The Strategy Research On Full Service Competition For China Unicom

Telecommunications industry is the strategic industry in national economy. In China, it undergoes an effect way of "Changing in Developing while Developing in Changing". The competition among telecommunication enterprises breaks the monopoly, and results in 6 telecommunication companies, which are China Telecom, China Netcom, China Unicom, China Mobile, China Satcom and China Tietong. With the rapid development of mobile telecommunications, the competition in telecom market becomes much tougher than ever. On the contrary to the ever-developing mobile services, the customer numbers of fixed one grows slowly, and the economic effect is low too, which results in the widening gap among such enterprise and the unbalanced competence structure.As the only one of full telecom service provider, China Unicom has its own advantages. However, on the aspects of overall capabilities and operating experiences, defects still exist in China Unicom. Compared to China Mobile's mobile service and China Netcom or China Telecom's fixed and data services, the corresponding services in China Unicom are in inferior positions. China Unicom is now facing a crisis status in industry developing. On 24th May, 2008, the Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Finance issued The Announcement on Deepening the Reform of Telecommunications Institution, which starts the telecommunications industries' restructuring for the third time in the history. As one of the main participants in this restructuring, China Unicom should utilize this opportunity of merging with China Netcom to reconstruct enterprise resources, to explore the cooperation effect, to set right competition strategies, and to get the prior position in the 3G market.Based on the telecommunications industry restructuring, this paper firstly pointes at the reasons for China Unicom's lagging behind in the market competence and analyses the operating environment of China Unicom and the advantages & disadvantages of all the telecommunications providers with the Competence Strategy Theory, Michael Porter's Five Forces Mode and SWOT Analysis. Secondly, combined with the advantages, we propose the full service development strategy for China Unicom. Thirdly, based on the status of China Unicom and China Netcom, we design the brand strategy, product strategy, channel strategy and marketing strategy after the two companies' merging. Finally, we propose the safeguards measure for full service competence strategy. The researches in this paper is valuable in the aspects of utilizing the merging opportunity to reconstruct enterprise resources, to explore the cooperation effect, to set right competition strategies, and to get the prior position in the 3G market.