Researching Emerging Opportunities in the Chinese Telecommunication Industry

University essay from Stockholms universitet/Företagsekonomiska institutionen; Stockholms universitet/Företagsekonomiska institutionen; Stockholms universitet/Företagsekonomiska institutionen

Author: Erik Edfalk; Lijie Zhao; Frida Johansson; [2006]

Keywords: ;


The purpose of our thesis is to research the Swedish telecommunication company, BISC’s potential on the Chinese market. We have used five different theoretical tools to examine the external and internal environment of the company; Pest analysis, a market analysis, a Porter’s five forces analysis, a firm’s resources and capabilities analysis, and a SWOT. All have been used to categorise and summarize the findings in the analyses. Our findings gave both positive and negative answers in terms of our research question: Should BISC enter the Chinese telecommunication market? The Pest analysis led us to conclude that BISC could potentially handle the macro environment of China well. The market analysis showed the astonishing market potential availability in the country. The Porter industry analysis gave a rather pessimistic outcome, with few customers and high entry barriers. The firm’s resources and capabilities analysis found several significant assets. The firm’s human capital, external network and financial health showed that the company is well equipped to potentially run a subsidiary within China. A SWOT summary of the analyses made us draw the conclusion that BISC’s hypothetical strengths and opportunities in China outweigh the hypothetical weaknesses and threats, while the high barriers of entry can be overcome with the internal resources of BISC. Our advice to BISC is, therefore: enter the Chinese telecommunication market.

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