China Communications Industry Internationalization Strategic Analysis
August 16, 2004 Communication World Network,
Zeng Jianqiu Beijing University of Economics and Management
Two waves pushed "going out and introduced"
In the past 20 years, the reform and development of the global telecommunications industry has brought two waves. At two stages, the global telecom industry "goes out and introduced" is starting under such a wave.
From 1984, AT & T is broken down to 1996, the United States promulgated new telecommunications law as the first wave, and its important feature is that the national telecommunications industry has conducted reforms that break the introduction of monopoly. The second wave began in 1996. In 1996, the United States revised the telecommunications law, intended to expand the competition, and relax the telecommunications market control. At the same time, on February 15, 1997, the WTO signed the "Basic Telecom Agreement" and encouraged telecommunications companies to "go out and introduced" to compete globally. my country's telecom operation enterprises have begun from the second wave, and "goes out" with the world "and" introduced ", my country is actually" introduced ", then "go out".
First "introduction", "go out", first because my country's telecom industry reform is slow, 10 years later than Western countries such as the United States, other countries have experienced vigorous first wave, my country's telecom industry is still In the monopoly business stage, since the 1990s, my country's telecommunications industry has begun to break the reform of a monopoly to introduce competition as a core, but it is only limited to domestic, and there is no "going out". Secondly, my country has applied for the application to join the WTO in 1986, which has been officially joined in 2001. According to the relevant provisions, foreign investment can reach 49% -50% in the telecommunications enterprise, which has created a condition for foreign companies into China. With my country's telecom reform and the development of telecommunications markets, my country's telecom operators have the strength of "going out" and began to expand the international telecommunications market. Therefore, China's actual situation is first "introduced", and then "go out".
World Telecom Enterprise Successful Experience
In terms of "Going out and introduced", many countries in the world have walked in front of my country, some of whom have successful experience, such as France Telecom, Vodafone and German telecommunications, can be used for my country's telecom operators.
In 1997, the French government has released the domestic telecommunications business market, and the State Holding French Telecom lost the status of exclusive operation of telecommunications business, and purchased 3G licenses and made French telecommunications with high debt burden. However, French telecommunications actively implements the road of international expansion, in Egypt, the mobile communications organization joint venture license, operates fixed network business in Spain, providing mobile communication business in Denmark, and establishing an investment company in Malaysia. At present, the two-thirds of French telecom revenue comes from abroad, reversing the situation of loss.
Vodafone is a case of successful "walking out". Vodafu was originally just a subsidiary under the UK Racal Electronics Group. The shares of the Group, Japanese Telecom and other companies, successfully changed from a unknown enterprise to multinational companies with 120 million users. At present, Wadin has only 10% of users from Britain, and its mobile business revenue, and the contribution of the United Kingdom has reached more than 87%.
Mexican Telecom is also a successful case in "walking out", and Mexican Telecom has opened a company in the United States and provides telecommunications business for Mexican immigrants. For the US local telecom operators, Mexican Telecom can get better agreement and trust in this special user group. Therefore, Mexican Telecom has operated very successful in the United States, which is a successful case of "walking out" in developing countries. .
France Telecom has passed the market expansion, establishes a joint venture in some countries; Vodafong walks mergers and returns and large expansion; Mexican Telecom has grown the company in the United States, with users in the United States. Although they have different ways they "go out", they all have a common feature, that is, they are high, they can be seen, and they have a good strategic understanding of "walking"; secondly, adjust the strategy in the right time, with Vodafone For example, when the tentacles are more and more, after the global telecom market competition is increasingly fierce, Vodafone adjusts the strategic key, the main goal is determined to maintain the status of Vodafone in the industry. To this end, Vodafu has developed attention, pays attention to customers, pay attention to operation Specific measures for efficiency. Suggestions for "walking out" to my country's telecom operation enterprises
1, cautious "go out"
my country's telecom enterprises should grasp historical opportunities and actively "go out". At present, the telecommunications enterprises in the world have accelerated the pace of "introducing and walking out". my country's telecom enterprises should comply with the wave of world telecommunications development. "Going out" while "introducing", "walking out" will be a wide sky. Open a new market. At the same time, my country advocates the cultivation of giant enterprises. The Ministry of Information Industry has also proposed the slogan of "doing big strongest". Not only that, the state is still "walking out" on my country's telecommunications industry, for my country. Telecom companies "go out" have created favorable conditions. However, there is no scientific objective study and blindly "walking out", which must cause undertaking of the operation and the market to understand, there is many problems. Therefore, it should be scientifically, objectively study our enterprises, and our business we want to join, should be "going out", how to do a big stronger, and make the footsteps of "going out".
2, answer 6 "W"
In order to better "go out", you need to stand in a strategic height to look at this problem, you need to conduct in-depth research, answer 4 questions. "WHO", what kind of operational enterprises jointly "go out" is appropriate; "WHER", "Going out" is to Europe, America, or to South Asia and West Asia, which country is, "go out" Going to many countries, but you have to know more about the target area, and this area must have enough competition space; "when", "Walk out" is what is; "What do you want", "Going out" , Including how big, do more, what is the purpose, what kind of way "go out", "go out" can earn money, can not open the market. At present, in the field of telecommunications, many companies have already gone out of the country, but most of them have not profitable, mainly because lack of understanding of the market, lack of 4 problems that must be answered in the market. Therefore, it is recommended that China's telecom operation enterprises will ask 2 "why" after preparing to "go out" and four questions to these four questions, that is, "Why do you want to go out '" and "' For what".
3, improve brand influence
my country's telecom operation enterprises must successfully "go out", we must improve brand awareness and expand the brand influence.
In terms of "walking out", my country Telecommunications Manufacturing Enterprises also have many successful experiences and lessons. Huawei's company has its own branches in many countries such as Russia, Thailand, and its communication products have gained a large market share, and one of its experience is to successfully create the brand of "Huawei". The brand has many countries. A certain influence. In contrast, my country's telecom operators, such as China Mobile, China Telecom is a very good brand, which is a well-known household in China, but in the world, people's recognition is still relatively low, although China Telecom, etc. State-owned enterprises have appeared on the world's top 500 rankings, but foreign investors do not know more. The weakness of the brand will seriously lag the pace of "walking out" of our telecom operation enterprises. Zhu Jinzhou Information Industry Department Telecom Research Institute Policy Research Institute
Work together to "go out" mode analysis
1. The communication manufacturing industry "goes out" mode
After more than ten years of development, my country's telecommunications equipment manufacturing enterprises have achieved great results. In 2003, the sales of Huawei Company and ZTE's overseas market reached US $ 1050 million, accounting for 27.4% and 20% respectively from the total sales of their total sales, and it is expected that Huawei and ZTE overseas sales will be up to 2004. $ 2 billion and US $ 1 billion. In theory, the model "walking out" in the telecommunications manufacturing industry includes export trade, contract, establishment of R & D centers, set up a branch office or subsidiary. At present, my country's communication manufacturing industry "goes out" mainly has the following four modes.
(1) Export trade model: Communication manufacturing enterprises are not only more strange to international market environment, but also have international business experience. The best way to reduce international business risks is to pass middlemen indirectly or directly selling their products abroad, which is export trade. For example, ZTE communications in 1995-1997, the so-called "walking" is just the export of a single product. In the context of economic globalization, export trade is the normal state of "walking out", so export trade is still an important model of my country's communication manufacturing industry "go out".
(2) Contract model: To further "go out" and form an international competitive company, companies sell their own products through contract forms. Contracts generally include four kinds of licensing contracts, contract manufacturing, handkeeping (BOT) contracts and management contracts. Each contract has its own characteristics and advantages, which is applicable to different industries and international strategies. my country's communication manufacturing enterprises are mainly engaged in contract manufacturing contracts and BOT contracts with the host country or overseas collaborators, promote communication equipment exports and expand the international market share.
(3) R & D center model: Communication manufacturing is a high-tech industry, and R & D is always the lifeline of the company. Through the establishment of overseas R & D centers, we can make full use of technological innovation in overseas human resources, and utilize the latest technical results. Huawei has achieved independent intellectual property rights of many international advanced levels through overseas R & D center. Huawei's overseas R & D institutions have set up a research institute in Silicon Valley, Dallas, Bangalore, Stockholm and Moscow, and Moscow, and Moscow, in Silicon Valley, Dallas, Bangalore. As of the end of 2002, Huawei had applied for 198 international and foreign patents, which is the most in developing countries. Huawei registers more than 600 times as China's well-known trademarks in 86 countries and is protected by Paris Convention and WTO.
(4) Company model: In addition to establishing Overseas R & D centers, my country's communications manufacturing enterprises can also "go out" by setting up overseas offices, branches, subsidiaries, etc. The focus is the subsidiary. It can be divided into joint ventures and sole proprietorship according to the equity structure. The joint venture is mainly the product designated by the host country government. my country's communication manufacturing enterprises were first mainly set up in developing countries, but with economic strength and the advantage of investing in developed countries, there are current trends in developed countries. On March 26, 2004, Huawei established the European region headquarters in Basingstoke in the southeastern United Kingdom, and made an important step towards developed countries. 2, telecommunications operation "walk out" mode
Our country is open to the "go out" started late, and overall is still in the exploration phase. In theory, the operation industry "Going out" has five stages or five modes: international cooperation; establishing overseas office or branch; set up a subsidiary; establishing an international financial system; establishing a company culture with global ideas . At present, my country's operation is "going out", there are mainly three modes.
(1) International cooperation model: Operating industry can lay the foundation for "going out" through domestic or international cooperation. The operation industry "Going out" is first based on "introduction" and "go out" by expanding cooperation with multinational telecommunications companies in China. The recent case is the cooperation between China Telecom and France. The international market is a network extension in the domestic market, service extension and business extension. my country's many telecom companies have passed various forms of telecommunications services through various forms, although they are personally providing telecommunications services in the international market, but the business risk is relatively low, and the leading experience of international management can be obtained. It is also a good choice to provide telecommunications services directly outside the Athens Olympic Games.
(2) Office or branch model: There are three legal forms of overseas branches: Branch (Branch), offices (Subsidiary). The first two are branches of China's legal persons, non-local independence legal persons, domestic headquarters, debt liability for branches and offices; subsidiaries are independent legal persons, domestic chief companies have no responsibility for their debts. Establishing offices in foreign countries, sending a group of people to the local area, can understand the competition and market demand in the country or region, and learn the management means and service experience of multinational telecommunications companies. Former China Telecom's establishment of the company in November 2000, China has established China Telecom Group in US Office in Los Angeles. At present, many telecom operators have established offices or branches in countries and regions such as US, Europe and Hong Kong.
(3) Subsidiary mode: It is the high form of internationalization of telecommunications operations in foreign countries. It is also an international operation in real sense. Generally speaking, it is possible to establish a subsidiaries through founding or mergers, such as China Telecom (United States), the latter, such as Netcom in Asia. Birth of China Telecom (US), China Telecom (US), has established a backbone network across the Americas, established a certain customer base; establish a competent international management and marketing team; Complete business income indicators set by the group company. China Netcom built a wholly-owned subsidiary Asian Netcom through a sub-step step. In 2002, China Netcom (Hong Kong) Co. AsiaNetcom, among which is 51% of China Netcom (Hong Kong), and the other two account for 49% shares. In February 2004, China Netcom acquired all shares from partners.
3, other modes
(1) Operating telecommunications services abroad: manufacturing companies engaged in operational business's greatest advantage is equipment supply. On the one hand, it provides telecommunications services to ensure its own sales; on the other hand, the industrial value chain, communicate upstream and downstream industries, and form new profit growth points. In November 2001, ZTE and the Congo (Jin) government jointly established the Genzhong Telecom Co., Ltd. in its capital Jinshasi, of which ZTE has 51% shares. The Just China cooperation operation project is the first complete set of telecommunications projects supported by the Chinese government's foreign preferential loans. According to the Cooperation Agreement and Joint venture, the joint venture is responsible for the construction and operation of the Congo (Jin) domestic GSM1800 network, operating mobile communications, domestic long-distance calls, international exchanges in the Congo (Jin). This is my country's communications manufacturing industry's first running telecom operation enterprise abroad, which is available to the telecom industry to learn from the telecom industry. (2) The operation enterprise and manufacturing enterprises "join hands": Operation and manufacturing formulation strategic alliance work together to "go out" can create a combination of competitive advantages, and make up for their disadvantages. Although my country's telecommunications operation and communication manufacturing has not joined hands with the precedent of "going out", China Unicom and ZTE have come together through the Postelect Telecommunications Company (POSTELECOM). On August 20, 2003, ZTE and POSTELECOM signed a comprehensive cooperation agreement. The two sides will make full use of ZTE to fully utilize ZTE's international standard soft exchange, broadband data, wireless access, etc., focusing on new technologies such as soft exchange, Romania building backbone data and speech networks. After the completion of the network, it will become the world's first softswitch-based national commercial network. On the same day, China Unicom has reached a memorandum, and the POSTELECOM promises to take priority to Unicom's "ATM IP" data network platform. In addition, China Unicom also retains the right of investment postelecom.
4, "Working with" mode
By reviewing the model used by my country Telecom industry and borrowing some international experience, my country's operation and manufacturing model will "go out" model preferred mode is the strategic alliance, through mergers and acquisitions or new and other forms. Provide telecommunications services. Since the 1980s, the Strategic Alliance has become an important strategy for enterprises to obtain competitive advantages, achieving rapid growth, is also the most widely used growth mode of multinational companies into the international market. In order to achieve the strategic objectives of "walking", my country Telecom operations enterprises and manufacturing companies can set up any equity or non-equity arrangements for the expectations of the global telecommunications market to set any equity or non-equity arrangements, coexist, and share benefits.
China Communications Industry and "Go Going out" SWOT Analysis
1. Advantages analysis
(1) The country has built a good platform for companies to "go out": my country's government is constantly through comprehensive investment legal system, reform foreign investment management system, encouragement, support and help enterprises "go out"; and with the State Administration Commission Established, my country's telecommunications company reform is accelerated, and the company 's governance structure continues to improve. These have established a good platform for companies to "go out".
(2) Operating industry and manufacturing are industrial chain inseparable components: the relevant supporting industry is one of the sources of forming the national competitive advantage, because the performance and ability of related industries will naturally promote the innovation and internationalization of upstream and downstream. The telecommunications industry is no exception, countries with strong telecommunications operations generally have a strong manufacturing industry. The cooperation between Chinese manufacturers and operators in the international market will also promote cooperation in the domestic market. As my country's operators hope to drive international operations with the company's cooperation with multinational telecommunications companies.
(3) To form a strategic alliance and "go out" with international competitive advantage: Generally speaking, most of the strategic alliance can effectively enhance the alliance's own strength, reduce costs, and reduce costs, reducing the alliance Risk, extended value chain, enabling the intermediate link value to achieve strategic objectives. Working with telecommunications services abroad also promotes export of manufacturers communicating equipment, you can get more support from our governments. (4) Working with "Going out" can give priority to the surrounding countries and regions: Asian operators "go out" preferred are their surrounding countries and regions and have achieved success. my country's manufacturing industry "goes out" is the development of the first neighboring countries and regions (developing countries). my country's business "walking out" has established offices in foreign countries, although the United States and other developed countries and regions, more telecom companies focus on surroundings and regions. Working with "Going out" preferred surrounding countries and regions can make full use of the territory advantage. Asia is China's largest overseas investment destination, and my country's multinational investment companies are an important service object for my country's telecommunications operation. In addition, Chinese manufacturers have a great impact in surrounding countries and regions. In August 2003, ZTE also defeated competitors from other countries such as France, Canada and the United States, and won the eligibility for the construction of national backbone data and speech network for POSTELECOM.
2, disadvantage analysis
(1) Some institutional disorders that have been contained and affect the enterprise "go out": my country's government is in accordance with market-oriented, enterprises as the principle of providing services, and accelerates the management service system for China's foreign economic cooperation. However, there are still some institutional disorders, including: management system is old, the approval procedures are complicated, the information is not smooth, the ability to facilitate is not high; the promotion, support and security system is not perfect, relevant legal system is lagging; intermediary is not perfect, industry Self-discipline and coordination function is weak.
(2) my country's telecom industry has a lower international competitiveness: whether the operation industry is still relatively low, the operation industry is still relatively low, and the operation industry, according to the research, relying on the huge market advantage, my country's telecom industry international competitiveness is 31 main Ranked 13th in the country and region, but corporate competitiveness (31st) and system competitiveness (27th) are far behind developed countries and regions. The manufacturing industry is also weak, with the 2002 sales of the Cisco system of 18.915 billion US dollars, Langxun Technology's $ 13.568 billion, the Nortel Network is 10.701 billion US dollars, my country Huawei and ZTE 3.832 billion and $ 3 billion years Sales (2003) require greater effort to catch up.
3, opportunity analysis
(1) Joining the WTO provides favorable conditions for our country: under the WTO framework, my country's telecom industry will "go out" will be better legal protection. Since the joining the WTO, my country has added greater speeches in the protection of bilateral treaties, multilateral conventions, regional international investment legal systems and world international investment legal systems, and my country is also actively involved in the creating and revision of the legal system. It reflects the interests of my country, providing a favorable environmental conditions for our telecom companies to "go out".
(2) The state encourages the telecommunications industry to "go out": "Going out" strategy is the opening strategy of the Chinese government in 2000, which is the main development strategy from "introduction", adjust to "introduction" and "" Walk out ". In 2003, the Sixteenth Central Committee of the 16th CPC has clearly proposed the development of China's multinational companies. In this context, "walking out" has become a big dream, and the pace of direct investment in China is constantly accelerating. According to statistics from the Ministry of Commerce, in 2003, the Chinese government approved 510 overseas companies, with investment of $ 2.5.7 billion, a year-on-year increase of 45.7% and 112.3%. Promote international cooperation in the field of services including telecommunication operations, which is one of the key areas that the government drives "going out". The competent department of industry is constantly promoting our country's business and manufacturing strategic research, which will create more convenient conditions for "go out". (3) The global telecommunications industry is still serious: the global telecom industry began to go out of "Trough", but the financial situation of the telecommunications industry has almost no change in the past three years. Many operators have to face huge losses every quarter, usually a profitable local operator has to struggle for profitability. On the contrary, my country's telecommunications industry is still very rapid. Many multinational communications manufacturing companies are using the Chinese market to be profitable. The global market is not a market opportunity for the operational enterprises and manufacturing companies in my country and manufacturing companies.
4, challenge analysis
(1) The company "goes out" causes the difference: Overall, my country 's enterprises "go out" is not more than three reasons: external competitive pressure, external macro environmental changes and corporate internal factors. my country's telecommunications operations and communication manufacturing are facing a common external environment, including: China encourages the "Going out" policy, the globalization trend of WTO, and a favorable macroeconomic environment. However, the external competitive pressure facing the two is very different, and the operation industry is less than the manufacturing industry. Some operators have lack the driving force for "walking out". "Going out" model is not the same, manufacturing will inevitably "go out" in foreign companies, export trade can also, and the operational industry must have a foreign company to truly "go out."
(2) To form a challenge for strategic alliances: my country's telecom industry has no precedent to seek. It has great advantages through the Strategic Alliance "Going out", but also faces the challenge of forming and operating alliances. There are many kinds of cooperation objects that can be selected by the operation industry or manufacturing, such as multinational operators, multinational manufacturers, etc. Therefore, it is possible to choose the best partner to be a key factor in the victory of the strategic alliance. Only when the other party has a greater advantage, it may not necessarily choose its as a strategic partner. In addition, the relationship between the strategic alliance is relatively loose, how to avoid conflicts of interest, reduce decision-making costs, and improve operational efficiency, etc. are currently solved.
(3) International business risk: There are still many instability in the current world. It is different from the domestic market for all, and China's communications industry is "going out" to face many business risks different from the domestic market. Includes political risks such as regional security situation, terrorism threats and economic problems, and the political risks, etc. Recently, Huawei's Iraqi market is typical in the Iraqi market; there is a large fluctuations in the market in the market, and there is a large fluctuating in the market. In addition, the strategic alliance management also faces administrative mechanism risk and market mechanism risk, including the union party Various behaviors of the Alliance Agreement and even the risks of the union rupture.
Shape the macro environment of our telecom industry and "go out"
"Going out" is of course a corporate behavior, telecommunications business and communication manufacturing work together to "go out" must be a bond with the market (final profit), but the government's encouragement, support and help cannot be lacking. In order to promote our telecommunications industry, the government needs to create a good macro policy environment.
(1) Industrial support: related industries, especially upstream industries, and "go out" to create national competitive advantages. My governments, especially the competent authorities should encourage the telecommunications industry to "go out", and develop the telecommunications industry to "go out" strategic country and regional planning. Considering that the surrounding countries and regions are the preferred areas of my country's telecommunications industry, they can start from surrounding countries and regional strategic plans. (2) Information support: In establishing and improving overseas investment country environmental library, based on the "Country Trade Investment Environment Report" , Pass and release overseas telecommunications market information, and provide investment information such as laws, regulations, tax policies, market conditions, and corporate credits, and provide information consulting services for telecom companies.
(3) Financial support: my country should learn from international experience, within the scope of the WTO rules, research and construction of the fiscal and tax support policy system that promotes "going out" strategy, gives telecommunications enterprises, financial and tax incentives, and improve the economic benefits of enterprises. Promote the smooth implementation of "going out" strategy. Importance policies that implement a full tax rebate or higher tax rebate rate through the telecommunications equipment exported by hand in hand, and returned to investment profits.
(4) Financial support: The State should increase financial support. Support for adopting domestic and foreign capital market financing, international commercial loans, fixed assets and liquid loans, exports (buy, sellers) credit, export credit insurance, and foreign countries have gained "going out" in both domestic and abroad. The funds needed. Establish and "go out" investment fund and overseas investment risk guarantee mechanism. As a key enterprise, in the national overseas investment year, it is guaranteed foreign exchange in its overseas investment; cancels return to profit margin. Reform to foreign investment management examination and approval system, standardization and strengthen overseas investment management, simplify approval procedures, and improve efficiency.
