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A Research on the Relationship of Co-opetition of Industry Value Chain Within Mobile Internet Industry

Author: JuPeng
Tutor: SunXiaoKe
School: Nanjing University of Posts and Telecommunications
Course: Management Science and Engineering
Keywords: mobile Internet industry value chain telecom operator co-opetition game theory
CLC: F626
Type: Master's thesis
Year: 2012
Downloads: 384
Quote: 0
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Abstract


Since 1980s, communication technology has developed rapidly. The concept of Mobile Internet comes as mobile communication network and the Internet have blended into each other. The mobile internet market has become the most fastest growing one and the biggest potential one. Content providers, and terminal manufacturers have marched into mobile Internet industry and view it as their next development "blue sea". The relationship between telecom operators and content providers or terminal manufacturers are no longer pure cooperative or competition, but turn into the co-opetition. Apple’s "terminal + application" integration mode, Google’s high-profile acquisitions of Motorola mobile department and nokia "Ovi" mobile Internet brand (now renamed as nokia) are shaking the dominant position that operators have been possessed in the industry value chain. Besides, with the reform deepening of telecom and the further development of the telecommunications market opening, telecom operators have been in difficult position and there is a "pipeline business”risk among them. However, telecom operators who have been holding the dominant position in the tradition communication industry value chain are actively seeking strategic transformation and involving in the competition rather than dying out there when facing the offensive challenge from content providers and terminal manufacturers, hoping to control the industry value chain in the age of mobile internet.After investigating the present development situation of the mobile Internet at home and abroad, and analyzing the various representative development mode of the mobile Internet, the author summarizes the new characteristics of the development of China’s mobile Internet. First, in terms of the analysis of the relationship between telecom operators and content providers, the author describes evolution locus of the co-opetition between telecom operators and content providers with the application of game theory, and also establishes the co-opetition model of operators and content providers respectively in the method of stackelberg model and revenue sharing contract to determine the optimal share ratio between telecom operators and content providers. The paper has the relationship of co-opetition with China Mobile and Tencent to prove it. Second, the author analyzes the advantages and disadvantages of several terminal customization mode of operators when researching co-opetition between manufacturers and terminal operators. Taking cooperation research and extension mode for instance, the author establishes the co-opetiton model and bilateral incentive model of telecom operators and terminal manufacturers according to the principal-agent theory ,and then confirms the best interests share ratio between telecom operators and terminal manufacturers in different situations after analyzing these models. The paper has the Ophone model of China Mobile to prove it. The purpose of this article is to provide theoretical guidance for dealing with the co-opetition relation among telecom operators, content providers and terminal manufacturers and achieving win-win, thus promotes the healthy and fast development of the whole mobile Internet industry in our country.

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CLC: > Economic > Posts and Telecommunications economic > Telecommunications > Telecommunications business organization and management
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