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1、Buyer’s bargaining power:Information technology needs of enterprises to improve, driven by information technology enterprise organizational structure, business processes, development of business development, and customers are willing to pay more for the information construction of the operators communications products and services are made ??more high demand. In general, customers are accustomed to price, service, brand, and response speed as an alternative for operators considerations. In order to compete for customers, the operators have to cut prices of discounts to attract customers, while customers focus on their own interests and product homogeneity and other factors, the ability to make the customers choice and bargaining power is also rising. Huaweis telecommunications equipment industry where there city rivals ZTE and Nokia Siemens Networks, Ericsson, Alcatel - Lucent and Motorola such international bulk, in the case of financial resources to fully support our customers great choice, so Buyer’s bargaining power is strong .
Supplier’s bargaining power The rise of 3G promotes the professional services process, with the large-scale application of 3G services, telecom operators need to run 2 networks at the same time, 2G and 3G network quality to maintain stability, this puts forward higher requirements for operators. In order to improve the users income, improve operational efficiency, seamless access to the network, telecom operators should strengthen communication with suppliers, provide the updated business and products.so Supplier’s bargaining power is low.
Threat of Substitute Products The products and services of Huawei always has a strong advantage in terms of price, with the rapid increase of its innovation ability and quality in recent years, the threat of substitute products greatly reduced
Threat of New competitors Because the telecommunication equipment industry need abundant capital, technology and innovation as well as the support of national p
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