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

In 2003, Focus Media pioneer of digital outdoor advertising in China, placing LCDs in locations in major commercial buildings that have high traffic and waiting time, such as lobbies and waiting elevator. The company leased the space from building owners, and sold advertising, there are 12 minutes of the loop with a 30-second advertisement. This gave way to target advertisers access to the middle and high-income consumers, and was much more efficient than conventional TV advertising. Only target consumers saw the ad, as low-income people do not come to these buildings, and consumers prefer to watch ads, while they waited, as compared to having nothing to do (as opposed to television advertising, which, in their opinion, to be a nuisance ). After the company was established in the market, owning the majority of construction contracts, it was difficult to dislodge. Focus Media invested heavily to quickly get control of this market. It was more profitable, and acquired other companies in related businesses. Focus Media went public on the Nasdaq in 2005, and began to acquire other businesses advertising. By 2007, it had revenues of more than $ 500 million, more than $ 250 million in cash, the market capitalization of $ 6.5 billion, and was included in the Nasdaq 100 non-financial companies. In light of this rapid and successful growth, the company looks to the future with optimism. There were suggestions that he may acquire Sina, China's leading internet portal. Expansion to other countries was also a possibility. In light of this success, it asks students to consider how the company should best proceed. "Hide
by George Foster, Ning Jia, David W. Hoyt Source: Stanford Graduate School of Business 19 pages. Publication Date: March 9, 2009. Prod. #: E330A-PDF-ENG