| The economy of China and the world has further mixed and the Chinese mobile phonemarkets have further been opened. With the decentralizing of the Chinese government on themobile phone production, the production and consumption of the mobile phone products havenearly become complete market regulated. While providing an ideal investment environment forthe world, China also provides the world with a huge consumption market. Capital runs afterprofits. Consequently, with the investment of numerous foreign manufacturers in China attractedby the Chinese mobile phone markets, there are more and more domestic mobile phonemanufacturers. The present status of the Chinese mobile phone markets is supply much morethan demand. It is quite clear that the competition is very serious. Understanding thedevelopment of the Chinese domestic mobile phones, it can be found that the Sino-foreign mobilephone manufacturers do not compete equally. The foreign manufacturers strive for occupyingthe Chinese domestic mobile phone market with their advantages. The actual happenings of theChinese mobile phone markets have justified it. This article tries to find out the advantages andshortcomings of the Chinese domestic mobile phones, via the study and analysis of thedevelopment and status of the Chinese mobile phone markets.It has nearly been 20 years since the production of the first mobile phone. In the process ofthese 20 years, the mobile phone production of China has experienced from zero to existence, andfrom a few to large amount. In the previous decade, the Chinese mobile phone markets weremonopolized by the foreign brands, like the famous ones of Motorola and Norkia, etc. Up to1998, the domestic mobile phone was almost none at the Chinese mobile phone markets.However, up to 2003, the Chinese domestic mobile phone took 55.28% of the whole mobile phonemarket like a dark horse. In the following 2004, the Chinese mobile phone was poured with coldwater, with the sharp decrease of the saless income and profit rate as well. And, in 2005, theChinese mobile phone markets were reshuffled a lot. The market percentage of the Chinesedomestic mobile phone was shrunk, with the elimination of some brands. The foreign onesoccupied more of the Chinese mobile phone markets. So, under this situation, it is necessary tounderstand and study the status of the Chinese mobile phone markets. The market layout of Chinese mobile phone markets has experienced 3 stages: From 1987 to1995, Motorola led the Chinese mobile phone markets, for it was the first foreign manufacturerapproved to enter the Chinese mobile phone markets. At this stage, there was little competitionof the market. So, Motorola was consequently the only one monopoly of the Chinese mobilephone markets. The second stage was from 1996 to 2000, with the arrival of the foreign brandsof Norkia and Ericsson, the competition was generated for the first time at the Chinese mobilephone markets. As the result, Motorola, Norkia and Ericsson formed the tripartite confrontation.The three brands took 80% of the Chinese mobile phone markets. The rest ones were taken byother foreign brands like Siemens, etc. The last stage should start from 2000 with the Chinesedomestic mobile phones entered the markets, with the present situation that the Chinese andforeign manufacturers competed seriously, taking each other's market. Meanwhile, the mobilephones of Japan and Korea entered the Chinese mobile phone markets at this stage. So, thecompetition of the Chinese mobile phone markets became multiple poles at this third stage.With the development of the Chinese mobile phone markets and increase of the subscribers ofChinese mobile phones, the market production and sales amount of the Chinese and foreignmanufacturers keep increasing. Of course, among those, there are some ones eliminated by themarket. However, in general, for some period of time, some foreign manufactures nearly took allof the Chinese mobile phone markets. With the increase of the subscribers of Chinese mobilephones, the production and sales amount increase as well, with strong development. So, theincrease of the production and sales amount of the foreign manufactures is kept stably. As forthe Chinese mobile phone manufacturers, the development seems not very smooth. Firstly, all ofthe manufacturers have experienced the beginning stage, with the production and sales amountstaying at the bottom. Until 2003, this curve started to rise. In front of the Chinese mobilephone manufacturers, it seemed to be an ideal scene. Soon in 2004, the sales amount decreased alot rather than increased. In 2005, it was not changed at all, following the same path of 2004,which was worth thinking, for there is a so huge market needed Chinese local mobile phones butwith so weak situation.Suggestions to the Chinese domestic mobile phone manufacturers facing competition:(A) In the design of the mobile phone production, focus on the concept of "scientificaesthetics", and make "modern" mobile phone industry. After the serious competition ofcapital, the similarity of product brands is very serious. The industrial design has become thesharp weapon of the competition. The Chinese mobile phone manufacturers should create theirown core competitive ability, and focus on the development of the modern exterior and addedvalue of the mobile phones, for instance, TCL gem cultures to scientific aesthetics.(B) Face competition with services. At present, the main competition of the mobile phonemanufacturers focuses on the prices, types, colours and functions, etc. With more and moreincrease of the mobile phone similarity, decrease of the market increase rate, and low sales profits,the "service" will become the focal point of the next competition. At present, the domesticmobile phone manufacturers have realized this item. For instance, the "wide, fast and special"customer services of Bird company, and the service for thousand li of Xiaxin.(C) Define the market effectively, and develop the overseas market with full efforts as well.Different consumers have their own favorite products. With effective market defining, thepotential demand of the products will be increased a lot.(D) Set up the value chain with customers as the core. Change the traditional vertical valuechain, set up the value chain with some brands as center, gather together the strength of the upperreach suppliers, lower reach agents, business men and value added service suppliers, etc.Combine the mobile phone development, function improvement and after-sale services, withcustomers as core, closed links and closed loop.(E) Set up group alliance with cooperated work. The domestic mobile phone manufacturersshould avoid the low level price competition, set up effective group alliance, play the groupadvantages, realize the horizontal and longitudinal economic union, form up the competitiveadvantages of intensive production, and professional coordination, coordinate and work hardtogether with all of the companies, and challenge with foreign brands.China means a huge market to all of the manufacturers, where is full of chances and challenge.Both the Chinese and foreign mobile phone manufacturers must take part in this seriouscompetition if they hope to take some place at the future market. The market economic rule is tosurvive the strong ones and eliminate the weak ones. So, it is quite clear that there will bewinners and losers of this competition. As for any side of the competition, it is senseless not totake it seriously. Especially for the local manufacturers of China, they must make full play oftheir own advantages, make well the R&D and services, and improve the business strategies, tomake notable achievements at the Chinese mobile phone markets in the future. |
PDF Full Text Request