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Power of Market Share

     People are asking a question about last month's issue  -- if Apple did well on the iPod, why isn't the Mac doing well on the PC market? So, here's why.

History

     When IBM and Apple were fighting over the desktop computer market, Mac had a GUI (Graphical User Interface) and mouse; however, a limited number of software ran on the Mac. On the other hand, IBM computer had classic command line interface (running MS-DOS; IBM called it PC-DOS), but there was tons of software for MS-DOS. Even though Mac's GUI was "insanely beautiful," with limited number of software, Mac was less useful. So, people opted to IBM computers.

The Power

     Marketing text books teach us that once a business acquires 50% market share, no one can beat that business unless they do extremely stupid things. If 50% is that good, acquiring more than 90% of the market share makes Microsoft invincible. In fact, the US government failed to split Microsoft due to alleged violation of anti-trust law. Even though Apple's "Switch to Mac" campaign is good, it cannot do too much. For the same reason, since iPod has gotten more than 50% of the market share, Zune (Microsoft's portable music player) won't win over iPod.

© January, 2008