Microsoft is the market leader for its software product segment such as operating system and MS-office tools. However it has been experiencing many challenges by the existing competition level. Microsoft implements technology driven business strategies and often worrying about the customers’ wants and needs about the technology (Smith, 2003). Microsoft aggressive strategy of ‘Bundling’ was found guilty of illegally maintaining a monopoly. Later it was permitted to bundle products with relatively minor restrictions. In the existing competition level in the IT industry, Microsoft has created such a market where it is experiencing monopoly situation and plays a vital role for decision making process with respect to price of other competitor’s products.