Microsoft in Bhutan

[Writer's initials]

[Name of the Institution]

[Date]

Table of Contents

Introduction2

Suggested Exit Strategy based on “Partner Fit Analysis”2

Capabilities Fit2

Strategy Fit3

Organization Fit3

Cultural Fit4

Goals & Objectives for the Next 5 Years4

Develop IT Sector for the Government of Bhutan4

Making IT Education Compulsory4

Set up IT Park5

Develop IT Sector for the Government of Bhutan5

Bring in Microsoft Products5

Build Infrastructure5

Assisting Government to Help Microsoft become only Software Provider in Country5

Build the Next Generation as IT Talents6

Set up Software & Development Centre at Bhutan6

Reason for Microsoft to Exit from Bhutan after 5 Years6

What will Happen to the Current Business After Microsoft Exits7

Conclusion/Recommendation7

References9

Microsoft in Bhutan

Introduction

In this paper, we would conduct a “partner fit analysis” for Microsoft Corporation and Bhutan. By analysing the product, strategy, cultural, capabilities and organizational compatibility between Bhutan and Microsoft Corporation, inferences would be made. It would be suggested whether Microsoft should continue with its operations in Bhutan or consider an exit strategy due to the lack of growth avenues available in the country. Presently, Bhutan is experiencing rapid transformations in the form of an engineered Democratic empire since 2008. Bhutan is considered to be an agricultural based economy and heavily influenced by government job officials. Bhutan's government claims that the country would soon be able to join the global road to development and technology and provide higher paying jobs to its population.

Suggested Exit Strategy based on “Partner Fit Analysis”

Capabilities Fit

The present assets, resources and competencies of the population in Bhutan are not encouraging at all for Microsoft Corporation. Similarly, the IT industry in Bhutan is quite small. However, a rapid growth rate in the IT sector has been observed over the years (Zurick, 2006, pp. 658). There also seems to be a potential for the innovation industry. The growth has attracted many international IT firms in the country. Microsoft is one such example (Osmani et. al, 2007, pp. 302).

However, presently, the growth and expansion avenues for Microsoft Corporation do not seem quite compatible with Bhutan's. But, with rapid advancements in the IT sector and foreign direct investment, the compatibility might increase.

Strategy Fit

When it comes to strategy, the corporate strategy of Microsoft is quite clear and is based on the elements of expansion (Rose, 2006, pp. 10). The corporation wants to expand its horizons for growth. Hence, it would be a better option of the company to establish its ground presence in Bhutan and at the same time work at implementing a better infrastructure in the country. It is the rational phenomenon that Governments word efficiently when the nationals cooperate and react positively to socio-economic development in a country.

Organization Fit

If we analyse the history of IT companies in the country; it is quite evident that Bhutan has tried to incorporate IT elements into the daily lives of its population. The present level of knowledge on IT business is quite limited among the locals (Foning, 2009, pp. 248). Microsoft should consider organizing its plans in Bhutan and within the company as well to make sure that its operations in the country lead to growth for the company as ...