t h i s w a y , p r o b l e m s h a p p e n e d s u c h a s p r i c e c o m p e t i t i o n , q u a l i t y f a i l u r e a n d d i s t r u s t b e t w e e n t h e c o m p a n y a n d
retailers. The company spent lots of time and money on toy marketing, control and managing retailers,
establishing subsidary as sales agency, and therefore there is few effort focusing on its key competitive
advantage – design and making of anmiation TV programs. The decline of the quality and creativity of its anmiation eventually break the image of its toy products.
Toy Mf g
Figure 13: Licensing and chracter business model
The case of this company (Figure 13) suggested a potential business model of licensing in animation industry,
and nurture the whole supply chain. The negative part of its experience also gives further lessons as how to systematically manage brands, aiming at different market, how to control the quality and IP issues, how to allocate the resouces, and how to collaborate with partners effectively.
The development of TV houses, especially anmiation focused channels needs networking with a variety of
anmiation related companies. For example, Shanghai Toonmax TV holds an animation festival annually to promote the creative idea from public. Case four company also has a system of network collaboration.
Case Four: a TV house company
T h i s c o m p a n y i s o n e o f t h e f o u r a n m i a t i o n s p e c i l i s e d T V s t a t i o n s i n C h i n a . B a s e d i n B e i j i n g , i t w a s e s t a b l i s h e d
in 2007 with the broadcasting range covering Beijing, PRD, YRD of 3.9 billion people. Its focused audience are children between 4-14 years old. Kaku itself has 30 people who mainly do R&D and marketing. The products are either proposed by itself and outsourced to production studios, or bought directly outside. In this way it
forms a network of collaborated companines from the resource of BTV and through contacting companies directly. Some small studio are also partners with the company.