Summary of Microsoft in China and India, 1993-2007
The Harvard Business School case study entitled “Microsoft in China and India, 1993-2007” describes Microsoft’s valiant efforts to carve out a place in the growing emerging market countries of China and India. The road to success with these two countries came at a price to Microsoft, who for the first time encounter difficulties applying U.S. learned strategies abroad. In order for Microsoft to succeed in China and India, they must truly learn the needs of the countries and adapt.
The delving of Microsoft into China and India began in 1993 under the leadership of Craig Mundie, the chief research and strategy officer at Microsoft. This was lead by Microsoft’s Chairman, Bill Gates, who made the “Beijing Declaration” that every house and desk in China will have a computer. Over the decade of Mundie’s tenure as chief he was able to accomplish significant grounds in establishing strategic relationships with the government and partner companies in China and India. In China, the government regulated all industries, so it was very important for Microsoft to have a working relationship.
The road to a success in China was not an easy one. In 1993, China had piracy rates of over 90% as well there were issues with the Microsoft product not being localized enough. Originally Microsoft made one brand of computer products for Chinese users without realizing there were different character sets that needed to be addressed. To address the piracy, Microsoft signed a licensing agreement with a local Chinese company and a memorandum of understanding with the government. This was not enough to make sales in China a true success.
A working relationship with the government was not always a luxury Microsoft enjoyed with China. In 1995, Microsoft learned the hard way of philosophical differences with the government of China when Bill Gates tried to convince the government that the market place should set standards. Microsoft...