Differentiated survival of virtual operators: The source of competitive advantage

How can virtual operators survive in a market that has become increasingly competitive? Or the virtual operators will rely on what to obtain the profit source, is not only the virtual operators to consider the problem, but also the traditional telecom operators need to study the problem? In the current telecom environment, virtual operators may find it difficult to gain higher than average market level in direct mobile business resale. Therefore, the author believes that the virtual operators to enter the telecom service market, we need to adhere to two principles: 1 to avoid the direct competition with traditional telecom operators, 2 to take a focused strategy to provide highly differentiated telecommunications services in the market segments. Identifying market actions that conform to the first principle is clearly visible, and the only thing to be aware of is that virtual operators need to be wary of competitive vanity and avoid making stupid decisions as much as possible. The second principle is actually easier, because different virtual operators have different resources and market position in different industry market, need to identify their core resources clearly, and find the relation between core resources and virtual Telecom service, in order to determine effective focus strategy. Clear strategic positioning is the first step of success is closely related to positioning, so first of all we need to identify the possible existence of the focus of virtual operators positioning, or to enter the virtual operation of the industry's demand for competitors. In the perspective of Skopos theory, virtual operators can be divided into several types: 1. Opportunistic: To enter the telecom service industry as a tool to gain indirect benefits in the capital market. The so-called story-telling virtual operator. The organization of its resources and the competition behavior of the market are based on the ability to transmit valuable market signals to the capital market, and the direct benefit of the telecom service market is not the main concern of opportunistic virtual operators. 2 besieging type: To enter the telecom service industry as a tool to improve their own products in the industry competitive advantage. To improve their core products in the same industry differentiated competitive capacity for the purpose. The organization of its resources and the competition behavior of the market are set up by the virtual Telecom service to enhance the product premium ability of its core products, and then promote the development of virtual operation business through the core products. 3 Product Upgrade: The access to telecommunications services as the original associated ancillary telecommunications services for product structural upgrading tools. Through the control of core telecommunications services capabilities, to improve their original telecommunications services market in the auxiliary industry chain status of the situation. The organization of its resources and the competition of the market are aimed at obtaining the direct benefits of telecommunication services. These three kinds of virtual operators, although the purpose is different, but if they can achieve their own goals, in the market to adopt a focused strategy is the only way. The principle of market segmentation of virtual operators has nothing to do with the purpose of entering the telecom service market. The first prerequisite for market segmentation is the scale of its user market. The basic feature of telecommunication service is the user lock-in effect, the so-called big net is constant big, reach a certain user scale is the basic point that can make profit, otherwise its operation and service cost cannot be effectively amortized. The Judgment of scale, as an example of the product upgrade type virtual operator, the optimal choice is the size of its single product is large enough, but if its core product is already a cash cow product, if the resale of mobile services can not improve its market position, even if it has enough existing user size, but also resolutely give up, Further identification of other products with potential user-scale markets is needed. That is, the choice of user-scale market is not based on the market status of existing products as the sole measure, for those products that are already in the life cycle of the product should be decisively abandoned. The second condition of market segmentation is that users have a high degree of product brand or corporate brand recognition for the virtual operator. The premium of the brand is the key to the telecom service market of the virtual operator, which is a reliable signal identification sign of the service quality. For example, if Tencent applies as a virtual operator, its micro-credit product brand may be superior to Tencent's corporate brand. In addition to the micro-credit product brand with a market of large-scale users, under the micro-trust brand, users have been able to identify the brand and understand the product's services, education and training of the cost of users significantly reduced. So choose Product brand or company brand to camera, and there is no fixed law. The third condition of market segment selection is that the traditional telecom operators ' products and service coverage is still at a low level of price competition. Although the three basic telecom operators seem to have covered all the markets, the level of product services they offer is at a low price level of competition. The only credible market signal that identifies a low level market segment is the price. Because fierce price competition means lower earnings, traditional operators are unwilling to put service resources into the market. For virtual operators, it means the opportunity to gain market share by offering differentiated services. The Low-cost market for operators does not mean that there is no profit in the market, for those operators do not have the resources and capacity to cover the market, operators can only take low-cost coverage. The key is that virtual operators need to identify real customer needs and combine their own resources to gain market share. The fourth condition of market segmentation is that the virtual operator is in the market position of the leader, and its core products and services have certain trade barriers. Leading market position and unique product status, is to cut into the virtual operation of the technical basis. So it's a crucial step to be able to identify the competitor of your product. Some products, while ostensibly a competitor to a product, may be competing for another product if these observe the user's functional requirements for the product. Take the Internet set-top box for example, the intuitive judgment is the ordinary television set-top box, but its essence is the Internet video website and TV station's broadcast television competition. If you do not correctly identify your product market, you will make the wrong competitive decision. After correctly identifying the competitor of the product market, only the virtual operators who recognize their position in the market leader can survive and develop. This is because only the leaderCan gather sufficient user size, and through with the mobile resale business integration, realizes own core business and the Telecommunication service business promotion together. The source of differentiated competitive advantage of virtual operators after the correct identification of the market segments, the virtual operators must build their differentiated competitive advantages, and the source of differentiation, we can identify the following categories: 1 service differentiation advantage. The virtual operators devote intensive resources to the differentiation of service in the market segment, create asymmetric service competitive advantages, such as billing services, such as a more flexible accounting period such as a half-month package, more flexible payment methods such as installment, customer service, such as bundled training services with their core product services, For example, provide hands-on customer consumption guidance services, such as surface of the after-sales service 2 of the ecological circle shape of the supply chain advantage. Mainly refers to the virtual operators to explore the advantages of group customers. Rely on their own industrial chain upstream and downstream, the formation of differentiated competitive advantage. These include: IT system integration, such as its own IT business systems and industry chain upstream and downstream vendors of the IT business system of the lower cost of integration process synergy, such as the sales synergy process, sharing consumer information or product logistics information, to achieve upstream and downstream of the process of collaborative product integration, For example, the appliance enterprise's Internet of things refrigerators and mobile communications services integrated marketing synergy, such as the development of intelligent terminals based on common customer marketing services, including promotional ads, such as 4 cross subsidy advantages. Rely on the core selling points of products, product bundles or services bundled form, to form a competitive advantage. Product cross subsidy, such as mobile phone terminal product bundle, interconnection of home appliances bundled services, such as service Bundle 5 The advantage of the Internet application fine operation focuses on the Internet application cooperation of the people's livelihood, such as the medical industry market segment Application cooperation promotion advertising cooperation mode, Online Advertising service cooperation integration 6 new business innovation advantages more flexible trial and error mechanism, compared to operators more flexible product innovation system customer demand, such as market segments for customer demand more accurate understanding of heterogeneous integration, such as with other traditional industries such as medical, manufacturing, Electronic appliances and other products and services of the integration of the concluding remarks: Differentiated competition for the survival of virtual operators from the development of global virtual operators history and Status quo, can obtain more than traditional operators profit margins of the virtual operators few, but through the market in the subdivision of intensive cultivation, It is not impossible to obtain a certain market share of survival and development, the key is to correctly identify their market position and resource advantages.