Name: Tolentino, Rhea Caitlin L.

Course and Section: BSAC – C

Date: July 11,2022

WRITTEN ANALYSIS OF THE CASE:

DALIAN XINYI: Expanding from Offline Catch Doll to Online Catch Doll Gaming

A. Synopsis

Founded in 2014 and based in the Chinese province of Liaoning, Dalian Xinyi is a company
that developed the catch doll brand Paw Toy and ran more than 10 physical catch doll stores across
the nation. The founder and president of Dalian Xinyi, Zefei Su, obtained his master's degree in
business administration from the Dalian University of Technology before beginning his career in a
Chinese state-owned company. When he and his friends visited Japan in 2014, he was shocked by
the number of catch doll shops that were very popular with the country's youth. He and his friends
walked into a shop, spent the entire afternoon trying their luck on nearly every catch doll machine, and
eventually left with a prize in hand. He went back to China, believing he had discovered a business
opportunity, but the catch doll games were not well-liked by young people in china because of the dull
gameplay and unimpressive presents.

Su was prepared to seize the chance because he was fully aware of Chinese state policies
that favored the growth of the sector and promoted entrepreneurship. Su traveled back to Japan with
his friends to conduct research and analyze the market, as well as the culture and the Japanese
gaming and animation industries. Before founding his own catch doll gaming company in China, Su
also researched the industry's top players and discovered the suppliers in the area. In his hometown
of Dalian, a seaside city in Liaoning, China, Su established Dalian Xinyi and developed the Paw Toy
brand. On August 14, he opened the first store. In the following few years, a fourth store opened in
Qingdao, and three more stores opened in Dalian, starting the company's development into other
cities.

In 2018, Dalian Xinyi created an online claw game application and established itself as a
local Chinese catch doll brand, running both online and physical storefronts. Customers might take
their prizes away after finishing the game in offline claw gaming. the workers of Dalian Xinyi would
pack and send the rewards to the consumer for free through a third-party logistics company after a
customer had finished playing claw games online through the Paw Toy app. Zefei Su was aware that
the online catch doll app continued to have design issues, such as a lack of ranking and sharing
functions, issues with straightforward brand promotion strategies, and intense competition from other
online catch doll apps, even though its performance was improving, particularly in light of the COVID-
19 pandemic. Su had to make a crucial choice that would affect Dalian Xinyi's future: Should the
business choose the offline catch doll shops, even though online catch doll gaming appeared to be
the future trend?
B. Problem

Zeiyi Su, the owner of Dalian Xinyi, must decide whether to focus on the online version of the
catch doll gaming or move his company back to offline, physical storefronts. His issue with his
application is that it wasn't performing properly, didn't include the top nine downloaded catch doll
apps, and had numerous design faults.

His issue with offline or physical retailers is the ensuing dramatic fall in earnings and the
pandemic crisis, which has badly impacted most offline or physical stores. When the pandemic
happened, when the government declare a lockdown some of the business has the same problem of
Dalian Xinyi, all business experience of this kind of problem. Some of them choose to open online
shop like what Mr. Su did with his business. The Dalian Xinyi problem is to choose between online
and physical store.

C. Findings and analysis

The pandemic alters people's daily lives, how they manage them, how they accept the new
normal, and even what some people experience. People don't have a right to be in crowded places,
and the government has declared a protocol to follow, such as social distancing and wearing a mask.
This economic crisis has had a significant influence on business. Additionally, the government has
declared a lockdown in parts of the nation where only the pharmacy, grocery stores, and hospitals are
open. The pandemic alters the life of businesspeople. Mr. Su encounters this type of issue when he
discovers that his earnings from his physical store don't reflect his labor and that it is difficult for him to
make as much money as he formerly did. His application had poor performance issues and various
internal design errors and weaknesses.

People are currently dealing with a pandemic, and the capture doll industry's rules of
competition were altered by the COVID1-9. Mr. Su ought to keep in mind that if he decides to maintain
the offline or physical stores of his catch doll, he might find that his income isn't as large as it once
was due to the economic crisis that everyone is currently experiencing. If he decides to use an online
application, he will need to improve it, make it accessible to everyone, and he is aware that online
catch dolls appeared to be a future trend, particularly at the time of the pandemic.

The advantage of Dalian Xinyi's physical store is that customers could leave with their prizes
once they had completed playing the game. The advantage of the Paw Toy app's online version is
that customers could remotely manipulate the claw to grab dolls by pressing buttons on their
smartphones. The pandemic made it difficult for physical stores to continue operating as before, and
the shortcoming of the web program was that it wasn't working well and had bugs. The economic
crisis is a threat to a physical store, whereas the top 9 most downloaded catch doll apps (competitors)
are a threat to online applications. The benefits of an online application include the chance to enhance
the Dalian Xinyi capture doll app and address user experience issues. Since we are discussing the
economy's issue, we are unable to predict or tell what will happen in the physical store.

D. Alternative course/s of action

Mr. Su will take the following efforts to concentrate more on online applications:

• Pay attention to the areas where his application needs to be improved and fix any bugs.

• Employ a specialist in the field of technology who can provide the assistance required to enhance
Mr. Su's application.

• Develop innovative marketing tactics that are under online applications, such as utilizing social
media to advertise the Dalian Xinyi catch doll applications.

E. Recommendation

The online application is the greatest option because it is more widely accessible and
available around the clock. These are the two main preferences of the corporations for application
development. The performance of the online application is superior to that of offline or physical stores.
With the aid of a mobile application developer, it may be completed quickly. Additionally, it will boost
consumer involvement and boost income for the company. Finding someone who can assist him in
improving his app is the first piece of advice for him to follow. Second, Mr. Su needs to pay attention
to consumer comments or feedback because they can assist identify gaps and issues with the
software. Finally, he should step up his promotion of the application through the use of social media,
which is effective now that everyone has access to it. These tips can assist in gaining the customers'
confidence and will satisfy the customers.

In conclusion, if Mr. Su decides to concentrate on the company's online application, the online
application is more profitable. The only thing he can do to rank among the top 9 most downloaded
catch doll apps is to repair the app's internal issues and make the necessary improvements. The firm
should put more emphasis on finding ways to enhance or resolve application-related issues.