Research For Market Competition Strategy Of Changchun Communications Company

Since 1994, China telecommunication industry has accomplished a series of reforms in the fields of setting post apart from telecommunication, separating business and state, bringing in competitions and opening up the market. Presently, new competition pattern has formed. It is composed of primary telecommunication corporations —China Telecom, China Mobile, China Unicom, China Netcom, China Tietong and China Satcom, and other value-added telecommunication corporations. These reforms lead the telecommunication industry from monopoly to competition and from seller's market to buyer's market. On one hand, the mass consumers can benefit from those reforms; on the other hand, in the condition of unsound market supervising system we must pay attention to such negative effects as follows, irregular competitions, price wars followed by the loss of state assets and the increasing cost of investment, the lacking in construction funds and the obvious downfall in both enterprises'performance and the capability of self-accumulation. Especially China Telecom and China Netcom, as the dominant fixed-line telephone service provider, have been developing in an obviously downward speed with less growth rate of business income than that of GDP. At present, telecommunication corporations are in the crucial switching process of administrative system. At the same time, the environment factors are transforming in the aspects of operation, development, construction, management and service. As a result, opportunities and challenges coexist. Therefore, enterprises'market competition tactics should be researched in the strategic point of view. Jilin Province Communication Corporation, Changchun Branch of China Netcom Group Corporation was Changchun Telecommunication Bureau originally. It is a large state-owned communication corporation and the dominant local fixed-line telephone service provider, running the business of fixed-line telephones, data communication and wireless local calls. Its main business takes a large market share,which can be seen as follows, taking more than 90% of the fixed-line telephone market share, over 70% of the data business market share. However, as the competition is getting increasingly fierce, Changchun Communication Branch is trending downwards in its main business's development, market share and earning capability. As a result, it has been in loss for two years. The burning problem at present is how to remain invincible in the market competition, acquire competitive advantages, break away form the difficult position and keep developing sustainable, healthy and steady. This article researches on Changchun Communication Branch with the effective SWOT analysis in strategies'analyzing . Both domestic and Changchun's competition environments are analyzed systematically in this article. And Changchun Communication Branch'superiority, inferiority and both internal and external environments are analyzed as well. Therefore, its developing strategies can be determined and its market competition tactics can be given. This article is divided into four chapters. The first chapter gives an introduction of the researching background and SWOT analysis—the main method adopted in this article. The second chapter analyzes two aspects of effects on the domestic telecommunication industry, one is the government's present policy and the other is entering WTO. At the same time, we introduce the present domestic and Changchun local telecommunication market competition patterns. Then we make analyses on the business situation of the basic telecommunication corporations in Changchun telecommunication market. What's more, we mainly make use of SWOT analysis to analyze Changchun Telecommunication Branch and its competitors. The third chapter introduces the present operation state of ChangchunTelecommunication Branch at first. Meanwhile, it makes comparative analysis on the superiority and inferiority in net resource of the competitors in Changchun telecommunication market in the aspects of the core layer, transport layer and access layer. With those analyses, it is found that there are differences in different net layers between the competitors and it is considered that Changchun Telecommunication Branch can acquire the low-cost competitive advantages with the features of sound communication net and comparatively low occupancy rate of the communication equipment. Changchun Telecommunication Branch is the unique one to have this superiority. In this chapter we use Porter's analysis model on the five forces in competition and SWOT analysis to analyze Changchun Communication Branch's main service as follows: local fixed-line telephone, LDT (Long Distance Telephone), wireless local telephone, network element for hire, telephone cards, public telephone, Internet Protocol telecommunication, broadband internet. Based on those analyses, we decided Changchun Communication Branch's strategic goals of market's developing. In a point of view that we promote the whole China Netcom to achieve the strategic goals, we should insist on developing profitably from beginning to end. Also we should implement differential marketing by the advantages of the net resource and the scale of users. Furthermore, using the competition and cooperation strategies together, we can maintain the leading status in the way of exploring the whole advantages of core business. Last but not the least, by maximizing the seven types of business'value, we can push ahead the whole economic benefits to increase by a widen margin. In a word, only with the measures above, we can establish the core status in local telecommunication industry. The forth chapter is the core section of this article. There must be specific competitive tactics to achieve the goal on market developing strategies. In this article, we think that in the purpose of occupying the advanced position in competition, a lot of tactics should be carried out comprehensively, especially...