Open Source Business Models in the Chinese Market

Open Source Software (OSS) with its fast-growing pace and increasing popularity is one of the strongest forces shaping the ICT industries during the last decades. As the business and market are getting more mature and competitive along its development, more companies are looking into business internationalization to the new market. However, going to a completely new country with a turbulently changing market can be a challenging and risky decision. One must understand the market history, the business environment, regulations and culture in order to start. A huge market like China has a lot to offer, yet it takes a huge amount of work for the business to survive and succeed for foreign companies. What is the current situation and key factors influencing the Chinese software market? What is happening with the open source software and business in China? What are the things to take into consideration to enter the local market? This case study aims to find answers and guidelines to these research questions. In order to understand the Chinese OSS market, this thesis presented an overview to the local ICT market and its environment. A summary of the existing open source business models and a software business internationalization framework is used as the theory to guide the case study discussion with Chinese ICT companies and especially OSS companies. The study focused on the areas of market competitions, OSS business models, communities and IPR issues. Based on the theory, the research proposed several internationalization options for western companies based on the local market situation. Additionally, the study summarized all case study result and provided a list of success factors and considerations for western companies in China