Today, I would like to continue talking about the Microsoft case, but through another angle of view, talk about the Pirated Strategy.
From the case content, it is mainly talking about the serious pirate problem in China so far, therefore a lot of Microsoft’s profit has been taken away which seems not fair to Microsoft. But is it the truth? Is there any possibility that Microsoft actually know the existence of pirate problem in Chinese market at beginning and just indulgent and utilize this behavior? Why? Because it’s maybe a strategy which could let Microsoft occupy the Chinese software market share at a very amazing speed.
The authorized software’s price is very high, I don’t think at that time, most Chinese people can afford it. Then, Microsoft could not make a good sale in China when PC market just started in 1990s. But due to the existence of serious pirate, Microsoft has occupied almost the whole Chinese PC software market which only cost less than 10 years. Then when the coverage rate of Chinese market has arrived 95%, Microsoft started to complain the Chinese pirate problems on different public media.
In addition, as we all know, computer consists of software and hardware. The popular software which could also drive the sale’s volume of the hardware. Do you think whether the pirate has brought huge profits to Intel, another U.S. brand? After all these things happened, then U.S. government started to take clear actions to exert pressure on China regarding the pirate problem in recent years.
Let’s forget different country’s interest now and let’s look at another very important issue is the prosperity of the computer industry. China has such a big population which means really a huge cake. I think all the suppliers in this industry are the beneficiary. This is the real smart business strategy, making the bigger cake. Even sometimes, I feel it’s tacit cooperation.
Finally, I want to say everything has different aspects and results, depends on the angle you view it. But most of the time, the most important thing is that which angle you want to choose to view, then start a comment.
If you have the interest in this topic, please leave a message. Thanks!