Competitive Strategy Of Broadband Telecommunications Company BH City

As the core business and main source of income, Broadband Service of BHTelecom has been dominating the local market over the last decade, since the maincompetitor China Mobile is not permitted to enter the market, and other competitors arenot able to pose a threat. However, the situation is going to be challenged. According toindustry source, related government departments are considering the plan to openbroadband service to China Mobile, and the earliest time will be probably at the year of2012. By then, the domination will be in grave threat posed by China Mobile with theirabundant capital.After a survey on the broadband service and the economic condition of BH, thisthesis analyses the broadband service of BH with Michael Potter’s Five Forces Model.It finds that BH Telecom has its strength in negotiating price with suppliers, butweakness in bargaining with purchaser. Comparing the new entrants, BH Radio and TVNetwork Co., Ltd is less threatening than BH Mobile Communication Co., Ltd (BHMCC), who has two substitutes for Broadband, narrow band service and WLAN. AndWLAN has a bright future, in which market also has two good competitors, BHRailcom and BH Unicom. Considering the situation, BH Telecom should applydifferentiation in its marketing according to Five-force model. And regarding Kolter’scompetition theory, BH Telecom should also take the role of leader in local market.As a result, BH Telecom should grant its leadership in3aspects:Firstly, expand market demand, both developing new and regular customers. Forthe new customers, the thesis suggests that rural areas should be the main battle field.Secondly, protect market share, including positioning defense, flanking defense,preemptive strike, counter-offense and contraction defense. Among them positioningdefense and preemptive strike is addressed in detail: the former aims at the3leads,namely, leading in product, quality and service. The key to the latter is developingFTTH (fiber to the home) and initiative maintenance.Thirdly, extend volume growth.In the end, this thesis discussed about the blue ocean of broadband service. To define a new border of broadband and expand the demand, it is important to develop anew application (product or service) which is attached to broadband service. Ascustomers are more concerned about the application instead of the broadband itself,good operation can lead to great market space. For example, there is good promise forthe next generation of intelligent home system, which is defined by the author as anintegrated intelligent system including home entertainment, education, healthcare, andsafety supervision. Safety supervision comes first, then home entertainment, and theneducation and healthcare. If all these can be achieved through broadband service, thefuture for broadband service will be just like a vast blue ocean.