The objectives of this final project are to analyze how ZTE's competitive strategy to sustain in Telecom industry, what resources and capabilities ZTE has to support the strategy and what actions ZTE carries out to achieve the strategy. This study is based on a qualitative research method and an inductive research approach. The research strategy used is a case study of ZTE. Starting in Shenzhen China in 1985, ZTE is a leading global provider of telecom equipment and networking solutions operating in more than 140 countries, severing 59 of the world’s top 100 telecom operators. In 2009, it was ranked fourth in the shipment of wireless communication products.
This analysis is derived from the theory of Industrial Organization and Resource Based View on strategy. This study concludes that the telecom market is dominated by some western companies, even though China companies gradually capture the western companies’ market, there are still some barriers for non-western company to enter the high-level market. The fact that some equipment suppliers have goals to capture the market share intensifies the competition which makes it hard for the attendees to earn profits. The results demonstrate that
ZTE's competitive strategies in different stage to sustain in Telecom industry. However, many of the competitors' resources and capabilities are highly imitable, especially among the China rivals, and therefore it cannot be sustainable in the long run.
Finally, it is recommended that ZTE to focus on restructuring the company organization to decrease the gap between different departments. This will in turn give a high profit, high efficiency, decrease cost and get a sustainable position in telecom industry.