On The Developing Strategy For Chongqing Telecom

Against the background that China has entered into WTO, the 16th CPC National Congress has plotted a blueprint to "Build a Well-off Society in an All-Round Way" in China in the new century at the new stage and called for the building of a harmonious society, and that the telecommunications industry has undergone continual split-up and restructure with increasingly fierce competition in recent years, the telecommunications industry is seeing new development opportunities and also facing unprecedented serious challenges. This thesis reviews the development status of the telecommunications industry and the macro-society and macro-economy, makes an in-depth analysis of the competition situation which Chongqing Telecom is facing now, studies both the internal and the external factors of Chongqing Telecom, particularly researches into the special topics such as opportunities and threats, advantages and disadvantages as well as selection of strategies etc., which will be of certain theoretical value for reference and practical value for instruction.The main research findings of the thesis are as follows: (1) Through analysis of the macro-environment in which Chongqing Telecom is situated and detailed analysis of its competition situation, a conclusion is drawn that the external environment is favorable to Chongqing Telecom in that there are more opportunities than challenges although they coexist side by side; (2) Through analysis of the competition situation faced by Chongqing Telecom, a conclusion is drawn that the greatest threat comes from the impact of mobile services on fixed-line phone; (3)A competition strategy is proposed that Chongqing Telecom shall take the advantage of the PHS service with a nature of mobile to fight against the mobile services provided by mobile communication operators, and make use of flexible way of marketing by tying value-added services such as broadband access and PHS, etc. with fixed-line phone services in order to save and further develop the latter; (4) Based on the analysis of the internal environment, major problems existing in marketing, HR management, etc. are found out the internal advantages such as network resources and financial management in Chongqing are noticed, leading to a conclusion that the internal environment is unfavorable to Chongqing Telecom; (5) Based on the results from analysis of external and internal factors and by means of SWOT and BCG matrix analysis, alternative strategies are put forward for the development of Chongqing Telecom, including market penetration strategy, market development strategy, productdevelopment strategy, concurrent diversifying strategy, cost-led strategy and forward integration strategy; (6) By means of QSPM matrix analysis, a conclusion is drawn for strategy selection, i.e. Chongqing Telecom shall focus on market penetration strategy supported by forward integration and concurrent diversifying strategies, rely on its advantage in network resources, consolidate and expand the market share of fixed-line phone services by tapping into rural markets and opening up marketing channels, meanwhile make more efforts to develop data transmission and value-added services; (7) In consideration of the selected strategies, suggestions and measures are given for strategy implementation plan.