In 2006, two entrepreneurs founded Fugumobile Co. Ltd., a digital marketing agency based in Shanghai, China. The company grew organically in China by adapting to the evolving trends in digital marketing. In May 2021, the founders were facing a dilemma and had to choose between two options for sustainable and profitable growth of their company. The first option was to reach an extensive client base by continuing to deliver standardized services at affordable prices, which offered the company modest growth and profitability. The second option was to offer customized services at a premium price, which was more rewarding but would require recruiting experienced workers with a proven track record for selling and delivering high quality customized services, who were typically employed by large agencies and demanded significantly high salaries. The two founders had to decide which path to take.
FUGUMOBILE富谷信息公司：在中国建立本地数字营销公司 Fugumobile: Setting Up a Local Digital Marketing Company in China (Simplified Chinese version)
Venkat Raman, Bhavani Shankar Saripalli, Huirong Ju, S Ramakrishna Velamuri
Product #:W36485
Supplier:Ivey
Discipline:Marketing, Strategy
Setting:India, 2021
Subjects:
Industries:
Your Price:$10.54
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Learning Objectives
该案例涵盖多个管理领域，包括数字营销、创业和国际环境下的业务增长。案例让学生了解初创企业成长的不同阶段，并有助于学生熟悉中国数字生态系统的快速演变。参与者还将了解企业需要采取被动和主动的方式采取增长战略来重塑自身并确保持续增长。本案例分析了未来增长的两个不同战略方向——平价或溢价的服务和定价。完成案例和作业问题后，学生将能够做到以下几点:
- 分析在中国这样复杂的数字营销环境中经营业务的各种选择的利弊。
- 通过分析两种不同的战略选择（以实惠价格提供标准化服务与以溢价提供定制服务）来了解决策过程中的张力关系。
- 讨论初创公司为实现可持续和盈利增长而做出的决策和行动。
This case is suitable for master of business administration and executive master of business administration programs in entrepreneurship and strategy courses. It can also be used in senior year strategy courses of undergraduate programs, as well as in courses that discuss growth strategies for start-ups and other organizations. The case is suited to participants who are entrepreneurs, senior executives, or strategists, especially those with geographic expansion experience.
The case covers various management domains, including digital marketing, entrepreneurship, and business growth in an international setting. It also allows students to learn about the different phases of start-up growth. The case helps students familiarize themselves with the rapid evolution of the digital ecosystem in China. Participants will also learn about the need for companies to be reactive and proactive in adopting growth strategies to reinvent themselves and ensure continuous growth. The case analyzes two different strategic directions for future growth—affordable or premium services and pricing. After working through the case and assignment questions, students will be able to do the following:
- Analyze the pros and cons of various options for operating a business in a complex digital marketing landscape like China.
- Appreciate the tensions involved in decision-making by analyzing two different strategic options—standardized services at affordable prices versus customized services at premium prices.
- Discuss a young company’s decisions and actions for sustainable and profitable growth.