The software service industry in china is still in the early development stage. There are around 9000 software service companies in China, more than three-quarters are small scale with less than 50 employees, and few of them are professional software provider and hard to achieve the scale efficiency or core competencies. Under the pressure of financial and technical resources constraints, their products are regular in pool quality and their sales are heavily depended on price (Chinabgao.com, 2008). Hardeep software has the superiority in technology, particular in the innovation of software function. In addition, wide operational experience and international brand image will also be served as the source of relative competitive advantage (Ali, 2005).
The competition not only comes from the Chinese local enterprises but moreover from international corporations, which including IBM, SAP, Oracle and so on. They have captured more than half of market share due to their advanced technology and established reputation. Graph Three: Top Ten Software Service Companies in China Entry Method of Joint Venture It is not easy for Hardeep Software to run its busniness in the Chinese marketplace.
The real phenomenon is that expansive area and the gap in regional culture cause the difference in the emphasis of customer requirement. Looking for new customers is a costly issue faced by Phillip starting his business in China. Commonly, Chinese partner should have its own customers, sales and marketing, it makes a better place for Hardeep Software to boost sales which has been achieved so far. Hardeep Software does not need to spend much on the training expenditure as most of staff are qualified and have working experiences in software service industry (Xu, 2008).
The china market is far more complicated than British market. All sorts of big deals can not be made until the government gives the green light. Hardeep Software may take several months to get government’s permission. While Chinese partner provides a foothold which enables Hardeep Software to save countless hours of learning how to communicate with Chinese government officers (William, 2004).
Marketing Mix Product Today, what customer needs is not product itself but also the relative service in terms of installation, operating, updating and so on. The quality of service is becoming critical on customers’ buying decision. While there is a server problem in Chins that Chinese buyers may have troubles in using software during the training process, as most of their knowledge regarding to the software usage is inadequate. Therefore, trainers with high professional level are not always better; whereas making customers comprehensive that is the key for the company (Zeng and Du, 2008).
Pricing The first choice of customers in china is the product with reasonable price and high quality. The quoted price in the software service industry is not volatile, rarely adapting discount to improve sales, due to the reason that the demand of high-technology service is relative small elastic and with little seasonal effects (Feng, 2008). Pursuing the high service quality and good oral traditions will allow Hardeep Software to deserve high price and maintain the customer loyalty.
Promotions Relationship Marketing There exists a number of defects in the social and economic system, it frequently causes problems and is hard to find an appropriate solution. Companies with pool relationship will get bogged down in this condition. It is critical to maintain a strong firm relationship with government institutions in order to obtain an advantageous position in the contract (Yang, 2005). This is revealed in the aspect of social interaction, referring to the time spending on the meeting, dinning, making friends and establishing trust.
Government recommendation is recognised as a guarantee of product quality. For example, “the national attaching quality and defending the prestige public satisfaction unit” issued by Information Ministry of China will effectively promote products in the public. Business Location Graph Four: Regional Software Service Sales As can be seen from the graph four, 80% of total software service revenue is generated from three urbanized regions which are formed along China’s coast the Pearl River Delta, the Yangtze River Delta and the Beijing-Tianjin-Hebei region. It is worth to notice that Beijing accounts for 16% of total companies generating 35% of revenue. Chinese government provides a large injection of human, material and financial resources into the IT infrastructure construction as Beijing is the political centre of China. While, Shanghai plays a role as the window in south economy, attracting 34% of total companies in Shanghai, but generate 20% of revenue (Saxenian, 2003).
Locating in above three areas will not only bring along considerable income but also facilitate operational activities (Anjian, 2005). Advanced transportation systems enhance the convenience of business by ensuring the easy access to the centre, key areas and the traffic hubs of the city. Outstanding hardware facilities and highly secured e-business platforms create a comfortable working environment for employees. In addition, a good location will contribute significantly to elevating corporate image.
This essay investigates the financial position of Haedeep Software as well as three strategies, one of strategies to developing the wireless card system is appropriate for the current business. At the last past of this essay, the entrance of Chinese software service market is recommended as the fourth strategy.