Study On Diagnoses For Development Strategy Of Internet Media Products Of Company A

The history of the Internet media begins in the1990s. Different from the three traditionalmedias：broadcast, television and newspapers, the Internet media has many advantages suchas immediate, massive, unbounded and interactive. According to the report 《the32ndstatistical report on China’s Internet development》released by the china internet networkinformation center (CNNIC): by the end of June2013,600million users were counted inChina,80%of which is mobile users, and internet penetration rate is close to50%.China nowhas the largest number of internet users in the world. Along with the vigorous development ofthe mobile terminal and mobile internet, the era of "the fifth media" has come.Company A was founded in1999as a wholly owned subsidiary of China Telecom, alsois China Telecom’s most valuable and best ranked internet company. In recent years, it facesserious challenges in its online media: the company has been losing their media influence andusers due to the cost restriction. The other hand, it lacks incentives to innovate new businessmodels during their business transformation. The advertising revenue as the principal sourceof the company revenue has been falling constrained by the declining influence and users.This paper will analyze the real problems Company A facing in its development of internetmedia and try to find the effective ways and solutions.This paper has made the strategy of internet media products development for Company Aas its research subject, and aimed at providing solutions. First we will analyze the marketcompetition environment of internet media products to get a clear understanding of internetmedia environment in the economic, political social culture and technology areas, and aunderstanding of the industry development and competition from the aspects of industry chainand competition situation. Locate the company’s position in the industry chain of internetmedia, then analyze the risks and opportunities in up-and-down chain. Second, we willanalyze internet media products from the aspects of internal resources and capacities, thenmake diagnoses from four aspects: business models, resources integration, products systemand products operation, to figure out the problems in internet media products. Finally we willprovide practical solutions for the company’s internet media products from the aspects ofbusiness models, resources integration, products system and products operation, and putforward various supporting measurements from three aspects including organization structure,performance evaluation and incentives. Through this research, hope that company A will make best of opportunities and full useof the advantage, then quickly increase their number of users and revenue. In addition, hopethis article will play an active role for other internet companies with telecom operatorsbackground.