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A system dynamics approach to competitive strategy in mobile telecommunication industry
Author(s) -
Qi Jiayin,
Li Ling,
Ai Hua
Publication year - 2009
Publication title -
systems research and behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 1092-7026
DOI - 10.1002/sres.966
Subject(s) - telecommunications , system dynamics , dynamics (music) , mobile telephony , computer science , business , mobile radio , artificial intelligence , sociology , pedagogy
This paper analyses the mobile carriers' competition strategies by using balanced scorecard and system dynamics (SD) modelling. Four indexes are used to evaluate two major Chinese mobile telecom carriers, which are Internal Business Index, Financial Index, Market and Customer Index and Innovation and Learning Index. With these four indexes, a SD model is developed based on systems methodology, which includes eight sub‐systems and 80 variables. Considering the government's regulation policy, the two carriers' competitive strategies are studied through modelling and simulaton. The result shows that for carrier B, improving the investment efficiency is more important; while for carrier A, the product innovation is an essential issue. This research explores an effective way to construct an analytical framework for dynamic competitive strategy. Copyright © 2009 John Wiley & Sons, Ltd.