New Century Development Strategy

Since entering the new century, the two Chinese telecommunication giants China Mobile and China Unicom have had their telecommunication networks basically done, which means the period of building up the networks in a huge scale in China has come into the end. As a result, Sichuan New Century Communication Engineering Co. Ltd (NCC), the company whose core business is providing telecommunication network engineering work is facing a severe situation like its competitors: a sharp drop of business amount, lower business revenue and profits. Yet, after China's entering WTO, the telecommunication industry has gradually opened up for some foreign operators with its speed getting faster; the development of 3G technology is getting mature, and this technology will put into use in the telecommunication market. All of these have created an excellent chance for NCC of its future development. Meanwhile, as telecommunication equipment suppliers have concentrated on building their own competitive advantages, they start outsourcing parts of their non-core business to some system integration companies like NCC, therefore, it created another profit increasing chance for the company. Furthermore, at present, the difference between each rival includes different competitive advantage and different concentration in this market, which makes it necessary for collaboration between the competitors; it brings NCC a good condition for avoiding threats from outside. Facing the new situation, the strategies that NCC used in the past could not catch up with the change outside the company, it has to be reconsidered for its future development. The main purpose of this work is through the analysis ofthe company's external business environment and its internal resources to help the author to find out NCC's external business opportunities and threats, as well as advantages and disadvantages of its internal resources; moreover, based on the new tasks and targets the author would make, this work will give new corporate strategies in order to help NCC to avoid difficulties in the new situation and restart its development fast. The author also believes that through combination between the application of the theory of corporate strategy in the management and the real business practice, it will give a clear direction for the future development of NCC, which will help the company to contribute to China's telecommunication industry. The framework of this article is to follow the strategic management theory, which is divided into six chapters. The first chapter is introduction, which mainly gives a brief introduction to the author's research objective, background, purpose of the article, research methodology and the framework of this research. The second chapter gives a series of theories, which applied to this research work. In the third chapter, it analyzed NCC's external business environment. In the next chapter, it gives a careful analysis of the company's internal resources and capacities. Based on the analysis in the previous chapters, the fifth chapter will make strategies for the development of NCC. And the last chapter will discuss the problems that accounted during the application of those strategies.This article adapts methods using combination of theory and practice, quality and quantity analysis; and the materials that used in this research work are matter of fact, which gave a deep research and full discussion of NCC's future development strategies. The author believes that under the new situation, NCC should use strategies that are focused on the company's future development with its direction of penetrating the market. Through setting up partnership with NCC's main collaborators like joint venture, using congregate targetstrategy to build up its own competitive advantage, grasping the two key external chances (3G and taking outsourcing projects), changing the company into a shareholders' company, accomplishing the structure of corporate governance of NCC, strengthen the company's management ability and financial ab...