Publications
Publications
- February 1995 (Revised August 1995)
- HBS Case Collection
Microsoft in the People's Republic of China, 1993
By: Tarun Khanna
Abstract
Explores some of the economic and political tradeoffs that need to be negotiated by a firm seeking to influence industry structure. The setting is the nascent personal computer software industry in the People's Republic of China (PRC) in 1993. Microsoft has to localize its software products for use in the PRC. This localization can either be done in-house by Microsoft, or can be contracted to the local software vendors. Explores the costs and benefits of full integration and arm's-length market transaction. Also discusses the "holdup" problem that arises when assets specific to a particular partnership are created.
Keywords
Cost vs Benefits; Product Marketing; Market Entry and Exit; Market Transactions; Industry Structures; Partners and Partnerships; Vertical Integration; Software; Information Technology Industry; China
Citation
Khanna, Tarun. "Microsoft in the People's Republic of China, 1993." Harvard Business School Case 795-115, February 1995. (Revised August 1995.)
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