China Netcom Mplsvpn Business Market Pricing Strategy Research

The continuous globalization has been pushing the rapid expansion of the multinational corporations, whose growing demand of communication brings the telecommunication operators new opportunities as well as challenges. Whether the Operator can apply an appropriate price strategy according to the competition environment in market will not only be the key to approach the long-term goai, but also play the same important role in reaching the final success. China Netcom USA (CNUSA) is now at the primary phase in exploring the USA telecommunication market, which is full of opportunities. Meanwhile, CNUSA is now facing strong competitors and can hardly adapt well to the market environment or survive these fierce competitions for the lagging management and pricing strategies. And this article is intended to provide a pricing solution according to the technical and market characteristics of the MPLS VPN and the author wish it may have some something important for reference to the future development of CNUSA.The pricing procedure includes six steps: aim confirmation, demand analysis, cost estimate, competition analysis, pricing strategy, pricing. This author is trying to probe into the pricing strategy of MPLS VPN in USA according to the pricing theory models.This article has four parts. In spite of the introduction the other three parts are as follows:Firstly, it stated the principle theory of pricing. The author mainly introduced three targets of pricing: profits, market share and competitiveness, besides, three pricing skills based on the cost, demand and competition are also being introduced. The normal pricing procedures and the pricing strategy of new products are also been presented in this article.Secondly, the article analyzes and correlates both the external environments and internal status of CNUSA in order that it can come to a suggestive pricing solution. The external environment of the company includes macro-environment, industry environment, customers, products and external competitions, while the internal factors include the status of CNUSA, and the existing pricing strategy of MPLS VPN.Finally, the author compared the similar new comers with CNUSA in the USA communication market, and narrated the necessities and determining factors of the new pricing solutions to the new operations like MPLS VPN, on the basis of which it points out the basic pricing principles the company should follow, and put forward the final pricing solutions according to the hierarchy stratification of the operations, the products structure, and the difference between requitments of customers. All of these want to reference the future development of CNUSA.