The 2006 introduction of google docs an online alternative


The 2006 introduction of Google Docs, an online alternative but compatible software to Microsoft Office, forced Microsoft to develop new ideas to maintain its dominant market share. BBC News (May 12, 2010) reported that "Microsoft Takes Aim at Google Docs" by introducing a new online component with its Office 2010 product that offers the same features as Google Docs but with the familiarity of the Office software format. Why would the ability of Google Docs to read and edit a file created using Microsoft Office potentially cause the price of Microsoft Office software to fall? In your answer also describe another situation in which companies producing network goods have used different competition and/or price strategies to go ahead of their competitors.

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Business Economics: The 2006 introduction of google docs an online alternative
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