A Study On Development Strategy Of Shangdong Transfer After Tele-Reform In China

Since the 1980s, all the countries over the world have started their telecommunication reform gradually by launching a series of measures, such as separating government functions from enterprise management, demutualization in state-owned telecommunication operating enterprises, privatization reform, deregulation, the introduction of new competitors and opening up in the telecommunication industry.In the 1990s, with the splitting wave of telecommunication reform all over the world, China started its own too, marked by the separation of government functions from enterprise management in China Posts and the establishment of China Unicom. Major operating businesses have been established and carried out a succession of reorganization. With the reform in domestic telecommunication system and reorganization in each major operators, the territory of fiber optic cable in Shandong Province has begun to maintain the market gradually from monopoly management to the intense competition.Based on Michael Porter's "five forces model of competition" and the value chain theory, and taking into consideration the background of international and domestic telecommunication reform at the end of the 20th century, the paper attempts to make a contrast between the changes in business environment in the long-distance telecommunication transmission in Shandong Province Council ("Shandong transmission" in short) before and after the domestic telecommunication reform. The paper also makes an analysis of the strategic management areas, business strategy and strategic transition of Shandong transmission, pointing out that with the changes in business market and goals, Shandong transmission should center on the core competitiveness and conduct its restructuring timely in the field of business strategy and operation. Further more, Shandong transmission should stretch its internal market in Shandong Netcom positively, by seeking other dimension of the fiber optic cable operator locally, expanding its business territory actively, and transforming itself from the traditional internal market and cost maintenance centered differential operation model to the differential development strategies gradually based on external markets, economies of scale, and low-cost operating model, with an intention to adapt to the competition in maintaining the fiber optic cable market, and further solving fundamentally the long-term survival and development of Shandong transmission.This paper is divided into four parts. The first part is introduction to the research, to clarify the subject, the significance, train of thoughts and framework; the second part analyzes the internal and external development environment of Shandong transmission, with the "five forces model" and the value chain theory as a guide; the third part is a research of the development strategies and measures to implement Shandong transmission; and the fourth section summarizes the main conclusions of this paper and gives related policies and recommendations.The significance of this paper lies in providing a new management system for the operators to maintain lines of communications, through a research on the development strategy of Shandong transmission and reference on how to select survival and development strategies especially for those transmission maintenance enterprises in different provinces left over from original Posts and Telecommunication system. A new round of telecommunication system reform may emerge with the process of triple-play. If the provincial transmission enterprises can conduct an active strategic business transformation, and jointly seize the cable maintenance market within their provinces, they will be in a more favorable status in the new round of telecommunication restructuring, realizing a separation between communications transmission network and their users' market operation, and achieving the great national unity in transmission system, in which communications network planning, construction and operation are charged by the transmission enterprises, and communications operators only lease the communications capacity, which can fully enhance competitiveness in content providing and service quality and win more terminal users. Besides, connecting operating terminal users can be used to reduce the current duplication of construction, save the state-owned capital; the operators can achieve an environment of fair competition, and compete with foreign entrants on an equal footing.