Research On Competitive Strategy Of Telecommunication Carriers' Branch In Transformation Period

Since the 21st century, due to the technology achievement and both network and business integration which has allowed reorganizing, merging and full services operating of the telecommunication companies, the telecom industry is entering a transformation period. By deepening the telecom reform, the Chinese telecom industry embraced a rapid development, which has played an important role in the national wide economic development. Compared with those in the developed countries, however, Chinese telecom enterprises not only have to meet the challenges during the transformation in China, but also to deal with the imbalance of current telecom industrial structure. Facing the challenges of industry integration, regulation reform, telecom reorganization and modern enterprise system establishment, it has become an urgent issue that how to establish effective competition in the telecom market, develop the carriers with international competitive abilities, and achieve a sustained, fast and healthy industry growth. The directions of current telecom research on the policy and development mainly focus on the macroscopic perspectives, including telecom regulation and competition, industry reform and strategy transformation. China, with a wide landscape, has distinct regional differences in terms of the geographical environment. There are around 1500 regional operation companies from six telecom infrastructure carriers. The establishment of an effectively competitive market will be directly affected by the choices of competition strategy by these branches. This paper will mainly study the competitive strategy of telecom carriers' branches in the transformation period, based on the theory of competitive strategy, macro environment analysis, five-forces model and SWOT analysis frame, in the mean time adopting the situation analysis of the transformation period, comparing the objectives of transformation in telecom carriers, finally to discover the characteristics of the transformation period. In order to address the current lack of studies from micro perspective, this paper has done some useful innovative study based on the strategy theory. First, to emphasizing practice, it will be helpful to study the competitive strategy of domestic small- and medium-sized enterprises by choosing as an example China TieTong communication Nanchang branch, which is a non-dominant fixed network operator. Second, it will make the direction of strategic studies clear to focus on the key features of the situation in the transformation.