Microsoft In China

Microsoft is incredibly intelligent for focusing on the Chinese market. China's economy is blowing figures completely out of the water. Chinese gross domestic product (GDP) per capita in 2005 was $6800, nearly $3000 more than expected figures for 2020. Economists suggest by 2010 there will be a 45% increase in GDP.

With the Chinese economy growing at such a robust rate Microsoft has got the right idea on trying to squeeze their way in. By going in so early Microsoft can get control over the majority of the computing industry. First they will start off with supplying the government with business software as well as mainframes, servers, etc. In doing this they will be able to establish a firm foundation in the Chinese economy. Microsoft will have many years to conduct lengthy market research programs and branch out into all areas of China. Once they establish their base in the Chinese economy they only have to sit and wait as the Chinese revolution takes place.

The Board of Directors of Microsoft looked back in history and analyzed the technology revolution of the 20th century. Then they took a look around the world and saw that China is on the verge of going through the same stages. By rooting themselves deep into the Chinese economy and by supplying the government organizations with all their technological needs Microsoft will be the first company people will go to when need of computers starts to arise. Once China begins their technology revolution and consumers begin to have more and more disposable income millions upon millions of customers will be wanting in on the technology available in the world. And because Microsoft thought ahead they will reap the benefits and collect billions of dollars in profit.