The Price Competition Strategy Of China Unicom On Mobile Communication Business

China's mobile phone market is a two-way oligopoly market, which is in the rapid development driven by competition. Enterprises in this market have been challenged on effective development. It is very important for China Unicom in a weak position to develop and implement appropriate strategies for the competition. The pricing strategy is the most direct and important decision-making, which is directly related to the success of the enterprise's profit and survival.Pricing strategy is based on the macro environment, industry characteristics and the industry environment. From the view of macro environment, there are new development opportunities for the mobile communications industry brought from the national attention to the information industry, the rapid development of economy and society on the information needs. From the view of industry characteristics, the characteristics of the mobile communication industry include a natural monopoly, economies of scale, network externalities, product homogeneity, consumption timing and price elastic. From the view of Porter's Five Forces Analysis, the mobile communications industry environment can be summarized as follows. The bargaining power of suppliers is reduced. The bargaining power of consumers is increasing rapidly. New competitors will participate in China's mobile communication industry. Mobile communications business are gradually being replaced by Internet and wireless broadband services. China Mobile is a powerful competitor to China Unicom.There are four main factors that influence the pricing strategies of China Unicom. First, China Unicom is clearly in a weak position. Second, brand value and brand power are weaker than the competitor's. Third, it's more suitable to select sales target than profit target. The final, the mobile communication industry is in the mature stage of the product life cycle.Through SWOT analysis and the four main factors of pricing strategy analysis, the following conclusion can be drawn that China Unicom's pricing strategy should be price cuts, which can help it to increase market penetration and to suppress the competitor's profitability. It is necessary for China Unicom to change the development strategy from "effective first, bigger and stronger" to "bigger and stronger" to ensure the benefits", and efficiency can be improved from economies of scale.China Unicom's price-cutting strategy could be verified in the Game competition. Through game analysis, it can be concluded that price cuts is always the best select for China Unicom. And the equilibrium price may appear on the marginal costs.In the pricing strategies implementation aspect, there are five measures:1, China Unicom should use positive price-cutting strategies to ensure that market share increasing. The following are included: expanding the price gap, implementing price cuts strategy based on brand, discounts in idle time, bundled sales according to categories of users, discounts according to the duration of use and customer groups.2, it's necessary to implement price-cutting strategies in part of region.3, China Unicom should use Differentiation Strategy to enhance the value of products. Include: enhance brand value, focus on value-added services, to increase capacity of difference through industrial chain.4, it's important to develop new pricing strategies when communication technology changed.5, it's vital to pay attention to backstage safeguard to ensure the effective implementation of pricing strategies.The price strategy and the measure have strong guiding sense for China Unicom and the market challengers in the domestic monopolizing industry, which can improve the competitiveness of enterprises, enhance the internal competitiveness of monopoly industries and raise the industry's overall operational efficiency.