China Tietong's Services Strategic Choice In Telecom Industry Restructuring Period

In the 2008 telecom industry restructuring in China, China Telecom, China Mobile and China Unicom are newly established, administering all business operations. After the restructuring, China Tietong Communications Corporation (China Tietong) was merged into China Mobile and has become its wholly-owned subsidiary. Different from other operators in the market, China Tietong continues operating not only the public telecommunications services but also the telecom services of rail transportation. In the broad context of corporate restructure, China Tietong should take into account its trade development and its characteristics, determine its strategic orientation and develop a more effective business strategy, thus promoting its sustainable development.Therefore, the paper gives a brief introduction about the developing telecommunications industry and its restructuring background and presents a review of the developing process of telecom operators. In the theoretical framework of strategic management, the author makes an analysis of the characteristics of China's present telecom industry and the strategic transformation trends in the restructuring period, involving the orientation and objectives of operators' strategic choice. Besides, the author is concerned with demonstrating China Tietong's external environment, its "Five Forces" model in industrial structure and SWOT framework. Accordingly, the paper proposes that the strategy of China Tietong should be chosen as specialization strategy and elaborates how to realize the strategy. That is to say, China Tietong should take advantage of the reform of telecommunications restructuring, railway construction and large-scale information technology development, implement the concept of innovative strategies, improve the organizational structure, cultivate professionals in the telecom services of rail transportation., and optimize network resources, thus strengthening cooperation with the railway industry, improving marketing and professional services capability and laying a solid foundation for the future "big and strong" telecom market of the railway transportation.From the micro aspect, the paper has explored some beneficial specialized strategies. The author makes empirical research into China Tietong Chongqing Branch, which has non-dominant Fixed Net operations, contributing to the research into China Tietong's development strategy.