Development Strategy Of China Unicom’s Mobile Phone Business

Along with the Ministry of Industry and Information Technology released3G licenses toall3telecommunication operator, and their reorganization has finalized in2009, thetelecommunication market of China has ushered into an era of all out competition amongthese3major operators with their full range of services. However, the current market is facingits ordeal of saturation and the descending ARUP value of consumers. Each operator is busyon finding new business growth, of which group company account is the key. Attraction isneeded to convince group company account to join one’s network, therefore industryapplication market is becoming the focus.3G industry application on mobile phone is aextension of industry application, which has a promising future. The growth of3G needs apush from mobile phone, therefore3G industry application becomes the core business newlydeveloped by each operator. Although with a later entry to mobile market, China Unicom haswell used its advantage on3G network, and is considering how to carry on and win marketshare back, so to be the No.1in its industry. Thus it requires China Unicom to thoroughlystudy where3G industry application is heading, make the proper policy, and find out abusiness model that suits the best.The theory basis of this thesis is the definition, elements, development policy, businessmodel and evaluation system of China Unicom’s3G industry application, which is based onthe latest operation status of the3major operators, analysis on3G market and how to developand reorganize the market of group company account, combining the definition andconnotation of3G mobile phone industry application, using corresponding theories ofbusiness model, while referencing the actual development of China Unicom.Based on above theory system, this thesis comes to its conclusion on an obvious costsaving tendency of how3G mobile phone’s industry application develops. And it is abouthow its business development shows tendencies on diversity, product fusion and beingpopular. Thus, hereby we draft four development policies as follow.Fifth, this thesis combines the definition of business model by Timmers, the NineElements of business model by Osterwalder, Pigneur and Tucci, and theories of effectiveness,entirety, difference, adaptability, life cycle, and sustainability of business model, also withanalysis on platform weakness, value chain management and profiting. It gives a cooperation model on strategic alliance of integrated service+mobile phone manufacturers. This thesisfocus on how to realize effectiveness and sustainability of business model, researches andbuilds up an evaluation system thereon, with correspondent evaluation index. Thus thesustainable development is concreted by following points: using questionnaires to prove theeffectiveness of the evaluation system.