Analysis Of The Significance Of Channel In The Domestic Mobile Phone's Development

A classic "Channel War" was taken place in China as the cell phones made by Chinese manufacturers has occupied half of the market shares from zero within 4 years. The paper reviews the history of Cell phones made by Chinese Manufacturers and find out the main factors for development of Chinese made cell phone under adverse conditions.Firstly, the paper reviews the history of cell phone in China, the policies and regulations on cell phone by State Information Authorities, as well as technology catalogue of cell phone. Porter's "Five Force Model" is applied to analyze the competition of cell phone. The high profit ratios attracted plenty of manufacturers entering this market. The research found that local manufacturers have no advantage compared with foreign counterparts on management, human resources, technologies, capital, networks and brand. The channel plays a very important role on boost of Chinese made cell phones.The paper describes the history of development of Chinese made cell phone in order to illustrate the role the channel plays in boost of Chinese made cell phones. Most manufacturers applied "first country side, then the city" strategies, and adopted two channel models: deep marketing channel management and direct marketing model. The paper compares these two models with general agent model adopted by foreign counterparts on efficiency, cost and control powers, concludes the advantage and disadvantage of each model, especially, the more and more severe competition, problem of the old model and future trend of the development.The paper also discovered that the advantages causing the success of the Chinese manufacturer are vanishing. The cell phone market becomes more and more uncertain as more and more new comers such as former appliance manufacturers, telecommunication operators and PC makers is entering this market. A new era, competition for sales terminal, is coming.