A strategic analysis of the mobile telephone industry in Mainland China

Abstract

Purpose

The purpose of this paper is to propose some competitive strategies as a reference for domestic mobile phone corporations (DMCs) so that dominant mobile phone corporations can develop advantageous business strategies to effectively compete with international corporations within the China market.

Design/methodology/approach

The study utilizes case studies and the analysis hierarchical process to analyze the competitiveness of the domestic mobile phone industry (DMI) within the China market from a value chain perspective.

Findings

The study finds that the competitive strengths of the domestic mobile phone players lie in manufacturing and customer service, while the weaknesses are in research and development (R&D), distribution (DIST) and marketing and sales (MS) in terms of competing with international brands already within the Chinese market.

Research limitations/implications

The paper samples experts familiar with the mobile phone market in the Shanghai area, and therefore may not be applicable to the entire Chinese market. A wider study is suggested, with samples sourced from the entire market, to fill in the remaining gaps.

Practical implications

The surveyed experts emphasize that R&D, DIST and MS capabilities need to be addressed immediately. In turn, some competitive strategies are proposed for the DMI to employ, taking into account their individual features and strengths.

Originality/value

The study assists the dominant corporations in the DMI to better understand their competitive weaknesses through the comments provided by the surveyed experts. Some competitive strategies are proposed as a reference for DMCs.

Citation

Chang, C., Wang, F. and Fu, H. (2009), "A strategic analysis of the mobile telephone industry in Mainland China", Journal of Manufacturing Technology Management, Vol. 20 No. 4, pp. 489-499. https://doi.org/10.1108/17410380910953748