Obtaining Sustainable Competitive Advantage Of CTV Enterprise Through "Go-Out" Strategy

The Color TV Industry of China has established its own competitive advantages after more 20 years of development, which is accompanied with competition and cooperation with foreign and domestic counterpart. In domestic market, with the advantages of successful positioning, low cost, channel and services, the Chinese firms has the market share of 80%. The Chinese firms are expanding their foreign market by low prices, practical functions and stable quality. As we can see from the development and present situation of the Industry, the advantages of Chinese firms are mainly based on low labor cost, large numbers of technicians, huge market and large-scale production. With the globalization of the world economy, especially China's entry into WTO, the environment surrounding Color TV Industry has changed. The Chinese are more and more competing with competitors from the world. Based on their strong technological capabilities, advanced management and internationally operated business model, the foreign competitors changed the way of competition and value creation. In order for the Chinese firms to obtain sustainable competitive advantage, they have to pay more attention to the question of how to keep innovating, strengthening and rebuilding their existed competitive advantages. Based on existed theories, this paper studies the development history of Konka, Changhong, Skyworth and TCL and reaches the conclusion that the Chinese firms could obtain sustainable competitive advantage through "go-out" strategy. The first part of this paper analyzes the meaning of sustainable competitive advantage and its components. The second part analyzes the environment of Color TV Industry, describes and forecasts the competitive pressure, potential for larger market and further development for Chinese Color TV industry. Based on the second part, this paper then discusses the necessary components to obtain sustainable competitive advantages under current situation. The fourth part of this paper summarizes the existed advantages and their sources pointing out that the Chinese firms could complement their resources and capabilities through "go-out" strategy. In the fifth part, by analyzing the case of TCL, this paper concludes that "go-out" really plays an important role in helping firms to obtain sustainable competitive advantages. At last this paper provides suggestions to firms and government.