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ENTRYFORPROFIT
TRANS-COSMOSINC.CHINAENTRYSTRATEGYPRESENTATION;AGENDA;;CHINAISBECOMINGAHIGHLYDYNAMICCCMARKET;CCOURSOURCERSAREEMERGINGBUTSTILLEXPLORING(I);Currently,onlylow-price/standardservicevendorsareprofitable
Utilization,andtherefore,long-termcustomers,isthekeyforprofitability
However,high-pricedoutsourcingsolutionsnotwidelyacceptedbythemarket
Butinthelong-run,webelievehigh-endserviceswillbevaluedbycustomers
Weareencouragedbyrecentpositivenewsonclients’long-termcommitmentstohigh-endoutsourcers
WithChina’spendingWTOEntryandcontinuedeconomicgrowth,webelieveit’sthedirection
High-endoutsourcerscanwinthegamebyaggressivelyestablishinglong-termclientbase,andtargetingvariousoutsourcingopportunitiesalongthevaluechain
Fivesuccessfulstrategiesidentifiedfornewcustomerdevelopment
Telemarketingandvalue-addedinformationservicemostlikelytobeoutsourced;TCISHOULDPARTNERWITHRIGHTLOCALCCOUTSOURCERS;EC:ONLYSOFTWAREFIRMSANDSIsWORTHPURSUING;TCI-TJ:RSTRUCTURINGANDBUILDINGSTRATEGICALLIANCES;;CCMERELYABUSINESSPRACTICEBEFORE1997;Highertelecompenetration;CCINDUSTRYWILLREACH330-370KSEATSIN2010;TOP-DOWNAPPROACHREVEALSAPROMISINGENDGAME;REDUCINGTELECOMCHARGESWILLBOOSTFIXED-LINEADOPTION;TELECOMISTHEMOSTSIGNIFICANTCCUSERNOW
Bottom-upAnalysis;EXPERTOPINIONSREVEALAMARKETOF145,000IN2004;;CHINACCUSERBASEVERYDIFFERENTFROMU.S.;;THREECRITERIATODISTINGUISHCOREANDNON-COREAREA;;;ADMIN-DRIVENSEGMENT:MOSTIMPORTANTFORNOW;HOWEVERDEMANDEXPECTEDTOFLUCTUATEINTHEFUTURE;UNIQUETHREE-TIERDECISIONMAKINGPROCESS
SystemIntegratorsShouldPutEffortstoAll;OUTSOURCINGALMOSTNEVERANOPTIONFORADMIN-DRIVENCOMPANIES;SERVICE-ORIENTEDSEGMENT:ADRIVERFORLONG-TERMCCPENETRATION;MOREINDUSTRIESARELIKELYTOADOPTCCOVERTIME;COMPANIESQUITESELECTIVEONCCUSAGE;VERYCAUTIONSONCCOUTSOURCING;GENERICSERVI
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