Marketing Strategy Study Help Online review analysis: Microsoft Case study:: Risks & management
Question Aked??
Write a case study on Microsoft case study with respect to risk management???
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Introduction:
Microsoft is the leading company in the world and headquarter is located in Washington. It is focused on developing the manufactures and supports the wide range of product to the computer. The company also engaged in providing the desk top software and servers related to the internet search and video games. As per reimer the powerful strategy adopted by bill gates led the company to achieve the hall mark success in the history. The company established in different parts of the country with the great fame and brand. It is deserved the quality of unique among the competitors and achieving continuous success in the business. In this case study the barriers which the company has faced in china when trying to establish the foot mark in the country and how it tackles to continue the business in a peak position under critical situations. And the also express the strategy and key methods to step forward against all the barriers.
Microsoft is one of the top most companies in the world for operating system. Since this company established huge potential in all over parts of the world… but when the company tries to open in china to make steady platform it has been faced serious issues in china. There are two major issues that Microsoft has been faced in china for operation. The first and fore most thingsare china has joined in the world trade organization due to IPR china has taken some steps for the foreign companies. The piracy rate is not decreasing to greater extent. It has made serious problem for Microsoft to deal with the Chinese government to reduce the rate of piracy. The other most important issue is the nationalism in china. It will allow the people and the organization to bur the foreign product. It will create a major problem for the security to Microsoft and for the china independences. The risk will affect the firm in the future. Now the china has become larger international market for the Microsoft windows in the world. This risk is not happening in china and its happening in all other parts of the country. The piracy rate has been increased in day to day life. Because it is very cheap and easy to access the software. This issue has been increased to the greater level in all the countries so it is great setback for the country to bounce in high level.
Microsoft is deserved the quality in the international standard for standalone in the software maker. Microsoft system and the product released by the Microsoft had given major hit in all over the world. But in china it has taken some steps to manage the political issues which favor lot to establish sustainable market in china. The Microsoft has analyzed the piracy rate of intellectual property as the great violation of one’s knowledge and the idea generated by the person. The intellectual property also includes some of the major factors like brand name, formulas, invention and knowledge. Because these factors are the most tradable property in the digital market place. In order to manage the political situation the company has decided to give the opportunities for the people in china. So the company opened the represented office with the preloaded software and their computers. After that gates visit china to launch the Chinese windows following frosty reception. Due to this activity the company given equal importance for the china to establish their product and also boosted for prospective growth. In order to strengthen the relationship between china and Microsoft they jointly open a research center that has become the second international research center and the first in the Asian country. Now china is the most populous country in the world and became the most important point for the information technology. And it has helped the company to move fast forward
In the December 2001 the Beijing government hasshunned the Microsoft by awarding the software operating system contract for 2000 PC to red flag Linux. This company is the local developer of Linux in china. After that Microsoft has signed agreement for four other companies in china. The legends are TCL, Tsinghua, Tongfang and the great wall to preinstall the operating system in the computer. They also signed an agreement with shanghai municipal government to develop the software sector into a high level. And it also wants to expand as the global support center it became the first foreign organization to became member of the Chinese software industry. In the later year the Microsoft has entered Chinese zhongguancun software with the two Chinesefirms. Even though the deal was not big but it has some positive vibration in the agreement which help the company to move further towards the objectives. In the same year the Microsoft has signed an agreement for $750 with the china state development and planning commission which committed company to invest in the education and local software companies. The company has also agreed china to sell the source code for windows operating system and all office for 2003 products. In 2005 the company has announced the partnership with shanghai alliance investment ltd to launch the MSN online portal for china to deliver the MSN product to their customers in china. And also developed partnership with the Chinese mobile software to enable thee new product and services.
The risk management is same for all the companies for trying to establish in other country to expand their business to a greater extent level. As per Kennedythe companies have fundamental risk management objectives by altering the operation capital and structure. Integration is one of the most important factors faced by the firm. The issues will be same as what Microsoft facing in china. But it can be altered only through the successful management and the way company which handles the pressure in the critical situations. Eachand every company has the option to handle the risk management. The risk also provides with the great opportunities. The simple method of risk taking is to expand the risk to larger level to reduce the potential of downside risk. Defining the correct strategy based upon the economy of the country and market value helped to establish in the potential way. It will add advantage of offering job to the local people which will create positive impact on the company by the government and the local people. Moore over the company should come up with the innovation idea to balance the local government and the people because it should not affect the growth of the company and the business. The basic decision and objective will add good risk management and also provide the platform to reduce the financial fluctuations in the firm. The risk management will affect the firm when the objection isnot in correct pattern.
Definitely it will create a problem for the company growth by supporting through the technology and financially supporting. As per Craig the china is agreat attractive market for the Microsoft and has source of rich talent in the potential area. Because it has deserved the quality of one of the fasted growing software market in the world. China has the range of 650 million mobile phone subscribers and it expected to have the double the growth. The market search is the most important strategy in china. Because of a great support has given to china it has become the center part of the innovation hub. It is not an easy task to get the profit from china and the Microsoft has facing the serious competition from the other competitors like oracle, appleGoogle and nokia. And the toughestcompetition is china firms that hold the power of competing with software giant and becoming more aggressive in challenging the Microsoft with the staff budget and buying the other companies. In the future also softwarepiracy will continue to exist in a high level and produce a great challenge for the Microsoft ability to profit from china. The most important reason for the Microsoft software will encourage the piracy. But after many years of refusing to cut the prices of software in china. The challenge for the Microsoft china given importance for IPR is still underdeveloped and has not taken steps to control or demolish. If the Chinese government has taken the several steps it can be avoided the pirated version of software to the local firms to earn the profit through the piracy
The Microsoft has reached to hall mark place in the world for operating system. In order to sustain in the market they should come up with the strong strategy management. That should protect them in all various issues that they are facing in the past and in the future. It should deploy in a strong way to develop the firm in a successive path. They should also follow the Google technology to restrict the people to steal the software from theinternet. Internet censorship in India is stringent in the world. They should intercept the data incoming and should compare with the ever changing of banned words that contained in the list. To protect the information. The Google accused the Chinesegovernment of disrupting the Gmail service in the country and making them to the technical problem and has became thee serious issue for the goggle. The internet censorship is employed in china to limit the access the harmful material andalso provide to declare the information unhindered and the communication technology including the internet.Itwill also serve as the one of the essential step in the advancement of the developing countries. The limitation and restriction should be strengthening to avoid the stealing of the software. This will favor the company to protect the data well in the secured way. They can release the software with all the copy rights in the desired price. Which also benefits the company and Laos increase the revenues for the company and place the company in healthy financial position. When the limitation are not in proper way it may causes to lose the data and confidential information which will be released without any rights in a cheaper prices.
Conclusion:
Though the Microsoft has faced several problems in the china but they made brilliant steps for the growth of the business in their field. And also balanced the situation under critical time to bounce back. They have also managed to give preference for the local companies in china to use their product and technology and also proceed the job opportunity for the local people to eliminate the unemployment. The company also had maintained the fair relationship with the ministry as well as the local municipal government. Thecompany has supported the economy of china by making their foot path in their soil.
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