Question

A key part of Microsoft's business strategy in the video game console market has been?

1) to wait until competitors introduce new technology in their products before incorporating the technology in its products.
2) to concentrate on selling its products through large discount retailers like Wal-Mart.
3) the innovation of new products which initially have little to no competition.
4) to dominate the market by offering low-end products and beating its competitors' prices.

Answer 1

A key part of Microsoft's business strategy in the video game console market has been the innovation of new products which initially have little to no competition. This allows Microsoft to gain a temporary edge over its competitors and earn above-normal profits.

Step-by-step explanation:

A key part of Microsoft's business strategy in the video game console market has been the innovation of new products which initially have little to no competition. By being the first to introduce new technology, Microsoft can gain a temporary edge over its competitors, allowing them to earn above-normal profits. This strategy aligns with the idea that market competition provides an incentive for discovering new technology, as it allows a firm to produce products more cheaply or create products with characteristics that consumers want.