Rs Voip Business Competitive Strategy

The widespread presence of the internet is synchronized with powerful capabilities of information exchange & communication, e.g. VOIP (or Voice over Internet Protocol). Literally, the initials mean making calls over the internet protocol and liberally, they are the so-called IP call or internet call. As an innovative communication service technology, VOIP realizes voice communication on the internet by exchange processes, including zipping & encoding, packeting & grouping, route distribution, storing & exchanging and unpacketing & unzipping. This technology is also known as "the new generation of telephone" for its features of facilitating internet resources and reducing call-making costs, which are comparatively more economical than separate internet systems and voice systems. As a result, VOIP is among the fastest-growing applied communication technologies in the world, becoming the most favorable candidate in the eyes of the computer science industry.Strategy means the overall, long-term plans or schemes made by enterprises on the basis of external environment and internal capabilities with an aim of maintaining existence and development in fierce competition. Although VOIP appeared as a revolutionary substitute for the conventional telephone technology, the relatively low threshold and the powerful status of conventional .telecommunications carriers have confronted VOIP with fierce competition from the outset. Therefore, RS Components Ltd. has to locate the most effective competition strategy with the aim of existence and development.This paper proposes the central competition strategy for the VOIP operation of RS Components Ltd on the basis of a minute and all-around analysis of its external environment and internal capabilities. Steps of analyses include: an analysis of the information rule (known as the essence of internet economy), Michael Porter's theory of competition strategy, PEST analysis, five forces model, and SWOT analysis. In this paper, rapid success modes for internet economy, e.g. installation basis and network positive feedback, are carefully considered to select the fittest market segment, establish a tourism communication network and maintain a long-term competitive advantage. Besides, an insightful research on the functionality strategy of RS Components Ltd is also conducted in respect of market strategy, human resource strategy, financial strategy and management strategy.Moreover, a specific plan for strategy implementation and risk control is also proposed in the paper to make the competition strategy of RS Components Ltd more operable.