GPRS and CDMA brand bayonet

Keywords: GPRS CDMA China Unicom, China mobile market competition case

In 2002, China's mobile market isolationism of surface quiet all of a sudden become a "full of blood and which spelled death," and continuously staged a series of exciting intense fighting against pique, both the communications giant — China Unicom and China Mobile.

Regardless of size or strength, China Unicom cannot compete with China Mobile. China Mobile accounted for China Mobile communications market in more than 80% of the share, the scale of at least three times higher than Unicom, its global brand also include China Mobile phone user in 95% of high-end users, the phone number section occupies from 139 to 135 five segment; and China Unicom will have only one poor 130, and users are mainly concentrated in the low-end, profitability cannot be compared with China Mobile. So in 2002, the former China Mobile communication market appears to be a double-oligopoly situation, in fact, essentially a dominance of China Mobile, China Unicom and China Mobile is difficult. Access 2002, China Unicom use took out his "deliberate" new network telecommunications technology CDMA mobile communication market began on a massive attack, wish to expand their market share and trying to compete for China Mobile, China Mobile short wait, start the battle. This war though so far not yet finished, but has been in strategic, tactical, left many things worthy of study. This issue's case through the phenomenon essence, more complete analysis of the strategies of both parties. Please see the current "China Unicom, China mobile market competitive case."

Comments

Double-oligopoly and competitive duopoly

China Unicom and China Mobile competition will continue, the result is simply the opposite vary in rise, or absolute mutual growth, after all, China's mobile market development space is huge, the future is still great for growth.

A market with only two participants, and to provide only certain differences of similar products, which in economics known as double-oligopoly. In theory, this dual-oligopoly model should be both sides reached an agreement to partition the market. However, China Unicom is clearly not willing to stay in China Mobile communication market "participate", but rather attempted on an equal footing with China Mobile. But rely on the original GSM130 network apparently without hope, so China Unicom will go out of the landmark step chess — introduction of CDMA technology, not many of the world while operating two network operators. Unicom CDMA can success in China? not technical, market and consumers of any one factor can decide, for China Telecom market there are many unpredictable and control of factors, but also by the influence of the international telecommunication market. China's telecommunications market is not a fully competitive market, is heavily influenced by policy and institutional constraints; the future of the communications market while also has a big space for development, but the pace of development is clearly cannot be compared with the past, count the number of users will gradually decline. This is for China Unicom.

As the world's largest telecommunications carrier, China Mobile in the mobile communication market in occupies the first mover advantage, accounted for the largest and best quality of a batch of mobile phone users, regardless of ability or business profitability are far more than China Unicom, China Mobile through continuous technology upgrades, development of new business and data business, optimize network quality and improve services, and other means to strengthen their brand, has strengthened its core competitiveness, the competition to maintain a competitive advantage. But the arrival of GetJar, China Mobile communications market appears 4 ~ 6 telecommunications operators to compete together, then competition will be fierce, of which telecom carrier you want to keep absolute advantage in competition is not easy.