Supply and Demand
In all markets there is some form of supply and demand. If there was no supply than firms would not be able to make revenue and if there was no demand firm would not exist because they would not have anyone to supply their product to. In the software, gaming and device market the concept of supply and demand can be seen greatly. The reason why Microsoft is one of the world’s main companies is because it is not just expert at creating new technology, Microsoft is also expert at making its products known and therefore making the products it produces demanded over all other products. Microsoft also makes its products appealing so that people will want its products even more. In order to meet this great demand, Microsoft is also very good at its chain of supply. Microsoft knows how to optimize its supply chain by getting the right goods to the right places at the right times. Also, Microsoft is expert at supply because this firm does not only get the right products to the right places; it also does this process with much efficiency. One of the ways Microsoft does these providing customers with great service and taking data from different areas and learning what are the preferences of that area and what is in demand. This learning preference of different people is for Microsoft a way to maximize profit. This can be represented by the area under the demand line. The dead-weight loss is the area where there could be a profit made but since many companies are inefficient, there is a loss.