Application of Blue Ocean Strategy to Chinese 3G Mobile Telecom Industry

Abstract: The purpose of this study was to apply “Blue Ocean” strategy to Chinese 3G mobile telecom industry. Chinese 3G mobile telecom industry is a rapidly growing multiple industry which served a lot of services to customers. The thesis tries to find whether all services are important to Chinese 3G operators’ competiveness and how to create a blue ocean for Chinese 3G operators, help Chinese 3G operators to find their core service from the customers’ opinion and create a new blue ocean industry of mobile internet supplying for Chinese 3G operators. Research methods such as questionnaire survey and Importance-Performance Analysis (IPA) were used in the thesis. Questionnaire survey was used to gather customers’ opinions of different 3G services. IPA was used to analyze the information got from questionnaire survey. The authors first used Porter’s five competition forces to identify 10 factors which affecting Chinese 3G operators’ competitive. After a questionnaire survey, mobile internet supplying was found to be the service Chinese 3G subscribers most care. The authors suggested that the operators should create a mobile internet industry as their blue ocean in which they faced less competition and could capture customers from other industries. Finally, the authors recommended Chinese 3G operators to seize the new market as soon as possible.