Oracle’s China Story
Code
CC-409-019
Date
2010
Industry
Telecommunication, Computer Service & Software
Length
21 pages
Author(s)
Shaohua Lu, Zhixing Xiao
Language
English
Company
Oracle Corporation
Source
CCCH
Discipline
Human Resource Management & Organization Behavior
Key Words
Cross-Culture Management, Reorganization, International Business
Description
Oracle Corporation (Oracle), the second largest independent software company in the world, was the first software multinational company (MNC) tapping into the China market. As a first mover in the rapidly developing Chinese software market, Oracle maintained a fairly strong growth in the 1990s by adopting a flexible localization strategy. As China played an increasingly important role in the Asia-Pacific region, or even globally, Oracle decided to place close attention to the emerging market and take measures to tighten the screws on Oracle China. However, Oracle did not gain impressive growth in the China market as expected; instead it became a hot topic of business news reports. Resistance from local executives as a result of the hard-hitting reforms caused a succession of turnovers. Like many multinational companies Oracle faced the big issue of how to balance local responsiveness with global standardization.
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