【正文】 all charge (cents per minute) 1171 1Long dis t a nc eL o c a lChina US Phone peration (%) 6 . 6 %6 4 . 9 %7 8 . 3 % 8 5 . 0 %C h i n a G e r m a n y J a p a n US of phones(1) (million) 1997 82 53 99 229 Automotive Example: Expert Survey 1997 Price 50%36%26%38% 13%14%13%10%C a r sT r u c k sCompetition focus (%) (1) Fixed line + mobile (2) Excluding about 50,000 seats in paging pany Source: World Development Report 1999/2023。 eBIS。 East TCITJ: RSTRUCTURING AND BUILDING STRATEGIC ALLIANCES TCITJ experienced difficulties due to both promotion and management issues ? Though improving, the firm is intrinsically unpetitive 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 panies in China and in Japan … and find strategic alliance for TCI?s China expansion ? TCI should only partner with prestigious local software pany or system integrators ? Wiseway screened all the potential candidates lists and funneled down 5 most promising panies for TCI?s further contact Longshine。 。ENTRY FOR PROFIT TRANSCOSMOS INC. CHINA ENTRY STRATEGY PRESENTATION February 8, 2023 AGENDA 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 Overview TCI Tianjin ? Current Situation Analysis ? Remendations AGENDA 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 Overview TCI Tianjin ? Current Situation Analysis ? Remendations CHINA 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 2023 CC 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 intact 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 market But 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 outsourced CC OURSOURCERS ARE EMERGING BUT STILL EXPLORING (II) 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 TCI?s tight schedule, a broader search can strengthen TCI?s negotiation position Five promising outsourcers identified during the interview process ? Money making ones: China Motion, 800 Teleservices, and CompaqStar ? Money losing ones: TCY, ITS Shanghai EC: 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