Optimizing Product Strategies For Hisense TVs Based On “Internet+TV”

Product strategy and enterprise management are closely related, and that is an important way for enterprises to enhance the market competitiveness of products. Enterprise product strategy is also directly related to whether the enterprise can effectively use market environmental advantages, so as to increase their market share and profits, and ultimately contribute to the development of the enterprise.In the "Internet+” background, the state has also called for the traditional manufacturing industry to conduct industry transformation and upgrading with the help of the Internet, Now the traditional home appliance manufacturers are exploring new ways of transformation,product upgrading, and developing new products, arming to strengthen their existing market share and/or develop new markets. In particular, the traditional color TV enterprises are faced with twofold challenges. On the one hand, they need to conduct their own transformation. On the other hand, they have to compete with the emerging Internet companies for the ever-shrinking market share. In this case, the traditional TV manufacturing enterprises have to know their enterprise’s specifics, investigate their new development model, make full use of the existing enterprise resources, and build new product strategies,so as to adapt to the changes in the market environment and consumers’ behaviors.Using sales and profit contribution and the other research methods, we compare the products strategies of the television industry between Qingdao Hisense Electric Co., Ltd. and the emerging Internet TV enterprises. We analyze and discuss the issues of Hisense’s product strategies and then present our optimization schemes. Our work is summarized as follows.First, we analyze the changes in market environments and user behaviors of Hisense TVs under the background of "Internet+". Due to these changes, consumers not only prefer the traditional wired and wireless TV programs, but have more expectations on contents from the TV product upgrading and the usage of network To seize the business opportunities from this "screen", the traditional TV manufacturing enterprises are seeking transformation and television network intelligent upgrade. At the same time, the new manufacturing Internet companies are forcing into this market quickly with very low prices. This makes the traditional TV manufacturing enterprises be in a panic, in term of the traditional TV sales.Second, we compare the differences in product strategies between Hisense and theInternet TV manufacturing enterprises. In particular, we focus on the strategies of product portfolio and new product development. We have found some interesting observations of Hisense’s product strategies under the background of "Internet+”.Then, Based on the changes in marketing environments and consuming behaviors, we propose our improved product strategies(new product portfolio and new product development strategies) for the Hisense TVs, by taking the differences of product strategies into account.Further, we present related measures to ensure the application of the aforementioned product strategies from the perspective of company policies, organization management,product and incentive mechanisms. These measures facilitate the successful implementation of the product strategies.