MICROSOFT IN CHINA AND INDIA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

MICROSOFT IN CHINA AND INDIA Case Solution

Fone+

Many members of senior management doubted their opinion about the launch of windows starter edition that the initiative of this software was efficient enough at an entry level but in both countries cell phones were more preferred than PCs.

PROS:

High usage of Cell phones:

The use of PCs in China was almost 17% of the total population, so in order to make good revenue windows starter edition wasn’t a good option. There was a widespread usage of cell phones in the Chinese market as compared to PC’s. Therefore, a huge opportunity existed in the market.

Unique offering:

Market required that the product should be unique as compared to other phones in the market which was fulfilled with Fone+.

Cost competitiveness:

Market required a cost competitive phone in the market with more features and Fone+ was one of them. It had the ability to fulfill all the customer needs.

User Friendly:

Consumers required internet access instead of using Microsoft office and other applications on PC. Microsoft developed windows based smartphone while providing with the full package of television and a keyboard connection.

CONS:

Tough Competition:

Fone+ was low priced product and wasn’t able to match up with blackberry users which could affect the profitability of Microsoft. Moreover the organization was not be able to serve PC users if they implemented Fone+ in both emerging markets.

PREFFERED:

According to my opinion in both economies, there should be Fone Plus software implementation because technology is taking over the world and people are trying to move on gadgets that are more convenient and they can easily travel with them. Windows starter edition could be profitable but the profit will decrease over time because people are shifting to mobile phones and mini computers for usage at a fast pace. On the other side, if they will launch Fone+ that will have a long-term survival in the market, as more people are now using mobile phone so Microsoft can expect more cash inflows in future from the launch.

Answer 2:

The major reason of MSFT having less than 5% of global revenues in China and India was due to lack of investment in Research and Development departments in both countries. Initially, there were several issues faced by Microsoft at the time of designing its product for India as well as China. To rescue itself within these two regions, Microsoft had got alternative solutions. Since many of the software developing enterprises were owned by State and it had been difficult for Microsoft to penetrate in the market therefore, it required government support to expand their operations in both the regions. To grow its product line in China and India, Microsoft should have invested money into other areas of Chinese and Indian industry. Microsoft needed to restructure its management in the Chinese and Indian regions. Government security programs should have been announced by Microsoft to address the security issues regarding counterfeiting of the operating systems. Many other initiatives should have been taken by Microsoft for instance: contract manufacturing, outsourcing and investments in training and education. In my opinion, these strategies would have helped Microsoft to buildup long term relationship with China and India and it would have increased its sales. Other reason of low sales was the ineffective marketing campaigns which did not highlight significant advantages of buying genuine Microsoft software. Microsoft’s investment within marketing campaigns and stricter controls over counterfeit software would have boosted its sales and grasped a huge market share.

Also, a long term strategy with a long term focus was required to achieve the required goals. Customers always tried to find easy alternatives to switch on, investment in PC software didn’t have potential growth in future. Teenagers were no longer interested in PCs. Youth was the one Microsoft should have focused on because they could have given it a long-term cash inflows. The market of mobile phone software had significant potential in future and by the end of 2010 Microsoft would have easily been able to achieve its desire profit. The organization already had strong positioning in its operating sector, customers would have preferred Microsoft over other competitors. The effective marketing and communication of new launch could have leaded to jump in revenues from China and India.

Answer 3:

The Research and development was appreciable of Microsoft as per the case, the firm structured research centers in China called Microsoft Research Asia (MSRA) researching on computer sciences. Another research Centre was structured in India MS Research India (MSRI) to analyze and study Indian market behavior. Research was really helpful to make decision that what products market were demanded in the market and in which sector they were not meeting demands well. Researching strategies at the back, supported the ideas of new products. That’s what Microsoft did, they performed a well-structured research and came up with innovative ideas of new products but they couldn’t maintain the quality of their research centers until recent past.

Conclusion:

Overall, Microsoft was looking forward to expand its operations in two big emerging markets and experienced significant growth in sector, the firm was trying its best to achieve desired goals. Despite of all the efforts the firm was unable to make sufficient revenue from market, to solve this issue firm conducted a huge research and came up with few innovative ideas.

Recommendations:

Microsoft should focus on the launch of Fone+ because the productive is innovative and has a long term focus. Moreover, the marketing and advertising for the product should be effective enough to communicate uniqueness of product. The firm should introduce some new features in Fone+, arising with demand of the user..............

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MICROSOFT IN CHINA AND INDIA Harvard Case Solution & Analysis