Case Study: PESTEL Analysis of Microsoft in China and India

This case study presents a PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) analysis of Microsoft's operations in China and India. The analysis examines the political stability, economic structures, social dynamics, technological advancements, environmental concerns, and legal frameworks impacting Microsoft's business strategies in these two significant markets. The study highlights the challenges and opportunities Microsoft faces, considering factors such as government interference, market competition, cultural heterogeneity, technological disparities, environmental sustainability, and intellectual property rights. It offers insights into how these factors influence Microsoft's ability to expand its market presence, develop new products, and adapt its business model to the unique characteristics of each country. The analysis references key academic sources to support its findings and conclusions.

Running head: BUSINESS ANALYSIS
BUSINESS ANALYSIS
Name of the University
Name of the Student
Author Note

1BUSINESS ANALYSIS
PESTEL of Microsoft
Political
The political constancy of the bulk of markets universal creates chances for Microsoft to add
to its reserves and equivalent performance. India and China is a socialist country however,
Microsoft requires a more capitalist country with more liberal market (Rothaermel 2015).
The company of Microsoft requires a competitive market framework for which their
interference for the government in the activities of the marketplace should be low. This is not
the case in India and China as the government interferes to a large extent in the public sphere.
Economic
The economy of India and China are based and socialist principles. As a result, there is not
much competition in the market framework. This proves to be quiet disadvantageous for
Microsoft as it requires a comptitve marketplace. In the context of India and China the
government believes in a social setup which means that the level of competition in the
economy is quiet low (Anderson, Sutherland and Severe 2015).
Social
The social structure of India and china is disadvantageous for the operation of Microsoft as
the society in these two countries is heterogeneous in nature in India, particularly. There is lot
of conflict among the different cultural groups which harms the operation of the private
organizations (Shkvarya et al. 20146). China’s society on the other hand is homogenous in
nature but the extent of governmental activities is considerable in the marketplace. The
people of china are regulated by the actions of the government and they are required to
function within a narrow defined space. This societal structure of china proves to be harmful
or the activities of Microsoft.

2BUSINESS ANALYSIS
Technological
The technological advancement in China is much more developed than the technology in
China and therefore, further technological changes are required in India than in China for
Microsoft to operate and provide occasions for Microsoft to expand more products that carry
secure online contract dealing out that will enable the business to grow globally (Charlson et
al. 2016).
Environmental
Microsoft needs pollution free and sustainability enhanced environment to operate which the
environment of both India and China are not environment friendly and cannot operate in such
environments. Microsoft needs to develop its sustainability that straight addresses the chance
footed on the rising center of societies on production sustainability. Also, the increasing
accessibility of ecological materials is an environmental outside factor that the corporation
can use as foundation for raising the use of used resources in its processor hardware and
software products (Gosens and Coenen 2015).
Legal
The legal system in India is weak due to its inefficient Intellectual Property Rights laws. This
possesses a challenge to Microsoft Company as it means that the technology can be stolen. In
respect of China, the Intellectual Property Rights are stronger which allows to efficient
functioning of the company. As a result it is needed on the part of both the countries that the
legal framework must be stronger for the company microdot to operate (Patra and Krishna
2015)

3BUSINESS ANALYSIS
References
Anderson, J., Sutherland, D. and Severe, S., 2015. An event study of home and host country
patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed
markets. International Business Review, 24(5), pp.758-771.
Charlson, F.J., Baxter, A.J., Cheng, H.G., Shidhaye, R. and Whiteford, H.A., 2016. The
burden of mental, neurological, and substance use disorders in China and India: a systematic
analysis of community representative epidemiological studies. The Lancet, 388(10042),
pp.376-389.
Gosens, J., Lu, Y. and Coenen, L., 2015. The role of transnational dimensions in emerging
economy ‘Technological Innovation Systems’ for clean-tech. Journal of Cleaner
Production, 86, pp.378-388.
Patra, S. and Krishna, V., 2015. Globalization of R&D and open innovation: linkages of
foreign R&D centers in India. Journal of Open Innovation: Technology, Market, and
Complexity, 1(1), p.7.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Shkvarya, L., Grigorenko, O., Strygin, A., Rusakovich, V. and Shilina, S., 2016. THE
IMPACT OF THE GLOBAL ECONOMIC CRISIS ON ASIAN TECHNOLOGY
MARKETS (INDIA AND CHINA). Central Asia & the Caucasus (14046091), 17(2).