High-rise earthquake in Microsoft Greater China?

Global SourcesUpdated on 2023/12/01

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At the end of the year, resignation always makes people feel sad. After all, the end of each year is a year of summarizing experience and harvesting results. If you leave at this time, it means that some dividends and even bonuses will be lost. For some professional managers, choosing to leave at this time is even more helpless.

Nowadays, Luo Chuan is feeling such helplessness. A few days ago, Microsoft announced that Luo Chuan, general manager of its online services group in China and president of Shanghai Meisi En Network Communication Technology Co., Ltd., will officially resign in December. It also said that Erik Johnson, general manager of Microsoft Online Services Group Greater China, will temporarily serve as the general manager of Microsoft Online Services Group China and Luo Chuan, president of Shanghai Messen Network Communication Technology Co., Ltd. At the end of December, Microsoft or will officially announce Luo Chuan's successor.

Unexpected departure

Unlike Microsoft's calm response to the media, an insider revealed to Chinabyte that Luo Chuan's departure was definitely an "accident". According to the other party, he has never heard Luo Chuan revealing the idea of resigning before, and even not long ago, he was still making long-term plans for the two brands of MSN and LIVE. "At that time, Mr. Luo was still talking about how soon we would move to Wudaokou to work as a 'neighbor' with Google. I didn't expect that the resignation would be so sudden." The other party revealed.

An MSN China employee said after learning of Luo Chuan's resignation, "employees are very reluctant to boss Luo. From his personality to his leadership and business skills, he is respected."

An Internet veteran also pointed out, "I think Luo Chuan has a deep understanding of the Internet, and his departure should be a big loss to MSN's business in China."

It is reported that when Luo Chuan was in charge of Office products, the product's market share increased from 60% to 92%. Known as "one of the most successful professional managers in China". Microsoft has not disclosed the reason for Luo Chuan's departure, and Luo Chuan's own mobile phone has been unanswered. It is reported that in July this year, he led the team to complete the integration of the two brands LIVE and MSN.

Is it reasonable to "uninstall" Luo Chuan?

There are also reservations about Luo Chuan's contribution, especially the MSN business he has been at the helm in recent years. An insider who has been concerned about Microsoft for a long time is pessimistic about the prospects of MSN China: Microsoft's product planning and development have always been problematic, "Maybe Microsoft really can't adapt to the Chinese Internet environment."

"Driven by short-term interests is the most direct reason for MSN's setback." People familiar with the matter said that the local manager Luo Chuan had drawn a big pie for the American boss who didn't understand the Chinese Internet. In order to satisfy smart Americans, this flatbread must be fragrant as quickly as possible.

So MSN China accepted batch after batch of weak partners, they achieved the purpose of enhancing their own brand image by paying big money to Microsoft, but MSN's brand became scarred by this kind of profit drive tired.

It is worth noting that, not long ago, there was news that Windows Live Spaces (formerly MSN Spaces) may not be widely promoted in China. In fact, after MSN Spaces switched to Windows Live Spaces, the access speed has been very slow, and Microsoft explained that "the slowdown is a global problem."

"If this is true, then Luo Chuan probably doesn't want to stay." An analyst believes that Spaces has a great relationship with Luo Chuan. So far, MSN search has nothing to do with China. It's Spaces.

As for the cooperation on website content, the above-mentioned people feel that this is of little significance to Luo Chuan. "When the contract expires, just switch to a few. MSN used to see who gave the most money, but now there are a lot of people lining up with money."

A high-rise earthquake in Greater China is coming?

Although Microsoft has repeatedly stated that the reason for Luo Chuan's departure is that he wants to "start a business". However, according to sources, this (Luo Chuan’s departure) may be just the beginning, and there will be large-scale changes in high-level personnel in Microsoft Greater China.

The unnamed source revealed that Microsoft Greater China will replace a group of senior management, the number may reach a dozen, but not including Microsoft Greater China President Chen Yongzheng, mainly some senior executives at the vice president level, Luo Chuan is just one of the changes, and Microsoft will send people from other parts of the Asia-Pacific region and headquarters. However, a person from Microsoft's public relations said that MSN China and Microsoft China are operated independently, and Luo Chuan's departure should have nothing to do with Microsoft China, and he has not heard any news in this regard.

In fact, Luo Chuan's resignation seems to be abrupt. Not long ago, Luo Chuan was talking about the strategic development of live and MSN in public.

According to sources, after the personnel change, the possibility of a change in MSN China's strategy cannot be ruled out. At present, MSN Chinese website and live strategy both adopt the method of joining local partners.

According to another source, MSN Chinese website's advertising sales this year are very good, and the sales target of 100 million has been completed. It also confirms that Luo Chuan's departure has little to do with performance.

As for the future of MSN China after Luo Chuan's resignation, some industry insiders believe that it is not necessarily desirable for foreign Internet companies to rely only on professional managers to conquer the world in China, which may lead to discontinuity in the overall strategy.

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Luo Chuan, graduated from the Department of Civil Engineering of Tsinghua University in 1994 with a master's degree, then joined Microsoft China and served as sales representative, partner project manager, product manager, strategic cooperation manager and company deputy He currently serves as the general manager of Microsoft Online Services Group China and the president of Shanghai Messen Network Communication Technology Co., Ltd.

In April 2002, Luo Chuan served as the Director of Microsoft China MSN Business Unit, responsible for the expansion planning of MSN business in China. Since January 2004, he has served as the Greater China Director of the MSN Division of Microsoft Corporation, and is fully responsible for MSN's business in mainland China, Hong Kong and Taiwan. In April 2005, Microsoft Corporation and Shanghai Lianhe Investment Co., Ltd. jointly established a joint venture company - Shanghai Messen Network Communication Technology Co., Ltd., and Luo Chuan became the general manager of the company. In July 2006, Luo Chuan served as the general manager of Microsoft Online Services Group China and the president of Shanghai Messen Network Communication Technology Co., Ltd.

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