铝合金引导信号机项目可行性报告ppt课件

1-ENTRY FOR PROFITTRANS-COSMOS INC.CHINA ENTRY STRATEGY PRESENTATION February 8,2001-2-AGENDA Executive Summary Call Center Business Market Overview CC Customer Segmentation In-house users Outsourcers Demand Customer Economics Competition Recommendations Success business model Partnering strategy E-Commerce Market Overview TCI Tianjin Current Situation Analysis Recommendations-3-AGENDA Executive Summary Call Center Business Market Overview CC Customer Segmentation In-house users Outsourcers Demand Customer Economics Competition Recommendations Success business model Partnering strategy E-Commerce Market Overview TCI Tianjin Current Situation Analysis Recommendations-4-CHINA IS BECOMING A HIGHLY DYNAMIC CC MARKET Chinas call center market took off since 1998 with an annual growth rate over 100%Non-paging market size reached 54,000 seats in 2000 However past growth was largely driven by demands from administrative driven sector Over 60%of the new CC demand comes from four pillar industries:Banking,Post Services,Fixed-line Telecom,and Insurance Distinctive purchasing behavior identified for these purchases Future growth will be propelled by service oriented and outsourcing segments Service oriented segment expected to be 50%of total CC market Outsourcing market will grow at least 50%a year for the next few years However large variance exists for outsourcing segment growth Overall,China CC market is expected to reach over 130,000 seats in 2004 and 340,000 seats in 2021-5-CC OURSOURCERS ARE EMERGING BUT STILL EXPLORING(I)Currently,CC outsourcing business is brand new in China No more than 30 companies providing merely about 3,200 seats in service Over 70-80%supply concentrated in 4 major cities Future outsourcing development is highly dependent on current players performance and strategies Potential customers concerned about quality,confidentiality,information processing ability,HR,and price Growth will fluctuate widely according to the industrys ability to satisfy customer concerns and requirements now In short term,competition will be minimum due to highly differentiated positions and large number of unexploited potential outsourcing customers In medium term,paging companies can be powerful and desperate competitors in the low-end outsourcing market That might distort the industry profitability and trigger vicious competition However high-end outsourcing market might be intact-6-Currently,only low-price/standard service vendors are profitable Utilization,and therefore,long-term customers,is the key for profitability However,high-priced outsourcing solutions not widely accepted by the market But in the long-run,we believe high-end services will be valued by customers We are encouraged by recent positive news on clients long-term commitments to high-end outsourcers With Chinas pending WTO Entry and continued economic growth,we believe its the direction High-end outsourcers can win the game by aggressively establishing long-term client base,and targeting various outsourcing opportunities along the value chain Five successful strategies identified for new customer development Telemarketing and value-added information service most likely to be outsourcedCC OURSOURCERS ARE EMERGING BUT STILL EXPLORING(II)-7-TCI SHOULD PARTNER WITH RIGHT LOCAL CC OUTSOURCERS A partnering strategy is essential for TCI to capture the great opportunities in China TCI lacks a bunch of local capabilities,while time is contingent TCI should target both money making,and money losing tech advanced outsourcers during negotiation process,based on two plausible partnership strategies Money making ones:share profits and leverage local strength Money losing ones:control and negotiate for a bargain deal Considering the limited number of candidates in China and TCIs tight schedule,a broader search can strengthen TCIs negotiation position Five promising outsourcers identified during the interview process Money making ones:China Motion,800 Teleservices,and Compaq-Star Money losing ones:TCY,ITS Shanghai-8-EC:ONLY SOFTWARE FIRMS AND SIs WORTH PURSUING Although under booming,China E-Commerce market are experiencing bottlenecks Online population and revenues grew 10 times in the past 3 years However,macro-environment and infrastructure are problematic and only few ICP/ISPs are making money ICP,ISP and technology companies,as a sector,are not worth TCIs pursuit ICP:Market is down while most China ICPs are still at their early stage development ISP:Highly fragmented and regulated,which suffocate both foreign participation and profitability Tech companies:Superior ones can hardly survive in China However,several top ventures in the above sectors are quite interesting,which are identified and illustrated in detail for TCIs further interest ICP:51job;Stockstar;Alibaba;Dangdang ISP:263Net;Eastnet-9-TCI-TJ:RSTRUCTURING AND BUILDING STRATEGIC ALLIANCES TCI-TJ experienced difficulties due to both promotion and management issues Though improving,the firm is intrinsically uncompetitive in China market It should restructure for better performance Redefine corporate missions and strategies Restructure project arrangement,reporting,measurement and incentive systems Refocus its sales on Japanese companies in China and in Japan and find strategic alliance for TCIs China expansion TCI should only partner with prestigious local software company or system integrators Wiseway screened all the potential candidates lists and funneled down 5 most promising companies for TCIs further contact Longshine;Global eForce;eBIS;Modern Computer;Huateng Software-10-AGENDA Executive Summary Call Center Business Market Overview CC Customer Segmentation In-house users Outsourcers Demand Customer Economics Competition Recommendations Success business model Partnering strategy E-Commerce Market Overview TCI Tianjin Current Situation Analysis Recommendations-11-CC MERELY A BUSINESS PRACTICE BEFORE 1997High telecom chargeLow phone penetrationWeak service attitudeWidespread industry monopolyCommercial CC less than 10,000 seats in 1997(2)Phone call charge(cents per minute)11711Long distanceLocalChinaUSPhone penetration(%)6.6%64.9%78.3%85.0%ChinaGermanyJapanUS#of phones(1)(million)1997825399229Automotive Example:Expert Survey1997Price50%36%26%38%13%14%13%10%CarsTrucksCompetition focus(%)(1)Fixed line+mobile (2)Excluding about 50,000 seats in paging companySource:World Development Report 1999/2000;China Auto Market 1997;Jarding Fleming Research;interviewsQualityService StyleNational monopolyBankingTelecomInsuranceUtilitityRegional protectedSteelAutoPetrochemicalTobacco.Monopolized industry estimated 55%of industrial output-12-Higher telecom penetrationCOMMERCIAL CC TOOK OFF SINCE 1998Especially in Non-Paging Service Sector1.0%2.5%3.5%6.1%5.6%8.8%11.3%14.5%1997199819992000Penetration(%)YearCAGR102254199819992000Fixed lineMobile37%83%Non-paging CC seats(000)YearCAGR=129%Intensified competition9192951241161081001996199719981999Most industries capacity over productionDeclining retail pricesYearGDP indexRetail price indexIndexGrowing awareness of technology2.4919.8432218199819992000Internet users(mio)E-Commerce revenue(US$M)Gradually reduced telecom feeSource:Jarding Fleming Research;China Statistics Yearbook;interviews;OECD;China Telecom1995199619971998199920002001Long distance(RMB/min)(1.2)(0.8)(1.0)(0.7)800 km3518-35 RMB 10 millionRMB 5-10 millionRMB 1-5 millionSource:Huicong IT Business NetworkICP-79-SIGNIFICANT TRANSITION AND SHAKEOUT EXPECTEDSmall-to-medium,generic information service portals will face bankruptcy in a yearRegional portals with similar business will seek merger to survive in the coming shakeoutB2B will focus more on providing proprietary,value-added services(online and offline)to small-to-medium corporate customersLarge corporations will extend its corporate web site into B2B or B2C areaOnly the top two to three E-Commerce web sites in each area will surviveHuicongs Projection81%10%19%45%1%44%20002004100%Under current volatile market,Wiseway believe market situation can only go harsher than Huicongs projectionSource:Huicong IT Business NetworkEnterpriseE-CommercewebsiteOthersTechnical serviceInformation serviceICP-80-SELECTED ICP PROFILE:51JOBCompany backgroundStrengths and weaknessesEstablished in 1998No.1 job search online site in ChinaOver 30,000 jobs postedRegistered users over 100,000Potential to provide HR services for foreign-invested companiesTargeting white-collar workers and managerial level customersStrengthsNo.1 job hunting portal in China,established brand name and customer baseSynergies with“Career Weakly magazine and a heal hunting firmWeaknessesLittle information about job/career advisoryStill small:vulnerable to competitionRevenue source and financial dataAlliances1999 revenue reached US$1 million,2000 revenue projected to be US$8 million,and 2001 revenue to be around 20-30 millionCurrent profitability 10-15%1/3 advertisement income,1/3 revenue from ASP service,and the rest from providing information of its HR database Planned Nasdaq IPO in 2001 Synergies created by building alliance with traditional HR functions“Career Weekly magazine Career Head Hunting CompanyICP-81-SELECTED ICP PROFILE:STOCKSTARCompany backgroundStrengths and weaknessesEstablished in 1997No.1 stock trading portal in ChinaBusiness covered quote,information,advisory and online trading servicesRegistered users over 1.5 millionPositioned to provide not only trading but comprehensive investing servicesStrengthsEstablished customer baseComprehensive services on trading,information and advisoryGood relationships with security firmsWeaknessesNo stock trading licenseProjected competition in the futureRevenue source and financial dataAlliancesRevenues from securing companies advertisement,online trading commission,and data usage fees to institutionsPlanned to expand revenue sources to construct online site for security companiesOnly less than 10%cuts on promotion,50%cash flow consumed on infrastructure and 15%on R&D Goldman Sachs second round financing of$10 million,based on$40-50 million valuationShanghai Alliance Investment Co.and Shanghai Telecom controls 20%stake,respectivelyICP-82-SELECTED ICP PROFILE:ALIBABACompany backgroundStrengths and weaknessesEstablished in 1997No.1 B2B portal in China,ranked the best Asia B2B portal in 2000 by Far East Economic ReviewRegistered members over 420,000,representing 220 countriesDaily trading involves 50,000 buyers and 12,000 sellersProvide quotes,industry information and advisory through 27 industriesStrengthsFirst mover advantageOne stop shop especially convenient for international tradingWorldwide recognitionStrong VC tackingWeaknessesScalability not demonstratedB2B not hot concept anymoreRevenue source and financial dataAlliancesRevenue from trading information fee,registration,and advertisementStill not breakeven,but analyst quite optimistic about its financialsNew registration reaching 1000 members a dayFirst round financing of$5 million capital infusion by Goldman Sachs,Transpac,Singapore TDF,Investor AB and Fidelity InvestmentOctober,1999Softbank invested$20 million in January 2000Planned but postponed IPOICP-83-SELECTED ICP PROFILE:DANGDANGCompany backgroundStrengths and weaknessesEstablished in 1996No.1 online bookstore in ChinaBook online storage over 200,000 types,accounting for 90%of all domestic published books20%registered users are resided in foreign countriesEstablished transportation and inventory systemStrengthsCustomer recognition and national reputationBusiness already reached scaleDeveloped order to delivery systemWeaknessesSevere competition:more than 300 online bookstoresPending alliance with publishers and book storesRevenue source and financial dataAlliances Revenues from book retail margin and publishers advertisement Breakeven expected this year A new,10 K square metre warehouse is under construction in First round financing completed in 1997Second round financing completed in November,1999Third round financing by IDG,LCHG and Softbanks completed by April,2000ICP-84-ISP:A HIGHLY FRAGMENTED SECTOR WITH VOLATILE PROFITABILITYISP/ASPHighly fragmentedNot profitableOver 50099%1%28%72%0%20%40%60%80%100%#of ISPsBrandwidth1234 M5 nationwideISPs(1)500 regional/local ISPs79%21%In deficitProfitableISP an attractive local government investment areaPotential of high returnAble to create monopoly locallyNumerous agency costsEquipment purchaseAppraisal of“New Economy Mindset from the aboveMore budget/HR to manage and controlSignificant upfront investment and fast upgradeDemanding frequent capital expenditureHigh marketing expenses and maintenance costMarket still smallOnly 16.9 million internet users(July 2000)Much smaller if only focusing on local market(1)They are:ChinaNet;ChinaGBNet;UNInet;CSTNet;CERNetSource:CIIC:China Info Bank-85-FOREIGN PARTICIPATION IN ISP ONLY ERECTED IN NEAR FUTURE ISP/ASPChinas WTO entry signed20012002200320042005Post-entry conditionPre-entry conditionSource:EIU;China Info Bank ICPISPOfficially,no foreign ownership in internet services sector(both ICP and ISP)is allowed.Yet foreign investment is known to have entered the ICP business via alternative path30%ownership allowed in,Shanghai&Guangzhou49%ownership allowed in other 17 cities50%ownership allowed nationwide49%ownership allowed nationwide25%ownership allowed in,Shanghai&Guangzhou35%ownership allowed in major cities-86-ISP SECTOR WILL CONSOLIDATE THROUGH BOTH VERTICAL AND HORIZONTAL INTEGRATIONSISP/ASPMany current ISPs are not profitable due to small subscriber baseI.e,a 2M bandwidth line needs to attract at least 1650 customersOf all 28 inter-provincial ISPs,only 13 have more than 1000 subscribers after 2.5 years of service,let alone local ISPs,with even smaller baseFuture competition will only worsen the situationOnly sizable ISPs can provide satisfactory servicesBoth domestic and foreign players will raise wars on price and serviceMerge with nationwide ISPs to become an affiliateExtend business to leverage ISP advantageASP(?)ICP Infrastructure-87-SELECTED ISP PROFILE:263.NETCompany backgroundStrengths and weaknessesTop ISP Provider in China:40%market share in,with another 40%by China Telecom,and the rest 20%by other 170 ISPs in;Top ICP site with 6 million registered users and 25 million pageview each day;263 IDC started in,and will also be in Shanghai,Guangzhou and 20 other cities;Shareholders simple but diversified:corporate and personal;strong backing from China Telecom.StrengthsBig market share in Good combination of ISP,ICP and IDC,maximizing the customer base;Profitability;Started in,but are also spreading to Shanghai,Guangzhou,Wuhan,XiAn and 10 other Chinese cities WeaknessesBusiness scalability in other citiesRevenue source and financial dataAlliances15 million RMB profit the first year,and has been profitable in the past three years;Internet connection fees collected from telephone bills;IDC serving coporate customers,providing E-commerce solutions;ICP()is also shifting to E-commerce business Good alliance with China Telecom()Alliance also with other international hardware suppliersHave not heard of backing from international VC ISP/ASP-88-SELECTED ISP PROFILE:EASTNETCompany backgroundStrengths and weaknessesEstablished in 1996 by BJ Telecom,Bank of China,and Tsinghua UniversityBusiness covered dial-in connection,domain registration,and ECBuilt as a general information portalAlso provided online and offline tech product sales,consulting and trainingStrengthsBig loyal customer baseWidely covered business scopeWidely established alliancesProfitableWeaknessesLocalized:in areaRevenue source and financial dataAlliancesBoasted to be profitable for 3 yearsRegistered ISP users over 150,000,growing at 10,000 members per monthHomepage visited by 130,000 people per dayHelped 3,000 domestic companies to register a domainAlliancwe with a lot of prestigious ICPs and ISPsSinaChina Television NetworkContent sharing with major tourism,stock trading,entertainment and online book reading portalsAllying with China Yellowbook on database developmentISP/ASP-89-NON-GOVERNMENT BACKED TECH COMPANIES CAN HARDLY SURVIVE IN CHINATechnology companyLack of customersChinese companies accustomed to import tech/equipmentsIncapable to commercialize high tech solutionsNo big need for technologyProblematic legal environmentPatent rights inadequately reinforcedWidespread piracyStrong local protectionism Lack of intellectual property conceptsInaccessible financing channelsDomestic financial institutions hostile to startupsForeign investors blocked from specific technology development due to national securityVery complicated formalities for non-SOE financingInsufficient human resourcesTop-tier engineers and scientists finding their home in US or other more tech-friendly countriesChinese educational institutions unable to catch up with best-of-breed technology developmentChina is not a playground for high technology research companies-90-CHINA REPRESENTS GOOD OPPORTUNITIES FOR EC SOLUTION PROVIDERSIncluding Software Developers and System Integrators Chinese manufacturing and service enterprises are in desperate need of better information and control system to compete effectively Many companies dont have any MIS in place yet WTI and strong competitive pressure will push the demand There are demonstrated successful business models Software companies are successful by either serving domestic clients or working on overseas assignments(Hua Teng)System integrators establish themselves by getting recognized industry expertise and relationships Resources are easily located HR for software and SI doesnt need to be top-tier world-class,and thus are easy to find No need for big investmentSoftware/SI-91-SOFTWARE:GROWING INDUSTRY WITH HIGH-LEVEL CONCERNSMass Market Software ExampleSoftware/SIMarket still fragmentedPrice still too lowModerately growing software industry040801201602009596979899Scale(Bio RMB)689211217612%25%63%System softwareSupporting softwareApplication software2%5%9%11%28%45%0%20%40%60%Office97-98WPSCCEDOffice95LotusOthersMkt shareMkt share office software 199923%38%28%10%1%0%10%20%30%40%50%200Price(RMB)Source:China Info Bank Year-92-AGENDA Executive Summary Call Center Business Market Overview CC Customer Segmentation In-house users Outsourcers Demand Customer Economics Competition Recommendations Success business model Partnering strategy E-Commerce Market Overview TCI Tianjin Current Situation Analysis Recommendations-93-TCI-TJ EXPERIENCED TREMENDOUS DIFFICULTIES(I)Most projects not profitableOverhead out of controlRev.Profit rate-200%-150%-100%-50%0%50%100%16%-170%35%51%61%69%98%100%1999(000 RMB)508997257517581990Gross profitSalaryManagement feeDepre.Misc.Source:TCI-TJ;BCG analysis-94-TCI-TJ EXPERIENCED TREMENDOUS DIFFICULTIES(II)Programmers turnover is worryingUtilization rate is lowHuman resourceFrom official statistics,on average about 1/3 of programmers working hours were not staffed,real situation can be worseReal estateThe whole second floor was empty,while a depreciation of RMB 2.4 million,60%of 1999 revenue,is counted each year as costProject schedule often out of control19961997199819992000Total recruitedLeftLabelProgrammers turnover(7)(1)(20)(5)(4)17428155A 1997 projectPeople staffed(4)(1)Time3 months1 year2 yearsPlannedActualSource:TCI-TJ;BCG analysis-95-FIVE ROOT CAUSES IDENTIFIED FOR THESE PROBLEMSOverhead out of controlOver-investedProject out of controlInadequate programmers trainingMost projects not profitableIneffective and not disciplined sales effortsLow resources utilizationProgrammers not motivated properlyWorrying programmers turnoverCompensation and progression not enough to retain HR-96-TCI-TJ IS NOT COMPETITIVE IN DOMESTIC SOFTWARE MARKETHigh fixed costIneffective domestic sales forceNo sales departmentPrevious sales activities restrained in TianjinAnd mainly through Japanese invested companiesTargeting domestic customers means additional investment on HR and spendingW。