Sichuan Telecom Market Competition Strategy Research

Since 1998, the government of China has reorganized the telecommunication industry. The competitive situation namely the six big telecommunication service providers compete against each other in the domestic telecommunication market has been established. With China's entry into the World Trade Organization (WTO) and the opening of the domestic telecommunication market to foreign telecommunication service providers, the market share of the telecommunication corporation of Sichuan province (SCPTC) is becoming increasingly small, and the trend will continue. It is important for SCPTC to take correct the market competition strategy. The article presents the market competition strategy and related measure of SCPTC by using the systematically analytic method of the SWOT.In the first place, the article analyzes the necessity to study the market competition strategy of SCPTC, and introduces the basic concept of the market competition strategy and analytic method of the SWOT. Secondly, the article presents the history and actuality of SCPTC, and analyzes the competitive situation and the main internal and external environment. The main external environment refer to the unbalanced administration of the government, the extensively reduced price of telecommunication service, the awful public opinion, the China's entry into WTO and the increasing technology pressure. The main internal environment contain plentiful network resources, advanced technical equipment, unanimated corporate culture, weak marketing capability, underdeveloped management system, obviously delayed speed of the business development and revenue increment, heavy financial pressure and outflow of intellectuals.Thirdly, according to the analysis of the internal and external environment, the article finds out the advantages, weakness, opportunity and threat possessed by SCPTC . The advantages consist in that dominant resources can quickly provide consumers with intercity and interprovincial services, that diverse services meet different consumer's needs, well-known brand and good service system. The weakness embraces the bad brand image, weak marketing capability, the structural consumer problem and the inexhaustive enterprise system reform, etc. The opportunity comprises cancellation of unbalanced administration of the government and massive market potential. The threat includes drastic market competition,awful public opinion and severe outflow of intellectuals. Finally, in accordance with the analysis of advantages, weakness, opportunity and threat, the article suggests the market competition strategy of SCPTC, and puts forward the measure to realize the market competition strategy. The stability basic service strategy is selected for the telephone service, and the prior development strategy is selected for the data communication service. In order to fulfill the market competition strategy, there are two measures concerning retaining and recruiting big consumers, and providing basic and practical services to ordinary consumers.