The Research Of Ericsson's Competitive Strategy In China's 5G Market

Ericsson is the world's leading telecom equipment provider,providing operators with end-to-end communication solutions and specialized services.After the 2008 financial crisis,Ericsson's operating income continued to decline.Its net profit margin fell rapidly after 2015 and its financial situation deteriorated.At the same time,China's local telecom equipment vendors seized the opportunities of 3G and 4G development with continuous R&D investment,matured in technology and professional services,and quickly grew into strong competitors of Ericsson.Ericsson's operating income and global market share were surpassed by Huawei in 2013 and 2017 respectively.In China's 4G telecom equipment market,local telecom equipment providers account for more than 70% of the market,and Ericsson is less than 10%.In the 5G era,China will surpass North America and Europe to become the world's largest telecom equipment market.Therefore,the importance of the Chinese market to Ericsson is self-evident.How to make breakthroughs in China's 5G market has become an important issue in front of Ericsson.This thesis first introduces the background,significance and content of the research,the concept of 5G,the main key technologies,and the status of China's 5G development.After that,the PEST model and Porter's Five-Force model are used to analyze the external macro environment and industrial competition environment for Ericsson.Through the VRIO model and SWOT model,it analyzes Ericsson's sustainable competitive advantages,internal advantages and disadvantages,external opportunities and threats.Then,it uses the ratio analysis method to analyze financial situation,operating capacity,profitability and solvency of Ericsson in recent years.This thesis combines strategic analysis and financial analysis to comprehensively and objectively analyze Ericsson's current situation in China.And it makes recommendations on the selection and implementation of Ericsson's competitive strategy in China's 5G market and cooperation with competitors.This analysis method and suggestion can be used as a reference for how foreign companies can cope with the rise of Chinese competitors and how to continue to succeed in the Chinese market.