Research Of Nortel Networks, Bankruptcy And The Reference Study Of Chinese Telecommunication Enterprise

In early 2009, the top three communications equipment manufacturing gian-nortel networks declared bankruptcy which is a wake-up call for the development of world communication equipment manufacturing industry. Throughout the development of nortel networks company, the confusion of company’s internal management, especially in the area of enterprise development strategy which is the fundamental cause of its failure. At present, the communication equipment manufacturing industry is in its infancy, complex industry environment, facing the risk of failure are also increasing. Therefore the study of the causes of nortel networks company bankruptcy has important significance for communication equipment manufacturing industry of our country.This paper explored the causes of nortel networks from the technical, financial and management. Then set up time series models by useing the company’s 1999-2007 financial data. On the basis of theoretical analysis and the empirical analysis results to explore the real reason for its failure. And communication equipment manufacturing enterprises of our country should draw lessons from it. On this basis, combining with the development of the same trade in China after financial crisis, analyzes the external threat and the opportunities, internal advantages and disadvantages. Finally put forward the strategic choice and government policy tof promoting development of Chinese communication equipment manufacturing enterprises. The innovation of this paper is the combination of exploring the development of Chinese communication equipment manufacturing industry and the root of nortel networks’ s bankruptcy. At the same time from two aspects of theory and practice to verifying the nortel company bankruptcy and the real reason which is more convincing than single theoretical analysis.