Microsoft: Patent, Piracy, and Political Challenges in China - Case Study Example

Competition is high in China as seen from other companies like Nokia, Apple, and Google other companies reducing their market share and also affirm trying to buy from other companies. The municipal too was very reluctant in embracing Microsoft by awarding other software companies contracts and shunning Microsoft’s interest.

Political risks to Microsoft were seen in China as China tried to manage this through signing deals with Chinese firms for instance in 2002 it signed a $ 750 million deal with China’s State Development and planning commission to invest in education and research cooperation among others. This led to it being favored at some given point by being offered deals.

To attract China’s market to Microsoft’s technology they had to present better opportunities. It stationed a representative office which also included the signing of agreements with various Chinese PC producers to open up their market (Ulrich, 2010). It also put up Microsoft’s first research in China which was also the first in Asia. It also widened its relationship by launching Chinese Windows 2000. By signing a deal in investing to education that is training, academics it led to the government to see the need for the Microsoft Windows operating system which led to partnership deals with some of Chinese firms for instance shanghai Alliance Investment Ltd. (SAIL). It provided other software operating systems such as Microsoft XP and also software for personal devices. It has signed an agreement to the production of hardware for Chinese firms.

Most firms experience challenges in different places. Competition is a major reason and also the introduction of a new company cannot be easily accepted in the market. This is because of the risks involved people tend to ask questions like what if it is a fraud, poor quality, and other reasons (Buderi & Huang, 2006). This, therefore, is not an exception in Microsoft’s software as it also experiences such issues. In every business, there must be risk probability. Through Microsoft’s supporting finances it improves the relationship between Microsoft and the Chinese government. According to Ulrich (2010), this makes them embraced in the country’s market. Its transfer of technology to Chinese software firms brings about competition in the market and also improves the quality of software produced by other companies.

These risks can be managed through proper education on the kind of software produced, putting up fair prices in the market, and also improving their relationship with China through engaging in social activities, and assisting the disabled among others (Ulrich, 2010). Microsoft should try Internet censorship in China as seen by Google on how it was embraced well. Through good Internet services, they will be able to lure most people as they offer a variety of services to China. This will lead to competition with other companies but can also create a pathway to the Chinese market and worldwide. It is the world’s largest and also internet accessing and mobile market and by putting it in the market it will enable Microsoft in gauging whether it will be acceptable globally.