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Microsoft Under Pressure From China

September 11, 2009 By: azjogger Category: Marketing, Operations, Technology

 Microsoft, the IT giant, is seeing the online stranglehold previously enjoyed by its Internet Explorer platform in China gradually erode under pressure from a number of domestic rivals, the latest figures suggest.

According to estimates from iResearch, Microsoft once held a 96% share of the web browser market in the world’s most populous nation, but this has now declined to 57.8%, and the exact total could be lower still.

Ding Li, an analyst at iResearch, said “according to my research, nearly 96% of China’s internet users have used an IE browser at some time in their lives, but only 50% of them keep to it regularly now.”

In particular, Microsoft’s share is being squeezed by three local alternatives with a combined market share of 31.1%, and which are “adopting advanced techniques and updating their products continuously,” Ding said.

Tencent has developed its own web browser, TT, and hopes to attract some of the 300 million people who are members of QQ, its instant messaging service, to switch to its new system.

“Its users are Tencent’s most prominent advantages. If TT can combine QQ software with its Tencent TT browser, it may become a browser with the biggest amount of users in the future,” Ding said.

Qihoo360′s360 Secured Browser, which is known particularly for protecting the privacy and data of its users, has increased its market share by 50% over each of the last three quarters, to 8.4% in all.

Qi Xiangdong, president of Qihoo360, argued “safety has become a top priority for people when choosing a browser. The 360 Secured Browser uses its ‘isolation mode’ to block any Trojan horse virus.”

Maxthon is another competitor to Microsoft, and offers a range of user-friendly features, such as tools allowing consumers to identify and access their favourite web portals from any computer.

Chen Jieming, ceo of Maxthon, said “most of our users were born between the 1970s and the 1990s and we are trying to attract those born before the 1960s to use our Maxthon browser.”

Chen said Google’s web browser, Chrome, has also struggled to make in-roads in the rapidly-developing online marketplace in China, for a mixture of technological and cultural reasons.

“Even though Google’s browser uses many of the most advanced technologies from all over the world, it still hasn’t gained popularity in China. Some Google Chrome functions aren’t even compatible with some Chinese websites,” he said.

Other multinational operators such as Firefox and Opera are also struggling to establish a substantial presence in the country as yet, according to Ding.
Printed with permisson of the World Advertising Research Center
Data sourced from Alibaba; additional content by WARC staff, 09 September 2009

The Company Culture as a Firewall

September 09, 2009 By: azjogger Category: Jobs, Management, Operations

By John Riley

Company culture is so pervasive and omni-present, it often goes unacknowledged.  And yet it is one of the most powerful business forces impacting on employees trying to do their jobs and outsiders seeking to do business with the company. The casualty rate can be high.

 For example, take the up and coming young manager who is trying to sell his management on changing the production process of a major product.  The unwritten cultural norm that developed over time says each product would be inspected by the Quality Assurance manager or his designate rather than using a statistical sampling system which the young manager advocates.  If the young manager is going to succeed here, he will need to know how to change the culture.

Cultural habits and norms are powerful reinforcements of the status quo.  If you don’t understand the culture, you can’t change it.

When a consultant tries to do business with a company and is retained to undertake a project, she walks into a cultural environment of which she knows nothing.  Her acceptance and ability to be effective in the company depends on how well she assimilates the nuances  of the crowd and quickly identifies the informal thought leaders with whom she will need to bond.

 Because the outsider is not of the company organization, her ability to change a cultural element will depend largely on her creditability with and trust of the CEO or President when she makes her report and recommendations.

 A culture develops over time, is deeply rooted and varies by industry.  Most often it is directly or indirectly driven by the CEO and his or her management style. 

 Whether an employee or an outsider, a culture change may be the only solution to achieving a desired result. It may not be quick nor will it be easy, but it can be done. Here are five approaches to consider.

 Change performance measures and incentives and realign employee objectives

Set up a pilot project to test the new method; let employees experiment with the new method.

Bring in new people with new ideas

Brainstorm different approaches to the quality inspection process

Benchmark best-in-process organizations

 Firewalls, or in this case the company culture, generally serve the best interests of the company, however, there will be those occasions where change is essential to the further development and success of the company.  The key is knowing what and when.