Competition Strategy Research Of Rizhao Netcom

Currently, CNC China, a leading fixed-line telecommunications and broadband communications operator in China, runs into some trouble which its' counterpart in the world faces. the company's customer growth rate shows signs of slowing down rapidly, the new growth runs short, the operating risk is prominent day by day. Especially the rapid development of the new technique and the new service, and the personalized diverse communication demand growing day by day presents the serious challenge to the fixed-line telecommunications and broadband communications operators. At the same time, the fixed-line telecommunications and broadband communications operators also have opportunity. According to the macroscopic environment research, the information industry is the Initial development industry in the 11th Five-Year Plan, the information-based demand will appear fully, the information industry will go into a new development stage, "three net fusions" has already been included in the 11th Five-Year Plan, these all indicates a direction of the development of telecommunication industry, creates vaster market space. Rizhao Netcom, a region company of CNC China, has to make some decisions urgently in the following questions: How to carry through the creative transformation Strategy of CNC China? How to evolve into a broadband communications and multimedia-services provider? How to hold the development opportunities? How to find a problem-solving way? How to give an instruction for the fulfillment of the company strategy management?Firstly, this paper systematically analyzes the strategic environment in which RZ Netcom operates, it analyzes macro environment through PEST method, and it also analyzes the competition in the telecommunication industry with Porter's Five Forces model, it discovers the opportunities and threats which exist in the enterprise development. Secondly, it analyzes the resources, abilities and core competencies of the company, it sum up the competitive advantage and the weakness of the company with the value chain analysis method. Then it follows the SWOT method to analyze the strategy situation which matches the competitive advantage with environment opportunity well. Finally it raises the lowest cost competition strategy for RZ Netcom. In order to implement the strategy, we have to enhance the cost management, strengthen strategic cooperation, integrate the information system, strengthen the customer relationship management, and make great effort innovation.