direct manipulation. The apple launched 64 KB Mac ROM after launched by IBM 8 KB personal computers and it hold operating system code. Apple designed the icons of the operating system, which represent the files and the folders as well as application software. The company designed Microsoft Windows 3.0 and gave the name Macintosh Finder. The company was very aggressive in the advertisement of their new machine as well as product and services. The company was purchase all 39 pages of the advertisement in 1984 for the promotion of the company. The company got successful and sold out all the processor. The company developed the product name MacWorks. Later this operating system got name operating system of the Apple Company. The company launched its first version of Mac operating system, which called only System. This operating system is totally difference from other operating system like windows. The Mac was the first operating system, which use completely graphic user interface. This application used for the file management, which was displayed on the desktop. This application included like printer driver, which was interact with the system. In 1985 apple launches the DSP and a high optical disk drive (Deutschman, 2000).

Threats of Microsoft Window

According to Porter’s Five Force, model the threats of the Windows

Threat of new entry – the majority share of the users of the operating system is windows. The competitors of the Windows in the operating system are Apple and the Max operating system X. the buyer of the window may lose due to new entry of the Apple and Linux. The Microsoft need to reduce the cost with the components chooses and takes cost advantage.

Threats of Rivalry – the threat of rivalry of the windows has less. The price of this operating system was less than other operating system like Apple and MacOS X.

Threats of Substitutes – the Mac OS X and Apple have made advanced operating system so it affects the Windows. The consumers want new and advanced product and service. The cost of Apple operating system is higher than the Windows.

Threats of the Powerful Suppliers – all suppliers want to supply to the Microsoft. The Microsoft offers good price for the raw material compare to others. The only threat for the Microsoft that it required large number of physical items for the production.

Threats of Powerful buyers – Microsoft deal with every part of the computer as well as laptop, which also include copy of the latest version of the Windows operating system. The brand image of the Windows in the buyer’s perception is good. It affects to those consumer who do not want to buy the Apple or Mac OS X operating system (Silberschatz, Galvin and Gagne, 2011).

 

Threats of Apple

According to Porter’s Five Force, model the threats of Apple –

Threat of new entry – the company has good brand image in the operating system market. Apple provides the ready market for supply of the services and goods. Apple give the 70 to 80 percent rate to their suppliers. The Next Google is the main threats for the Apple. If other similar company provides the online services like i – tunes and audio with v – card.

Threats of the Powerful Suppliers – the threat of this company in term of suppliers are supply of computer memory and processor. The companies who supply this item like IBM, Motorola and Intel. The suppliers of movies and television. If the other company will supply same product like Sony, Warner and Universal.

Threats of Powerful buyers- the other company may give the same operating system at low price and better term. The consumers may reduce the money in the computers due to the downward growth of the economy.

Threats of Substitutes – the threats of substitute in the music system like XM and Sirius. The alternative is that to acquire the music through the CDs and DVDs. The alternative source for videos like cable, theatres and broadcast.

Rise and Fall of Microsoft Vs Apple

Now a day everyone follows, the modern technology industries watch Microsoft and Apple operating system. Apple can reduce the money on research and development cost. Microsoft dominated Apple last 20 years. Apple copied office and windows operating system of Microsoft every time. Microsoft gets benefits from the coping of operating system by Apple because Microsoft provides original operating system to the consumers.

 The battle took place between Microsoft and Apple last 20 years. The change began Microsoft Vs apple after coming of Steve Jobs at end of the last century. The Apple began with Apple Stores. Apple came out with IPod and iTunes. Microsoft started Windows XP and Windows Office. The company invested 10 billion of money to diversify itself to gain. Apple steeped up by ignoring of the Microsoft except wonderful commercial web and television. Apple came with media player like IPod and iTunes. Microsoft shipped new version of the operating system like Windows Vista and windows XP then windows7 and windows 8.it spent 10 billion amounts to diversify to gain (Ver, 2011).

Microsoft gets down very badly for more than a decade and completely moved out from the mobile version. Microsoft reign the mobile device and the office business and windows was also decline. The company fails to publish facts and real number. The cloud revenue is gone up but the cost was also gone up. Apple sells everything well and earn profit and company will grow compare to Microsoft. Apple is able to report and count of the unit number of actual sells. Apple can also measure its profit and revenue in the major product lines. Therefore, Apple was growing and Microsoft was decline in the term of operating system. Microsoft and Apple tried to gone up during 1980 and 1990 but they cannot go up. When apple felt down then the Microsoft helped to apple to get up but apple did not help to Microsoft to recover. When apple collapsed under misdeed of the management then Microsoft put lock with illegal lock. Microsoft dominated for 20 years but apple suffered near death. Apple went bankrupt during the CEO of Steve Jobs. Apple remained nearby bankrupt while Microsoft became lazy technology and fat.

 

Reference List

David, P.A. "Clio and the Economics of QWERTY." American Economic Review 75 (1985),pp.332-37

Liebowitz, S. J., and S. E. Margolis. "Network Externality: An Uncommon Tragedy." Journal ofEconomic Perspectives 8 (1994): 133-150

Costantini, V. and Mazzanti, M. (2013). The dynamics of environmental and economic systems. Dordrecht: Springer.

Deutschman, A. (2000). The second coming of Steve Jobs. New York: Broadway Books.

Rosefielde, S. (2013). Asian economic systems. Singapore: World Scientific.

Silberschatz, A., Galvin, P. and Gagne, G. (2011). Operating system concepts essentials. Hoboken, NJ: John Wiley & Sons Inc.

Ver, M. (2011). Dynamic load balancing based on live migration of virtual machines.

Wessner, C. (2012). Building Hawaii's innovation economy. Washington, D.C.: National Academies Press.

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