UNIX is a powerful multiuser operating system designed for use with servers. UNIX’s popularity has grown since it was developed by Bell Labs in 1969, as Internet usage has expanded dramatically. More recently, however, a branded version of another operating system has become available. This product, called Red Hat Linux, is a potential replacement for UNIX and other well-known operating systems.

a. What feature(s) characterize this market and how does it affect the conditions for entry and expansion by Red Hat?

b. What actions might UNIX take to deter entry?

c. What pricing strategy would you would recommend for Red Hat and why you recommend it?