Tutorial
Case study: Microsoft Opens the Gates: Patent, Priacy, and Political Challenges in China.
Q1: What are the risks that Microsoft has faced in operating in China and dealing with the Chinese government? Do you see these risks as increasing, diminishing, or changing in the future?Are these risks unique to China or present in other developing countries?
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…show more content… As one of the top of techonology company in the world, Microsoft has high level techonology skills than other countries. The government of that country need increasing their techonology level for countries and individuals, so they need products of Microsoft. Another opportunity is Microsoft could reduce their cost, it is easy to using less cost to increasing more market.
Q4: Do other firms have the same risk management options as Microsoft? If so, why? If not, why not?
A: Yes or no, it depends on the type of company. If the companies have similar products with Microsoft, such as other techonology companies, they would faced the same risk with Microsoft, but it is better than Microsoft faced. Because China already take some actions for the rate piracy. On the other hand, companies would face the same risk for nationalism, individuals and government would like to buy local products, rather than international products. If the companies are not relavent with piracy, they would not faced same risk with Microsoft. For example, the company sell cars, it would faced little risk for their piracy rate.
Q5: Is Microsoft creating serious risks by supporting, financing, and transferring techonology to local Chinese software firms? How might Microsoft manage thses risks?
