Abstract
The rapid development of the Internet has drastically changed the competitive environment and the profit model of global telecommunications market. Virtual value chain is the information-based projection of value chain in the virtual world. It transcends the original one by creating new value in the value-adding process. This article studies the changes in Guangdong Telecom Company Limited’s market strategy from the perspective of virtual value chain, and allows telecom operators to take it as a reference for market strategies’ formulation. This article uses literature research method and case research method to draw conclusions that virtual value chain has helped Guangdong Telecom Company Limited establish new customer relationships, and the significance of virtual value chain is surpassing traditional value chain continually. Therefore, proper use of Internet-related technologies will help the long-term development of telecommunications industry.
Highlights
The rapid development of the Internet has drastically changed the competitive environment and the profit model of global telecommunications market
Rayport and Sviokla proposed virtual value chain [3], which means that products and services exist as digital information in a virtual world and are transmitted through information channels, and the new value-adding activities are virtual
Traditional value chain succeeded in giving a good explanation to Guangdong Telecom Company Limited's value-adding activities before 2004, but failed when the Internet brought new value activities and customer relationships
Summary
The world is under the impact of the Internet era. Important international organizations and countries such as the UN and the U.S have all proposed development policies of the Internet, which have a significant influence on economic and social development in the long-term universally. This research uses Guangdong Telecom Company Limited’s market strategy changes in the Internet environment as a case study to raise research questions, and explores the stages and steps of value-adding process from the perspective of virtual value chain. Company integrates the information captured from value chain to build an information underlay, and regards it as a support element to complete value-adding activities more efficiently New business concepts such as OTT media services influence, which bases on virtual value chain, so as to fill have blurred upstream and downstream roles of industry the gap in this research area.
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