Linyi Netcom Development Strategy

With the globalization of world economy and rapid development of telecommuncation industry, especially the development of new technology, such as Internet, the market competition of telecommunication industry is becoming specially intense. Traditional telecom operation business is facing with double pressure of development and competition. It has become important strategic research topic how to promote the development of enterprises.As a branch of China Netcom, Linyi Netcom company has a long history of one hundred years and continuously maintains the leading development speed. It has become the first of the Netcom branches in old revolutionary liberatedarea whose user volume exceeds 1 million and whose revenue exceeds 1 billion RMB. However, in the past two years, its development speed slowed down and even had the negative growth rate. The enterprise is facing with the enormous pressure and great pain to reform during its development.This article firstly introduces the strategic theory briefly. The core of development strategy is the establishment of the competitive advantages of the enterprise. Secondly, the article analyzes the external factors of Linyi netcom from three aspects of the macroscopic, the microscopic as well as the industry environment and points out opportunity and challenge of the company; it analyzes internal ability of the Linyi Netcom from the angles of internal resources, the product, the marketing ability as well as the economic benefits, seeking for the superiority factor and the inferiority factor influencing development; it also forecasts the development of the company's main telecom product, such as fixed telephone, the intelligent-net product, local mobile phone and broad band service. Based on integrative analysis, the article identifies 6 key factors that influence enterprise development: market condition, industry competition condition, policy factor, technology factor, assets condition and human resources; it also simply designs three kind of plans of enterprise development strategy: product and market adjustment strategy, core-competitive-ability-based strategy and multiplex operation strategy. Finally, the article adopts the method of Analytic Hierarehy Process to evaluate the plan.