Microsoft Opens the Gates: Patent, Priacy, and Political Challenges in China.

934 Words Jul 28th, 2011 4 Pages
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Case study: Microsoft Opens the Gates: Patent, Priacy, and Political Challenges in China.

Q1: What are the risks that Microsoft has faced in operating in China and dealing with the Chinese government? Do you see these risks as increasing, diminishing, or changing in the future?Are these risks unique to China or present in other developing countries?

A: There are two major risks that Microsoft has faced in operating in China. Firstly, after China joined WTO. Although Chinese government taks some actions for its IPR, especailly for foreign compnies, the rate of piracy still not decreasing a lot. So the Microsoft’s risk is need to dealing with the government of China, to decreasing the piracy rate of Microsoft business in
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Microsoft also supports Shanghai government’s software sector. Microsoft agreed to let the Chinese government see the source code for the Windows operating system and all Office 2003 products. It has favored some of these techniques versus others, because it could help Microsoft dereasing risks in Chinese market. On the other hand, it could help Microsoft increasing market in China, Microsoft using other local products to help them share technology market. Microsoft allowed other local companies using their product, and also using for government, these two actions are worked best. The Microsoft should increasing their market share in China, and it could still using local companies and government. Then Microsoft has enough market share in China, it could sell their products by theriselves, and compete with other companies.

Q3: In its dealings with China, Microsoft frequently had to deal with lower levels of government. What special types of challenges and opportunities did this present?

A: The challenge of Microsoft has to deal with lower levels of government is piracy rate of countries. That countries might has high rate of piracy, so the Microsoft should faced the similar situation with China. Another challenge is individuals of countries would like to buy local products than international products, so the Microsoft is hard to increasing market in that country. The final challenge is focus on the consume and income of that country. If the products of

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