Analysis On Competition Strategy For Mobile Enterprises Based On Instiutional Barriers To Entry

Domestic brand mobile phones have undergone rise and decline since the begin of their entering the market in 1998. During the period of 1994 to 2004 under the strict license regulation, the rate of market domestic brand mobile phones was getting bigger and bigger. After the change from license regulation to approving regulation in 2005, the occupying rate of market domestic brand mobile phones declined gradually. After the license regulation of mobile was cancelled on October in 2007, facing the challenge from ShanZhai mobiles and international brand mobile phones, the domestic brand mobile phones are confronted with more and more complicated developing environment, including the fast growing tendency of 3G technology.The paper focuses on the different developing process of domestic brand mobile phones to continue further study. First of all, start with the current developing status, the paper summarizes a fact that the competing degree for domestic brand mobile phones is getting higher and higher, and the space of price and profit for mobiles is becoming smaller and smaller, using Michael Porter's Five Forces Model to analyze the competition structure of mobile industry. Then, the paper analyzes the barriers to entry of mobile industry from the perspectives of regulation respectively and structure, including their avail. The institutional barriers to entry mainly analyzes the changing process of the barriers to entry of mobile industry affected by country, that is, the process of evolving from strict controlling to relaxing controlling. On the other hand, structural barriers to entry analyzes the problem from three aspects, that are scale economy, product difference and technology, and analyzes the corresponding stratagem for entry and defending taken by domestic brand mobile phones based on the theory of barriers to entry, which are explained in detail by the example of JinLi telecom.