Maintaining Market Position

Let us consider the current market for software development and software developers:

Consider the big five technology companies: Microsoft, Apple, Amazon, Facebook and Alphabet’s (Google) positions in the software market. Each company commands large shares of the software and data markets.

How does each maintain market position?

Microsoft for example, has nearly 90% of shares in the desktop OS market, including all of the Windows versions

These transnational industries are dynamic and highly competitive. Frequent changes in technologies and business models are made in order to create opportunities to develop new products and innovative ideas that can further improve their business.

Each company also constantly conducts market research to identify the changing demands of customers, trends, and competitors. With the results of their research they are able to lessen the time period between these changes and their response (rapid response to technological advancements, support a wide range of software/hardware products), providing them with the competitive advantage necessary in maintaining their share of the market.

Through accessibility and operational efficiency- ease of access worldwide as well as consistency with products and various features, they are able to generate customer loyalty while addressing competition against other dominating companies, which hold significant presence in the online advertising market.

The effect of dominant software developers

Because these companies dominate most of the market, new developers with new products don’t have much of a chance at being successful, as most of what they have, has already been made by these other bigger companies. Yes their stuff might be great and do a good job but these bigger companies have been around for longer and are much much bigger, meaning that their customers will have loyalty to them and trust their products more than they will these new developers' products. It’s unfortunate for the new developers because they may have built something absolutely fantastic but it probably won’t go anywhere because of just how dominating and influential these companies are.

The flip side of this is that smaller developers, upon creating a new product that is popular or userful could be purchased by a much bigger company.

Since these companies have bigger impact they will take over the market and over crowd new products created by new creators therefore new products won’t have the exposure and be able to effectively show their products functions therefore won’t be able to sell their products.

The impact of new developers of software and new products