Why Is Microsoft's Evolving China Strategy
Read the case "Emerging Markets: Microsoft’s Evolving China Strategy" from the textbook. Complete questions 1 through 4, and complement your analysis with contemporary industry-, country-, and firm-specific research.
1. From an industry-based view, why does Microsoft feel threatened by Linux in China and globally?
Microsoft feels threatened by Linux in China and globally because Linux can offer a product that is much cheaper and substitutable to its own. Furthermore, it is a major threat to Microsoft because this allows another company to enter the market. Consequently, this could hurt the long-term market share for Microsoft in its handful of rivalries by allowing more competition into the seemingly monopolized industry. Essentially, if China …show more content…
Subsequently, the company offers its product at a rate that cannot be refused in comparison to its advantages over all others. Traditionally, the Chinese people have fled to their views on Microsoft as a whole; believing Microsoft to now be aligned with its own government’s development agenda. Furthermore, with Microsoft’s implementation of a premier research center in Beijing, Chinese populations now strive to be employed amongst the top-notch software talent in the entire nation. Ultimately, this not only improves how Chinese people view the company, but it also acts as an effective and efficient way to recruit unique talent to help the overall global business …show more content…
In essence, Microsoft stopped litigating with people and it tolerated piracy. This was a prime example of the short-term fix where the company could create a developmental reform with the Chinese government for the long-term success of Microsoft. Overall, after such efforts, the Chinese government allowed Microsoft’s business with full society integration by deeming it mandatory for only legal software to be used by both government offices and PC makers like. In the end, Microsoft effectively change the perception of allowing piracy just to see people, and became one with a long-term vision towards mutual success. Moreover, Microsoft successfully demonstrated the ability for a company to not only substitute particular portions of its product and adapt them locally But to also capitalize on its global relationships as opposed to other high-tech
1. From an industry-based view, why does Microsoft feel threatened by Linux in China and globally?
Microsoft feels threatened by Linux in China and globally because Linux can offer a product that is much cheaper and substitutable to its own. Furthermore, it is a major threat to Microsoft because this allows another company to enter the market. Consequently, this could hurt the long-term market share for Microsoft in its handful of rivalries by allowing more competition into the seemingly monopolized industry. Essentially, if China …show more content…
Subsequently, the company offers its product at a rate that cannot be refused in comparison to its advantages over all others. Traditionally, the Chinese people have fled to their views on Microsoft as a whole; believing Microsoft to now be aligned with its own government’s development agenda. Furthermore, with Microsoft’s implementation of a premier research center in Beijing, Chinese populations now strive to be employed amongst the top-notch software talent in the entire nation. Ultimately, this not only improves how Chinese people view the company, but it also acts as an effective and efficient way to recruit unique talent to help the overall global business …show more content…
In essence, Microsoft stopped litigating with people and it tolerated piracy. This was a prime example of the short-term fix where the company could create a developmental reform with the Chinese government for the long-term success of Microsoft. Overall, after such efforts, the Chinese government allowed Microsoft’s business with full society integration by deeming it mandatory for only legal software to be used by both government offices and PC makers like. In the end, Microsoft effectively change the perception of allowing piracy just to see people, and became one with a long-term vision towards mutual success. Moreover, Microsoft successfully demonstrated the ability for a company to not only substitute particular portions of its product and adapt them locally But to also capitalize on its global relationships as opposed to other high-tech