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Competitive Strategies from 2G to 3G¡V A case of Taiwan Mobile GroupLee, Pen-nan 22 January 2008 (has links)
Abstract
Competitive Strategies from 2G to 3G
¡V A case of Taiwan Mobile Group
In trend with WTO, globalization and government policy, the domestic
telecommunication market has gradually moved from monopoly to free market.
Suddenly, the liberalization of telecommunication resulted in fierce competitions in the
market, each fighting for customers and market share, staging a battle scene in the
telecommunication industry.
Although 2G has excelled, it could not lead the fixed network out of its
distress. Business enterprises were still stuck in the swamp of the last mile. On the other
hand, 3G was launched with a thunderbolt posture, but its expensive license fee has
deeply scarred business enterprises once again. Competitors tried their best in both hard
selling and lucrative promotions, only to find very few customers have been touched.
Money has been spent, but the future seems dim.
Faced with a chaotic market, fierce competition and a hazy future of 3G market,
how the telecommunication business enterprises innovate new business models,
provide attractive service content to consumers, so as to avoid fierce price competition
and establish new competitive advantage, the business mindset, strategic positioning
are crux of the matter. In Porter¡¦s Competitive Strategies, the objective of competitive
strategy is to be different. In other words, when a business manager establishes a
different set of business activities, provides a unique set of values to customers, can it
thus have a unique competitive advantage.
Taiwan Mobile Group is one of the three largest domestic telecommunications
company. Its scope of business includes fixed network, cellular network, 2G and 3G
mobile telecommunication, customer service and all other telecommunication
businesses since the liberalization of the industry. The business team ¡V Fubon Financial
- is one of the top business group in Taiwan. Is its factor of success in 2G one of
internal advantage or one of external opportunity? What is its competitive strategy from
2G to 3G? Can its success in 2G ensure similar success in a competitive advantageous
position in the 3G and future market? Faced with a slow development of 3G market,
lack of competitiveness in the service function, as well as the impact of 4G WiMAX
V
technology, what kind of strategic posture should it take?
This thesis investigates the development of Taiwan Mobile Group from 2G to 3G,
its strategic positioning, internal competitiveness and how it should innovate a new
business model, establish a different set of business activities, or provide unique service
value, so as to create an unique competitive advantage, to reap greater market
opportunities and continually create competitive advantage.
Six conclusions are made for the case study company: (1) The success of 2G is
the strength and foundation for Taiwan Mobile Group in the 3G market. (2) The
development of Triple Play digital bus cross-industry system integration aids in the
competitive advantage of 3G. (3) Merger strategy and resource integration strategy may
not achieve synergy. (4) Corporate governance has poor results, unclear vision does not
aid the long term development of the business. (5) Concern for employee should take a
higher priority than focus on customers. (6) Dependence on external technology and
lack of R&D capability do not facilitate development of continuous competitive
advantage.
Eight recommendations to the case study company: (1) Research and develop a
killer ¡§integrated mobile digital service platform¡¨ to dominate the 3G and markets of
the future. (2) Cultivate senior management with skills in innovation and integration. (3)
Institute a forward-looking ¡§vision¡¨ to lead its employees, inspire passion and seize the
future. (4) Build up a corporate culture of ¡§customer is paramount¡¨, ¡§employee first¡¨,
and ¡§continued business operation¡¨. (5) Decentralize the organization, humanistic
management, simplify process, rationalized costs. (6) Construct a ¡§business resource
integration platform¡¨ to integrate all internal resources and build up a strong
competitive force. (7) Cultivate the ¡§corporate client¡¨ market. (8) Plans moves in China
with a global vision.
Further studies:
(1) Study of the competition and cooperation strategies between 3G and WiMAX.
(2) How does Taiwan innovate an ¡§integrated mobile digital service platform¡¨.
Keyword: Competitive Strategy, Competitive Advantage, Second Generation Mobile
Telephony (2G), Third Generation Mobile Telephony (3G)
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