Some products generate value only when combined with others, otherwise they have little or no value in isolation (Katz and Shapiro, 1994, p. 93). This is called the network effect – the fact that higher consumption of specific products makes them more valuable (Sundararajan, 2003, p.1). Another scientist, Leibenstein, calls this effect “the ripple effect” – “the extent to which demand for a product increases as a result of others also consuming the same product” (Besen, 1999, p.1 ). The economic basis of network effects has received much attention, as it appears to be important for understanding the main characteristics of modern high-tech industries (Bresnaham, 2001, p. 2). Transportation systems, telecommunications systems, etc. present network externalities, particularly the IT market (Lee and O'Connor, 2003, p. 242). Computer operating systems and compatible software are some examples of products subject to network effects. Users prefer to have an operating system on which they can install a large number of applications (Fisher, 2000, p.181). The objective of this article is to understand how the network effects of Microsoft products contributed to its growth. and market dominance. In order to answer this question, the following points need to be explained and analyzed. First of all, it is worth discussing the network industries environment in which Microsoft operates. Additionally, terms such as “critical mass” and how it is generated; “Tipping points” and their impact on the future of products, etc. must be described. Furthermore, it is worth describing the strategies and tactics used by Microsoft to maintain its positions in the market. As a reminder, this ...... middle of article ......uct (Economides, 1998). Additionally, Microsoft integrated Internet Explorer into its operating system, aiming to create a similar installed base for IE to create a barrier to entry for competing browsers. They moved the competitors' entrance. Additionally, it is important to mention that a "company like Netscape has less incentive to develop and write software applications if Microsoft can develop its own version of those software applications and bundle them with Windows" (Clements, 2002, 13) . the development of Ethernet technologies also helped Microsoft. According to With Paper, several millions have been invested in intranet networks, servers, work networks, etc. This made Microsoft the first company whose products were capable of operating in large networks. This in turn attracted large organizations and government institutions to the Microsoft product..