The Research On Competitive Strategy For Mobile Phone In China Market Of ZTE Corporation

ZTE Corporation is a leading global provider of telecommunications equipment and network solutions. It is one of the few high-tech enterprises in the world that have the ability to research and development, manufacture2G,3G, and4G full ranges of mobile phone products. ZTE has become the world’s fourth largest mobile phone provider. The Chinese market is one of the most important markets in the world and the strategic stronghold of ZTE mobile phone products. Along the rapid development of mobile phone products in the Chinese market in recent years, whether mobile communications network size or amount of user has grown phenomenally, the market is getting mature; the competition in the industry is more intense. ZTE hopes to develop an adaptive competitive strategy for mobile phone products in the Chinese market, to support the Group’s overall strategy of ZTE and help ZTE to be the world-class excellent company.Based on the latest operating status of ZTE mobile phone products in the Chinese market, The writer makes a thorough analysis of the external environment and internal environment of ZTE, which particularly focus on the analysis of the current situation, trends, series of questions of the mobile phone products in the Chinese market, to identify the opportunities and threats faced, strengths and weaknesses of ZTE mobile phone products in the Chinese market.External opportunities:strong support of China’s political stability, national macro-industrial layout, policies and regulations; stable economic growth and enhanced investment; residents income increased steadily enhanced purchasing power; rapid growth of overall demand of smart phones; the domestic mobile phone attention enhanced; the3G development expand the market scale of the mobile phone; the construction and commercial use of4G; hardware configuration of mobile phone upgrade quickly, richer mobile application. The main threat:functional mobile phone goes into recession; operating systems of smart phone dominated by few companies; raw materials and core components controlled by few providers; mobile products is a buyer’s market, the buyer’s bargaining power is strong; increasingly industry competitive. Internal strengths:procurement lead short, strict quality control of materials; excellent production management capabilities; sense of quality, stable product quality; customized strategies based on the good cooperative relations of the domestic carriers and a good grasp of the needs of the operators; perfect after-sales service network, stable, standardized, systematic management of technical support, specialized technical support; specificated basic management, good information systems; good human resources management system, competitive workforce; professional procurement management, an cost controlled adequate supply of materials; strong ability of research and development, rich patents reserves, end-to-end solutions. Internal disadvantage: poor sales channel, over-reliance on operators’procurement; poor brand awareness and recognition; low-price competition of low-end products; executive power and speed of response should be improved.Guided by strategic management theory, use tools such as QSPM matrix and SWOT analysis, help ZTE to choose the differentiation competitive strategy in the Chinese market, with the value chain analysis model, refine the proposed competitive strategy to implement key aspects of initiatives and functions of safeguards to build the market competitive advantage for ZTE phone, to gain the breakthrough of market share, and the growth of profit, so as to establish a solid rear and a good basis for ZTE mobile phone products’competition in the global market, and play a key role to support the overall strategy of ZTF.The content of this paper can be a practical guide to improving the competitive strategies of ZTE, enrich competition practice. Due to its representative status in the Chinese market, the research of ZTE mobile phone’s competition strategy in the Chinese market is a good reference for other companies and related companies of the mobile phone product industry in the area of strategy management research.