Focus Media (A): Building a Chinese Media Giant Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Focus Media (A): Building a Chinese Media Giant Case Solution

In 2003, Focus Media originated digital outside marketing in China, positioning LCD display screens in areas in leading industrial structures that had high traffic and waiting times, such as lobbies and elevator waiting locations. The business rented area from building owners, and offered marketing, running 12 minute loops with 30 2nd ads. This supplied marketers with a targeted method to gain access to middle and high earnings customers, and was much more reliable than standard tv marketing. Just targeted customers saw the advertisements, as low-income individuals did not concern these structures, and customers chosen enjoying advertisements while they waited in contrast to having absolutely nothing to carry out (in contrast to tv advertisements, which they felt as being an annoyance). As soon as a business was developed here in this market, owning a bulk of building agreements, it was challenging to remove. Focus Media invested greatly to rapidly to gain control of this market. It was quickly successful, and obtained other business in associated companies.

Focus Media went public on Nasdaq in 2005, and started getting other marketing organisations. By 2007, it had earnings of over $500 million, more than $250 million in money, a local market capital of $6.5 billion, and was consisted of in the Nasdaq 100 non-financial companies.

Because of this fast, effective development, the business wanted to the foreseeable future with expectations. There were ideas that it may obtain SINA, the top Chinese World wide web website. Growth to other nations was likewise a possibility. Due to this effectiveness, the case asks trainees to think about how the business must best continue.

This is just an excerpt. This case is about Business