International management case study
Main Problem Microsoft domination of the Chinese software Industry and failure to adapt their strategy to the Chinese culture. Due to this, Microsoft experienced patent, piracy, and several political challenges with the Chinese government and local firms.
China’s respect for intellectual property rights is underdeveloped and the Chinese government has not taken sufficient steps to defend ‘pr. Alternative Solutions 1 . Continue to partner with local governments, FBI, Chinese officials, American politicians and corporate executives to come up with efforts and press china to crack own on piracy.
It benefited them to invest and partner with local gobos. Alternatively, Google had difficulties with belong that led them to withdraw some AT It’s operations Trot Canaan. Collaborating Walt local g In Canaan NAS proven critical for Microsoft success in china. 4. Microsoft strategy is reactive. Having a product such as a software system, Microsoft has to protect the source code and prevent piracy.
Google, Apple. Microsoft is making itself vulnerable by sharing Microsoft source code with the Chinese government and companies.
Competing companies are vulnerable to piracy and risks Just like Microsoft. Foreign software companies, like Microsoft have the option to manage risk by collaborating with the Chinese government and local Chinese firms and rep the benefits these options provide.
Secondly, the Microsoft faced another risk is nationalism in China, it could leads to people and firms reluctant to buy foreign products, and do business with foreign companies. It is not good for Microsoft’s security and independence in China. These risks are diminishing in the future.
The reason of this is Microsoft already opened another international company in Shanghai, and Microsoft also opened market of Windows XP, MS, and Vista in China. China becomes a large international market for Microsoft in the world. These risks are present in other developing countries.
Piracy rate is higher than developed countries because the piracy products are cheap. The individuals of countries would like to buy local products than international products. For these two major risks, Microsoft also need to faced in other developing countries
