The Market Competition Strategy On New Video Service Of Chongqing Telecom

The unanimous plight that telecom SPs (service-providers) face globally is the shrinking conventional fixed telephony, thus to target a new growth engine is in urgent need. Reviewing the development of telecom industry from the world's point of view, the market for voice telephony is next to mature; therefore the solid for further market expansion has been depleted. While as burgeoning business, data communication is somewhat limited to the unidirectional acquisition of information and has not yet become a reliable alternative that fulfills customers' needs. Moreover, mobile communication is merely an extension from fixed telephony to the five 'Ws' concept (whoever, whenever, wherever, whatever, whomever). Forasmuch, only video telecommunication is to bring forth the real revolution in communication, and even in the long run, the video service will probably become the fourth member of the domain of telecommunication, which now includes audio, data and mobile services. In terms of market competition, the contest between telecom SPs is starting to switch from networking installation to customer-oriented services; and what brings revenues is the services an SP can provide, networking only being the basis for upper-level applications. As a result, whoever takes initiative in service innovation runs at the forefront of the industry. To conclude, the SP is driven to promote video telecommunication and finalize as soon as possible a model for promotion that is adequately mature and acceptable.As a senior telecom service-provider, CHONGQING TELECOM also proposes a request for value-added services along with trying its utmost in maintaining conventional telecom market share. In this article, the author carries out an investigation on strategic video service deployment conducted by CHONGQING TELECOM, hence further pilot CHONGQING TELECOM in concocting video service into a profitable added-value service, by means of fully employing its intrinsic advantages and a study of the market.Based on a sound research into current national video market, the author fractionizes the video telecom market of CHONGQING and articulates the target market CHONGQING TELECOM participates and thus must clarify. Accordingly, the author analyzes the vocation structure of the target market applying Michael E. Porter's Five Competitive Forces' theory, and adopts SWOT methodology to indicate advantages and disadvantages between CHONGQING TELECOM and its competitors, as well as the opportunities and threats in the target market. In the end, the market tactic of...