Study On The Competitive Strategy Of Z Corporation

The main object of study in this paper, Z Corporation, which is an integrated telecommunications solutions provider in China, mainly involves telecommunications related industries. Z’s customers include telecommunication operators, government, enterprises, and public consumer. And its products are covered with telecommunications-related devices, terminals, software, services, and comprehensive telecommunications solutions etc.In the first three quarters of2011, Z’s revenue is58.285billion Yuan, which have increased26.53%compared to the same period of last year. And its net profit is10.69billion Yuan, which has a decrease of21.51%. Z’s business is increasing year by year, but in recent years, the competition in international telecommunications industry is becoming increasingly fierce, whose means are various. From the lawsuit war of "Carrying the patent through to the end" to the continual "downsizing" competition, everywhere is fantastic battlefield. In2009, the Canadian centenary telecommunications veteran "Nortel"(Northern Telecom Northern Telecom Limited) applied for bankruptcy, and then telecom related divisions were carved up by Ericsson and other manufacturers. In2010, as Motorola’s revenue and profit fell sharply, it had to sell most of the wireless network infrastructure sectors and assets to Nokia-Siemens and save its life. Z Corporation is currently ranked in No.5in the world’s top five telecommunications equipment companies. How to consolidate and develop Z’s own strengths? How to maintain the invincible position in the terrible competitive environment and continue to expand its market? All of these are the main subject s of this paper.Compared with Z Corporation, another rival Huawei (No.2in global top5telecommunications equipment manufacturers), who is also a Chinese company, its successes seem to have more contingencies. If Huawei is said as a "gifted" student, Z Corporation is more like an "ordinary" excellent student, whose business model and development strategy should be more worthy of other companies to learn. That’s why we choose Z Corporation as the main leading actor of this article.At first, this paper reviews the history of development of strategic theory and branch theories so as to provide a theoretical basis for study Z’s competitive strategy. Then, it analyzes Z’s macro-environment through the PEST analysis method, and applies the "five forces model" to analysis of the Z’s industry competitive environment. Moreover, it analyses Z’s internal resources and capabilities by application of "value chain" and the SWOT analysis tool, and sort out the Z’s competitive strengths and weaknesses and development opportunities and threats brought by external environmental changes. Finally, the competitive strategy fitting for development of Z Corporation and five strategies safeguard measures are proposed, which provide a viable idea for Z Corporation’s winning competitive advantages and provide a useful experience for other companies.