The objective of this study is the attempt to describe actual situation and operation track of publication distribution channel in China, to analyze, evaluate the future development trend, current and potential difficulty. Also to propose several suggestions pertained to strategy choice for Taiwan investors interested in publication market of Mainland China.
This study applies data analysis, according to Competitive Advantage theory of Michael E. Porter, with literature-based analysis, complement of field survey and deeper interviews, and inducted the related information to whole industry. Further, SWOT analysis to explore the status of industrial organization, thus depicting the publishing industry of China in a competitive environment and strategy of choice .The framework of this study is built upon the research on historical evolution, market competition and strategy choice of enterprises, generated the conclusion after inducted and discussed.
The content of this study includes the structure of distribution in Mainland China and its evolvement, the analysis to the competition environment of China publication market, the model and situation of foreign and non-state-owned enterprises in publication market, the advantage of various capital enterprises and choice of strategy, the influence on the China publication market after the capital entrance by foreign and non-state-owned enterprises, the development trend of China publication and distribution business, and the future strategy of Taiwan investors.
The result of this study is as below:
1. China promised to open the market of publication and distribution, based on the concern of "national security", "social order", and "industrial competitiveness". Adopt the order policy of "inner first, then turn to outside", try to improve operation of Xinhua Bookstore, develop the private booksellers, and strengthen the competitiveness of domestic enterprises, and attract foreign investment to enter the market in joint venture..However, the market is still a monopoly as result of continuances of administration forestall and illegal interrupt.
2. The entrance of foreign and private capital break the wholly monopoly of state-owned Xinhua Bookstore, and obtain good achievement in book sale market. The publication and distribution enterprises is forward to a new mixed capital type .However, the market is very competitive, the nationwide wholesaler is still lacked, disorder of providers, low threshold and less otherness, and low pricing competition resulted in the status of disorder of book market.
3. Sate-owned Xinhua Bookstore took on the advantage of abundant branches to develop scale economic, in order to deepen the cost advantage but face historical burden. Private book seller take different operating strategy, to build his own brand, expect to get the leadership degree, but encounter the imitation competition as result of low threshold. Foreign investors hold full capital and technology advantage to enter the market, corporate with local enterprises in joint venture by reason of less control to the market.
4. The distribution market of publication in China is still on the situation from the mature stage to the growth stage of the market. Experts and scholars actively advocate that china government shall face and solve institutional issues, fully return market to competition mechanism, to avoid pending growth. In addition, China government is still hovering between the role of attendant and supervisor, the publishing industry policy is still indefinite.
5. There are several problems such as insufficient capital and market knowledge, lack of core competition, legal restrictions that Taiwan investors must face. It is proposed that Taiwan investors have to clarify some factors such as self-owned capital, human resource, risk takeover…etc, quit nationwide market fancy, shall place the investment be major in city first and extend to other district. Although Taiwan investors own the advantage in publish practice, but there is still legal restrictions that prohibit them to enter. However, it is feasible to carry through the distribution and sale business, via the corporate or authorization publishing, led to the success of investment in distribution market.