Business Strategy Of Multi-national Telecom Equipment Providers In China Market (1978-2009): A Perspective Of Industry Life Cycle

It is meaningful to study what strategic actions the global telecom giants should take to retain their competitive advantage for long term growth, particularly in China market. This thesis walks through their business development in China market since early entry, and with application of strategic management theory, investigates what business strategy those companies have implemented in the stages of telecom industry life cycle, to figure out the fundamental driving factor of their success or failures, and further conclude common rules for future business development of those telecom giants. The analysis reveals that:1) Telecom industry has evolved throughout a complete life cycle from entry, growth and maturity to today's decline. This finding verifies the life cycle evolvement of telecom industry, and reveals that the dominant driver of telecom industry has shifted from technology innovation to market needs.2) Competitive mis-positioning with late strategic adjustment is the fundamental driving factor of the telecom giants'failures. From a different perspective of other studies, this thesis reveals this is the very fundamental driving factor of the failures, rather than other factors like product, technology, or operation efficiency, etc.3) Companies successfully transitioning to extensive differentiation can maintain market scale and survive in the declined industry. This finding validates the theory that extensively differentiated competitor changes competition rules, and that in a declined industry only leading player wins opportunity to grow still.4) Telecom giants need to seek and grow new strategic business, to create new value for long term development. Rather than to explore development opportunity within the scope of telecom equipment manufacturing only, this finding provides a broader view of development opportunity for the equipment providers.5) As market evolves from technology-driven to customer-driven, players need to maintain insight of market needs and timely adjust their competitive strategy and business model. This finding revalidates the business principle of understanding market needs to deliver needed products.6) The continued industrial convergence will bring up critical development opportunity for all players. While other researches view the convergence as a threat to disadvantageous players, this thesis views the convergence as an important opportunity for disadvantageous players as well.