Preview

Microsoft in China & India

Powerful Essays
Open Document
Open Document
7294 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Microsoft in China & India
Microsoft in China and India, 1993–2007 It was early summer 2007. Craig Mundie, chief research and strategy officer at Microsoft
Corporation, had just completed a transcontinental phone call with Orlando Ayala, Will Poole, Tim
Chen, Ravi Venkatesan (HBS MBA 1992), and Ya-Qin Zhang, all members of the senior management team overseeing Microsoft’s growth in China and India. A decade ago, Mundie had begun to broaden
Microsoft’s forays into both countries. Now, he continued to mentor the China and India teams.
Mundie saw his role as one that mitigated ventures that others within Microsoft might find too risky to undertake and thus to try to fill “white spaces” in Microsoft’s offerings. Chen and Venkatesan headed Microsoft operations in China and India after successful careers with, respectively, Motorola in China and Cummins in India. Ayala and Poole were Microsoft veterans now focused on middle- and bottom-of-the-pyramid products and services, and Zhang headed Microsoft’s research activities in China. Mundie had reason to be pleased. Over the past decade, Microsoft had established a successful footprint spanning research, development, and sales in both China and India, and just a few days back, on April 19, 2007, Microsoft Chairman Bill Gates had unveiled an ambitious plan for the future.
Addressing the Microsoft Government Leaders Forum in Beijing in the presence of dignitaries like
Nobel laureate Mohammed Yunus, Gates had outlined the Beijing Declaration, which stated
Microsoft’s aim to increase the number of people with access to computers from 1 billion in 2007 to
2 billion by 2015. It had been 31 years since Gates’s founding dream for Microsoft, “a computer on every desk and in every home.” Microsoft had grown its China and India revenues threefold in the past three years. China and
India had won the “best large subsidiary” and “best emerging subsidiary” awards, respectively, at
Microsoft’s annual global sales meeting in 2006. More importantly,

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Microsoft products are used widely throughout the world with little or few competitors. The corporation can almost be considered a monopoly within its market. When considering its Net income, Microsoft Corporation has demonstrated a high increase in net income since the global financial crisis from 2009 to 2013. The company’s net income increased from approximately 17% to 25% respectively, and the Stockholders ' equity increased from $39,558 million in 2009 to $78,944 million in 2013 approximately 100% within four fiscal years. This has increased the number of investors for the company and will likely bring high return on…

    • 389 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Bill Gates is now one of the world’s wealthiest individuals, but he did not earn his fortune in a straight line to success. Before launching Microsoft, Bill Gates was a Harvard University dropout. Gates entered the entrepreneurial scene with a company called Traf-O-Data, which aimed to process and analyze data from traffic tapes in Seattle. Although when he attempted to sell the idea alongside his business partner, Paul Allen. The product barley worked, it was a complete disaster. Nevertheless, Gates prevailed through his failure driven by his passion for computer programming. Microsoft went public in 1986, “Gates amassed a huge paper fortune as the company’s largest individual shareholder. He became a paper billionaire in 1986” according to editors of Britannica…

    • 1256 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    team prospectus

    • 3514 Words
    • 10 Pages

    Intro: A description of how wide the Microsoft’s products are used in our daily life followed by a question how Microsoft could be so successful.…

    • 3514 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    By 1995 Microsoft was a juggernaut in the global economy. The term windows was synonymous for personal and business computers the world over. Money was being raked in by the handfuls and had been so doing for many years. But as stated above, when dealing with different cultures, one miss-step can set you back a mile or millions, as it were.…

    • 862 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Economics Microsoft Case

    • 526 Words
    • 3 Pages

    Investigation into Microsoft began in 1991 by the Federal Trade Commission under suspicion that the company broke anti-trust laws and engaged in coercive activities prohibiting competitors from entering or participating equally in the market. “The plaintiffs alleged that Microsoft abused monopoly power and monopoly market structure on Intel-based personal computers in its handling of operating system sales and web browser sales “(The Microsoft Monopoly, 1998). The primary concern of the Federal Trade Commission and eventually, the Department of Justice, was whether Microsoft should be able to bundle its own web browser, Internet Explorer with the Microsoft Windows operating system. In 1998, The Department of Justice brought an antitrust suit against Microsoft. The suit included “twenty U.S. states suing Microsoft for illegally thwarting competition in order to protect and extend its software monopoly” (United States v Microsoft). In the end, “Judge Thomas Penfield Jackson ruled that Microsoft, with its Windows program, possessed monopoly power over a particular kind of operating system” (Rothstein, 2001). Later, the ruling was over-turned in the D.C. Circuit Court of Appeals and in September 2001, the DOJ announced that it was no longer seeking to break up Microsoft as previously ordered by Judge Jackson. It would instead impose less of a penalty.…

    • 526 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    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 China. Secondly, the Microsoft faced another risk is nationalism in China, it could leads to people and firms relutant 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, MSN, 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…

    • 944 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Bill Gates Paper

    • 608 Words
    • 3 Pages

    -Gates had a vision: He believed that every home and office should have a working computer. He also saw the huge effect computers could have in helping companies maximize their potential. This is reflected in the mission statement of the Microsoft Corporation: "To enable people and businesses throughout the world to realize their full potential."…

    • 608 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Microsoft Corporation (Public, NASDAQ:MSFT) was founded in 1975 by William H. Gates III. The company’s mission is to enable people and businesses throughout the world to realize their full potential. They have worked to achieve this mission by creating technology that transforms the way people work, play, and communicate. They develop and market software, services, hardware, and solutions that deliver new opportunities, greater convenience, and enhanced value to people’s lives. They do business throughout the world and have offices in more than 100 countries.…

    • 750 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Microsoft’s emergence as a software superpower was due to the unfolding of a unique set of circumstance and a combination of luck and skill. Since the early ‘80s, Microsoft’s has a good share of the market of personal computers operating systems but the rise of this company has been widely caused by an IBM’s wrong evaluation. In those years IBM was the world’s largest computer producer, but its managers decided to not invest money into development of personal computer technology because they thought that this sector would never been profitable, but only a niche market. When IBM’s managers realized that the market was growing very fast and the company was in danger to lose its leadership, they decided to base their personal computer on Intel microprocessor and Gary Kildall’s operating system, named CP/M, instead of developing their own. Kildall decided to not sign with IBM and their choice fell back on Bill Gates that bought an operating system based on CP/M and made it compatible with IBM’s machines, creating Microsoft DOS. Every IBM’s PC used this program, so MS DOS had a huge installed base, and the other companies who wanted to stay in the market could only develop a compatible software, also a lot of applications and complementary goods were developed for this platform and it generated a “virtuous circle” that made Microsoft the world’s fastest-growing software company. To be more functional for users and to fight against Apple, Microsoft decided to create a new graphical interface, named Windows and with that reached the leadership on personal computer operating system market and a large market share in many other software market such as word processor and presentation programs, influencing software and hardware industries thank also to its capabilities of encouraging…

    • 793 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Failure of Juliet Wu

    • 548 Words
    • 3 Pages

    On the other hand, personal awareness also led to her failures. Juliet Wu pointed out that four changes had to be made by Microsoft. Firstly, pricing strategy must be changed, especially the price of pre-load Windows system by OEM must be cut down. Secondly, anti-illegal uses of software actions should be focused more on international companies rather than local enterprises. Thirdly, Microsoft should only have one entity in China in order to be consistent with its image, strategies and tactics. And finally, she suggested that Microsoft needed to place more emphasis on personnel developments. However, the fact was that when Juliet Wu was appointed to be the general manager of Microsoft China, Microsoft still had the other three entities in China: Microsoft China Products Development Centre, Microsoft Law Department and Microsoft China Research Center. Juliet Wu’s ambitions and visions were exceeded her competence and legitimate powers.…

    • 548 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Living in today's globalised world feels challenging, even confusing at times, with distance no longer a reliable indicator of our involvements in the world. Some of our closest business ties may be stretched out over thousands of miles, and remain connected courtesy of a vast network that spans the entire globe. The massive business sector is so competitive that the fear of being left behind by the rapidly-changing faces of commerce leads many multinational organizations to expand and outsource. A prime example is the world's largest software firm, Microsoft. Under the committed leadership of Bill Gates, the world's wealthiest living person, the company successfully transformed itself from a corporation with only 11 employees to an international computer technology corporation that boasts over sixty-thousand employees and global annual sales of approximately forty-billion US dollars. The competitive nature of today's economy make it imperative for everybody to be on their toes, ready to market the next Mickey Mouse doll or the latest Windows operating system. Business and trade prospects are mushrooming throughout the world with every passing second; every man has to be greedy and selfish if it is fame and…

    • 946 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Microsoft is a pioneer in this industry and hence attracted extremely intelligent, creative and ambitious college graduates since its start up days. Bill gates knack of recognizing genius in others set a precedent. Prime example is Steve Ballmer who helped Microsoft sustain leadership in competitive market. Bill Gates and Steve have deliberately fashioned an organization that prizes smart people.…

    • 590 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    the Indian market. Why? The president of Wipro, one of India’s largest information technology service companies, said, “If you want to make it in India, what you need is a…

    • 1220 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    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…

    • 807 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Microsofts 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 intellecual property rights is underdeveloped and the chinese governemtn has not taken sufficient steps to defend ipr.…

    • 671 Words
    • 3 Pages
    Good Essays

Related Topics