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Essay / Research Paper Abstract
A 6 page paper discussing Harvard Case 9-795-115. By 1993, computers were beginning to make themselves indispensable in Chinese business. The Chinese view was that the machines themselves needed to be purchased, but the information within them that caused them to operate should be a part of the machine, rather than a separate product for which they had to pay. Software piracy was rampant, to the extent that Microsoft’s Foxpro® was the leading product of its type in China, yet Microsoft had not sold a single legal copy in China. The paper recommends that Microsoft enter China, (1) gaining sales it would not otherwise have; (2) taking advantage of growing market share of US-based PC manufacturers; and (3) waiting for the Chinese government to take action against piracy in advance of its own foray into software development. Bibliography lists 5 sources.
Page Count:
6 pages (~225 words per page)
File: CC6_KSintlBzMSFTchina.rtf
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Unformatted sample text from the term paper:
By 1993, the Chinese economy was well into a state of overheating. Achieving economic growth rates of 12.8 percent in 1992 and 14.1 percent in the
first six months of 1993, most of Chinas growth in the early 1990s originated with investment from state-owned enterprises (SOEs) (Loong, 1993). The Chinese government had instructed the Chinese
people in 1978, "To get rich is glorious!" (Khanna, 1995; p. 6), and the Chinese government in 1993 was focused on achieving that end as quickly as possible.
In the meantime, computers were beginning to make themselves indispensable in Chinese business. The Chinese view was that the machines themselves needed to be
purchased, but the information within them that caused them to operate should be a part of the machine, rather than a separate product for which they had to pay.
Software piracy was rampant, to the extent that "overall losses due to piracy of computer programs in the PRC was over $300 million a year" (Khanna, 1995; p. 8).
Exemplifying the extent of the piracy problem in China is the case of Microsofts Foxpro. A survey in the early part of 1993
revealed that Microsofts Foxpro by far led its class of software programs in the PRC, accounting for 65 percent of its class. This would have been beneficial for Microsoft
had any of this software come to be in use because it had been purchased from Microsoft. Such was not the case, however. At the time of the
survey, Microsoft had not sold even a single legal copy of Foxpro in the PRC. All of the copies taking Foxpro to the place of accounting for 65 percent
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