Location Of Telecom Operators' Business Department Based On Theory Of Customer Value

China Telecom Industry has been achieving steady, fast and sound growth and changed a lot guided by government's policies. The industry's administrative system has been straightened out by reforming on the whole. Some telecommunications operators have been reorganized and listed. They have been accelerating the development of business and improving the income. At present, there are six licensed telecom carriers in China: China Telecom, China NetCom, China Mobile, China Unicom, China RailCom, and China Satellite. China Telecom Industry has stepped into the era of competitive cooperation. The competition in the market has showed new characteristics: first, service is the key point of competition instead of net; second, the competition is differentiated not homogeneous; third, the focus of competition is the quality of customer instead of the quantity; fourth, the trend of competition is multi-cooperation. These new characteristics and the significant scale of economics make the customer being the key part of value chain of telecommunications operator. Actually, the competition among telecommunications operators is to scramble for the customer. Therefore, the effective customer value management is the key to the success of telecommunications operators'business.As the base to serve the customer, operators'business departments act an important role in strengthening the flexibility of business and thus satisfying customers'various requirements. So the business department is an important path to create and pass on the customer value. Its location influents the efficiency of service and business cost directly. Therefore, telecom operators put attention to how to make an successful decision on the location of business department.The customer has not been passive roles with the development of technology and economy. The right to control and choose market has transferred into the hands of customers from firms. Customers have become important asset of market that the firm has to foster and make full use of. To create and transmit excellent customer value is the key to the success of market competition. Customer value, namely customer perceptive value, is the result of weighing the costs and benefits after considering the service and product of competitors. The firm can create and transmit the customer value by improving the benefits or reducing the costs of customer. To date, the literature and practice has achieve a basic common opinion, that is, the main factors which influent the customer value include product quality, service quality and price.Base on the study of theory and investigation, the paper shows that the factors that influent customers'choices of telecom operator include the quality of service (including the price), customer relationships, brand equity, experience, fashion and security of individual information. Therefore, the location of business department should follow the rules: convenient, maximum covering and competitionTime is an important part of customer's cost. If the location of business department can reduce the time, it can improve customer value. Based on the study of senior scholarships and in the light of the location rules, the paper builds a maximum covering model which subjects to the customer's satisfaction of time. The model is as follows:The objective function means the maximum of satisfaction of time. f(t_ij) is the level of customer's satisfaction of time. D_i is the quantity of demand. The subject aims to assure that there is only one department to meet one demand point. The department is the optimum choice which can serve maximum time-satisfaction. If the demand point i is satisfied by department j , Y_ij is equal to 1, or 0.Scientific location stars from the analysis of trade area. The choice of optimum location is based on the features of trade area. The process of locating of telecom operators'business department is to investigate and evaluate the features of trade area which may influent the expected business income, such as transportation, competitor, the scale of customer, etc. The result of data analysis suggests that family average income and the quantity of people exert an influence to the sales income to some extent. So we should focus on the investigation of the scale, structure and income of customers. Furthermore, the business department should be located in the place which has convenient transportation and less competitors.When deciding the location, there are several alternative proposals. So the investor and decision-maker want to know how to choose the optimum location. Therefore, the paper builds a comprehensive evaluation system of location decision. The model aims to evaluate the alternative points comprehensively. The items include people factors, competition, transportation, trade environment and place. People factors include the quantity and structure and consuming. Transportation includes the quantity of buses and average traffic flow. Trade environment means the trade atmosphere and policy. Place refers to the infrastructure, rent or price of land and the development plan of area. The paper makes use of AHP to calculate the weight of each item, and build the comprehensive evaluation model:Y_j is the total scores. X₁ refers to attraction item Qi j. The model of Q_ij is re-built based on Attraction Model in Trade Area Theory. The space item S_j is the attracting factor while the time item j is the rejecting factor. A_i refers to the expected sales income which is equal to the product of quantity and disposable income of the consumer, market scale and the operator's share by multiplication. The result of Q_ij decides the scores of X₁. X₂ refers to competition. X₃ shows the trade environment. X₄ is the place condition. b₁,b₂,b₃,b₄ are weights.Telecom operators'business departments are networking service system. Operators have to build more and more departments with the development of business. Therefore, after the end of construction, we need to post-evaluate the project in order to sum up the experience and lessons which can help revise the location-decision guidelines and provide reference to the future business plan of the right department. The post-evaluation system includes objective, process, finance, influence and sustains development factors.