Analyzing The Competitive Strength Of Chinese Communications Market By DEA Method

Communications industry, as the fundamentality, precursory and mainstay industry of ournational economy, is one of the fastest-growing industries. In recent years, with the continuouslydeepening reform in communications industry, the whole level of development of ourcommunications industry has been continuously improved. However, the development level of thethree major telecom operators are still unbalance, which makes a big difference in numbers of users,income level or market shares. It is against the effective competition requirement ofcommunications industry and affects the healthy development of communications industry.Therefore, discussing the competitive strength of our communications industry and providingdecision support for the government to make effective supervisory policy become a close attentionissues of the responsible organ of communications industry and the three major telecom operators.It has practical significance that to do some research on talking above.In this thesis, based on the related research works, the development status and competitivesituation in communications market is firstly analyzed. By researching on business state of telecomoperator, competitiveness of customers and competitive strategy comparison, we find thatcommunications industry overall keeps fast and great developing state, but market competitionbecomes more and more tough, and industry development level is fall behind developed countriesas well and there is great development space.Secondly, based on industry competitive strength’s Five-Forces Analysis Mode of MichaelPorter, we analyze the factors which influence the competitive strength of communications industryfrom the following aspects: threat of potential entrants, threat of substitutes, competition betweencurrent competitors, bargaining ability of buyers, bargaining ability of suppliers and so on. Also, byusing the DEA method, the competitive strength of communications market of our country isevaluated. The result shows that the competitive strength of communications market of our countryin general has increased annually in2000-2012, but it is still not at the area of effective competition.The communications market is in the transition phase of the lack of competition to effectivecompetition. At the same time, there are some problems such as excessive competition or the lack ofcompetition in the partial business market.Finally, according to the DEA evaluation conclusion and with the aid of successfuldevelopment experience of foreign communications market, we put forward policies and business proposals to promote effective competition of China’s communications market which includeconstituting relevant laws and regulations as soon as possible, establishing independent regulatorsby law, reasonably using of asymmetrical regulation policies to promote effective competition ofcommunications market, keeping on deepening the work of telecom infrastructure co-constructionand sharing to curb local excessive competition phenomenon of telecom market, accelerating tripleplay to actualize win-win cooperation, optimizing competition consciousness of telecom operators,improving the management level, etc.In this thesis, we quantitatively evaluate the competitive strength of communications industryby combining the DEA method with industry competitive strength’s Five-Forces Analysis Mode.It’s a fresh attempt and provides a reference for the quantitative evaluation of competitive strengthof other industries.