This case is intended to be used in an International Business or Strategic Management course to introduce the topic of entry strategy development and evaluation.
Victor Yang, founder and Senior Vice President of Strategy and Business Development at Enter Active Media International (EAM), must decide whether or not EAM should enter the China market and if so, work with the executive team to develop an entry strategy.
EAM is a privately held company, headquartered in Singapore, which develops and distributes interactive solutions aimed at mobile phone service providers (SP). EAM’s solution, called “Genie” consists of in-store kiosks that are located in every SP’s retail outlet and provide information about service plans and handsets to customers without having to talk to a customer service representative (CSR). On the back end, Genie provides detailed usage and demographic statistics to SPs.
Even though EAM has operated successfully in several countries in South East Asia, the Chinese market presents unique challenges. Telecommunications sectors in most South East Asian countries have evolved in a similar way, with government owned monopolies being opened to competition from the private sector. China’s telecommunications sector, however, has evolved in a different way. In China, Provincial Post and Telecommunication Authorities (PTA) independently operate
telecommunication networks in every city, which means EAM has to negotiate individual contracts in every city.
Intellectual Property (IP) protection is another source of concern for EAM. It is not clear when or even whether China will develop a world-class IP protection system. Several experts believe China will follow the same path as countries such as Japan, Korea and Taiwan, which developed solid IP protection systems as they started producing IP worth protecting. On the other hand, some experts argue that this will never happen, since most R&D efforts in China are aimed at creating derivative technologies in order to avoid paying royalties, not true innovation requiring protection. It is also unclear whether or not there is a demand for EAM’s services in China.
Finally, Dr. Thomas Chou, Victor’s partner, had suggested that EAM provide its services as a website and find ways to generate revenue through online advertisement instead of using EAM’s current business model.
Victor and the rest of the executive team agree that EAM will enter the China market at one point, but questions remain about the right business model and whether this is the right time. India, Latin America and Eastern Europe seem like safer bets for the time being. Should EAM enter the China market now? If so, what should be their strategy? These are the questions Victor is trying to answer during his trip to Taiwan to finalize a contract with Vibo Telecom, one of the Island’s 3G mobile service provider
| Identifer | oai:union.ndltd.org:CHENGCHI/G0094933033 |
| Creators | Juan Carlos Madrigal Saborio |
| Publisher | 國立政治大學 |
| Source Sets | National Chengchi University Libraries |
| Language | 英文 |
| Detected Language | English |
| Type | text |
| Rights | Copyright © nccu library on behalf of the copyright holders |
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