Essay: Chinese Customer Market for Telematics

Essay: Chinese Customer Market for Telematics
13/04/2011 Comments Off on Essay: Chinese Customer Market for Telematics Academic Papers on Information Technology,Sample Academic Papers admin

Sample Essay

The Chinese automotive market has been buoyant for some years now, driven by the tremendous growth rate that China has sustained over their resulting in a significant increase in the number of middle class and over all buying power. The demand of new services has also seen rapid growth in the last few years and Telematics is one of such service. In a survey conducted by ABI Research in 2007, it was shown that the Chinese Telematics market would be worth more than $300 million which would grow to about $768 million in 2012 with an average customer growth rate of 46%.

The Beijing Olympics in 2008 also played an important role in highlighting the significance of such technologies in everyday life (IHS News Service, 2007). Upon entering the However, considering OnStar presence, the Chinese market differs a lot when compared with US and Canada where OnStar is already a leading Telematics service provider.  A case that is often quoted when describing the behaviour of individual consumers in China, is of CarBase Technology Co. CarBase Technology provided informational services (such location of cinemas, hotels, restaurant menus) to its customer via Telematics, however, it faced a significant problem with many of its subscriber unwilling to pay a monthly fee that didn’t even cover the company’s operating cost. OnStar’s case, however, is different. OnStar provides services which target those situations in which such services are needed most. Services provided by OnStar during natural disasters in US are another prime example of how Chinese customer could be attracted to the OnStar services, as China often faces natural disasters. Furthermore, the quick response of emergency services has always been in demand in China and OnStar has already demonstrated its ability to speed up emergency services response in the US. With a large number of automobiles on road, Chinese consumer have a significant problem of car security (such as car theft), which OnStar can significantly reduce through its services. Along with an individual consumer market, China also has a major demand of telemetric services in its corporate sector. In contrast to US, where OnStar has its own mobile communication network to provide it service, the lack of such facility in China would mean that OnStar will be able to offer the existing Chinese operators an opportunity to venture into a new area of Telematics, increasing the interest in the Chinese market, while also enhancing their global image. China also has the largest number of transport vehicles on road in the world, thus there is an increasing demand of vehicle tracking and management systems among transporters as well as organization that maintain their own vehicle fleet.

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