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1、Microsoft Corporation15700 NE 39th St Redmond, WA 98052USAMr. GatesMicrosoft Corporation15700 NE 39th St Redmond, WA 98052USADear Mr. BallmerAttached is the report you request on 14 May analyzing the viability of the business opportunity. We have done a lot of research on making our marketing plan.T
2、he report provided details on the processes that we analyzing the viability of the business opportunity and the recommendations how we can improve our products.Our report proved that the China market is suitable for Microsoft to enter into. And Microsoft needs to take advantage of the good environme
3、nt around it. Microsoft Cooperation has more advanced technologies than the other competitors so that there are seldom competitors can defeat Microsoft. However, as a big firm, Microsoft needs to undertake more sociality responsibility to feedback the society.We have analysed the variability through
4、 7 aspects to decide if Microsoft has the advantages to compete with other firms. We have made out a lot of advices in the report for Microsoft to adapt to the situation. We discuss these points in detail in the report.Preparing the report has been valuable and challenging. If you have any question,
5、 you can discuss the question with me and I will give a satisfying answer. Yours sincerelyZhou XiangnanA REPORT ON assessing the viability of the business opportunity of MICROSOFT, Prepared for: Mr. BallmerSubmitted: 14 May, ,Prepared by: Zhou XiangnanSummaryThis report was commissioned by Mr. Ballm
6、er to assess if the Chinas environment is suitable for Microsoft Cooperations new product to enter into the market of China. The purpose of this report is to help the management in estimating the viability of the business opportunity when Microsoft Corporation intends to sell the Windows 8 operating
7、 system in the new market of China. This report provides an assessment of the varieties of environment of China and it also refers to some findings and potential implications Microsoft Cooperation needs to note. After assess the seven varieties of the environment, the report finds that China is suit
8、able for Microsoft Cooperation to enter into to promote Windows 8. The report finds that the economics of China is developing quickly and it provides many opportunities for Windows 8, while the rapidly developing of the economics of will also challenge the position of Windows 8. The political, legal
9、 and regulatory environment is not very good for Windows 8 to promote since China has put forward Antitrust Law. Whats more, Microsoft Cooperation has the suspicion of monopolizing the computer system and many other countries have sued Microsoft cooperation for monopolizing this industry which can b
10、e provided for China government to sue the Microsoft Cooperation. The social and cultural environments have little effects on the sales of Windows 8 because many people will use the computers. The climate and religions do not obstruct the use of computers. Technological environment will affect the p
11、roducts of Microsoft cooperation greatly. As an IT company, the development of the technologies can enhance the abilities of creativity. In the Contemporary environmental considerations aspect, Microsoft Cooperation also affects the environment around greatly. So change the traditional way to produc
12、e products it necessary for Microsoft Cooperation. Competitive environment shows that Apple and Google are the biggest competitors for the Microsoft Cooperation. The three products all have their own features. Internal evaluation shows that the products of Microsoft Cooperation are more superior to
13、the other two companies products.The environment analysis method is applied to use to analyse the many kinds of viabilities of the business opportunity in seven aspects. And the PEST method is also applied to analyse the micro-environment around the firm. Porters five forces model is used in the rep
14、ort to analyse the intensity of the market and if Microsoft can survive in the competition. Recommendations have been made that, if implemented, should minimise the problems. Microsoft needs to take advantage of the good environment around it. Microsoft Cooperation has more advanced technologies tha
15、n the other competitors so that there are seldom competitors can defeat Microsoft. In addition, as a big firm, Microsoft needs to undertake more sociality responsibility to feedback the society. Thank you for providing us the opportunities to work with you on this program. We will be glad to discuss
16、 any questions if you have.TABLE OF CONTENTS pageSummary4 TOC o 1-3 h z u HYPERLINK l _Toc 1.0Introduction8 HYPERLINK l _Toc 1.1 Authorisation and Aim of the Report8 HYPERLINK l _Toc 1.2 limitations8 HYPERLINK l _Toc 1.3 Scope8 HYPERLINK l _Toc 2.0 Background9 HYPERLINK l _Toc 2.1 Background of Micr
17、osoft Corporation9 HYPERLINK l _Toc 2.2Background of the Windows 8 Operating System9 HYPERLINK l _Toc 2.3Why Choose China10 HYPERLINK l _Toc 3.0 Environment Analysis11 HYPERLINK l _Toc 3.1 Economic Environment Analysis11 HYPERLINK l _Toc 3.1.1Stage of Market Development11 HYPERLINK l _Toc 3.1.2 Macr
18、oeconomic Conditions11 HYPERLINK l _Toc 3.1.3Market Size Analysis11 HYPERLINK l _Toc 3.1.4 Findings and Potential Implications12 HYPERLINK l _Toc 3.2 Political, Legal and Regulatory Environments Analysis13 HYPERLINK l _Toc 3.2.1 Political Environment13 HYPERLINK l _Toc 3.2.2 Legal environment14 HYPE
19、RLINK l _Toc 3.2.3Findings and Potential Implications15 HYPERLINK l _Toc 3.3The Social and Cultural Environments Analysis16 HYPERLINK l _Toc 3.3.1 The Social and Cultural Environments Analysis16 HYPERLINK l _Toc 3.3.2 Findings and Potential implications17 HYPERLINK l _Toc 3.4 Technological Environme
20、nt Analysis17 HYPERLINK l _Toc 3.4.1 Technological Environment Analysis17 HYPERLINK l _Toc 3.4.2Findings and Potential implications18 HYPERLINK l _Toc 3.5Contemporary Environmental Considerations Analysis19 HYPERLINK l _Toc 3.5.1Contemporary Environmental Considerations Analysis19 HYPERLINK l _Toc 3
21、.5.2Findings and Potential implications20 HYPERLINK l _Toc 3.6 Competitive environment analysis20 HYPERLINK l _Toc 3.6,1 Introduction of Competitive environment21 HYPERLINK l _Toc 3.6.2Industry analysis21 HYPERLINK l _Toc 3.6.3Analyzing competitors22 HYPERLINK l _Toc 3.7 Internal evaluation23 HYPERL
22、INK l _Toc 3.7.1Resource-based View of the Firm23 HYPERLINK l _Toc 3.7.2 Competitive strength assessment23 HYPERLINK l _Toc 4.0 Conclusion25 HYPERLINK l _Toc List of references27Appendics HYPERLINK l _Toc Appendix 1: Per capita of GNI in China in 28 HYPERLINK l _Toc Appendix 2: Three major industrie
23、s in China in 28 HYPERLINK l _Toc Appendix 3: Growth rate of GDP of China in 28 HYPERLINK l _Toc Appendix 4: Balance of payments of China in 29 HYPERLINK l _Toc Appendix 5: CPI of China30 HYPERLINK l _Toc Appendix 6: Market share of Windows in China in301.0Introduction1.1 Authorisation and Aim of th
24、e ReportMr. Ballmer requested this report on May 14, . The aim of this report is to help the management in evaluating the viabilities of the business opportunity before Microsoft Corporation intends to sell the Windows 8 operating system in the new market of China. It will also provide some strategi
25、es and recommendations to minimize the problems of our products. 1.2 limitations The environments of the market are fickle, so when you receive the report, the report may be not the same as I claim. And my writing English may be not very good. So if you have any question, I am glad to discuss the qu
26、estion with you.1.3 Scope The report will assess the viability of the business opportunity of the Windows 8 operation system when Microsoft puts its products in the China market. I will use the environment analysis method to assess the viability of the business opportunity in seven aspects. And I wi
27、ll also make some strategies which will improve our situation and reputation. At last, the report also gives some recommendations to improve the situations that the Windows 8 operation system enters into China market. I collect the information from many ways, while the most of information is collect
28、s from the internet.2.0 Background2.1 Background of Microsoft CorporationMicrosoft Corporation is the forerunner of the development of the personal computer softwares, and the company was founded by Bill Gates and Paul Allen in 1975. At present, Microsoft Corporation is the biggest computer software
29、 supplier in the word. There are at least 64,000 employers are working for the Microsoft Corporation directly, and the volume of business reached 60.4 billion dollars in . The main products and services are Windows operating systems, Internet Explorer and Microsoft Office. In 1999, Microsoft began t
30、o offer the MSN network instant messaging client program and began to offer Xbox to participate the game terminal Competition in . Nowadays, Microsoft has 7 core businesses: Windows operating systems, Windows server system, Microsoft office, tool development, Microsoft Business Solutions, games and
31、Xbox and Windows Mobile. 2.2Background of the Windows 8 Operating SystemThe Windows 8 operation system is a totally new product which is improved on the basis of Windows 7 operation system. The system aims to make the operation of the daily computer simpler and shortcut and it can also provide an ef
32、ficient and convenient working environment. The Windows 8 operation system will support the chip framework from Intel, AMD and ARM which means that the Windows 8 operation system start to stride forward more platforms including personal computer and tablet personal computer. The Windows 8 operation
33、system has many new features. Windows 8 enterprise edition can runs in the USB flash disk which is much of importance for the information technology people to change the working environment at any time. Hibernation function is a new function which can add the launch speed of the system. 2.3Why Choos
34、e ChinaI choose China as the target country due to China is a big country and it has a unique market. And Microsoft Corporation has produced a Windows 8 China edition for China because of the Chinas unique market. It is suitable for me to write the report. 3.0 Environment Analysis 3.1 Economic Envir
35、onment Analysis3.1.1Stage of Market DevelopmentFigure 1 shows that in , the GNI per capital had reached $4260, so China belongs to upper middle-income countries since the GNI per capital of China between $3946 and $12195. Figure 2shows that the percentage of primary industry is 10.18%, the percentag
36、e of second industry is 46.84% and the percentage of third industry is 42.97%. 3.1.2 Macroeconomic ConditionsThe Macroeconomic presents a good condition that the economics is slowly firm up. Internal demand firms up obvious since the investment and consuming become the main powers to make the econom
37、ics increase. The investment is growing rapidly and the production of industry is speeding. In addition, the range of decreasing of the HYPERLINK app:ds:price t price HYPERLINK app:ds:of t of HYPERLINK app:ds:commodities t commodities is slowing down. The Figure 4 shows that the balance of payments
38、presents the trade is increasing greatly. Recent years, the balance of payments of China always keeping current accounts and the capital and finance both surplus and the scale is keeping expanding. Nowadays, the exchange rate between U. S. dollars and RMB is decreasing with small fluctuation. 3.1.3M
39、arket Size Analysis The Figure 3 shows that the GNP of China in is 40.33 Trillion RMB and GDP is 6.04 Trillion dollars in . And from the income aspect, in , the HYPERLINK app:ds:per t per HYPERLINK app:ds:capita t capita HYPERLINK app:ds:income t income of China is 1100 dollars. The family income pe
40、r capita of urban residents reached 21033 RMB, while the family income per capita of rural residents reached 5919 RMB. The disposable personal income of resident is 10046 RMB. From the consumption aspect, the consumer spending of residents was 13.33 Trillion RMB, while because of rising of price of
41、food lead to the Engels coefficient ranched 39.76% in . From the population aspect, China has a population of 1.3 billion and the natural growth rate is 4.79. The 15-64 years people old occupy a percentage of 74.5%, 0-14 years old people occupy a percentage of 16.6% and the people whose age above 65
42、 year occupy 8.9%. Most people are living in the east of China so that the population density is big in the east of China. Respectively speaking, the urbanization level is much higher in the east of China and in these areas the infrastructure is relatively perfect. In the communication aspect, the a
43、mount of broadband Internet access had reached about 0.19 billion, the speed of the increasing of broadband Internet access is rapid (World Bank).3.1.4 Findings and Potential Implications The lasting surplus will cause the U.S. dollar devalue compared to RMB. And we can export the Windows 8 system m
44、ore easily to China. From the negative side, China is always surplus will make more international frictions so that it will affect the market of Windows 8. The HYPERLINK app:ds:consumption t consumption HYPERLINK app:ds:structure t structure of residents is more and more reasonable and the Engels co
45、efficient is getting smaller which presents that the residents are spending less money on food, they begin to enjoy the life. So the people will buy more computers or some other Electronic Products with the windows 8 system. The disposable personal income of resident is increasing year after year wh
46、ich means that the residents have more and more money for them to buy things, such as personal computers or some other HYPERLINK app:ds:electronic t electronic HYPERLINK app:ds:products t products with Windows 8. This phenomenon will lead to more residents become the potential consumers of Windows 8
47、. And the middle part of the population structure of China is very large, so many of them will use or buy the computer which will provide us a good opportunity for us to enter into China. In China, the east area is the most well- developed area and has the maximum density of people, so these areas a
48、re the most suitable places for us to develop since these areas have a big population and be equipped with many broadband Internet accesses. These all conditions provide us a good economic environment for selling our products. 3.2 Political, Legal and Regulatory Environments Analysis 3.2.1 Political
49、 EnvironmentThe political ideology of China is socialism and China is carrying out market economy system. The optical system includes system of peoples congress, system of regional ethnic autonomy, System of Community Level Self-Governance and Chinese Party HYPERLINK app:ds:single-party t single-par
50、ty HYPERLINK app:ds:system t system. The macro risk of China is that RMB is appreciating so that import is favorable and the export is adverse. According to the Jinghua newspaper, the duty of the laptop reduced 80% after April 14. Nowadays, the biggest conflict of China is the territorial dispute of
51、 Yanhuan Island between China and Philippines. There will be a new election in China in , while the party in power is always Chinese Communist so the basic policies will not change. With the unceasing provocation of Philippines, China may change the diplomatic strategy to fight back. China governmen
52、t decided to put 4 trillion RMB to build infrastructures and add bank credit before . According to the ultramodern trade law, the laptop of the duty is 10%, and it is lower than the last year drastically. Sometimes, our home-country will restrict China in some industries since these industries may i
53、mpact greatly in American industries. China joined into some international agreements, such as, WTO and APEC which can promote the communication and development of economy. 3.2.2 Legal environment China also needs to obey the international laws, such as, IMF, WTO, UNCITRAL and ISO. America is paying
54、 attention to the intellectual property while China pays a little attention to protect the intellectual property. And the two different have two different patent laws. Since August 1 in , China put forward the HYPERLINK app:ds:antitrust t antitrust HYPERLINK app:ds:law t law to prevent the monopoly
55、phenomenon.3.2.3Findings and Potential Implications The market economy system will make the operating system market more freedom while there are more competitions for our products. With the appreciation of RMB, it is adverse for our company to export our products to China while the cost will be redu
56、ced. With the reduction of the duty of the laptop, we can export more laptops to China, while at the meantime the competition of the laptop will be more drastic. When China changes the diplomatic strategy of Philippines, we will be affected by the changes, such as the war will limit the export of Ch
57、ina. The Incentives and government programs will boost the market and build up the confidences of consumers so that there will be more potential consumers buy our products. When the duty of laptop reduces, the costs of the laptop also reduce so that the price will also reduce which can stimulate the
58、 consumers to buy our products. Though America does not restrict China on the electronics industry directly, it will affect our company indirectly. China and America join into the WTO and APEC can serve our company well, our company can take advantage of the cooperative agreements to enter into Chin
59、a. Our company needs to obey the international laws, host-country laws and home-country laws since these laws provide a way for us to obey or we will be punished. The American laws are in our favor while the Chinese laws are bad for protecting our high-end products. The protection and the hit power
60、of Chinese government are not enough, so when we enter into China to promote our products we will suffer from some loss. Our country had been litigated by many countries so which provide a way for China to litigate us, so we need to prepare for this situation. 3.3The Social and Cultural Environments
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