An Analysis Of Domestic Mobile Brands' Dramatic Market Share Drop And Countermeasures

China's mobile market has already become No. 1 in the world in terms of sales volume and numbers of customers. Chinese mobile brands have also developed quickly in the past decade. From 1998 to 2003 the market share of domestic brands grew from 3% to about 55%. However, this momentum was not maintained by domestic brands after 2003. By June 2007 the market share of domestic brands in China fell from 55% in 2003 to mere 31%.The fast development of domestic brands in the period between 1998 and 2003 could be attributed to factors such as protective policies, effective market positioning and successful promotion strategies. However, the causes for the plummeting market share of domestic brands after 2003 require thorough analysis on the industry and domestic brands themselves before to think up effective remedies. Having conducted deep research on China's mobile market the author believes that the fundamental reason behind the fall of market share of domestic brands is the lack of core competences, which results in their vulnerability in market fluctuation and changes in environment. Thus, to survive the market competition and maintain a steady growth, they must pay more attention to foster their core competences.In this thesis the author first analyzes the fast growth of domestic brands in the period between 1998 and 2003 and stagnant development after 2003 mainly based on the theory of core competence and some marketing fundamentals and then, makes constructive suggestions for domestic brands in this regard. A lot of data and samples are also cited in this thesis to support the point of view presented herein.