The aim of this paper is to explore the challenges that Microsoft faces in China, and its strategic move to alleviate the challenges. It will address the lessons that we can learn from the company’s strategic changes from an institution-based view. It will also address the resources and capabilities that the organization has in relation to its Chinese customers and the government of China. The threats that the companies rival Linux poses to it both in china and globally will be discussed. Lastly, the paper will address ways in which the company’s spokesman can respond to criticism emanating from free speech and human rights critics.
Microsoft’s operations in the Chinese market began back in 1992. Despite commanding a major …show more content…
This provided an opportunity for employment of top-notch software talents in the country. The company elevated its research and development, and trained thousands of professionals. These professionals are important in ensuring that the company offers the best possible services to its customers, so as to counter any possible challenge from its rivals. The company, in partnership with the National Development Reform Commission, built a software industry. The software industry is important in meeting the demand for software in the country. The company also promoted computer literacy, in collaboration with the Ministry of Education, by financing computer classrooms in rural …show more content…
First, in China, the Software is manufactured locally, and it is free of charge. Windows, on the other hand, comes with a price. It goes without saying that people will definitely, go for the free Linux operating system, rather than buying the expansive Microsoft’s Windows operating system. In the long-run, a public infrastructure for a software industry built around Linux could generate an alternative eco-system with more low-cost rivals that will break free from the dependence on the use of Windows. Failure to use Windows will imply the demise of Microsoft, both in China and globally. Similarly, in the Chinese context, Linux had initially received government support. Any product that has the support of the government, will always find favor in the eyes of the public. Consequently, this could have threatened the success in penetration of the market by Microsoft’s Windows operating