| This article is a case study on the establishing and developing ofS company, a domestic mobile phone manufacturer. Combined with thedevelopment of the mobile phone industry of China, the article reviews themajor business activities and results of S company year by year, illustratesits process from prosperity to depression during the four years after itsestablishment, and analyzes the main reasons for its failure. It is concludedthat in the intensive competition of China's mobile phone market, marketingabilities in product R&D, distribution channels, sales management andpromotion are crucial to the existence of a domestic mobile phonemanufacturer. While, efficient management on the above aspects must beguaranteed by a healthy management mechanism and shareholding structure.Otherwise, it will follow S company's case, whose advantageous resourcesfailed to be transferred into active advantages through its own improvementof management abilities, and was eliminated by the market.By introducing and analyzing the case, the article aims toremind other domestic mobile phone manufacturers to learn lessons from Scompany's failure, keep dispassionate mind and staid paces in development.Meanwhile, the article suggests the domestic mobile phone manufacturers inChina to stay out of the crisis through making breakthrough in marketingand sales, especially optimizing capital structure and managementmechanism, which is the way to the development and prosperity of China'sdomestic mobile phone industry. |