TOPIC ONE：Free Market Zone
? Background information: China (Shanghai) Pilot Free Trade Zone (FTZ) Shanghai FTZ has officially
been brought into line with national plan by the end of April 2013. In August the State Council gave approval to officially open the Shanghai FTZ on October 1. The simple understanding of FTZ refers to a specified area which benefits from domestic tax-charging and special government supervising policies, which means it’s an area within which goods may be landed, handled and re-exported without the intervention of the customs authorities. Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products. The setting up of FTZ involves lots of construction of bridges and surrounding roads. Shanghai Pudong Road & Bridge Construction Co., Ltd is involved in this program. It is different from the traditional trading zone FTA (Free Trade Area). Below are two cases about companies that benefited from the FTZ. 1. Shanghai Pudong Road & Bridge Construction Co., Ltd.(Figure1.) 2. SHANGHAI WAIGAOQIAO SHIPBUILDING Co., Ltd (SWS)(Figure2.) SWS is located in the tax-protected zone and also in the FTZ.
Figure1. The Candlestick Charts of Pudong Construction Co., Ltd. Figure1. The Candlestick Charts of Pudong Construction
Figure2. The Candlestick Charts of SWS
Qianhai (Shenzhen) Economic Zone Qianhai is a new district of Shenzhen. The purpose of the foundation of Qianhai was to deepen the cooperation between Shenzhen and Hong Kong and other economically developed cities. This special district mainly focuses on the construction of financing industry and the investment of Hong Kong equity institutions, asset management firms, etc. For instance, The Bank of East Asia and Hang Seng Bank are ratified to enter and station a sub-branch in Qianhai District.
Figure3. Map of Qianhai Qianhai Economic Zone benefiting Hong Kong banks There are some supportive and preferential policies in Qianhai to support foreign-invested equity investment enterprises, and these policies encourage more talented individuals to settle in Qianhai. Also, Qianhai is in an advantageous position given Hong Kong’s proximity to Shenzhen. Hong Kong banks will benefit from greater demand for personal cross-border financial services.
Figure4. CNY deposits in Hong Kong banks.
Please answer the following questions in paragraphs, based on the given material. Extra information from the internet or other sources, which shows your ability to comprehend business knowledge, will be granted as long as the references are shown. Also you may use your own knowledge to answer them and you are expected to fully explain and develop your answers. 1. Describe commercial differences and similarities between Shanghai FTZ and Qianhai District.(10) 2. According to Fig2, why were no transaction of stocks completed around the beginning of September? If you are holding stocks of these two companies, what would you do with them in the future? Explain why. (15) 3. Why did the Chinese government decide to build the Shanghai Free Trade Zone? (20) Tips: ?How can Shanghai Free Trade Zone benefit China? ?Does it indicate that the Chinese government will start a new reform? ?What are the opinions of other countries?
4. Diversity English (http://www.diversityenglish.com) is an educational company. Now, you are a marketing group in Diversity English and are asked to find out which area is more suitable for Diversity English to expand new sub-branch, Shanghai FTZ or Shenzhen Qianhai District? Justify your answer (explaining both advantages and disadvantages of locating in these two areas). After deciding a place, by considering the background of Diversity English, features of your target customers, the FTZ , and your competitors, come up with a marketing strategy (how will you promote? advertise? etc.)You can construct your answer in time order: before setting up the sub-branch, when the sub-branch is under operation and when your sub-branch develops into a certain size. (25) 5. Now, you are asked to carry out a market research by handing out questionnaires. You are required to design your own questionnaire and produce a report. (35) Here are the aspects you need to mention in your questionnaire report. i. How much do the residents of your city know about general financial products (stocks, funds, futures, debentures, and insurances) ii. The habits of purchasing financial products (quantity, frequency and types or even estimated profit of their investment) iii. Rough knowledge of Qianhai district. You should hand out your questionnaires in these three types of places (the minimum number of subjects should be 25 in each place): --an over-crowed area where relatively cheap stuff are sold --a shopping complex area or a luxurious area --the residential area that you live in After collecting all your data, you should present them in tables and statistical charts. Please analyze your data in as much detail as possible (why are there differences between the different areas and what are they, etc.). Produce a report (using different charts and graphs) based on the questionnaires you carried out.
TOPIC TWO: Video Website
? Background information: NICO NICO A brand new way of seeing videos occurred. NICO NICO (ニコニコ動画 It means “smile ,smile” in Japanese) (http://www.nicovideo.jp/), a video hosting service website based in Japan, showed a brand new way of video sharing, where users can upload, view and share videos. However, the comment of the video overlaid directly onto the video, synchronized to a specific playback time. This allows comments to respond directly to events occurring in the video, in sync with the viewer—creating a sense of a shared watching experience. The website also has “Nicoscript” which uses a special command in the up-loaders’ comments to show special effects to the video including voting, automatic transforming to other videos and other features. Users can create a “my list” to show their own works and the videos they are interested in. Many people like NICONICO and several Japanese politicians signed up for their own accounts to share their opinions. This way of watching videos has won mania from not only East Asia but also other countries like the US. NICONICO also has its own live broadcast (ニコニコ生放送) and broadcasts some famous events of the animates’ world (like the annual concert of HatzuneMiku). It has the annual activity called NICONICO 超会 议, which is an assembly of animate lovers, attracting over 80,000 per year and even the government. (This year’s event was supported by the Economic Affair Office of Japan) Business aspects The main income of NicoNicoDouga comes from three parts: Premium-Membership (Pay-membership), Advertisement, and NicoNicoIchiba (Affiliate). Premium-Membership Registration is required to watch videos at NicoNicoDouga. There are two types of registered accounts, Free membership and Premium-membership. The Premium-membership fee is 525 yen (about US$6) a month. As of January 2, 2012, they reached 1,500,000 premium members. They accept three forms of payment: credit cards, WebMoney vouchers and PayPal since February 2011. Advertisement NicoNicoDouga uses Google Ads and other web advertisements. On May 8, 2008, Niwango announced partnership with Yahoo! Japan, planning to adopt search-related ads and other Yahoo-related services. NicoNicoIchiba (Affiliate) NicoNicoIchiba is a unique advertisement system in which users can place banners for free in each video page. Both video uploaders and video viewers can choose items which they want to place, and can place and delete banners in the advertisement area. Users can also know how many times each banner has been clicked and how many items have been bought. Ranking info of numbers of items bought through NicoNicoIchiba is also officially provided. Items available are from Amazon.co.jp, Yahoo Shopping, and Dwango mobile service.
Premium accounts and the affiliate system were, in the past, only available to Japanese users. Non-Japanese users can now apply for a premium membership on the Japanese site with international JCB cards, WebMoney vouchers only and PayPal, notwithstanding the language barrier. Also, as of July 2010, NicoNicoIchiba has been extended to the Taiwanese website. Financial condition In the fiscal year from Q4 2010 to Q3 2011, NicoNicoDouga has had a gross income of approximately 10.81 billion yen (US$139.1 million as of November 10, 2011), posting a 670 million yen (US$8.6 million) operating profit. IN CHINA The most famous imitator of NICONICO in china is called Bilibili. Bilibili changed the interface and made it more fashionable. It broad-casted <fate/zero> with NICONICO before but this was banned by the government. In the year of 2012, Bilibili merged with the SMG (Shanghai Media Group). Now the website is not as free as NICONICO since some cartoons and videos are restricted and even banned by the SMG and the pressure of the government.
Besides hosting video content, Bilibili's core feature is a real-time commentary subtitle system that displays user comments as streams of moving subtitles overlaid on the video playback screen, this is also the feature of NICONICO. These subtitles are called "danmaku" (literally “bullets”). Such subtitles are simultaneously broad-casted to all viewers in real-time, creating a chat room experience in which users feel like watching the video and interacting with other viewers. This system offers users various subtitle controls, including style, format, and movement. Although the control functionality is limited, users are fond of creating translated and soramimi subtitles, or special effects with carefully formed subtitles. Bilibili is experimenting with HTML5 video playback technology, and has released smartphone apps for playback on iOS and Android. Bilibili is also developing an API to offer third-party developers the access to website content including video lists, comments, "danmaku" subtitles, and special topics and airing programs. The API service is open for signing up. It is rate-limited and requires developer keys for authentication. http://en.wikipedia.org/wiki/Bilibili - cite_note-api-application-7
Please answer the following questions in sentences, based on the given material. Extra information from the internet or other sources, which shows your ability to comprehend business knowledge, will be permitted as long as the references are shown. Also you may use your own knowledge to answer them and you are expected to fully explain and develop your answer. 1. Draw a SWOT (strength, weakness, opportunities, threats) analysis for NICO NICO, including as many points as possible and explaining each briefly. (10)
2. Compare and contrast competitive advantages of the Comment Video Website and the main trend video website; and thus further discuss the pros and cons of commercialization on the Comment Video Website. (15)
3. Given Figure 1 and Figure 2, you are required to predict the future development trend of NICONICO. Please fully explain and develop your answer, with reference to the graph (you should mention the target group and the revenue distribution.) (20) Figure1 the age distribution of customers of Niconico（P.s 10 代= 10-19 years old, and so on. 他= other age groups.）
Figure 2 the Revenues from NICONICO DOUGA from 2008 to 2011 4. Diversity English (http://www.diversityenglish.com/index.asp) is an educational company. It has a unique feature that all members of the management have studied abroad. Now, the managers want to expand the influence of the company and they decide to use the comment video websites as the platform for their publicity. Please explain how the company can promote by using the comment video websites. (25) 5. Do a primary market research of Comment Video Website and write a report to present the people’s awareness level and usage condition of Comment Video Website. (35) Requirements: investigate different people’s (age, sex, income…….) awareness condition and their usage of Comment Video Website. Use different forms of charts and statistics to present your result. You are required to use Questionnaires to do your market research.
Tips: 1. Before designing the questionnaire, make sure you know the objectives of your research, the target group of your questionnaire and the place to carry out the research. 2. Include no more than 12 questions. 3. Keep the questions short and clear to make sure that the interviewee can completely understand them. 4. Collect and collate the data, then write a simple report after you analyze the questionnaires. The accuracy of market research depends on how the research is conducted and how samples are selected. Here are some ways to make information from market research more accurate: ·A sample needs to be truly representative of the total population, hence a quota sample is normally used. ·The larger the sample, the more accurate the results. ·Questionnaires need to be tested on a small group of people to see if there are misinterpretations. The questionnaires will be modified to be as clear as possible. Carrying out the questionnaire First you need to figure out: ·How you will ask the questions. ·How you will collate the results. Finally you : ·How many people will be asked ·When you will carry out the research
Second you need to decide: ·Where you are going to ask the questions Hereis a sample you.http://www.sojump.com/jq/1392809.aspx ·Who your targetfor group is
TOPIC THREE：Tecent Inc.
? Background information: Tencent Holdings Limited is a Chinese investment holding company whose subsidiaries provide mass media, entertainment, Internet and mobile phone value-added services, and operate online advertising services in China. Tencent was founded in November 1998. South African Naspers purchased a 46% share of Tencent in 2001. In 2008, the sub prime crisis started in the USA, soon spreading across the rest of the world. During the crisis, many businesses like Lehman Brother and General Motors went bankrupt. When everyone was losing money, Tencent’s business was going well; at the beginning of 2008, its stock price was about 27, but after the crisis at the end of 2009, the stock price went up to nearly 160. Now, at the end of September 2013, its stock price is 417. Its headquarters is in Nanshan District, Shenzhen. Its services include the well-known instant messenger Tencent QQ and one of the largest web portals in China, QQ.com. Mobile chatting service WeChat has helped bolster Tencent's continue growth. It is the third-largest Internet Company in the world, following Google and Amazon, having a value of USD $38 billion. In September 2013, Tencent's market valuation rose to US$101 billion, just nine years after going public. WeChat (微信) was first released in January 2011. The app is available on Android, iPhone, BlackBerry, Windows Phone, and Symbian platforms. It supports languages such as traditional/simplified Chinese, English, Indonesian, Spanish, Portuguese, Turkish, Malay, Japanese, Korean, Polish, Italian, Thai, Vietnamese, Hindi and Russian. Tencent Weibo is a Chinese micro blogging (Weibo) website launched by Tencent in April-2010. Users may broadcast a message of a maximum 140 Chinese characters through the web. Sina Weibo is a Chinese micro blogging (Weibo) website. Akin to a hybrid of Twitter and Face book, it is one of the most popular sites in China, in use by well over 30% of Internet users, with a market penetration similar to what Twitter has established in the USA. It was launched by SINA Corporation on 14 August 2009, and has 503 million registered users as of December 2012. About 100 million messages are posted each day on Sina Weibo. ShengDa Interactive Entertainment Limited is a Chinese operator of online games and book publisher, based in Shanghai, established in December 1999 by Chen Tianqiao and Chen Danian. In 2005 it claimed to have 460 million registered accounts and an average of 1.2 million players at any given time. Its 2004 listing on the US-based Sanda stock exchange raised $151.8 million USD. In September 2001, ShengDa published its first game, The Legend of Mir II (Licensed from a Korean company, We Made Soft).
Shenzhen Diversity Ltd was the first English training agency that proposed “High-end custom and personalized service” as their goal. It consists of a team of master degree returnees and strictly selected international teachers with TEFL and DELTA qualifications, having more than 4 years’ teaching experience (on average) in business English and exam English. Until now, diversity English has trained hundreds of students to prepare them for studying in the UK and USA and businessmen to utilize English in their work.
Please answer the following questions in sentences, based on the given material. Extra information from the internet or other sources, which shows your ability to comprehend business knowledge will be permitted as long as the references are shown. Also you may use your own knowledge to answer them and you are expected to fully explain and develop your answers. 1. Games are an important part of Tencent’s income. In the pass, ShengDa was a competent competitor of Tencent. What kind of advantages does Tencent have compared with ShengDa? Answer the question in terms of the “4Ps”(PALCE/PRICE/PRODUCT/PROMOTION). (10) 2. Tencent Weibo was not always successful in the competition with Sina Weibo, according to the background information. *What are the advantages and disadvantages of the 2 firms in the Weibo business? *State the differences between their products, the two Weibos. *If you were the chairman of TENCENT’S WEIBO department, what strategies might you establish in order to gain competitive advantage in competing against Sina Weibo? (15) 3. Access Tencent’s official website to find out its financial reports from 2007 to 2009. Draw a pie chart to show Tencent’s income structure every year. Then draw a line graph to show how Tencent’s income changed over the 12 seasons from 2007 to 2009. Also, according to the financial report, state at least 4 reasons Tencent survived and even made profit during the economy crisis. Be sure to quote the source of your answers in the financial report. You may also use some of your own knowledge to add to the reasons. (20) More information:www.tencent.com-投资者关系-业绩报告 or http://www.tencent.com/zh-cn/ir/reports.shtml 4. Diversity English (http://www.diversityenglish.com/) is an educational company. Now, Tencent is planning to achieve globalization and they need English training services for their employees; thus, cooperation with an English coaching agency is necessary. Assume you were the marketing manager of Diversity English. Write a formal letter (500 words minimum) to Tencent’s HR Department to convince its manager to cooperate with Diversity English. You may use your own knowledge about Diversity English. (25) 5. WeChat has become a popular communication App in the recent years. You are now a manager in Tencent and are required to interview people on the street about Wechat; you need to collect and compile your results to find ways to improve Wechat. (35) Step1
Setting your questions: You may set any questions as long as the results can improve WeChat. Decide who your target group will be and a proper time and place for interviewing. These should be shown in your final report. E.g. What’s your opinion of prices charged on WeChat? What’s the drawback of WeChat? Step2 Conduct the interview: To make sure the result is accurate, you need to interview enough people, including people of different age groups. Step3 Analyze the result: We suggest that you arrange the result data in charts to show it clearly. Analyze the results and write a detailed report on how to improve WeChat.
TOPIC FOUR: Starbucks
? Background information: China becoming No. 2 Market for Starbucks Americans who like to joke about having a Starbucks on every street corner soon may have an unlikely partner in the joke: the Chinese. Early next year, China will replace Canada as the global coffee giant's second-largest market, where Starbucks plans to open its 1,000th store sometime before the end of 2013. As it expands in China – where Starbucks announced the opening of two iconic, flagship stores on Monday – Starbucks is experimenting both with the interior and exterior designs of its new stores in a bid to appeal to Chinese customers. And yes, there's even a new, 24-hour location in Beijing. "China is our 'second home' market outside of the U.S.," says John Culver, Starbucks Group President of China and Asia Pacific, in a phone interview. Never mind that China is a tea-centric culture. Excerpted from: http://www.usatoday.com/story/money/business/2013/09/16/starbucks-china-flagship-stores/2820885 While Starbucks Corporation (NASDAQ:SBUX) has been diversifying its offerings in the U.S. with its foray into tea, juice, bakery, etc., international expansion still remains a big part of its growth plans. The coffee giant will open soon its 1,000th store in China, making the world’s most populous nation its second biggest market after the U.S. Kudos to Starbucks for becoming so popular in a country that has a predominantly tea-drinking culture. Starbucks certainly tweaked its menu a bit to cater to the local tastes, but replacing coffee with tea was never a good idea. You don’t want to change your menu to an extent that you lose your identity. So if there were minimal menu changes, how did Starbucks become so popular in China? Moreover, with Starbucks’ prices, it would have been an arduous task to keep customers coming back. See our full analysis for Starbucks Corporation Here are some of the things that Starbucks did right: a) Brand Positioning Asian countries are quick to embrace Western brands since foreign products are often considered a sign of quality and prestige. Starbucks enjoys an upscale image in the U.S., but it enjoys an even better image in China. This is because Starbucks opens big, swanky stores at posh, highly visible places. Starbucks has also targeted the younger demographics since it is considered hip among the Chinese youth to hang out at Starbucks. (You’ll often find a lot more Facebook tagging at Starbucks among Chinese teenagers!). For the office goers, being seen at Starbucks is a sign of affluence and sophistication. It is even common to have informal office meetings at Starbucks.
b) Consumer Psychology You’ll also find a lot of couches and sofas at Starbucks outlets in China. As is often the trend in developing countries, diners seek value in anything they buy. If they are spending $5 per person on average (which probably translates to more than $10 in purchasing power terms), they might as well stay, relax and spend some time before leaving so that its money well spent. Take out for food or drinks is not a very big trend in China. Thus, Starbucks in China is truly a social experience and not just for serious coffee drinkers.  Starbucks has also become the go-to place to enjoy a slow meal without spending a fortune. The fast food chains or the local Chinese restaurants can be excessively crowded. At high end restaurants, diners are under pressure to eat and leave. In cities that are packed with people everywhere, finding a decent place to relax without spending too much can be a luxury! c) Better Work Environment Labor laws are relatively lax in China and small scale Chinese shops (or family owned single chain stores) often exploit labor. The employees are made to overwork and are often inadequately paid. This is where working at Starbucks is a huge upgrade for the company’s Chinese workforce. Not only are the working conditions better, the employees are paid adequately in case they work a few extra hours. There is also an opportunity for employees to get promoted (e.g. you could start from a barista and work your way up to becoming the store manager). The company’s values and ethos are also easier to pass on to the employees if they are made to feel welcome. Starbucks’ success in China is important as it looks to open more stores in Latin America and India. We will keep a close eye on its developments in the overseas markets. We have a $67 price estimate for Starbucks, which is about 10% below the market price.
Understand how a company’s products impact its stock price at Trefis Excerpted from: http://www.trefis.com/stock/sbux/articles/207474/how-starbucks-got-it-right-in-china/2013-09-30 Starbucks is selling a lot more coffee in China. According to its latest quarterly report, Starbucks (SBUX, Fortune 500) saw a 30% year-over-year jump in revenues from its Asia-Pacific region, lifted by outstanding sales in China. "The very strong sales volumes prove that the coffee concept can succeed in traditional tea-drinking countries," said R J Hottovy, director of consumer equity research at Morningstar, Inc. "It's resonating very well with [inland] cities." Starbucks' solid sales growth in the region was driven by the 500 new stores it opened there last year, and its Asian expansion plans aren't slowing down. The Seattle-based coffee giant said it plans to open its thousandth store in China by the end of the year. In addition to already being in major cities like Beijing and Shanghai, the company says its stores will have penetrated lesser-known cities. By 2014, Starbucks said China will surpass Canada to become the second largest market, after the United States.
Related: Starbucks' caffeine-fueled expansion In the last five years, overall retail coffee sales in China climbed by 10%, beating growth in Hong Kong, Japan and the 3% global average, according to data from research company Euromonitor International. Starbucks said its marketing strategy in China is similar to that of its Western markets. It continues to focus on its core food and beverage products while also offering other locally oriented choices. "The demographics they are targeting are younger and more affluent groups," Hottovy said. Starbucks opened its first store in Taipei in 1998, followed by its first mainland China store in Beijing in 1999. But the coffee shop market is beginning to heat up. "Increasing competition will be the most pressing issue as more Western coffee brands enter the Chinese market," he said. Starbucks reports best quarter ever In 2012, an average Chinese person consumed about two cups of coffee per year. That's a far cry from the global average of 134 cups a year, according to Euromonitor. Coffee has less than 1% of the Chinese hot-drink market share. By contrast, tea makes up 54% of the market. "It's still too early to say that coffee is going to replace tea, or that the Chinese flavor profile is changing," said Dana LaMendola, analyst of hot drinks at Euromonitor. Correction: An earlier version of this article incorrectly stated that Starbucks opened 500 stores in China last year. The stores were opened throughout the Asia/Pacific region. Excerpted from: http://money.cnn.com/2013/07/26/news/companies/starbucks-china-sales-surge/index.html
Please answer the following questions in sentences, based on the given material. Extra information from the internet or other sources, which shows your ability to comprehend business knowledge, will be permitted as long as the references are shown. Also you may use your own knowledge to answer them and you are expected to fully explain and develop your answer. 1. What indication does the above news prompt? Generalize the information provided and comment on the information. (10) 2. By comparing Starbucks with other coffee shops in China (Costa, Pacific etc.), formulate your own market competition report, the purpose of which is to strengthen Starbucks’s leading status and to prevent strong competition from other firms against Starbucks.(15) 3. Diversity English (http://www.diversityenglish.com) is an educational company. Assume you are the Head of the Marketing Department of Diversity, which is located near a Starbucks shop. You are going to find a direct and stable coffee supplier for both staff and students in Diversity English. You are required to design a plan on how the cooperation will be carried out; moreover, you are required to compose a document to attract or to persuade Starbucks to be your direct and stable coffee supplier. (15) 4. How did Starbucks’s business successfully entrench in China which has a tea-centric culture as stated above? You are required to discuss comprehensively its marketing strategies, special adaptations and product qualities, etc. Please state your points as clearly as possible. (25) 5. Now a fireplace equipment manufacturer intends to infiltrate the Chinese market. As the CMO of that firm you need to contrive a business plan for your firm’s impending market expansion. Please make an exhaustive marketing plan explicitly based on the result of the previous research on Starbucks. Please develop the plan in a formal business marketing plan format separate from the research paper about Starbucks above. (40) Here is the guide to writing a marketing plan: http://www.wikihow.com/Create-a-Marketing-Plan
TOPIC FIVE: 58.com
? Background information: 58.com, a online marketplace serving local merchants and consumers in China, filed on Friday with the SEC to raise up to $150 million in an initial public offering. The Beijing-based company, which was founded in 2005 and booked $107 million in sales for the 12 months ended June 30, 2013, plans to list on the NYSE under the symbol WUBA. 58.com initially filed confidentially on July 30, 2013. Morgan Stanley, Credit Suisse and Citi are the joint book runners on the deal. It provides an online marketplace for local merchants and customers in 381 cities to share information and conduct business in fields such as second-hand goods, jobs, housing, pets and yellow pages, the prospectus said, noting it is the largest online marketplace by monthly unique visitors on the website and mobile application. Earlier this year it introduced the escrow payments solution from Taobao hoping to boost direct transactions on its platform. 58 developed separate mobile apps for end-users and businesses. In Q2 2013, 39.4% of the average monthly page views were on mobile apps. Its revenue sources include merchant-facing membership fees and online marketing; the latter includes advertising and paid searches. The company made $10.7 million, $41.5 million and $87.1 million in 2010, 2011 and 2012, respectively, with net loss of $13.9 million, $83.4 million and $30.4 million, respectively. It managed to turn a profit, $2.85 million, in the first half of 2013, in which period 60% of the total revenue was from membership fees and 38% from online marketing. 58 claims that “it’s the largest online marketplace serving local merchants and consumers in China”, with a 38% market share in 2012, citing an iResearch report. Its direct competitor, Ganji.com, is very close to 58 in market share. One month ago Ganji disclosed that it had raised $90 million in 2012 and wasn’t preparing for an IPO. An average of 56.4 million monthly listings of local information was posted by WUBA users, website and mobile applications in the Q2.The site had approximately 4.3 million active local merchants in the second quarter of 2013, according to the F-1 file. The number of page views per unique visitor more than doubled in the Q2 as compared to the same period two years ago and 39.4 percent of the page views were on mobile applications.
It is a good opportunity for 58.com to be getting listed in the US stock market due to the market being on an upward trend, especially IT stocks. US investors' confidence in Chinese stocks is recovering, noting the stock prices of some Chinese enterprises listed in the US have risen to high records this year. The Chinese market in online classifieds is expected to rise from $275.4 million in 2012 to $2.4 billion in 2017 due to the existence of numerous megacities and limited resources faced by local businesses, especially small and medium-sized enterprises, according to a report of iResearch cited by the prospectus. Some may say 58.com chose the right time. However, there are also some doubts about 58.com's performance. The website has faced decreasing website traffic volume and low profits for almost three years. It is normal that the website has spent a large amount of capital to attract users and increase website traffic in its primary years, but it only started to gain profit this year, illustrating that it’s a low profit earning company which founded in 2005. Also, the website traffic volume rank of 58.com in 2013 has dropped from No.140 in China in the first quarter of 2012 to around No.270 in September. Website traffic volume is not the only indicator of performance. The quality of traffic volume is also important and 58.com's efforts on mobile Internet should also be taken into account. 58.com launched its mobile application in 2011 to facilitate communication between merchants and consumers. In the second quarter of 2013, the application attracted 39.4 percent of the company's average monthly page views. China's mobile Internet users are expected to increase rapidly, from 420 million in 2012 to 784 million in 2017.The future of 58.com remains uncertain to everyone.
Please answer the following questions in sentences, based on the given material. Extra information from the internet or other sources, which shows your ability to comprehend business knowledge, will be permitted as long as the references are shown. Also you may use your own knowledge to answer them and you are expected to fully explain and develop your answer. 1. Compare the operations of 58.com, Haier and Netease, as well as their strategies on the international market. Do a research and explain the reasons why companies are seeking for foreign investment. The benefits of internal growth (e.g. investment on fixtures and fittings and research and development) and external growth (merger and acquisition between companies)are expected to be taken into consideration.(10) 2. Imagine you are the CEO of Diversity English (a tutoring institution operating in ShenZhen). As the size of the company is increasing, you are considering the possibility of attracting direct foreign investment. Briefly describe how you are going to attract foreign investment and what factors are needed to achieved this. (15) 3. Read the sample business plan; you are required to comment on the company in a sample business plan and further, draw the SWOT analysis of the company. (20) Reference: 邮件中的第五个附件--商务计划.pdf。 4. Now, you are required to compose a simple business plan using the structure of the material given in the question above to attract foreign investment for your company (58.com).(30) 5. Do a primary market research of 58.com and write a report in order to judge and evaluate the feasibility of setting up an internet-based exchanging platform school. (30) Requirements: investigate different people’s (age, sex, income…….) awareness condition and their usage of based-based exchanging platform(58.com). Then use different forms of charts and statistics to present your result. You are required to use Questionnaires to do your market research. Tips: 1. Before designing the questionnaire, make sure you know the objectives of your research, the target group of your questionnaire and the place to carry out the research. 2. Include no more than 12 questions.
3. Keep the questions short and clear to make sure that the interviewee can completely understand them. 4. Collect and collate the data, then write a simple report after you analyze the questionnaires. The accuracy of market research depends on how the research is conducted and how samples are selected. Here are some ways to make information from market research more accurate: ·A sample needs to be truly representative of the total population, hence a quota sample is normally used. ·The larger the sample, the more accurate the results. ·Questionnaires need to be tested on a small group of people to see if there are misinterpretations. The questionnaires will be modified to be as clear as possible.