Strategic Analysis And Selection Of A Multinational Telecom Manufacturing Enterprises

Global communications equipment industry has a huge market, but the competition is very fierce, especially in recent years, Huawei and ZTE Corporation, the rapid grows brings great challenge to the European and American companies which have a long history in the industry. On the basis of the analytical work on the Industrial Communication Device (ICD) industry in which the competition is more intensive than that in any other industry, according to the especially competitive environment of Nokia-Siemens Networks companies, the No.2in this industry, Ericsson the technological pioneering enterprise and the following effect of the obviously cost advantage of both Huawei and ZTE, both are Nokia-Siemens’ strong competitors, this paper carefully analyzes the strategies that the company should apply to and then draws a conclusion.On this subject, the concrete analytical structure of the paper is as following: Chapter one introduces the research background of the paper, the practical significance of the paper, the research methods and structure of the paper; Chapter two briefly introduces the status of ICD industry, changes and status of present market. It briefly introduces four related enterprises in this paper; Chapter three explicitly makes an external environment assessment of Nokia-Siemens Networks bu using PEST analysis tool to analyze the external environment of the industry, using Michael Porter’s Five Forces Model and intra-industry strategic group tool to analyze the internal environment of the industry; Chapter four principally introduces Ericsson, Huawei and ZTE communications, the main present competitors of Nokia-Siemens-Network. It analyzes the strength and weakness of the three competitors. Besides, it analyzes the three enterprises’strategy applied now, and the perspective of the industry; Chapter five explicitly makes a Nokia-Siemens Networks internal environment assessment, including the financial condition, marketing, research and development capabilities. A n SWOT analysis is made based on the information. Besides, it analyzes the CMP matrix between Nokia Siemens Network and its three competitors. Chapter six proposes a strategy for Nokia-Siemens-Networks based on the previous chapters, external environment assessment, the analysis of competitors and internal environment assessment, i.e. It suggests that its strategy be focused on the mobile broadband and telecom operation service, reduce or drop the business which are weak and less profitable for Nokia-Siemens-Networks. Then it applies different competitive strategies for the two main business. For mobile broadband, it is suggested to apply differentiation strategy, enhance the energy-saving and flexi resoutce management of the products. For telecom operation service, the low-cost strategy should be applied to continue reducing the costs to increase the competitive advantage in this market with Ericsson.