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The past, the present and future status of the Microsoft business in the peoples republic of china Q : conduct

a research using secondary data facts and figures e.g internet source, then study, assess and evaluate the present status, development and possible future expansion of Microsoft business in the Peoples Republic of China. Your assessments must be supported by your swot analysis based on the current external environment i.e pest or pestlied and its internal environment i.e strengths and weaknesses Technology CHINA As more computer companies entered, prices of PCs fell, and user demand surged over 95% of PCs shipped in PRC in 1992 used Intel chips for their CPUs. Opportunities: Home use market was growing as standard of living increased Entry of Foreign Firms Various Western firms formed agreements w/ Chinese institutions and companies to create software -

Threats; Piracy Berne Convention for the Protection of Literary and Artistic Works didnt protect US software Chinese believe that knowledge should belong to everyone...

Business Software Alliance (BSA) made of US firms was formed to fight piracy in overseas markets Signs of improvement: US and PRC signed memorandum of understanding to provide copyright protection to all foreign works by joining BSA - May 1992, major international software pirate ring was busted - Software Registration Office in Beijing was established Ultimately, though, still a huge problem, which deters SVs from writing application software


1992, Microsoft had $3.2B in sales, 55% of which was from intl sales (OPPORTUNITY) 1982, 1st overseas subsidiary opened in United Kingdom, subsequently opened offices in 40 other countries 1986, 1st Asian subsidiary (in Tokyo) 1984, distribute product in Korea; 1988, opened office in Seoul 1984, signed first OEM agreement in Taiwan; 1989, opened office 1989, opened office in Hong Kong 1993, opened office in PRC; Microsofts best in-house Chinese language programming capability was located in Taiwan 1992, PRC office, part of Greater China administrative unit, was established in Taiwan

Threats: Regional Competition Lotus was the only regional competitor. Lotus delivered localized DOS and Windows versions of its best-selling 1-2-3 spreadsheet in Japan, Korea, and Taiwan, and AmiPro word processor in Japan and Taiwan Lotus not as careful in localization of its software as Microsoft was.

Opportunity : Microsofts cooperation in china Microsoft has strengthened its close relationship with the Chinese government, partners, and customers in order to support Chinas informatization efforts in the areas of capital, technology, talents, and markets and to aid in the development of Chinas software ecosystem and IT industry for its win-win cooperation strategy. The main cooperation focuses on the following agreement framework:

Microsoft signed the $750M MOU with the National Development Reform Commission in June 2002 to work together to build a dynamic Chinese software industry, which includes a package of cooperation projects. The amount covers investment, training, technical cooperation, software projects and hardware procurement. In June 2002, Microsoft signed the MOU of Great Wall Plan with the Ministry of Education to develop its cooperation with Chinese universities in higher education in categories of academic exchange, talent training, research cooperation and curriculum support.

In November 2003, Microsoft signed a Cooperation Framework with the Ministry of Education on its informatization efforts regarding Chinas primary education in order to support primary and normal education. Microsoft signed the MOU with the Ministry of Information Industry in March 2004 to jointly build labs related to the State Public Service Platform for Software and Integrated Circuits.