Marketing Strategy Analysis of Experience China: A National Image

Campaign in the United States | Solution

Experience China: A National Image Campaign in the United States "China Image" is a HBR case study and
Marketing Strategy Analysis & processes framework provide a comprehensive tool to solve the case study. Experience
China: A National Image Campaign in the United States is written by William Wei, Yuanfang Lin, Mei Qin Kok and
is widely used to help professionals challenges in Strategy & Execution field. The areas covered in the case are
- "Marketing, Public relations, Strategy". Blue Ocean University provides - Marketing Strategy & Processes, 5C,
4Ps, branding, segmentation,positioning & Marketing tools to professionals, MBA, candidates pursuing Masters
degree in Marketing & Advertising.
Marketing Strategy, Processes, & Objectives

Marketing Strategy Introduction

For successful marketing strategy at China Image, the marketing managers need– understanding of customers’
fundamental needs and drivers of those needs, conceptualizing products and services that can meet those needs
and are feasible in China Image financial and intellectual resources, and finally developing marketing mix for
entire go-to market strategy.

Objectives of Different Types of Marketing Strategies

Better establish the brands of China Image – Brand awareness and positioning is one of the critical objectives of
marketing and often organization spend a significant part of marketing budget on brand positioning.

Increase sales of China Image – The goal of marketing efforts is to increase sales of the present products. It may
involve selecting a new target segment or positioning an existing product differently to a new segment.

Introduce a new product or service of China Image – It is the traditional function of marketing mix – launching
a new product and communicating its features, superior value proposition, and uniqueness.

Get existing customers of China Image to buy more – It often involves selling accessories along with the existing
products or increase the usage rate of the existing products. Increase usage rate is comparatively a difficult task
even with a war chest of huge marketing resources.

Increase market share of China Image – Marketing efforts can be used to increase market share either by driving
increase in sales to new customers or by driving higher sales to existing customers.

Improve customer loyalty of China Image customers – Marketing efforts can be used to increase loyalty among
existing customers by organizing events, and by providing post purchase information and services.

Bring in new customers to China Image – It may involve launching version of product that can appeal to new
segment of customers or entering into new markets.
Case Study Overview

The China national image film "People Chapter" - officially a sub-series of the "Experience China" campaign -
was launched by the Chinese government to coincide with President Hu Jintao's visit to the United States in mid-
January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per
day, and had appeared approximately 8400 times when the broadcast ended on February 14, 2011. The video
showed a series of Chinese people, ranging from ordinary citizens to celebrities, in various areas. It was a
publicity effort aimed at promoting a truer image of China abroad, and further signalling that China was opening
to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly
controversial since the initial release of this promotional film. Experts from China and abroad were skeptical of
the effectiveness of the campaign in promoting the national image of modern China to the world.

Authors :: William Wei, Yuanfang Lin, Mei Qin Kok

Category :: Strategy & Execution

Key Words :: Marketing, Public relations, Strategy

Definition of Marketing

According to American Marketing Association (AMA) – Marketing is a set of activities that an organization
(both for profit & non-profit) undertakes to create, communicate, deliver, & exchange products & services that
have value for the - customers, supply chain partners, clients, other stakeholders, and society at large.

Kotler in his book “Principles of Marketing” explains - Marketing is a process through which firms such as
China Image can create value for its current and potential customers, build relationship, and sustain that
relationship by continuously meeting their needs.

Five Stages of Marketing Strategy Process

Over the last decade the traditional role of marketing has diminished with the rise of artificial intelligence driven
algorithms that provides marketers an easy to measure tool based on impression, clicks, and other behavioral
aspects. But one thing that has been lost in this easy to measure culture is – The power of marketing functions
to create new markets and customer segments. At Blue Ocean University we believe that power of creating new
markets still holds great potential for marketers in both digital world and traditional media.

The five stages of Marketing Strategy Process of China Image are –

Step 1 - Marketing Research & Analysis

Step 2 - Segmentation, Targeting & Positioning Decisions

Step 3 - Marketing Plan

Step 4 - Designing a Marketing Mix using 4Ps - Product, Price, Place & Promotion

Step 5 - Sustaining Value through Post Purchase Services

Marketing Research and Analysis

The first stage of the marketing process at China Image is to do research and analysis to identify unmet and even
unknown customer needs. A good point to start for the research and development is to conduct a 5C Marketing
Analysis . The 5C Marketing Analysis framework comprises –

Customers Needs– What are the needs that China Image seek to satisfy. Who are the present customers and who
are the potential customers for the new product or service.

Company – What are the resources and special skills that China Image needs to possess to create products that
can fulfill the needs of the prospective customers. Check out the detailed SWOT Analysis for China Image on
the following page.

Competitors – Who are the competitors in the target market and what value proposition they are offering in the
market place. Do they possess enough financial and knowledge resources to develop new products to compete
with China Image.

Collaborators – What sort of supply chain and value chain partners China Image needs to develop and deliver
new product to final consumer. What are the respective bargaining powers of value chain partners.

Context – What are the macro and micro environment factors that impacts the business environment in which
China Image operates in. You can check out PESTEL analysis of China Image in greater detail on the following
page.
Selecting Target Customer Segment

The second step of Marketing Process after completing the 5C analysis is – Selecting the Target Market. It
requires three steps –

SEGMENTATION
Market segmentation is the process through which marketing managers at China Image can divide the large
market into smaller segments based on distinct needs, characteristics, or consumer behavior. China Image can
do segmentation based on following criteria – geographic, demographic, usage, user status, income, lifestyle,
value proposition priorties, benefits sought, loyalty status, gender, social class, self-perception, psychographic
factors, and other attitudes.

One of the most widely used multivariate segmentation system is – PRIZM, developed by Claritas. It is widely
used by various marketing and advertising agencies. It comprises 68 customer segments based on the US
Household Purchasing Preferences data.

TARGETING
Once the overall market is divided into various segments then China Image needs to choose a target segment or
few target segments. The key is not to be everything to everybody as the products can only deliver specific value
proposition.

Conducting a Segment Attractiveness Analysis

First step in the targeting process is to conduct a Segment Attractiveness Analysis. Under the Segment
Attractiveness Analysis all the segments are evaluated based on the following criteria –

Customer behavior and loyalty analysis – How customers are behaving in each segments and are there
opportunities of over lapping. Loyalty behavior analysis is also a critical factor in analyzing the conversion rate
if the China Image core strategy is based on attracting existing players’ customers.

Profitability in various segments – Some segments often have higher margins compare to another as explained
in the automobile industry example above.

Maturity of the market – For example within the car industry the SUV category is more mature than Electric
Vehicle market, so the margins can be very limited in the SUV category but the demand forecasting is easy. On
the other hand EV division can have higher margins because of lower competition but the demand forecasting
can be a difficult process.

Mode of competition and business models – Sometimes the way competitors compete shape the whole landscape
of an industry. For example email can easily be - paid product- , but organizations chose to make it free products
to increase customer base and lure in advertisers. So if China Image is trying to enter a segment where revenue
from other division is financing the core service then it has to build a requisite business model where revenue is
driven by an adjacent or related product and service.

DIFFERENTIATION & POSITIONING

Differentiation process involves how China Image is differentiating its products and services in the market place
compare to its competitors. Positioning is the position of the brand or China Image products in minds of target
customers – based on distinctive features, qualities and functions.

- The differentiation and positioning task at China Image require marketing managers to do.
- Identify competitive advantage or unique value proposition on which position the brand in the mind of
the consumers.
- Choose competitive advantages that are most compatible with China Image marketing strategy.
Marketing managers at China Image can make perceptual maps to better understand competitive
positioning of various brands in the market place.

Finally Positioning the brand as a deliverer of superior value to the target segment and effectively
communicating that position to consumers using marketing mix and promotion mix.

Step 3- Making a Marketing Plan

1. Objectives of the Marketing Plan : There are various objectives for which China Image marketing managers
can make marketing plan – New product launch, repositioning of existing brand, targeting new customer
segment, entering international markets etc.

2. Marketing and financial goals and objectives: The second step is to correctly assess how much financial
resources will be required to execute the marketing plan. It involves resources spent from product development
to building a communication strategy mix.

3. Marketing mix: Building a marketing mix based on the marketing plan objectives and limitations imposed
upon it by the financial resources.
4. Marketing budget: Budget each prospective activity that will be under taken under marketing mix strategy.

5. Monitoring and evaluating performance: Carefully monitor each marketing mix activity and analyze the target
performance with the actual performance. Which media vehicles are performing better compare to others etc.
This will help in making changes and adaptation as we go along.

Four P's of Marketing Mix & Go-To Market Strategy – Capturing

Value

Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its
control—product, price, place, and promotion (the four Ps of Marketing Mix). To design the best marketing
strategy and mix, China Image should closely adopt the Four Ps of Marketing mix in accordance with trends and
forces in China Image ’s marketing environment.

Product - Understand the deep-seated drivers of perceptions and behavior of consumers and develop a product
that appeal to those drivers.

Place – Evaluate the buying behavior and distribution channel costs to make a channel decision.

Promotion - Engage with customers through use cases and benefits instead of functionalities and features.
Communication should be focused on experience rather than product features.

Price – Price is often determined by marketing strategy, cost structure of the company, competitive positioning
of firm, brand positioning, and various other factors. If the business model is built on conversion of existing
customers then China Image needs to arrive at a price through research at which the present customers are willing
to switch to a new brand.

Post Purchase Services – Sustaining Value

Even though the number varies, the efforts taken to gain new customers are far more and costly than those to
keep the present customers loyal. Post purchase services are critical to foster loyalty among the customers.
Various ways in which China Image can improve the post purchase experience of the existing customers –

1. Taking regular feedback from customers and asking them how certain features can be enhanced.
2. Providing installation and other related services.
3. Building communities where customers can share experience and help other customers.
 4. Providing product care tips.
5. Providing regular maintenance services and spare parts, if the customer needs them.

Post purchase services are critical not only to foster loyalty among the customers but also to get continuous
feedback and improve the products.

What is 5C Analysis of Experience China: A National Image Campaign

in the United States – Definition & Explanation

5C Analysis is a marketing tool to do a situational analysis in which China Image operates in. It inculcates both
the macro and micro environment factors that impacts China Image. The 5C analysis allows marketing managers
to put probabilities to different types of risk exposure China Image is facing in the marketplace and design
marketing strategies accordingly. Marketing strategy is about making marketing decisions in the face of macro
environment uncertainty, competitive pressures & strategies, and other economic factors.

What are the Five C’s of the Marketing? How to Conduct a 5C Marketing
Analysis of Experience China: A National Image Campaign in the United
States Case Study
  Company—The company analysis studies an organization’s vision, strategies, capabilities, product
line, technology, culture, and objectives. It is useful in understanding the existing and potential problems
with the company’s business.
 Customers—Understanding customers is a key part of situation analysis. It involves knowing the target
audience, their behavior, market size, market growth, buying patterns, average purchase size, frequency of
purchase, and preferred retail channels.
 Competitors—Competitor analysis is critical in understanding the external environment in which the
firm operates. This analysis involves knowing the competitors’ strengths, weaknesses, positioning, market
share, and upcoming initiatives.
 Collaborators—Collaborators are the external stakeholders who team up with the organization in a
mutually beneficial partnership. Agencies, suppliers, distributors, and business partners are typical
collaborators. It is important to understand their capabilities, performances, and issues to better identify
business problems.
 Climate—Climate analysis is the evaluation of the macro-environmental factors affecting the business.
PESTEL analysis can be used to analyze climate—political, economic, social/cultural, technological,
environmental, and legal scenarios are included in PESTEL.

Company Analysis - 5C of Marketing

“ Key Question Answered – What are the strengths and weaknesses of the company and how marketing
can improve the effectiveness of its core strength and alleviate the impact of its weaknesses. “

Marketing managers at China Image needs to analyze the internal strengths and weaknesses of the company
before making marketing decisions. Each organization has different marketing budget, different skill sets to
execute marketing strategies and promotional campaigns. The company analysis will help the China Image to
optimize the use of the marketing resources. In terms of the four risks mentioned above –Marketing managers
at China Image needs to focus on risks corresponding to production and delivery risks. If the company fails to
match the consumer expectations then no amount of smart marketing can build a sustainable competitive
advantage.

Company Factors

Brand Equity – China Image has strong brand equity both among the existing customers and potential customers.
It can leverage this brand equity to expand into new segments.

Quality of human resources to create and manage effective campaigns – China Image attracts some of the best
talent in its industry and the skill level of China Image existing workforce is very high. China Image has strong
marketing department which helps it to design effective and successful marketing campaigns.
Ability to scale production – China Image has a robust and flexible supply chain so it can meet the challenges
of managing success arising from highly successful marketing efforts that lead to surge in consumer demands
for its products.

Financial position and availability of resources for marketing – The financial position of China Image is strong
and it can afford to spend significant amount of resources on marketing for – launching new products and to
better position existing brands.

Customers - 5C Marketing Analysis

“ Key question answered - How China Image can identify attractive market segments and choose a market
targeting strategy. “

Marketing strategy of China Image needs to meet two broad objectives – carefully selecting target market and
designing marketing activities to achieve desired positioning in hearts and minds of the target market. Customer
analysis by marketing managers of China Image can include – growth rate of the industry, potential market size
of both the overall market and target segment, tangible and intangible product features desired by consumers in
the industry, core purpose of buying the products, frequency of purchase, recent purchases, industry trends,
income levels etc.

Based on our 4 broad risk framework for 5C analysis – marketing managers should focus on demand risk and
technology risk in customer analysis section.

Customers Factors

Who the target customer is – Should China Image go for a broader segment or position its product in niche
segment. My suggestion is that it should focus on the niche segment as it is highly profitable.

What is the Customer Life Time value – Rather than focusing marketing efforts around single purchase, China
Image should develop marketing strategy that can maximize customer life time value.

How to grow share of customers purchase basket – The decision marketing department at China Image needs to
take – How it can grow the customer purchase basket share with China Image products.

What is market size of the segment that China Image wants to target – I believe the market size will grow at a
steady pace and it will present various opportunities to expand into adjacent segments.
What is the level of brand awareness among target segment and general population – The brand awareness
among the target segment and among wider population is high. China Image can leverage on it to build sub
brands for niche segments within the target market and adjacent segments.

Competitors - 5C Marketing Analysis

Key Question Answered – Who the competitors are, what their marketing strategy is, and how China Image
can design its marketing strategy in view of competitive pressures and limited marketing resources.

The core function of marketing strategists and marketing managers is to design marketing activities that can help
China Image to thwart competitive pressures from established players as well as potential entrants. Marketing
managers of China Image has to make decisions regarding.

Where to position the brands respective to China Image own brands portfolio and competing brands

What are the marketing strategies of competitors.

Should China Image competes directly with the competitors or find niche positions within the segments.

What type of competition there is in the industry that China Image operates in.

Based on our four risks exposure framework – In competitors analysis marketing managers of China Image
should closely analyze – demand risks and technology innovation risks.

Competitors Factors

What will drive future growth and how competitors will try to take share of that future growth – technology
innovations can result in making present positioning less profitable so China Image needs to continuously
innovate and look for new opportunities.

Positioning strategy vis a vis competitors – The critical marketing decisions for managers at China Image is what
strategic position to choose which at same time is – different from competitors and relevant to the customers.

Threats of substitutes to China Image – The threats of substitutes often arise either from economic cycle or
technological innovation. It may require repositioning of certain brands on part of China Image in certain
markets.
Countering Marketing Campaigns of Competitors – Often one competitor campaign has to be matched with a
counter campaign to stop the product trial of the competitor’s product by the firm loyal customers. It has to be
done to control the churn of customers.

Intensity of rivalry among existing players – if the intensity is high then the profitability is usually low in any
industry. Thus it requires China Image to spend higher resources on marketing efforts.

Product Line Depth Decisions for China Image – Depth involves targeting different segments within the same
product range. Higher the depth, the more the company needs to spend on individual brands without putting too
much focus on the parent company.

Product Line Breath Decisions – This not only pertains to China Image product strategy but also its distribution
and supply chain management strategy. Broader line requires more positioning strategies and higher marketing
spending.

Threats of new entrants to profits of China Image – Marketing efforts are often barriers to entry in the industry
and new entrants not only have to have huge marketing resources to compete with the incumbents but also need
high level of marketing know how.

Collaborators - 5C Marketing Analysis

“ Key Question Answered – How flexible & robust China Image supply chain is and how much bargaining
power the collaborators in the value chain have. “

Collaborators include the supply chain partners both upstream and downstream of the value chain. For doing
Collaborators analysis China Image needs to critically evaluate the supply chain based on numerous factors such
as – bargaining power, what suppliers bring to table, flexibility & agility of supply chain, revenue sharing at
each step of the value chain.

Based on risk exposure parameters under the collaborators analysis China Image marketing managers should
focus on risk exposure to international risks (because China Image has international operations), and production
and delivery risks. For example if the collaborators effectively able to meet the demand increased by effective
advertising of China Image marketing department then it will go a long way in enabling the company to thwart
new competition and devise premium pricing strategy.

Collaborators Factors
Flexibility of supply chain and international risks – In international markets the critical question in front of China
Image is how much localize based on local preferences. Rest of the decisions from production to marketing is
based on this critical decision. Opportunities to localize the production and other processes to reduce risk of
organization wide supply chain risk in international market.

Risks to intellectual property rights and patents – Operating in international markets can expose China Image to
theft of Patents, Copyrights and other Intellectual Property Rights. Any marketing and diversification decision
should be taken after evaluating these risks.

Position and bargaining power in the value chain – If the collaborators have strong bargaining power then China
Image will not able to sustain higher margins even with higher marketing expenditure.

Number of suppliers and abilities of the suppliers – If there are too many suppliers then it will become expensive
for China Image to manage them but if the number of suppliers is too few then it will expose the company to
supply chain disruption risks.

Managing delivery and services in times of uncertainty – Most global organizations such as China Image are
diversifying rapidly to reduce delivery and supply chain risks. China Image should also focus on it.

Context - 5C Marketing Analysis

Key Question Answered – Which are the macro economic factors that will significantly impact both the
business model and the marketing strategy.

Context Analysis encompass the diligent analysis of macro environment factors such as – political and social
environment, regulatory environment, economic conditions in the markets that the China Image operates in, rate
of technology innovations in the industry, legal environment, environmental standards in the industry etc.

Two main forms of risk exposure in the context analysis are – International risks, and technology & innovation
risks exposure.
Context Factors

Foreign Exchange Exposure – International operations not only bring risks of marketing strategies that are not
relevant to specific market but also risk of foreign exchange exposure. In last 10 years most US organizations
have lost money because of FX exposure in countries such as Venezuela, Argentina, Turkey, Russia & Indonesia.

Economic – The consumer behavior during boom time and recession time is often totally different so marketing
managers at China Image has to decide how the consumers will behave in the present economic situation.

Political Risks to China Image – Geo-political risk have increased over the last three to four years with
developments such as US-China trade situation, Brexit, and rise of yellow vests in France.

Regulatory Framework – It not only impacts the type of the advertising and marketing campaign a company can
run but also the type of products China Image can sell. For example the standards & regulations for China Image
products in US and European Union are vastly different.

Employment – Given the employment crisis in Western Europe and emergence of Gig economy and employment
in US and all the major western economies – employment has become a critical factor in designing marketing
strategy. Employment not only impacts the purchasing power of the customer but also impacts the self esteem
and brands she can associate with.

Inflation & Diversification – Inflation impacts the pricing strategy of China Image as high inflation can result in
lower income from the present sales.

Experience China: A National Image Campaign in the United States

SWOT Analysis / SWOT Matrix
SWOT Analysis / Matrix solution of Experience China: A National Image Campaign in the United States case study
by Blue Ocean University includes the four key SWOT elements - Strengths, Weaknesses, Opportunities, & Threats.
Experience China: A National Image Campaign in the United States ("China Image") is a Harvard Business Case
Study written by William Wei, Yuanfang Lin, Mei Qin Kok.

What is SWOT analysis? What are the major elements of SWOT analysis?

SWOT Analysis is a methodological approach to analyze the - Strengths & Weaknesses that China Image
possess, and Opportunities & Threats that the company faces because of competitive and macro-economic
factors.

SWOT analysis provides key insights into both internal and external factors that can impact the performance of
an organization. It can help the management of the organization to optimize performance, look for new
opportunities, manage competition, maximize return on resources employed, and minimization of various
business and policy making risks.

Case Study Overview

The China national image film "People Chapter" - officially a sub-series of the "Experience China" campaign -
was launched by the Chinese government to coincide with President Hu Jintao's visit to the United States in mid-
January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per
day, and had appeared approximately 8400 times when the broadcast ended on February 14, 2011. The video
showed a series of Chinese people, ranging from ordinary citizens to celebrities, in various areas. It was a
publicity effort aimed at promoting a truer image of China abroad, and further signalling that China was opening
to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly
controversial since the initial release of this promotional film. Experts from China and abroad were skeptical of
the effectiveness of the campaign in promoting the national image of modern China to the world.

Authors :: William Wei, Yuanfang Lin, Mei Qin Kok

Category :: Strategy & Execution

Key Words :: Marketing, Public relations, Strategy

What should be included in a SWOT analysis of Experience China: A National Image Campaign
in the United States?

There are four major elements / components of SWOT analysis - Strengths, Weaknesses, Opportunities, and
Threats. China Image can divide these four elements into two broad categories - Internal Factors and External
Factors.
 Opportunities Threats

Strengths Strength Opportunities (SO) Strategies Strength Threats (ST) Strategies

Leveraging brand recognition in new Investing into R&D to thwart Strategy & Execution
segments industry disruptors.

Weaknesses Weakness Opportunities (WO) Weaknesses Threats (WT) Strategies

Strategies

Get out of the business and focus on growth areas

Investing into customer oriented services
and supply chain

Please email for detail SWOT Matrix based on the Weighted SWOT Analysis of Experience China: A
National Image Campaign in the United States

SWOT Analysis of Experience China: A National Image Campaign in the

United States

STRENGTHS OF EXPERIENCE CHINA: A NATIONAL IMAGE CAMPAIGN IN

THE UNITED STATES
WHAT ARE "STRENGTHS" IN SWOT ANALYSIS?

Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain competitive
advantage in the marketplace

- Diverse Revenue models - Over the years Experience China: A National Image Campaign in the United States
has ventured into various businesses outside the Strategy & Execution sector. This has enabled the company do
develop a diversified revenue stream beyond Strategy & Execution sector and Strategy & Execution segment.
- Wide geographic presence - China Image has extensive dealer network and associates network that not only
help in delivering efficient services to the customers but also help in managing competitive challenges in Strategy
& Execution industry.

- Success of new product mix - China Image provides exhaustive product mix options to its customers. It helps
the company in catering to various customers segments in the Strategy & Execution industry.

- High margins compare to Strategy & Execution industry's competitors - Even though China Image is facing
downward pressure on profitability, compare to competitors it is still racking in higher profit margins.

- Track record of innovation - Even though most players in the Strategy & Execution strive to innovate, China
Image has successful record at consumer driven innovation.

- Talent management at China Image and skill development of the employees - Human resources are integral
to the success of China Image in Strategy & Execution industry.

WEAKNESSES OF EXPERIENCE CHINA: A NATIONAL IMAGE CAMPAIGN IN

THE UNITED STATES

WHAT ARE "WEAKNESSES" IN SWOT ANALYSIS?

Weaknesses in case study Experience China: A National Image Campaign in the United States can either be
absence of strengths or resources of capabilities that are required but at present the organization doesn't have.
Leaders have to be certain if the weakness is present because of lack of strategic planning or as a result of
strategic choice.

- High cost of replacing existing experts within the organization. Few employees are responsible for the China
Image's knowledge base and replacing them will be extremely difficult in the present conditions.

- Low investments into China Image's customer oriented services - This can lead to competitors gaining
advantage in near future.
- Loyalty among suppliers is low - Based on the evidence provided in the case study Experience China: A
National Image Campaign in the United States it seems that there is low level of allegiance among the members
of supply chain parteners.

- Gross Margins and Operating Margins which could be improved and going forward may put pressure on
the China Image financial statement.

- Declining per unit revenue for China Image - competitiveness in the industryname industry is putting
downward pressure on the profitability. A starting guide to manage this situation for companyname is –
objectively assessing the present value propositions of the various products.

- Extra cost of building new supply chain and logistics network - Internet and Artificial Intelligence has
significantly altered the business model in the Marketing, Public relations, Strategy industry and given the
decreasing significance of the dealer network China Image has to build a new robust supply chain network. That
can be extremely expensive.

OPPORTUNITIES - EXPERIENCE CHINA: A NATIONAL IMAGE CAMPAIGN IN

THE UNITED STATES

WHAT ARE "OPPORTUNIT IES" IN SWOT ANALYSIS?

Opportunities are potential areas where the firm chan identify potential for - growth, profits, and market share.

- Accelerated technological innovations and advances are improving industrial productivity, allowing
suppliers to manufacture vast array of products and services. This can help China Image to significantly venture
into adjacent products.

- Trend of customers migrating to higher end products - It represents great opportunity for China Image, as
the firm has strong brand recognition in the premium segment, customers have experience with excellent
customer services provided by China Image brands in the lower segment. It can be a win-win for the company
and provides an opportunity to increase the profitability.
- Increasing government regulations are making it difficult for un-organized players to operate in the
Marketing, Public relations, Strategy industry. This can provide China Image an opportunity to increase the
customer base.

- Lower inflation rate - The low inflation rate bring more stability in the market, enable credit at lower interest
rate to the customers of China Image. This will increase the consumption of China Image products.

- Rapid Expansion of Economy As the US economy is improving faster than any other developed economy, it
will provide China Image an opportunity to expand into the US market. China Image already have know-how to
operate into the competitive US market.

- Opportunities in Online Space - Increasing adoption of online services by customers will also enable China
Image to provide new offerings to the customers in Marketing, Public relations, Strategy industry.

THREATS IN EXPERIENCE CHINA: A NATIONAL IMAGE CAMPAIGN IN THE

UNITED STATES CASE STUDY

WHAT ARE "THREATS" IN SWOT ANALYSIS?

Threats are factors that can be potential dangers to the firm's business models because of changes in macro
economic factors and changing consumer perceptions. Threats can be managed but not controlled.

- Distrust of institutions and increasing threat of legal actions for China Image - As the WTO regulations and
laws are difficult to enforce in various markets. Legal procedures have become expensive and long drawn
process. It can lead to less investment into emerging markets by China Image thus resulting in slower growth.

- Commoditization of the product segment - The biggest challenge for China Image and other players in the
industry is the increasing commoditization of the products in Marketing, Public relations, Strategy industry.

- Changing political environment with US and China trade war, Brexit impacting European Union, and overall
instability in the middle east can impact China Image business both in local market and in international market.

- Growing technological expertise of local players in the export market - One of the biggest threat of tie-up
with the local players in the export market for Experience China: A National Image Campaign in the United
States is threat of losing IPR. The intellectual property rights framework is not very strong in emerging markets
especially in China.

- Saturation in urban market and stagnation in the rural markets - For Experience China: A National Image
Campaign in the United States this trend is an ongoing challenge in the Strategy & Execution segment. One of
the reasons is that the adoption of products is slow in rural market. Secondly it is more costly for Experience
China: A National Image Campaign in the United States to serve the rural customers than urban customers given
the vast distances and lack of infrastructure.

- Shortage of skilled human resources - Given the high turnover of employees and increasing dependence on
innovative solution, companyname can face skilled human resources challenges in the near future.

How do you facilitate SWOT Analysis? What SWOT analysis explains?

Objectives of Doing SWOT analysis at Experience China: A National Image Campaign in the
United States for Strategy & Execution Segment

SWOT analysis is one of the most widely used tools for strategic analysis. According to a research done by
Harvard Business School – more than 75% of the leaders in strategy department had used SWOT analysis for
the purpose of strategic analysis. Strategists at China Image can utilize SWOT for following objectives -

Using SWOT for Strategic Planning at Experience China: A National Image Campaign in the United
States

Over the years the nature of the strategic planning has changed in the Strategy & Execution. leaders utilize
SWOT not only for short term planning but also for long term strategic planning. It will provide the leaders with
a better understanding of market, organization, and competitors.
Using SWOT for Performance Improvements

In the short term SWOT is an effective tool to improve business processes, part of business, or both together.
SWOT helps China Image managers to identify areas of weakness in process in the organization. Managing and
eliminating these weaknesses can drive future growth of China Image.

Using SWOT analysis for Venture Feasibility, New Project Viability & New Product Launch

Project management and feasibility analysis have become more specialized. SWOT analysis can still help leaders
at China Image to work out the pros and cons of new project, initial viability and long term scope keeping in the
competitors’ strategy and macro environment development.

Using SWOT to Thwart Competitive Challenges

Often leaders neglect trends in macro environment because of the narrow focus on the industry. It can happen to
China Image in the Marketing, Public relations, Strategy at the present moment. To manage these competitive
challenges and macro environment trends leaders at Experience China: A National Image Campaign in the
United States can use SWOT to pinpoint specific threats and allocate requisite resources to deal with those
threats.

Using SWOT Analysis to Set Corporate Goals & Key Objectives

The easiest objective for which SWOT analysis can be used by China Image is for setting strategic goals, defining
key objective areas and desired results. This can lead to a time based SWOT analysis exercise where China
Image leaders conduct SWOT at a fixed interval and assess what it needs to tinker to achieve the stated goals.

Steps to conduct Experience China: A National Image Campaign in the United States
SWOT Analysis

Clearly defining the objectives of the SWOT analysis. Decision makers should define the appropriate scope for
the analysis. If the scope is too broad then SWOT analysis won’t able to highlight internal factors and if the
scope is kept too narrow then managers can miss the macro environment opportunities and threats.

Try to substantiate the strengths, weaknesses as objectively as possible in terms of what the China Image does,
how it does it, and where are there scope of improvements.
Decision makers in the case study Experience China: A National Image Campaign in the United States can also
use SWOT analysis to understand how key strengths can be extended either to adjacent areas or new industries
all together.

Analyzing the macro trends from not only Strategy & Execution industry perspective but from a more holistic
perspective. It will provide better clues regarding where customers are going and what trends the firm can
leverage.

Key considerations to write a good SWOT Analysis of Case Study Experience China: A National
Image Campaign in the United States

- Defining what skills are essential for the survival of the China Image in Strategy & Execution industry.

- Provide proper weightage to the various factors that drive China Image topline and bottomline growth.

- Are there people extremely critical to organization that can tilt the balance between strengths and weaknesses
of the company.

- What strategies China Image can employ to diversify the risks emerging from the weaknesses of organization
and threats from the macro environment.

- Isolate the strengths and weaknesses of the China Image as much as possible.

How often the firm in Experience China: A National Image Campaign in the United States case
study should conduct SWOT Analysis?

The frequency of conducting SWOT analysis depends upon the objectives of the company and rate of change in
the industry it operates in. The firm in Experience China: A National Image Campaign in the United States case
study should conduct SWOT analysis after every 2-3 years.

Experience China: A National Image Campaign in the United States

Porter Five (5) Forces Analysis
Experience China: A National Image Campaign in the United States "China Image" is a HBR case study. It is written
by William Wei, Yuanfang Lin, Mei Qin Kok and is widely used to teach challenges in Strategy & Execution field.
The areas covered in the case are - "Marketing, Public relations, Strategy". Blue Ocean University provides - Porter
5 Forces case study solution, analysis methodology & assignment help.

Rigorous application of Porter 5 Forces can help managers of casename case study to understand - rivalry
among existing players, bargaining power of buyers of companyname, bargaining power of suppliers of
companyname, threat of new entrants in the industry, and threat of substitute products and services.

Case Study Overview

The China national image film "People Chapter" - officially a sub-series of the "Experience China" campaign -
was launched by the Chinese government to coincide with President Hu Jintao's visit to the United States in mid-
January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per
day, and had appeared approximately 8400 times when the broadcast ended on February 14, 2011. The video
showed a series of Chinese people, ranging from ordinary citizens to celebrities, in various areas. It was a
publicity effort aimed at promoting a truer image of China abroad, and further signalling that China was opening
to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly
controversial since the initial release of this promotional film. Experts from China and abroad were skeptical of
the effectiveness of the campaign in promoting the national image of modern China to the world.

Authors :: William Wei, Yuanfang Lin, Mei Qin Kok

Category :: Strategy & Execution

Key Words :: Marketing, Public relations, Strategy

Introduction to Porter Five Forces

First published in 1979, “How Competitive Forces Shape Strategy” by Michael E. Porter, revolutionized the
field of strategy. Popularly known as “Porter’s Five Forces” - not only influenced a generation of academic
research but also provided a map to rigorously analyze the competitive forces.

Porter Five Forces that Determine Industry Structure

Porter Five Forces model is heavily borrowed from the traditional field of micro economics. The five forces that
determine the industry structure of organization in casename case study are -

1. Bargaining power of buyers of China Image – If the buyers have strong bargaining power then they usually
tend to drive price down thus limiting the potential of the China Image to earn sustainable profits.

2. Bargaining power of suppliers of China Image - If suppliers have strong bargaining power then they will
extract higher price from the China Image.

3. Threat of new entrants - if there is strong threat of new entrants then current players will be willing to earn
less profits to reduce the threats.

4. Rivalry among existing players – If competition is intense then it becomes difficult for existing players such
as China Image to earn sustainable profits.

5. Threat of substitute products and services - If the threat of substitute is high then China Image has to either
continuously invest into R&D or it risks losing out to disruptors in the industry.

Why Porter's five forces analysis is important for case study?

You can use Porter Five Forces model to analyze the competitiveness faced by protagonist in casestudy. Porter
five forces analysis of casename case study will help you in understanding and providing solution to – nature &
level of competition, and how companyname can cope with competition. Even though from outside various
industries seem extremely different but analyzed closely these five forces determines the drivers of profitability
in each industry. You can use Porter Five Forces to understand key drivers of profitability of companyname in
casename case study.

Porter’s 5 Forces, Competitive Forces & Industry Analysis of Casestudyname

The core objective of strategists and leaders in an organization is to help the organization to build a sustainable
competitive advantage and thwart competitive challenges.

Step 1 – Defining relevant industry for companyname in casestudy

Step 2 – Identify the competitors and group them based on the segments within the industry
Step 3- Assess the Porter Five Forces in relation to the industry and assess which forces are strong and which
forces are weak.
Step 4 - Determine overall industry structure and test analysis of consistency
Step 5 – Analyze recent and future changes in each forces
Step 6 – Identify aspects of industry structure based on Porter 5 Forces that might be influenced by competitors
and new entrants.

How is Porter's five forces framework used in developing strategies?

To achieve above average profits compare to other industry players in the long run, companyname needs to
develop a sustainable competitive advantage. Industry analysis using Porter Five Forces can help companyname
in casename case study to map the various forces and identify spaces where companyname can position itself.
By doing Industry analysis using Porter Five Forces, companyname can develop four generic competitive
strategies.

The four generic competitive strategies that can be pursued in casename case study are :

COST LEADERSHIP
In cost leadership, companyname can set out to become the low cost producer in its industry. How it can become
cost leader varies based on the industry forces and structure. In pursuing cost leadership strategy, companyname
can assess – (pursuit of economies of scale, proprietary technology, supply chain management options,
diversification of suppliers, preferential access to raw materials) and other factors.

DIFFERENTIATION

Companyname can also pursue differentiation strategy based on the industry forces description in casename case
study. In a differentiation strategy companyname can seek to be unique in its industry by providing a value
proposition that is cherished by buyers. companyname can select one or more attributes that can uniquely
position it in the eyes of the customers for a specific needs. The goal is to seek premium price because of
differentiation and uniqueness of the offering. Industry analysis using Porter Five Forces can help companyname
to avoid spaces that are already over populated by the competitors.

FOCUS - COST FOCUS & DIFFERENTIATION FOCUS

The generic strategy of Focus rests on the choice of competitive scope within an industry. Companyname can
select a segment or group of segment and tailor its strategy to only serve it. Most organization follows one
variant of focus strategy in real world.

THE FOCUS STRATEGY HAS TWO VARIANTS.

(a) In cost focus a companyname can seek a cost advantage in its choses segment in casecategory.
(b) In Differentiation strategy companyname can differentiate itself in a target segment in its industry.

Both variants of the focus strategy rest on differences between a companyname ’s target segment and other
segments in the industry

References for Experience China: A National Image Campaign in the United States Porter 5 Forces

Experience China: A National Image Campaign in the United States , Harvard Business Review Case
Study. Published by HBR Publications.
M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)
PESTEL / PEST Analysis of Experience China: A National Image Campaign
in the United States
The PESTEL / PEST Analysis of Experience China: A National Image Campaign in the United States ("China
Image") will cover all macro environment factors that impact China Image - political factors, economic factors,
social factors, technological factors, environmental factors and legal factors. Experience China: A National Image
Campaign in the United States is Strategy & Execution Harvard Business School case study written by William Wei,
Yuanfang Lin, Mei Qin Kok.

What is PESTEL Analysis and How it can be used for Experience China: A National Image
Campaign in the United States Case Study?

PESTEL Analysis is a strategic management tool that "China Image" leadership can use to analyze internal and
external factors that impact the situations in Experience China: A National Image Campaign in the United States
. PESTEL stands for – Political, Social, Economic, Technological, Environmental and Legal factors that impact
the macro environment of the firm that it operates in.

China Image operates in a dynamic environment where it is influenced by – regulatory framework, increasing
environmental activism among consumers, increasing regulatory framework for environmental factors,
government decisions, collective social trends, consumer spending behavior, technological changes, and ever
evolving legal system.

Case Study Overview

The China national image film "People Chapter" - officially a sub-series of the "Experience China" campaign -
was launched by the Chinese government to coincide with President Hu Jintao's visit to the United States in mid-
January 2011. The one-minute promotional video was played on six giant electronic screens about 300 times per
day, and had appeared approximately 8400 times when the broadcast ended on February 14, 2011. The video
showed a series of Chinese people, ranging from ordinary citizens to celebrities, in various areas. It was a
publicity effort aimed at promoting a truer image of China abroad, and further signalling that China was opening
to embrace the world. However, reactions from both Chinese and overseas audiences had been fairly
controversial since the initial release of this promotional film. Experts from China and abroad were skeptical of
the effectiveness of the campaign in promoting the national image of modern China to the world.

Authors :: William Wei, Yuanfang Lin, Mei Qin Kok

Category :: Strategy & Execution

Key Words :: Marketing, Public relations, Strategy

For more information you can check out Case Study Solution Guide of Experience China: A National Image
Campaign in the United States

Experience China: A National Image Campaign in the United States PESTEL

/ PEST Analysis

WHAT ARE POLITICAL FACTORS IN PESTEL ANALYSIS?

Political factors are often related to the level of intervention and nature of intervention of the local and national
government in the business and economic environment. Government policies and governance system plays a
huge role in nature and objectives of the policies.

Political Factors that Impact Experience China: A National Image Campaign in the United
States

- Taxation policies – Over the last two decades China Image has benefitted from lower taxation policies
throughout the western hemisphere. It has resulted in high profits and increasing spending in the research and
development. In the second half William Wei, Yuanfang Lin, Mei Qin Kok believe that it can change
- Other stakeholders such as non-government organizations, protest & pressure groups, activist movements play
critical role in policy making in Strategy & Execution. China Image should closely collaborate with these
organizations so that it can contribute better to the community goals as well as with corporate goals.

- Regulatory Practices – China Image has to manage diverse regulations in the various markets it is present in.
Over the last few years Strategy & Execution has witnessed an increasing regulatory scrutiny.

- Government resource allocation and time scale – Based on the data in the Experience China: A National Image
Campaign in the United States it is difficult to infer that there will be change in resource allocations.

- Governance System – The present governance system in the industry is facing challenges and China Image has
to keep a close eye on the change in policies specified in the Experience China: A National Image Campaign in
the United States case study.

- Importance of local governments in Strategy & Execution – Local government plays an integral role in policy
setting and business environment regulations in the sector. China Image should closely monitor and lobby these
changes.

WHAT ARE ECONOMIC FACTORS?

Economic factors includes – interest rate, the stage of economy of countryname, labor market conditions ,
economic performance of countryname, exchange rate, taxation rate, inflation rate, consumer disposable income
etc.

Economic Factors that Impact "Experience China: A National Image Campaign in the United
States" PESTEL Analysis

- Exchange rate – Based on the data in Experience China: A National Image Campaign in the United States , the
volatile exchange rate can impact China Image investment plans not only in the short term but also in the long
run.

- Economic Cycles – The performance of China Image in Strategy & Execution is closely correlated to the
economic performance of the country it is present in.
- Economic Performance of China Image – I believe the economic performance of the markets that the firm is
present in - grow above 9-10% because of increasing government expenditure, increasing disposable income,
and increasing investment into the sector.

- Skill level of workforce the present market – China Image can leverage good skill level of employees in the
present market to not only improve services in Strategy & Execution but also leverage those skills to create
global opportunities.

- Efficiency of financial markets – China Image can access vibrant financial markets and easy availability of
liquidity in the equity market to expand further globally.

- Increasing liberalization of trade policy can help China Image to invest further into the regions which are so
far offlimits to the firm.

WHAT ARE SOCIAL FACTORS?

Each society and culture has its own way of doing business. These social factors can not only help companies
like "China Image" to better understand the way of doing business but also in understanding the customer
preferences in the market it operates in. Social factors include – gender roles, traditions, societal roles and norms,
attitude towards certain products and services, culture, health & safety attitudes, acceptance of entrepreneurial
spirit, demographics, and leisure interests.

Social Factors that Impact Experience China: A National Image Campaign in the United
States Case Study Solution

- Access to essential services – According to Experience China: A National Image Campaign in the United States
case study - In the last decade and half the wider population in getting access to essential services. This has been
a result of increasing investment in public services.

- Media outlets play a critical role in influencing the public opinion. Both traditional media and social media are
rapidly growing, China Image can leverage this trend to build efficient marketing network.

- Migration – The broader attitude towards migration is negative in the market China Image is present. This can
impact China Image ability to bring international talent to manage operations in the country.
- Power structure – There is an increasing trend of income inequality in China Image's most prominent market.
This has altered the power structure that has been persistent in the society for over last 6-7 decades.

- Gender roles – The gender roles are evolving in the country. China Image can test various concepts to cater to
and support these evolving gender roles in the local market

- Demographics – For the Strategy & Execution sector, China Image has demographics on its side.

WHAT ARE TECHNOLOGICAL FACTORS IN PESTEL ANALYSIS?

Technology is fast disrupting various industries and Strategy & Execution is no different. Some of the
technological factors that are impacting the firm are– access to mobile phones driving empowerment, access to
greater information, innovation in customer services, supply chain disruption because of technology, population
access to technology, nnovation in product offerings, rate of technology driven change etc.

Technological Factors that Impact Experience China: A National Image Campaign

in the United States PESTEL Analysis

- Research and development investment at both macro level and micro level in Strategy & Execution is
increasing. It can lead to industrywide disruption through innovation of new products & services.

- Maturity of technology – Based on data in Experience China: A National Image Campaign in the United States
case study, the technology in the sector is still at nascent stage and most players are vying for new innovations
that can enable them to garner higher market share.

- Intellectual property rights and patents protection – If China Image and the sector as whole will have higher
safeguards for IPR and other intellectual property rights then more players are likely to invest into research and
development.

- Lowering cost of production – The latest technology is fast lowering production and servicing cost in the
Strategy & Execution sector. China Image has to restructure its supply chain to bring in more flexibility to meet
both customer needs and cost structures.
- Technology transfer and licensing issues for China Image – In the Marketing, Public relations, Strategy sphere
there is no strong culture of technology transfer and companies often are reluctant to transfer or license
technologies for the fear of creating competitors out of collaborators.

- Developments and dissemination of mobile technology has transformed customer expectations in the Strategy
& Execution sector. China Image has to not only meet and manage these expectations but also have to innovate
to stay ahead of the competition.

WHAT ARE ENVIRONMENTAL FACTORS IN PESTEL ANALYSIS?

Over the last decade sustainability and environmental factors are becoming critical for businesses. Government
and pressure groups are fast asking organizations to adhere to environmental standards. Some of the
environmental factors are – safe waste disposal, safe disposal of hazardous material, climate change, insurance
policies, increasing focus on sustainability, laws regulating pollution, safe water treatment, limiting carbon
footprints etc.

Environmental Factors that Impact Experience China: A National Image Campaign

in the United States PESTEL Analysis

- Extreme weather is also adding to the cost of operations of the China Image as it has to invest in making its
supply chain more flexible.

- Renewable technology is also another interesting area for China Image. It can leverage the trends in this sector.
Many governments are providing subsidies to invest in the renewable sector.

- Environmental norms are also altering the priorities of product innovation. In many cases products are designed
based on environmental standards and expectations rather than catering to traditional value propositions.

- Customer activism – Greater awareness among customers have also put environmental factors at the center of
China Image strategy. Customers expects China Image to adhere to not only legal standards but also to exceed
them to become responsible stakeholder in the community.

- Paris Climate Agreement has put real targets for the national governments. This can result in greater scrutiny
of environmental standards for China Image in both developed and emerging markets.
- Recycling is fast emerging as a norm rather than a -good thing to do- in many economies. China Image has to
make plans to adhere to regulations and meet consumer expectations in the Strategy & Execution sector.

WHAT ARE LEGAL FACTORS IN PESTEL ANALYSIS?

Legal plays a critical role in any country. China Image management has to consider following legal factors before
entering international market – system of justice, time taken to deliver justice, biasedness toward home players,
discrimination laws, data protection laws, copyrights law, intellectual property rights protection etc.

Legal Factors that Impact Experience China: A National Image Campaign in the
United States PESTEL Analysis

- Employment law in the country and how they are impacting the business model of the Strategy & Execution
sector. Can these conditions be replicated or bettered in international market?

- Data protection laws – Over the last decade data protection has emerged as critical part of not only privacy
issues but also intellectual property rights. China Image has to consider whether the country have a robust legal
and technological mechanism to protect against data breaches or not.

- Time take for business cases in court – some countries even though follow international norms but the time for
resolution often run in years. China Image has to carefully consider average time of specific cases before entering
an international market.

- Health and safety norms in the the country and what China Image needs to do to meet those norms and what
will be the cost of meeting those norms.

- Business Laws – The business laws procedure that government follows. Are these norms consistent with
international institutions such as World Trading Organization, European Union etc.

- Environment Laws and guides – The level of environmental laws in the country and what China Image needs
to do to meet those laws and regulations.
What is the PESTEL Analysis Framework and How to Conduct PESTEL Analysis for Experience
China: A National Image Campaign in the United States

You can refer the PESTEL analysis above of Experience China: A National Image Campaign in the United
States to conduct the PESTEL analysis for the case study or for the company you like to. You can use all the six
factors - Political, Economic, Social, Technological, Environmental and Legal to conduct the PESTEL Analysis.
If you want to conduct PEST Analysis then just use the four factors - Political, Economic, Social, and
Technological.

References for Experience China: A National Image Campaign in the United States Case Study
PESTEL / PEST Analysis

William Wei, Yuanfang Lin, Mei Qin Kok (2018), "Experience China: A National Image Campaign in the
United States Harvard Business School Case Study, Published by Harvard Business Publications.

Euromonitor (2018), "Strategy & Execution Sector Analysis ", Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical

Investigation, Strategic Management Journal7 (1986)