China Network Communications Group Corporation Development Strategy

ChinaNetcom is a state-owned telecom giant, which was established in May 2002. Its main business scope covers fixed domestic and international telecom network and facilities. It is the sixth domestic telecom company after China Telecom, China Unicom, China Mobile, China Railcom and Satellite Transmission Telecom .At the beginning of the essay, the author reviewed a series of important changes in Chinese telecom industry since 1993, including the separation of governments' administration and enterprises' operation, restructuring of telecom companies and reform of the systems, etc. and introduces briefly China Netcom company in the aspects of company scale, business scope, business structure and network resources.At the second part of the essay, the author discussed the external environment of the company in an all-round way. The author analyzed, by G-PEST model, the main elements that may have compact on the company, including economic elements, laws, regulations, policies and technical elements. The author also studied the Chinese telecom industry in the aspects of scale, present conditions and competition situation by the analytical approaches of Porter Model and industrial value chain. Besides, the author analyzed four main competitors of China Netcom respectively and studied potential competitors, such as companies in domestic broadcasting and telecom industry and capitals from abroad. In the following part of internal resources assessment, the author assessed ChinaNetcom's network scale and resources in 4 aspects, including clients, revenue, key-number resources and local network resources. In the aspect of business operation, the author mainly analyzed the market share, monthly revenue, development and changes of traditional phone business and other new businesses. In the aspect of marketing capacity, the author mainly analyzed the pricing policy, distributing network, VIP system and services. In the aspect of financial management, the author assessed the financial data and capital operation capacity of the company. In the aspect of human resources, the author evaluated the structure of the company's staffs and payroll.Using the above-mentioned analysis, the author, in the last part of the essay, briefly described the development strategies of ChinaNetcom for 5 years in the future. The author discussed the overall strategy of the company in the aspects of brand, operation, services, financial management and human resources, and proposed important suggestions in order to carry out the overall strategies efficiently.