A Study Of The Development Strategy Of Eastcom Co. Ltd.

This paper makes clear and evaluates the development strategy of Eastcom Co. Ltd. by analysis on the external environment and competitiveness as well as the company' s internal environment.Mobile telecommunication has been highlighted as the one with quickest development and profit increase in the entire telecommunication sectors of our country. Great population base and increasingly higher economic level makes our country a market of most promising potential globally for development and investment of mobile telecom. The speedy growth of the telecommunication services brings along the quick development of the manufacturing and the mobile telecommunication technique keeps upgrading,resulting in the tough market competition which will be even more fierce with China' s access to WTO. The domestic telecommunication manufacturing is greatly challenged then.Eastcom Co. Ltd. is a traditional enterprise of the postal and telecommunication services of our country,it was restructured and listed in 1996. The company has made great progress in 1990s by introducing the manufacturing technique of Motorola mobile telecom equipment from\U. S. in 1990 and making and selling Motorola Cellular Phones and system equipment by way of OEM. The business advantages of the company are mainly reflected as brand,marketing,service network and technical innovation etc. Implementing the strategy of " Make use of famous brand to get a foothold,create own brand product to take root",the company has taken a way of development with Eastcom characteristics. The basic experiences for its success can be summarized in four respects of entrepreneurs,internal system reform,operation of funds and marketing. However,the company is somewhat weak in independent development and the Eastcom brand is less popular.Eastcom has set a grand goal in the new century,it will set up a world-class research,development and production base of telecom products with a scale to gain a business income of 40 billion RMB in 2005. Strategically,the company will still pay attention to specialization to make continuous expansion in mobile telecom field;make more efforts to the creation of self band;expedite the process of industrialization by way of self development;make innovation by multiple amalgamations of manufacturing and management operation;create brand by making the domestic products in line with international standard and base on intelligence by way of importing and fostering the same time.