Product Innovation Research Based On Telecommunications

Since the late 20th century, a whole group of Internet enterprises, such as Yahoo, Google, Tencent and Apple have emerged in succession. IT Product Innovation has created a number of large-scale markets and brought the Internet industry into the prime in recent years, which enlightens the World Telecom Industry which been suffering in trouble.Along the increasingly severe market competition and decreasing ARPU (Average Revenue per User) in Telecoms Industry, Product Innovation has become a strategic issue of telecoms development. Not only is Product Innovation the source through which telecom enterprise obtains competitive advantages, but also the driving force. The core competence of enterprises is their lifeblood, the power source of operation and development. The core competence is the ability providing enterprises with sustained competitive advantages to ensure enterprises’status in market and gain excess profit. The survival, establishment, competition and development of telecom enterprises are based on the high-tech, effective management. To fulfill innovation and improve core competence are necessary means by which enterprises seize the high ground for the future market and keep sustained competitive advantages. Only thinking strategically, telecoms companies retain and raise their core competence, as well as adapt international competition and challenges. Therefore, the research on Telecoms Product Innovation possesses significant realistic and theoretical meanings.By analyzing the current situation of Product Innovation primarily based on Game Theory and Innovation Theory in Telecom industry, and synthesizing literature review, simultaneous game and sequential game, and comparative analyses etc, this paper divides Product Definition into two categories:core foundation product and value-added services product. According to two types of products, they are required to apply different innovation strategies. Research believes that core foundation products should adopt independent innovation, while value added services products are well suggested to employ the combination of imitate innovation and cooperation innovation, giving second-move advantage into full play. In particular, this paper focuses on the innovation model of value added services products in telecoms enterprises, as well as discusses the market uncertainty existing in second-move advantage enterprises by taking Mobile Market as an example. Eventually, the research result will contribute to the managerial decision on Products Innovations in telecoms enterprises.