Strategic Analysis Of Private Capital Entering The Telecommunication Industry

With the speeding up of the economic construction in our country, the communications industry has been rapid development. Since reform and opening up, private economy started from weak to strong, from small to large, now has become an important force in the national economic construction, can play the indispensable role in all walks of society. According to relevant data, according to a survey by the end of 2012, more than 60% of GDP in China are produced by private enterprises. In the same year the total number of private enterprises has more than 1000, the registered capital of a year-on-year increase of 7.8% on average, and is in a stage of rapid growth. Visible to the country’s private economy, maintaining social stability and economic development have made great contributions to solve the labor employment, has become a mainstay of the national economy.But in the telecommunications industry, because of national policy, the history of the telecom industry, the characteristics of the telecom industry and inadequate itself, the telecom industry status has some problems, in this article, through some real data from the history and status quo of China telecom market, telecom market structure characteristics of the market, public welfare characteristics and the status quo of the existing laws and policies were discussed, etc. Using some theory research at home and abroad as the basis of deregulation, allow contract, equity release, sublet business open, etc are expounded. Some idea of the mainstream academics, such as appropriate relaxation of license application requirement, build more independence telecoms regulator, weakening or cancel the asymmetric rules, into, this paper analyzed the thoughts of the righteous. As of this writing reference ideas.Economies of scale is the development of the industry to a certain stage, the enterprise to reduce cost increase what must consider is the competitive advantage of the enterprise to be in a good position in competition generally need to achieve by scale advantage. We see China mobile user income of about 850 million,2014, China unicorn users of about 300 million, about 186 million China telecom users. Nearly the whole of China’s population. For new entrants to the new company, due to low itself, the number of users, and difficult to development of new users. Based on the analysis of the status quo of the telecom industry, from the structural problems, such as administrative problems and strategic deter practical difficulties are discussed in this paper.By foreign private enterprises enter the monopoly industry first began in the lateworld war ii, when many countries begin to enter the state-owned economic expansion and unsustainable situation, a state-owned enterprise privatization wave began to appear at this time, later with the emergence of financial crisis since the 70 s, some countries state control we intensified the efforts on value but the inefficient allocation of resources caused by problems in subsequent years continued to expand. Later, many scholars began to discuss private capital into the monopoly industries related issues. This paper also study and analyzes the experience of developed country, major newspapers from abroad and understand the relevant information. Analyzed the Amp’d some foreign private capital companies such as Mobil, Ting into telecom industry experience of success and failure. Get some inspiration.In combination with the foreign countries, especially developed countries private capital to enter after the success and failure experience of the development of the telecommunications industry. In this paper, based on the SWOT analysis, market share growth/matrix analysis and porter’s competitive strategic analysis in the telecommunications industry and general performance analysis model on the basis of the private capital into the telecommunications industry, this paper analyzes the operation strategy, it is concluded that the private capital into the telecommunications industry business profit mode of inspiration. Eventually reach appropriate choice of the road of differentiation research conclusion.