Microsoft in the People Republic of China

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Pages: 4
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Situation: Microsoft (MS) is losing money in PRC, partly because of the lack of intellectual property protection in that market and partly because its product (Windows 3.1) can not meet local customers" needs due to low level of localization. Since localization of Window 3.1 seems indispensable for MS to succeed in the promising PRC market, the question for MS is choosing the best localization solution from the available three choices. These choices are either leaving the market …

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…support) + ++ - Product Quality - ++ + Legal (Combat piracy) - ++ - Sales - ++ ? (probably negative due to political consideration) Cost advantage (technical process) ++ - + Time to Market ++ - + Competition - ++ + Distribution Status quo ++ - Standardization - ++ - Exhibit 3 Congruency Assessment Matrix Business Resources For. Jobs Government Needs Cap. Ex. Tec. Trg. Mgt. Infra. Mkts. Taxes Economic Employment + + + Training + + + + Bal. of payments + ? Growth + ? + + + + + + Productivity + + + + + Infrastructure + + + + Fiscal revenues + Political Economic Power + ? + + + + + Credibility + + + + + + Social Education + + + + + + Health + Housing + Income equity + + + +