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Triple A Learning IB Blogs

October 16, 2011

iCloud and Barriers to Entry

In studying the characteristics of firms the concept of barriers to entry is a central one and highlights the fundamental difference between free competition, where there are no barriers, to monopolies, where high barriers to entry safeguard the power of a monopoly to be the price setter.

The article, Apple using iCloud to lock in users after online misfires, argues that Apple is hoping that the release of iCloud will succeed where other internet ventures failed and raise barriers to entry against competitors like Google.

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March 18, 2010

Monopolies and the forces of “creative destruction”

Photo courtesy Robert Scoble

This article, Microsoft’s Creative Destruction, by a company insider laments the fall from grace of what was once one of the world’s most creative firms. He tries to answer the question as to why  Microsoft now fails to bring the world the future as it once did. He argues that the excitement that used to be engendered by Microsoft has been captured by other products like Apple’s iPhone and iPad, e-books like Amazon’s Kindle, smartphones like the BlackBerry, search engines like Google, digital music systems like iPod and iTunes and popular Web services like Facebook and Twitter. He is puzzled as to why his company has garnered so much antipathy:

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