Transnational Operation Of ZTE: An Analysis Of Core Competence Based On The Theory Of Value Chain

Chinese telecommunications equipment industry started to grow rapidly in the 1990s.Chinese telecommunications equipment enterprises accumulated a certain degree of technical strength through the introduction of capital and technology, and a few enterprises carried out the strategy of'Going Global'to compete in the whole world, such as ZTE and Huawei. After many years of development in the international market, ZTE has completed the full range of internationalization, including market, human resources, capital, R&D and so on. Therefore, it will be a great work to study ZTE'internationalization and to analyze its core competence in the process of transnational operation that has the important realistic meaning to domestic telecommunications equipment enterprises for their implementing internationalization strategy, realizing sustainable competitive advantage, identifying and developing core competence.This study is based on the review of transnational operation theory, competitive advantage theory and core competence theory. According to the above, this study constructs the theory framework and the evaluation index of core competence. On this basis, this study discusses the International development path and competitive advantage of ZTE, and then analyses ZTE's core competence in the process of transnational operation. For its problems in the cross-border operation, this study provides corresponding measures.In view of its resources, capabilities and the external environment, ZTE has realized its own core competence gradually with late-development advantage, and then the core competence promotes ZTE to make new great progress in the international market. From resources value chain perspective, after more than ten years of transnational operation, ZTE has accumulated material resources, human resources and intangible resources. From the industrial environment, ZTE has to face greater pressure from competitors and telecom operators in the international market, and ZTE focuses on strategic cooperation with other participants. From capability value chain, ZTE's technical capacity, market capacity and management capacity has been increasing incessantly. However, compared with the communications equipment giants, ZTE still has many deficiencies in the cross-border operation. In order to achieve sustainable competitive advantage and further enhance the core competence, ZTE need continue to increase R&D investment to promote technological innovation, then to enhance the core technical capacity. And also ZTE need expand the international market greatly, especially high-end market to enhance the market capacity. What's more, ZTE need establish cooperation relationship with parties of the industry chain actively to improve its management capacity.