A Study On Controlling Of The Market Risk Of The Communication Enterprises Technical Standard Alliance

With the world economic globalization, there is market competition in the product and technology, but also in the standard. These enterprises would get the competition predominance even control the market if they own successful standards. Competition of technology standards represents benefit competition and market scale competition. However, it needs a long time and faces high risk to develop a communication technology standard. So many enterprises try to league. They can disperse some risks by constituting alliance, but they still need to face the market risk.This paper mainly analyzes the market risk from the customer and market competition. Technology standards as special commodities can't serve customers directly. They always are included in many kinds of products. Users of technology standards are terminals, system products manufacturers and network suppliers. But the number of the terminal customers will decide if standards would be successful. Because they are the source of benefit, so this paper uses the number of the customers to represent the market risk level. This paper uses the critical capacity model and the break-even model to scale the market risk. Critical capacity model can show the market competition ability, if alliances' market scale can't exceed the critical capacity, they would lost the market finally. Surely, a big market scale does not mean a high return and final success. So this paper integrates the critical capacity model and the break-even model to analyze market risk.To discuss the method of controlling the market risk is also a keystone in this paper except analyzing the market risk. This paper analyzes factors that influence the customer's action to get the method of controlling customer risk. Based on the network externality theory, a market competition risk control model was discussed. At the end of this paper, some advices of controlling market risk are given.