The Transformation of Comagic into an Online-to-Offline Business
Product Number：
EN_2016XXXTYDZSW_1368
Page Views：
720
CaseName：
The Transformation of Comagic into an Online-to-Offline Business
Authors：
Mao Jiye,Xie Kang,Xiao Jinghua
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Guangzhou Comagic Cartoon Technology Co. Ltd.
Industry：
Manufacturing
Discipline：
Information Technology & E-commerce
Scale：
SMEs
Language：
English
Type of Case：
Descriptive Case
KeyWords：
SOnline-to-Offline (O2O), e-Commerce, Entrepreneurship, Mass customization, Business model, Organizational change, Dynamic capabilities
Abstract：
his teaching case describes the difficult struggles that Comagic went through in successfully transforming itself from a manufacturer of traditional office furniture into an Online-to-Offline (O2O) platform that designs, markets, and sells child furniture based on popular cartoon figures. Founded in 2008, Comagic launched into e-Commerce in 2011 after the initial success of its products in the market. However, this endeavor resulted in a resounding failure, because of its traditional mass production and logistics that did not fit e-Commerce. In response, Comagic revamped its mode of production, based on results of market research, by switching to mass customization that combines standardized product structure and parts, customized appearance, and do-it-yourself assembly. In addition, Comagic also upgraded product packaging, adopted single-order delivery, and improved supply chain management. However, the ensuing success of online business in 2012 created a channel conflict, which led to a rebelling by the dealers. Comagic responded with another round of transformation and gradually developed its O2O business model, As a result, Comagic sold over 28 million products during the double-eleven (November 11th) online shopping festival in China. This case aims to illustrate the path and critical success factors for firms in traditional manufacturing to make the transformation to e-Commerce.
Intended Audience：
Undergraduate,EE,MBA,EMBA
Data Source：
Primary
Publication Date：
2015
Revision Date：
2016
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