Microsoft vs Red Hat Linux Essay

As a customer, I’d prefer the system of Red Hat (despite how the program look and operate) because obviously, it’s free of charge. Also because it releases the updated version every 4-6 months as the article mentioned. However, in my opinion, in term of business model, Microsoft, the monopoly, has a more sustainable business plan. The traditional way of employing high skilled programmers is certainly ensure the persistent development of the company. Moreover, from the customer’s point of view, even though, they have to pay a fixed software package in the beginning, but there’re no other expenses such as consulting like Red Hat. Moreover, the free technical support also make Microsoft has a higher position in the market. In addition, statistically, Microsoft has outstanding profit-making revenue for the past years. Linux, on the other hand, has a possibility of getting bigger in terms of revenue. Still, as I have said, volunteer programmers are not very reliable. Not only the success is terms of revenue, Microsoft has a better brand image because it has been in the market for so long and has so many loyal customers globally. Even though, Red Hat is trying to differentiate by focusing more on the small business, but Microsoft’s strategy is still ahead of it because it provided its service/product to a larger based customers. I’m sure that Red Hat isn’t the first competitor Microsoft has ever had, but it has overcome all of them. Because of all the reason mentioned above, Microsoft will remain the Monopoly in the market for still quite a long while. Michael E. Porter Michael E. Porter is a leading strategist who has a comprehensive understanding about economy and economic development of a nation. He invented the Competitive Strategy called â€Å"Porter’s Five Forces Model†. He is now currently the Bishop William Lawrence University Professor, based at Harvard Business School. Professor Porter is generally known as the father of modern strategy field, and also identified as the world’s most influential thinker on management and competitiveness. His works included 18 books and over 125 articles published in leading newspaper and business magazine. Professor Porter was actually graduated with high honors in aerospace and mechanical engineering from Princeton University, and continued with M. B. A with George F. Baker Scholar from Harvard Business School, also a Ph. D. in Business Economics from Harvard University as well. Porter’s Five Forces Model As I have mentioned, it’s a model about the competitiveness of a company by Michael E. Porter. It is a very well-known model in order to find the environment of a firm and also factors that influence the uncertainty. It states not only to win over your competitors but also to unite and work together between firms in term of partnership. One of the reasons why this model is well recognized is that it works from small to large company. The Five Forces in the model are Rivalry among current competitors, bargaining power of suppliers, bargaining power of customers, threat of substitute products or services, and threat of new entrants.