A Study On Market Competitive Strategy Of ALU China

With the tendency of merge and convergence becoming popular in telecom industry and the request from marketing competitive perspective, the two famous telecom equipments supplier that Lucent Technologies from US and Alcatel from France announced the merge agreement in April 2006. The new company is the second bigger telecom equipment group in telecom industry within worldwide. Alcatel-Lucent(ALU) China is the most important branch in the worldwide and its major business will focus on China market and other regions related.The purpose of this paper is to discuss and analyze the competitive strategy which mainly focus on domestic telecom market. The article firstly introduced the theory knowledge related to marketing competitive strategy, including SWOT analysis method, Michael Porter's five forces competitive model and the generic competitive strategy, as well as the new organization introduction and the market advantages included. According to the general procedure of corporate strategic analysis, the article deeply analyzed the external environment, industry competition situation, internal environment and competitive advantage and so on. Specially the analysis to the domestic competitive situation and compared discussion to the main competitors in China market, 3G market etc. Finally, based on the analysis and discussions, the overall cost leadership was come up with that would be used to the market competitive strategy in domestic market. Meanwhile, SO strategy should be considered for new ALU and the capability of research &development still need to keep forwarding for more competitive advantage in the future market.After the strategy has been selected, the task was then to translate it into organizational action and implementation. So the paper described the works and requirements which need to be implemented for applying overall cost leadership strategy within the company. In addition, the strategy control and monitor also need to be followed up, so that could make sure the correct implementation of selected strategies.In conclusion, the main output after the analysis to the ALU China are as follows: (1) Implementing the strategy of overall cost leadership is the key factor for competitive advantage enhancing in domestic market. (2)Based on the discussions and marketing opportunity, the SO strategy should also be considered by new company at present. (3) Continuously keeping the input to R&D, then to improve the core competitive capability through technology innovation.