Microsoft in the People Republic of China
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 + + + +
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