【正文】 literature research summaries。 China TeleLong distance (RMB/min)()()()() 800 km800 km13CC INDUSTRY WILL REACH 330370 K SEATS IN 2023 Illustration? Identify major driving factors to CC adoption market petition and service awareness tele charges and phone peration? Quantify relationships between drivers and CC adoption here we used US benchmark? Project CC development by forecasting development of drivers? Project CC peration in major user’s industries banking, tele, insurance …? Add up numbers of each industry to give a CC market overview? Interview industry experts or knowledgeable industry practitioners for their opinion of CC market growth system integrators and experts 2023 projection(1) (’000 seats)158132145 2023 projection(1) (’000 seats)368337.Driving factor analysisBottomup analysisExperts opinions(1) Without paging pany14TOPDOWN APPROACH REVEALS A PROMISING END GAMEPhone line per 1000 peopleCC agents per 1000 peopleUS benchmarkY = + Deflated tele fee indexPhone line per 1000 peopleChina phone lineYearNonpaging CC seats(‘000)Source: US Telephone Statistics。1ENTRY FOR PROFITTRANSCOSMOS INC. CHINA ENTRY STRATEGY PRESENTATION February 8, 20232AGENDA Executive Summary Call Center Business? Market Overview? CC Customer Segmentation Inhouse users Outsourcers? Demand? Customer? Economics? Competition? Remendations Success business model Partnering strategy ECommerce Market OverviewTCI Tianjin? Current Situation Analysis? Remendations3AGENDA Executive Summary Call Center Business? Market Overview? CC Customer Segmentation Inhouse users Outsourcers? Demand? Customer? Economics? Competition? Remendations Success business model Partnering strategy ECommerce Market OverviewTCI Tianjin? Current Situation Analysis? Remendations4CHINA IS BECOMING A HIGHLY DYNAMIC CC MARKET China’s call center market took off since 1998 with an annual growth rate over 100%? Nonpaging market size reached 54,000 seats in 2023 However past growth was largely driven by demands from administrative driven sector? Over 60% of the new CC demand es from four pillar industries: Banking, Post Services, Fixedline Tele, 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 2023 and 340,000 seats in 20235CC OURSOURCERS ARE EMERGING BUT STILL EXPLORING (I) Currently, CC outsourcing business is brand new in China ? No more than 30 panies providing merely about 3,200 seats in service? Over 7080% supply concentrated in 4 major cities Future outsourcing development is highly dependent on current player’s performance and strategies? Potential customers concerned about quality, confidentiality, information processing ability, HR, and price? Growth will fluctuate widely according to the industry’s ability to satisfy customer concerns and requirements now In short term, petition will be minimum due to highly differentiated positions and large number of unexploited potential outsourcing customers In medium term, paging panies can be powerful and desperate petitors in the lowend outsourcing market? That might distort the industry profitability and trigger vicious petition? However highend outsourcing market might be intact6 Currently, only lowprice/standard service vendors are profitable? Utilization, and therefore, longterm customers, is the key for profitability? However, highpriced outsourcing solutions not widely accepted by the marketBut in the longrun, we believe highend services will be valued by customers? We are encouraged by recent positive news on clients’ longterm mitments to highend outsourcers? With China’s pending WTO Entry and continued economic growth, we believe it’s the direction Highend outsourcers can win the game by aggressively establishing longterm client base, and targeting various outsourcing opportunities along the value chain? Five successful strategies identified for new customer development? Telemarketing and valueadded information service most likely to be outsourcedCC OURSOURCERS ARE EMERGING BUT STILL EXPLORING (II)7TCI 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 dealConsidering the limited number of candidates in China and TCI’s tight schedule, a broader search can strengthen TCI’s negotiation positionFive promising outsourcers identified during the interview process? Money making ones: China Motion, 800 Teleservices, and CompaqStar? Money losing ones: TCY, ITS Shanghai8EC: ONLY SOFTWARE FIRMS AND SIs WORTH PURSUING Although under booming, China ECommerce market are experiencing bottlenecks? Online population and revenues grew 10 times in the past 3 years? However, macroenvironment and infrastructure are problematic…? … and only few ICP/ISPs are making money ICP, ISP and technology panies, as a sector, are not worth TCI’s pursuit? ICP: Market is down while most China ICPs are still at their early stage development?