Microsoft’s Suprising Appearance in Apple’s Latest Keynote
Link: http://fortune.com/2015/09/09/microsoft-apple-event-office/
Under Cook’s management, Apple has been transforming from a costumer-centric platform to a more business related firm. With this new mindset, they have made partnerships with Cisco, IBM, Microsoft, etc.
Earlier this week, on September 9th, apple invited a Microsoft executive to demonstrate the Microsoft Office on the new Ipad Pro during the keystone presentation. A majority of the crowd was baffled, as the last time this happened was in 2009 when Bill Gates invested in Apple, saving the company from bankruptcy. They introduced Microsoft on stage, as a strategy to create a more business-friendly image. By showing Apple’s improved compatibility with the Microsoft Office software, that so many businesses and companies rely on, Apple’s appeal to consumers grows. Companies no longer have to weigh the pros and cons of either using less efficient Microsoft software on Apple products, or the same software on a competing platform that performs superior to Apple. Likewise, Microsoft gets more exposure and users for the their software product on Apple’s hardware, because it enters into a new consumer market. As a result, Microsoft’s and Apple’s stocks went up 0.51% and 2.08% respectively.
This an example of Game Theory, in which it is in the best interest of each company to work together. It is a mutual best response, or dominant strategy, because both have the opportunity to profit with no expense to each other or to themselves. Each of these mutually beneficial relationships has allowed Apple to become more business oriented as well as profiting from reallocating resources, while the others gain from publicity and specific interests (versatility for Microsoft, increased distribution for Cisco, etc.).