Competition Of Subscriber Between ChinaMobile And Unicom In A Chinese Mobile Communication Market

The major purpose of this paper is to analyzes the simple game mold behind the complex market strategy and brand strategy in Chinese mobile communication market. Because most of market strategies are base on the consumption mold of subscribes, my analyze is base on the income and cost which come out with the employ of mobile communication service. In the viewpoint of this paper, the total cost of subscribe is compose of communication fee and cost of venture, and the cost of venture lie on the occupation and the income of subscribe. A subscribe can decrease the cost of venture by chose the good service. On the other hand ,it mean more communication fee. On the other side the operator without best service quality can compensate subscribes for then cost of venture by decrease the communication fee. A concept named'Cost of Communication Failure'is brought out to analyzes the cost of venture in mobile communication service. Usually the'high level subscribe'have to face the higher then the'low level subscribe'. And a subscribe can reduce the'Cost of communication failure'by chose a better quality communication service. I built the separate game mold for high level market and low level market base on the different sensitivity of'Cost of Communication Failure'. In the point view of this paper , in high level market , subscribes are very sensitive to the''Cost of Communication Failure'. The math structure of Hoteling Mold is suitable to explain the game mold of high level market competition. In low level market subscribes are not sensitive to the'Cost of Communication Failure', they made their choice of mobile communication service base on the price only. So, it's the'Bertrand competition mold'. About the'group subscribe'service, I bring out a concept of'Intra group add-on income'. This kind of income move the balance of competition in the subscribe group and made subscribe intent to make the same choice as the group made. We can apply the concept of'intra group add-on income'to the whole market. In this paper, I infer that higher subscribe number of a company higher'intra group add-on income'for the subscribe of the company. In this paper I didn't present a clear math mold to explain why the price can state in a high level in the competition between China Mobile and China Unicom. It depend on the deeper analyzes about the competition between operator and government and the repeat competition between operators.