Alcatel - Lucent Technologies (asia Pacific) Research, Service-based Competitive Strategy Of Differentiation

With the rapid development of telecommunication industry, the competition between telecom equipment providers is much more intense, sometimes results in irrational competition especially in price. With the fast step to market new products, telecom technology faces a quick evolution, and product life cycle is shorten than before as well, there's great risks in both markets and finance for telecom equipment providers to compete by differentiated products.Telecom operators also face great challenge of transformation as the result of the emergence of NGN & 3G. The request to outsource non-core activities and focus on core business, and to closely merge new technology with market, creatively provide new application, provides a broad space for telecom service business.The dramatically change of both the internal and external environments, suggests telecom industry has developed to "Service driven" instead of "Technology driven", which creates an advantage to the development of telecom service. Telecom equipment providers are fully aware of how important service is, and are ready to setup new strategic role of service or even start up the service transformation, hence, the study of competitive strategy on service is not just pressing but also practical.This article analyses the competitive strategy of Alcatel-Lucent Asia Pacific from the point view of service differentiation strategy and how it can stand against low cost competitive strategy.It consists of 5 parts: Part 1 introduces service background and concept, and the positive affects to telecom equipment providers; By bringing service life cycle, Part 2 analyses the necessity why telecom industry select service; Part 3 presents the characteristics of telecom competition, makes detail SWOT analysis on Alcatel-Lucent and it's major competitor in Asia Pacific; Part 4 demonstrates the only way for Alcatel-Lucent to gain competitive advantage is by differentiation strategy based on service, as well as the design of competitive strategy which differs with rivals in customer, model, human resource; Part 5 studies how to successfully implement competitive strategy from aspects of organization, human resource and enterprise culture build up.