Research On Competitive Strategy Of Ericsson (China) Communications Co., Ltd. In China 3G Market

In the eighties, 20th century, Michael E. Porter, the professor at Harvard business school and the famous leading authority on competitive stategy, originated a point of view that the vital concern of the strategy for an enterprise is to face the competition. And then the three generic competitive strategies including cost leadership, differentiation, and focus became a common method for practice of coping with industry structure. With the changes of competition in different industries and the increase of uncertainty for enterprise operating environment, especially with the birth of new industries and the emergence of new forms of enterprises lead by innovation and reformation, the competitive strategy originated by Porter become to show some limitations in specific domains. The research on competitive strategy for foreign investment telecommunication equipment manufacturers is at the stage of exploiting and developing. Therefor, based on the fundamental of competitive analysis and competitive strategy, the thesis analyses both opportunities and challenges to Ericsson in China 3G market, and study competitive strategy from 2 aspects including positive responds to the changes of external competitive environment and enhancement of internal core competitiveness to establish enterprise advantage, and hope it will be useful to Ericsson to maintain its industry leadership and achieve long-term sustainable development in the fierce market competition. The thesis includes total 4 chapters. The first chapter invokes the subject of the thesis, and describes both theoretical and practical backgrounds, and research purpose, meaning, and method of the thesis. The second chapter depicts the fundamentals of competitive theory including valus chains, cost analysis, diamond model, industrial cluster, and its influence on enterprise competitiveness. Chapter 3 and 4 are the key sections of the thesis. The third chapter firstly introduces the brief of Ericsson and Ericsson (China) Communications Co., Ltd., and then analysis the impacts on the competitive environment of China 3G market with the developments of global telecommunications industry and industry policy in China, and indicates Ericsson should take a quick respond to the change of external competitive environment as well as shape the conductive competitive environment based on the the main profit source of its own. On the basis of analysis and study in the previous chapter, the fourth chapter focuses on the research of strengthen internal transformation and improve its core competitiveness, and proposes some constructive strategic suggestions to Ericsson (China) for the purpose of technical and marketing leading position as well as operatation excellence.