With the accelerated marketization process in recent years, small and medium enterprises in China have acquired rapid growth accordingly. By the end of June 2007, China has seen the emergence of over 42 million small and medium enterprises, accounting for 99.8% of total number of enterprises nationwide. The annual sales revenue and profits of such enterprises have accounted for 60% and 53% of our GDP respectively. As a result, small and medium enterprises have been playing an increasingly critical role in facilitating economic growth, creating job opportunities and optimizing industrial structures.
Most of small and medium enterprises are operating in those industries of comparatively sufficient market competitions, where there are not only intense competitions, but also fast changes on the market. The ruthless market environment would therefore, require such enterprises to be bestowed with lower operation costs, flexible management measures and quick market response capabilities. Particularly, small and medium enterprises would more need to rely on their creation to make the timely adjustments of their own product forms, business modes, organizational structures and service methods along with the intensification of economic globalization and in face of the internationalized competition patterns, so as to adapt to the fast changing market and gain competitive edges.
Following the development of computer and communication technologies, the applications of such new technologies have been infiltrated into various sectors of corporate businesses, and have created the growingly important effects on the optimization of business processes and improvement of business intelligence.
Continuous aggravation of market competitions has kindled the increasing emphasis of small and medium enterprises on the unique role of basic communication networks in their businesses, where these enterprises have been never contented with the construction of a set of telephone call systems of singular functions, but have become inclined to locate their corporate communication systems at a kind of service bearing system that can increase their business capabilities and customer service level, thereby enhancing their competitiveness.
Since our products and business model are designed around the small and medium businesses in China, therefore our target market is the small and medium businesses with the needs to upgrade their business communication system and call center system at small business budget. There are basically 5 groups of clients that we are going to focus on: Telecom System Integrator, Small Businesses, Medium Businesses, Telecom Carriers and Schools.
SinoLab Technologies Co. Ltd., intends to provide customers with the necessary systems and services to provide cutting-edge customer service, by essentially offering a certain spectrum of communications solutions.
First, corporate communication systems need to have stronger stability and reliability. As a communication system can bear the information flow of an enterprise, the unsmoothed information exchange and communication would often give rise to the loss of some of its market opportunities. In this era while fast fishes swallow the slower ones, even one-minute delay would lead to a drop behind the competitors, while the cruelty of competition would make it very hard for small and medium enterprises to assume the risk of loss of market opportunities. Therefore, enterprises tend to have the extremely high requirements for the stability and reliability of their communication systems. In one word, only the steady operation can guarantee the continuousness and effectiveness of corporate business operations.
Next, communication systems shall be able to provide the merged business methods for enterprises. Telephone conference, voice mail, intelligent fax and call transfer have been gradually employed by enterprises, while all such business methods have played a critical role in each of information communication, business development and customer service. Nevertheless, all these applications would work on different platforms with neither interoperability, nor common interface between each other, as a result of their different communication protocols.
Such sporadic applications have resulted in the disruption of corporate business processes, thus influencing the integrity and fluency of businesses. As such, small and medium enterprises would require a communication system that can unify the abovementioned applications to provide the unified resource transfer and management mechanism on the same one operation platform, where various communication means can be flexibly embedded into the corporate business processes. In this way, a customer centered, business-oriented operation mechanism can be formed for enterprises.
Thirdly, communication systems need to provide the perfect business management and monitoring tools for enterprises. Now, most of small and medium enterprises are at a stage of burgeoning development. In concomitance with such development, the product forms, business modes, and organizational structures of these enterprises are all undergoing constant changes and adjustments such as serialization of products, increase of branches and subsidiaries and optimization of human resources. The continuous expansion of business scale has increasingly demonstrated the weakness of their business monitoring and management, whereas the scale of these enterprises is relatively smaller and a major part of their capitals have been invested in the business development and expansion. So, it is impossible for them to set up any special monitoring system by which to carry out the effective management and surveillance over organizations, personnel, messages and expenses, causing the enterprises to lose control of their businesses and leading to the enlargement of operation costs. Therefore, small and medium enterprises would require the communication system that can provide the effective business monitoring and management such as the corporate call management (e.g. call volume, time, time length, contents and charges), fax management (e.g. approval, filing, preservation), and localized management of systems at different places, thereby increasing the operation efficiency and reducing the operation costs in such enterprises.
In 2007, Frost and Sullivan issued "2007 Market Search Report on China Enterprises Call Centers", a research report about the China call center industry. According to this report, by 2006 the capital investment in the business of call center equipments is around $186 million in China. And it is expected in the next 5 years, the industry is going to grow at 19.2% Compounded Annual Growth Rate. By 2011, the total market capitalization is estimated to be $500 million. It is also noted that the call center business in China has already passed the initial development stage and moved onto the steady growth phase. It is critical to gain market shares to ensure growth in the next 5 years.
Initially, SinoLab Technologies will focus on the local and regional markets in the previously mentioned services. The target customers will include key decision-makers in the local system integrators, medium, and small-sized companies, telecom carriers and universities.
Our marketing strategy will emphasize focus. This will be the key. We are a relatively new company on the market and must focus on certain kinds of products with certain kinds of clients. We will focus on the local and regional markets, expanding into the international markets as time progresses, and as we gain the necessary experience. The form of growth that shall be initially pursued will be that of organic growth mainly due to limited resources and the need to instill awareness and confidence in our services. The target customers will include key decision-makers, sales and marketing personnel involved in decision-making and transaction sealing.
• We intend to build image and awareness through consistency and distinctiveness in our products.
• We intend to focus on delivering quality services and end products that in turn produces good referrals, which can then generate revenue.
• We intend to always have a relatively heavy personal selling component to our marketing.
A key factor to the future success of this project is the background and experience of the management team and strategic partners, and their ability to work the market based on an innate understanding of both the business processes and market structures. The delivery of whole, end-to-end solutions will have a significant impact on gaining commitment from the market at all levels. Therefore, the company believes in partnering with its customers to bring the future in communication and information technology into the customer contact zone. Inevitably this shall involve constant liaison with the client, a customer-centric approach that is need-based.
One core element of our strategy will be that of differentiation from our competitors. In terms of marketing, we intend to sell our company as a differentiated strategic ally, not just our products. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Market penetration through lower prices shall be undertaken where need be whilst premium pricing in the case of high quality services targeted at the upper-end of the market. Our service marketing will strive to ensure that we establish long-term relationships with clients. Our primary intention will be to sell a relationship more than services.
Our marketing will emphasize the benefits of cost, quality and flexibility to be gained from utilizing our products. The approach will be entirely needs-driven and a thorough understanding of the business requirements, business processes and technology strategy of the customer being the basis on which SinoLab Technologies solution will be built. Once the needs and processes are understood and described, leading edge products and best-of-industry skills will be applied to design and develop a fitting solution to satisfy the need and enable the customer's business in the most cost effective way.
