Case Analysis: The Challenges of Start-up in China: Harvard Case Solution & Analysis

Case Analysis: The Challenges of Start-up in China: Case Solution


The company is a social networking website like Facebook, the company offers educational interactive and online games for university and college students. Moreover, these things are designed for the official checkpoint of CET website, which is a compulsory exam for non-nativeEnglish speakers among Chinese Students. The company is working for China University Sports Association of CUEG operator. The company is a Chinese firm founded by two entrepreneurs known as Ken Pao and Bill Li.(Bloomberg, 2016)

Goals and Objectives of Li and Pao and their consistency in the business

            The basic goal of the owners was to make their site, the Facebook of China. However, the business strategy was well convened since, Li and Pao devised a strategy that could support their business model. Furthermore, they knew that there were several players playing in the same market space. However, the ultimate target of the company was to be the market leader of online social college networking in China. Moreover, the main competitors, who also had the same bottom-line, entered in the market almost the same time. These competitors include Dipain, ChinaY, 5Qand and so on. Moreover, the ultimate objective of these companies was also to become the Facebook of China. In addition, several companies entered in the same market at the same time. These companies included Faceren, Yeejee etc. It can be seen that the ultimate objective of all these companies was to become the market leader in the same industry and in this situation, entering towards a new market would be a more difficult task but the Li and Pao made a good strategy to enter the market.

            For the initial launch of beta, the owners of the company designed a strategy to start a marketing campaign before a month of the launch of the website. Moreover, the company started its promotional campaign in January 2006 and promoted that the website will be launched in February 2006. The reason behind starting the promotional activities month before was that the founders believed that during the New Year week they would easily give awareness and message to the target audience. However, when the website will launch in February, the classes will be on going and that would give a chance to the company that it could find errors and fix bugs in the website. This indicates proper planning and wonderful strategic vision.

            Moreover, as far as the stakeholders of the company are concerned, the strategy was designed to perfectly meet all the criteria of stakeholders. Furthermore, the main stakeholders for the company were government, students, and backward channel members. In addition, the company executed the plan to meet the demands and expectations of its stakeholders.

Different Approaches Considered by the owners of the company

            There are four major options, which the founders of the company are considering. There may be other options and approaches to work with them, but the analyst was asked to point the major approaches, which the founders of the company were thinking. Therefore, the analyst highlighted four major options and approaches that the founders were considering to expand their business while ensuring its survival. The first approach was to enter the online gaming arena by leaving the social networking segment since, the social networking segment was not so lucrative and it was flooded by potential rivals. Moreover, the other approach was to credit bureau and information gathering. Under this strategy, the company will develop a database where it will store its subscribers’ data for credit and information services, the reason behind considering this alternative was that cloud computing was becoming famous and showed potential in the business...............

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