From Traditional to O2O: Business Model Transformation of Comagic—A Case of Supply Chain Reengineering and Operating Model Reforms
Product Number：
EN_2020XXXTYDZSW_4766
Page Views：
853
CaseName：
From Traditional to O2O: Business Model Transformation of Comagic—A Case of Supply Chain Reengineering and Operating Model Reforms
Authors：
Mao Jiye, Xie Kang, Xiao Jinghua
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Guangzhou ACG Animation Technology Co., Ltd. (Comagic)
Industry：
Manufacturing
Discipline：
Information Technology & E-commerce
Scale：
SMEs
Language：
English
Type of Case：
Decision Case
KeyWords：
Online-to-Offline (O2O); Transformation for the Internet; e-Commerce; Supply Chain Reengineering; Organizational Change
Abstract：
This case details the experience of Comagic during its business model transformation from a traditional office furniture manufacturer into an Online-to-Offline (O2O) childrenʼs cartoon furniture company. Comagic was founded in 2008. After obtaining market recognition in its early years, the company initiated its first e-Commerce attempt in 2011. However, due to incompatibility of production, management, and service methods to the e-Commerce model, this endeavor resulted in a resounding failure. Therefore, Comagic revamped its products and production methods. Combining standardized product structure and parts, customized appearance, and do-it-yourself assemblies, Comagic established a swift manufacturing process of mass customization, which could satisfy the needs of e-Commerce. In addition, Comagic upgraded its product packaging and adopted a single-order delivery method to meet the requirements of e-Commerce and to improve customer satisfaction. However, the ensuing success of online businesses in 2012 caused channel conflicts, and led to protests from offline dealers. Comagic responded with another round of transformation and eventually developed its O2O business model. As a result, in 2013, Comagic’s online sales during China’s “Double Eleven (November 11) Festival” reached 28 million Yuan. Through a detailed description of the company’s background, and its major strategic transformations and organizational changes, this case study aimed to illustrate the paths that traditional manufacturers could take towards an e-Commerce transformation, as well as the critical success factors uncovered during the process.
Intended Audience：
Undergraduate,EE,MBA,EMBA
Data Source：
Primary
Publication Date：
2017
Revision Date：
2020
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