| Development Strategies for China's Telecommunication Service EnterprisesIn the past few years China's telecommunication service industry have been successful in reform efforts to separate government from enterprises and restructure of the whole industry. As a result, monopoly has been prevented and competition has been introduced. Yet some problems still exist, namely, increasing workload without increasing profit; completion through cutting prices; increasingly urgent financial pressure, and with our country's entry into the WTO prospective pressure from foreign-funded telecommunication enterprises. As such, great importance should be attached to our industry strategy and strategic management.Part One An analysis of China's Telecommunication Development Trend1 The operating income growth will turn level and milder. We are already enjoying the same telecommunication development level as a country with a GDP of 2.5 times ours. The percentage of revenue in GDP has been among the highest in the world. Time has past when we enjoy good and high profit.2 The investment scale will grow slowly. Within the framework of a normal growth, any single new large scale investment cannot expect to have any significant influence in the general income level in this industry. New, large scale investment will only work on its impact on the reallocation of the deposits increment, instead of the increment. 3 The market of telecommunication equipment will experience a long term shrink Telecommunication technique is still rapidly developing, which will definitely bring about the change of inner structure local and form the limit hotspot in the market of telecommunication equipment,thus it perhaps will bring about the new opportunity for equipment provider, but it can rarely lead to the full-scale constructing trends.4 The contribution made by telecommunication to GDP will be weakened. Telecommunication industry has been, as it were, a locomotive pushing our GDP growth in the past few years. With the slowdown of operation and investment, the whole industry will no longer the most important component in GDP growth.Part TwoOperational characteristics of telecommunication enterprisesI Characteristics1 Economy of scale. Telecommunication operation required big network with big fixed cost and comparatively small changing cost. The bigger the network, the more customers, the less cost shared by each customer, and the better chance of gaining profits 2 Economy of scope. Since fixed costs are larger than changing costs, and all the services are done through one single network, the more diverse services, the more profits.3 Economy of exterior. Telecommunication industry usually bring along other industries such as equipment manufacture, game and recreation. They supplement each other and finally will help promote telecommunication industry.II New-emerging characteristics1 the complexity of market value chain. telecommunication operation is gradually evolving from a homogeneous big market mainly offering voice service to a heterogeneous mass of small applying markets aiming at convenience and recreation.2 the increase of market flexibility recreation and practicality. Market demand is no longer fixed. Actually the size of market has much to do with the operator's decision, and is closely related to promotion efficiency the way the operator provides services.3 inseparability of operational management from technique support The management of telecommunication enterprises, including that of telecommunication operation are becoming increasingly dependant on the network support system, therefore requires high-level of integration of business management and network system.In view of the abovementioned characteristic, those operators need to see things in perspective.Ⅲ Changes in the telecommunication operational strategies1 from "search for demand" to "create demand" the enterprises need to shift their business focus from improving self so as to meet the customers... |
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