ZTE's Strategies for Iran Telecom Market

Archive of SID
Intl. J. Humanities (2009) Vol. 16 (1): (15-29)
Strategy Compiling
Case Study: ZTE (A Chinese Telecommunication Co.)
Mohammad Taghi Amini1
Received: 15/10/2008
Accepted: 15/2/2009
Abstract
The goal of this paper is to compile strategies for a Chinese international
telecommunication vendor which entered into Iran telecom market in the year 2000.
Since ZTE is involved with business in more than 135 countries and it is out of our
power to collect huge data from all over the world, we have limited our strategies to
Iranian market and we will compile strategies for Iran business unit only.
To proceed with compiling strategies for ZTE Company, we will firstly give a brief
introduction about ZTE. Then we will give a short explanation about the method of
compiling strategies for any kind of firm.
At the end, based on the method
introduced, we will select the most adequate strategies in order to maintain ZTEs
competitive advantage in Iran telecom market.
Keywords: Mission, Vision, Long-range goals, Strategy, Competitive advantage,
EFEM, IFEM, SWOT, QSPM
1. Assistant Professor of Payame Noor University, Email: m_amini@pnu.ac.ir
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Strategy Compiling Case Study: ZTE (A Chinese Telecommunication Co.)
Successfully put through the first CDMA2000 1x
1.
Introduction
The actors on Iran telecom market consist of domestic
call using ZTE equipment
and international companies. Since most of the
2001: Constructed ZTE's first CDMA network
products are based on high technology and imported
for China Unicom, with a capacity of up to 1.1
from world class level companies, this paper is
million lines
focused on foreign actors in Iranian market only.
Constructed the world's first Soft switch network
Main actors in Iran telecom market since the
for China Netcom
establishment of telegraph and fixed telephone
Ranked No. 3 in the 'Top 50 listed companies
lines have been: Siemens, Alkatel, NEC, Erksson,
with greatest development potential' in China
and Italtel.
Securities Journal-Asia Business magazine
After the appearance of mobile communication,
2003: Strategic emphasis on international
Nokia entered to this market as well.
business, with the number of international
Up to year 2000, Siemens, Alkatel, NEC and
marketing staff increased by over 100%
Eriksson have been dominating the Iran telecom
2004: Listed on the Hong Kong Stock Exchange
market for wired and transmission networks.
as the first A to H listed Chinese enterprise
Since 1992 to 2000, three companies (Nokia,
Provided telecoms services for the 2004 Olympic
Siemens, and Erickson) have been manipulating
Games in Athens ADSL system covered 16
Iran telecom market for mobile telecommunication.
facilities throughout the event
With appearance of Chinese companies here,
2005: Ranked as one of the 'Top 100 Information
the actors on wired and wireless networks started to
Technology Companies' by Business Week
lose their marketing share rapidly.
Joined the league of global telecoms giants by
Following is a brief introduction to ZTE which
teaming up with Alcatel, Ericsson, France Telecom
has succeeded to play an active role as a Chinese
and Portugal Telecom
company in Iran telecom market.
Became China's largest wireless equipment
1985-1996: Started transition to a multi-product
provider with a global wireless capacity exceeding
R&D strategy, embracing wireless switching,
100 million lines.
transmission, access, videoconferencing and power
ZTE overview: As one of the first Chinese
supply systems in 1996
telecoms equipment provider to pursue business in
Became the first Chinese telecoms equipment
overseas markets, ZTE now has over 8000
provider to attain ISO9001 quality standard
employees working around the world.
certificate in 1995
Since 1996, the company has provided its
1997: Listed on the Shenzhen Stock Exchange
products and services to 135 countries and
in China
regions, serving major telecoms operators in
2000: Launched the world's first CDMA
Asia Pacific, South Asia, North America,
handset with detachable SIM card
Europe,
Latin
America,
Africa
and
the
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Amini M. T.
Commonwealth of Independent States. Through

a
combination
differentiation,
resources
strategic
cost
and
management,
commercial
of
ZTE
marketing,
advantage,
intellectual
has
partnerships
The corporation has also launched joint laboratory

partnerships with Texas Instruments, Intel, Agere
human
Systems,
property
IBM,
Microsoft
(China),
Qualcomm, Huahong NEC and Tsinghua University.
established
firm
The company has undertaken technological research
with
500
alliance projects with 50 academic institutions
over
operators around the world. [ ]
throughout China, where ZTE is also a fully fledged

member
2.
HHNEC,
Research and Development
of
the
China
Communications
Standardization Association (CCSA).
With more than 33% percent of the workforce

dedicated to R&D and with 10 percent of annual
3.
ZTE Iran
revenues channeled to this field, ZTE has 16 R&D
2000: Entered to Iran telecom market introducing
centers and Institutes across North America,
its fixed switching system to telecommunication
Europe and Asia.
company of Iran.
2001: Introduced its Access and Transmission
International standards such as CMM and
products to Iran telcom. Market.
CMMI are strictly applied across all ZTE R&D

management processes. Using these scientific
2002: Introduced its new designed product
management mechanisms and shared technology
GSM-WLL as a rural telecomunication solution for
platforms, ZTE has standardized its R&D
Iran telecom market.

2003: Introduced its SMS products to Mobile
processes, shortening R&D periods, reducing costs,
Communication Company of Iran (MCCI).
optimizing design flows and guaranteeing the
2004-2008: Succeded to sell more than 4.5
performance of new products.

By the end of 2007, ZTE had applied for around
million ports for switch and access products in 26
12000 national or international patents, 90% out of
provinces. (15% of marketing share)

Succeded to sell 2 million ports of GSM-WLL
which are innovation patents with associated
products in 15 provinces as wireless solution for
intellectual property rights.
rural areas. (65% of marketing share for WLL
ZTE has established strategic cooperation
products)
agreements with leading telecoms giants such as
ZTEs total revenue from Iran telecom market
Portugal Telecom, France Telecom, Alcatel,

Ericsson and Nortel in NGN and mobile systems,
on 2006 has exeeded
$3 billion.
ZTSs Iran
with Hutchison in 3G, and with Marconi in optical
branch is continuing to develope its market for
transmission systems.
different products with its 120 (80 Iranian

engineers) sales and aftersales experts. [2]
2. ZTEs Representative Office in Tehran. (Dr. Hassan
Aghababaeyan, sales deputy)
1. ZTEs Official web site: www.zte.com.cn
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4.
Overview of Starategy Compiling

Figure 1: schematic View of Strategy Compiling
External Factors
Evaluation
Definition of
Mission & Vision
Long-Range
Goal Setting
Compiling, Evaluation
And selecting Strategies
Internal Factors
Evaluation
* Reference: Fred R. David, How Companies Define their Mission Long Range Planning 22, No. 3 (June 1988): 40
5.
Mission
ZTE aims to be a global communications
Mission in brief is what one organization is
leader, which provides the clients worldwide
doing. The mission should describe intension,
with satisfying and customized products and
customers,
products
services.
philosiphy
and
or
technolgy
services,
in
market,
which
the
Employee's career development and their
organization is involved. [ ]
benefits are highly concerned and guaranteed

to be growing along with the company's
6.
development at the same pace.
Vision
Comparing to the mission, vision can be
ZTE strives for the best return on its
defined as what we want to be and where we
shareholders' investments and assumes social
want to go. [2]
responsibilities proactively.
To become a world leader in communications
7.
by 2008 and aims to be a world-class excellent
ZTEs Mission and Vision
enterprise in 2015.
1. Strategic management fred R. David, translated by Dr. Ali
Parsaiyan, Dr. Mohammad Arabi. Page (171)
2. Strategic Management Usage, Dr.. Hossein Pahlavaniyan, page 40
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Amini M. T.
8.
Long Range Goals
After consideration of the weight for each
The second step after definition of mission and
factor, the total score for External Factors
vision is to set long range goals for ZTE in Iran
Evaluation Matrix has become 2.59.
telecom market.
10.
ZTEs Goal for next 5 years is to increase its

marketing share to 35%
Internal Factors Evaluation
Internal factors are related to inside of the
in wired network
organization
and
can
be
controled
by
management. [ ]
market and 20% in wireless network market.
Strengths are those factors which can be
ZTE will be the first company to create a new
considered as advantages in comparison with
market for 3G wireless products in Iran.
competitors, industry averages or past records

9.
of an organization. [5]
External Factors Evaluation
If competitors fail to learn strength points of
External factors are devided into general/macro

environment
and
an organization, it means that the organization
task/function/micro
environment.
has succeeded on aquisition of competitive
Macro environment factors are those which
advantage. [6]
In the following table, we have classified
indirectly influence organizations activities.

Micro environment factors are those groups or
and listed possible internal factors. Then,
elements
through a coefficiency, we have given a weight
which
can
directly
influence
organizations activities. [ ]
External
factors
evaluation
for each factor. In fact, the coefficiency is the

can
be
weight of each factor in comparison with other
considered as a tool which is used by company
factors. Therefore, the summation of all
to avoid shocks and to guarantee long-range
coefficiencies under one culomn must be equal
to 1. [7]
security. [ ]
In the following table, we have classified and
listed possible external factors. Then, through a
coefficiency, we have given a weight for each
factor. In fact, the coefficiency is the weight of
each factor in comparison with other factors.
Therefore, the summation of all coefficiencies
under one culomn must be equal to 1. [3]
4. Handbook of strategic planning. Dr. M. Arabi page 27.

7. Handbook of Strategic Planning. Dr. M. Arabi Page 15.

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Economic Factors
Socio-cultural
Factors
Technological
Factors
Political
Factors
Global Factors
GDP Growth
0.02
Money Supply
0.02
Cost of Energy
0.04
Main Factors
(2) Threat (typical)

(1) Threat (serious)
(4)Opportunity (excellent)
(3) Opportunity (typical)
Macro/Micro
environmental
Factors
Coefficient
Table 1 Oportunities and Macro/Micro Environment Factors Matrix
Export/Import
0.03
Change on Life Style
0.03
Population Growth
0.03
Relative Distribution of Population
0.02
Income per Person (GNI)
0.03
Cultural and Educational Level of Society
0.02
Governmental Budget devoted to R&D
0.02
Total Budget devoted to R&D
0.02
New Products
0.02
2
2
3
Transfer of Technology and its condition
0.03
Tax/Custom Regulation
0.03
International Commerce Regulation
0.03
Western Countries Political Pressure on Iran for Nuclear Activities
0.06
Western Countries Political Pressure on Iran for Nuclear Activities
0.06
Rearrangement of the world based on Energy Resources
0.06
Governmental Regulation
0.04
Exchange Rates
0.04
Appearance of New Powers
0.04
Globalization of Market and Economy
0.04
Limited customers
0.04
Less Sellers
0.04
Customers
4
2
2
2
3
American Products (Windows, Oracle)
0.05
Domestic Subcontractors (Tower, Civil )
0.03
Potential Competitors
Because of huge capital and high costs, it is not easy to enter to this Industry
0.02
less Competitors
0.04
Existing Competitors
Rapid Growth of Industry
0.05
Varieties of Products
0.03
1.00
Suppliers
4
1
1
2.59
The way we have scored each factor is described as follows:

Score 4 stands for an exceptional opportunity.
Score 3 stands for a typical opportunity.
Score 2 stands for a typical threat.
Score 1 stands for a serious threat. [1]
Handbook of strategic planning. Dr. M. Arabi page 23
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Amini M. T.
(4)Strength (excellent)
(3) Strength (typical)
Culture and Atmosphere
0.04
Method of Decision Making
0.04
Control System
0.04
Synergy
0.03
3
3
Internal Factors
(Strengths &
Weaknesses)
Organizational and
Managerial Factors
Familiarity with Customers needs
0.03
Image, Reputation and Quality of Product
0.04
Pricing Strategy
0.04
Marketing Factors
After-sales Service
0.04
Marketing Share
0.04
Cost & obstacles of Penetration
0.04
Price per Benefit
0.02
Financial and
Accounting Factors
Production and
Operation Factors
Management
Information
System
Factors
Human
Resource
Factors
Cost Control
0.05
Attaining Long-Term Loan
0.04
Efficiency of Cost and Income
0.04
Operation Control (Planning, Purchasing, Quality)
0.04
Costs and Technical capabilities in comparison with competitors
0.06
0.06
Cost and Availability of Raw Material
0.06
Effective Utility of Subcontracting
0.03
Effective Utility of Internet Network
0.05
Management
Information
System Factors
(2) Weakness (typical)(1)

Weakness (serious)
Main Factors
Coefficient
Table 2 Strengths and Weaknesses of Organization
Development of Internal Soft wares
0.04
0.05
0.04
Skilled Human Resource
0.04
Continuous Training of Human Resources
0.04
1.00
2.96
The way we have scored each factor is described as follows:

Score 4 stands for an excelent strength.
Score 3 stands for a typical strength.
Score 2 stands for a typical weakness.
Score 1 stands for a serious weakness. [1]
1. Handbook of Strategic Planning, Dr. M. Arabi page 35
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After consideration of the weight for each
12.
factor, the total score for Internal Factors
After having calculated the scores for external
Evaluation Matrix has become 2.96.
and internal factors, based on the method
11.
introduced above, we have to find ZTEs
Strategies in a View
Positioning
In general, strategy can be defined as systematic
position in Iran telecom market.
classification of activities for aquisition of
We have entered the sum total of the scores in
competitive advantage. [ ]
the matrix and it seems the companys position
Most of companies can select one or few of
in Iran market should be an offensive attitude
following
based on strengths and opportunities.
strategies
depending
on
the
conditions they face.

13.
SWOT Analysis
1) Integration Strategies:
An assessment of Strengths, Weaknesses,
1-1) Forward Integration
Opportunities and Threats. SWOT analysis is
1-2) Backward Integration
used within organizations in the early stages of
1-3) Horizontal Integration
strategic and marketing planning. [3]
2) Intensive Strategies:
After we have learned strengths, weaknesses,
2-1) Market Penetration
opportunities and threats, we have to list them
2-2) Market Development
in the SWOT matrix and suggest one or few
2-3) Product Development
strategies
3) Diversification Strategies:
suggesting, strategies we have related strength
3-1) Concentric Diversification
points to opportunities, in order to select
3-2) Conglomerate Diversification
offensive strategies, strengths to threats in order
3-3) Horizontal Diversification
to suggest competitive strategies, weakness to
4) Cooperative Strategies:
opportunities in order to suggest conservative
4-1) Cooperative Arrangements
strategies and finally weaknesses to threats in
5) Retrenchment Strategy
order to select defensive strategies.
6) Liquidation Strategy
Following is the matrix for SWOT and
7) Combination Strategy [2]
suggested strategies. Later, we will select the
for
the
organization.
When
best strategies using QSPM Matrix.
1. Strategic Management Usage Dr. Pahlavaniyan page

(78)
2. Strategic management Fred R. David, translated by Dr.
Ali Parsaiyan, Dr. Mohammad Arabi. Page (105~106)
3. BNET Business Dictionary,

http://dictionary.bnet.com/definition/SWOT+Analysis.html
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Amini M. T.
Table 3 Strategies Positioning Matrix based on Internal/External Factors

Total Grade of Internal Factors Matrix Evaluation
4 4
Total Grade of External Factors Matrix Evaluation
3
Conservative (WO)
Offensive (SO)
2
Defensive (WT)
Competitive (ST)
1
Table 4 Strengths, Opportunity, Weaknesses and Threats Matrix
Weaknesses
Image, Reputation and Quality of
Product
Pricing Strategy
Strengths
Marketing Share
Control System
Cost & obstacles of Penetration
Synergy
Price per Benefit
Familiarity with Customers needs
Efficiency of Cost and Income
After-sales Service
Cost and Availability of Raw Material
Cost Control
SOWT MATRIX
Operation Control (Planning, Purchasing, Quality)

Costs and Technical capabilities comparing competitors
Effective Utility of Subcontracting
Continuous Training of Human Resources
1)
Marketing Strategy: New Product New Market
2)
Strategy of Marketing Share Development:
through Diversification of Products and Decrease on Costs
3)
Strategy of Penetration to the Market: using
Political Opportunity
Opportunities
GDP Growth
Money Supply
Export/Import
Population Growth
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Relative Distribution of
Population
GNI
Cultural
and
Educational Level of
Society
New Products
International
Commerce Regulation
Western
Countries
Political Pressure on
Iran
for
Nuclear
Activities
Rearrangement of the
world based on Energy
Resources
Appearance of New
Powers
Globalization
of
Market and Economy
Low Number of sellers
Low
number
of
competitors
Threats
4)
Cost of Energy
Governmental Budget
devoted to R&D
Total Budget devoted
to R&D
Transfer of Technology
and its condition
Western
Countries
Political Pressure on
Iran
for
Nuclear
Activities
Governmental
Regulation
Exchange Rates
Cooperative strategy:
4-1) Financial Cooperation with

domestic companies (Letter of Credit
method)
4-2) Long-term contracts with strategic
suppliers ((Microsoft, Intel, IBM ...)
14.
Limited customers
American
Products
(Windows, Oracle)
Domestic
Subcontractors (Tower,
Civil )
Because of huge capital
and high costs, it is not
easy to enter to this
Industry
Rapid
Growth
of
Industry
Quantitative Strategic Planning Matrix
Organizations spend a lot of time and effort on
(QSPM)
strategy formulation. Often, there are several
Choosing the best strategic way forward
different approaches or strategies that the

organization could follow. But how one makes
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Amini M. T.
decision? Which option is best? Do we rely on

intuition, or take a more objective approach?
The critical success factors of the
business unit.
Not surprisingly, we need to base our decision
The relative importance of each of
these critical success factors.
on facts, not gut feelings. But how do we do
this, particularly when the effects of different
How one rates a particular strategy by
strategies can be so different?
each success factor.
The Quantitative Strategic Planning Matrix
These inputs are used to evaluate the relative
(QSPM) helps us address this question. It gives
attractiveness of different strategies. This
us a systematic approach for evaluating
relative attractiveness is expressed in terms of a
alternate strategies, and helps us decide which
number, the "Sum Total Attractiveness Score".
strategy is best suited to our organization.
The higher this score is, the more attractive the
Understanding the Matrix:
strategy is....
QSPM is based on three primary inputs:

Table 5 QSPM Matrix and Relevant Scores Based on all Factors and Strategies
Strategy 1
Strategy 2
Strategy 3
Strategy 4
Weight
Score
Total
Score
Total
Weight
Score
Total
Weight
Total
0.06
0.24
0.06
0.24
0.07
0.28
0.07
0.21
0.06
0.18
0.06
0.18
0.07
0.28
0.07
0.21
Control System
0.04
0.12
0.06
0.18
0.05
0.15
0.07
0.21
Synergy
0.04
0.12
0.04
0.12
0.04
0.12
0.05
0.15
0.06
0.18
0.04
0.12
After-sales Service
0.05
0.15
0.06
0.18
0.04
0.12
Cost Control
0.06
0.24
0.06
0.24
0.05
0.2
0.09
0.36
0.05
0.15
0.06
0.18
0.04
0.12
0.09
0.36
0.06
0.24
0.06
0.24
0.04
0.16
0.09
0.27
0.06
0.24
0.06
0.24
0.05
0.2
0.05
0.15
0.05
0.15
0.06
0.18
0.05
0.2
0.09
0.27
0.06
0.18
0.06
0.18
0.05
0.2
0.09
0.27
Score
Weight
Key Factors
Strengths
Familiarity with Customers

needs
Operation Control (Planning,

Purchasing, Quality)
Costs
and
Technical
capabilities in comparison
with competitors
Effective
Utility
of
Subcontracting
Effective Utility of Internet
Network
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Development of Internal Soft

wares
Continuous
Training
of
Human Resources
0.05
0.15
0.04
0.12
0.04
0.12
0.05
0.2
0.05
0.15
0.04
0.12
0.04
0.12
0.09
0.27
0.05
0.15
0.04
0.12
0.04
0.12
0.03
0.09
0.025
0.075
0.04
0.16
0.05
0.1
0.03
0.09
0.025
0.075
0.05
0.2
0.05
0.15
0.03
0.06
0.025
0.05
0.04
0.08
0.05
0.1
0.03
0.06
0.03
0.06
0.05
0.15
0.03
0.06
0.025
0.05
0.05
0.1
0.03
0.06
0.025
0.05
0.03
0.06
0.03
0.06
0.025
0.05
0.03
0.09
Weaknesses
Image,
Reputation
and
Quality of Product
Pricing Strategy
Marketing Share
Cost
&
obstacles
of
Penetration
Price per Benefit
Efficiency
of
Cost
and
Income
Cost and Availability of Raw
Material
Sum total weight
100%
100%
100%
100%
Opportunities
GDP Growth
0.05
0.2
0.05
0.2
0.05
0.2
Money Supply
0.05
0.2
0.05
0.2
0.05
0.2
Export/Import
0.05
0.2
0.05
0.2
0.05
0.2
0.05
0.2
0.05
0.2
0.05
0.2
Population Growth
0.05
0.2
0.05
0.2
0.05
0.2
0.03
0.09
0.04
0.12
0.03
0.09
0.05
0.2
0.05
0.2
0.05
0.2
0.05
0.15
0.03
0.09
0.04
0.12
0.03
0.09
0.05
0.15
0.035
0.14
0.04
0.16
0.05
0.2
0.05
0.2
0.035
0.14
0.05
0.2
0.04
0.16
0.04
0.16
0.05
0.2
0.05
0.2
0.05
0.2
0.06
0.24
0.05
0.2
0.05
0.2
0.05
0.2
0.06
0.24
0.05
0.2
0.05
0.2
0.05
0.2
0.04
0.16
0.05
0.15
0.04
0.16
0.04
0.16
0.04
0.16
Less Sellers
0.04
0.12
0.04
0.12
0.04
0.12
0.05
0.2
less Competitors
0.03
0.09
0.04
0.12
0.04
0.12
0.05
0.2
Relative
Distribution
of
Population
GNI
Cultural
and
Educational
Level of Society
New Products
International
Commerce
Regulation
Western Countries Political
Pressure on Iran for Nuclear
Activities
Rearrangement of the world
based on Energy Resources
Appearance of New Powers
Globalization of Market and
Economy
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Threats
Cost of Energy
0.03
0.06
0.02
0.04
0.02
0.04
0.03
0.06
0.02
0.04
0.02
0.04
0.03
0.06
0.02
0.04
0.02
0.04
0.02
0.04
0.02
0.04
0.02
0.04
0.025
0.05
0.01
0.02
0.02
0.04
0.02
0.04
0.025
0.05
0.015
0.03
0.02
0.04
0.02
0.04
0.025
0.05
Governmental Regulation
0.03
0.06
0.02
0.04
0.02
0.04
0.025
0.05
Exchange Rates
0.02
0.04
0.02
0.04
0.02
0.04
0.025
0.05
0.02
0.04
0.03
0.06
0.02
0.04
0.5
0.02
0.04
0.02
0.04
0.02
0.04
0.025
0.05
0.02
0.06
0.02
0.06
0.02
0.06
0.025
0.05
0.02
0.04
0.02
0.04
0.025
0.05
Rapid Growth of Industry
0.015
0.03
0.02
0.04
0.02
0.04
0.025
0.05
0.015
0.03
0.02
0.04
0.02
0.04
0.025
0.05
Sum total weight
100%
100%
100%
100%
6.33
6.51
6.67
6.44
Governmental
Budget
devoted to R&D
Total
Budget
devoted
to
R&D
Transfer of Technology and
its condition
Western Countries Political
Pressure on Iran for Nuclear
Activities
Limited customers
American
Products
(Windows, Oracle)
Domestic
Subcontractors
(Tower, Civil )
Because of huge capital and
high costs, it is not easy to
enter to this Industry
Sum
Total
Attractiveness
Score
Results
Strategy 1
6.33
Marketing Strategy: New Product New Market

Strategy 2
6.51
Strategy of Marketing Share Development: Diversification on Products and Decrease on Costs

Strategy 3
Strategy of Penetration into the Market: using Political Opportunity
6.67
Strategy 4
Cooperative Strategy:
6.44
(Letter of Credit & Long-Term Contracts with strategic suppliers)
27
www.SID.ir
Archive of SID
The best strategies based on QSPM model for
[8] Arabi, Mohammad, Handbook of Strategic
ZTEs Iran business unit is:
Planning Pages (15, 23, 27, 28). Tehran,

Cultural Research Bureau, , (2006)
1)
Strategy of Penetration into the Market:
[9] Pahlavaniyan,
Using Political Opportunity

2)
Strategy
of
Hossein,
Strategic
Management Usage page (78)
Marketing
Share
[10] Alvani,
Seyed
Mehdi;
Mirshafi,
Development: Through Diversification of
Nasrollah,Production Management, Mashad
Products and Decrease on Costs
Astan-e Ghods-e Razavi, (1997)
3)
Cooperative Strategy: (Letter of Credit &
[11] Khalili Shourini; Sohrab, Planing and
Long-Term Contracts with strategic suppliers)
Starategic Management Tehran Yadvareh
It is recommended that ZTE Iran branch should
Ketab, (1998)
concentrate on penetrating into Iran telecom
[12] Kaplan, Robert; Norton, David Strategy
market in the next 5 years and develop its
Map, Akbari, Hossein, Soltani, Massoud,
marketing share to 35% according to the long-
Maleki, Amir, Tehran, Ariyana Industrial
range goals. However, ZTE can enjoy cooperative
Research Group, (2007)
strategies to avoid possible shocks and threats.
[13] Fathollah, Mehdi, Strategic Planning ,

Elm va Sanat University, (1999)
References
[14] Lorense, Peter; Scot, Morten; Michel F,
[1] Official website of ZTE: wwwen.zte.com.cn
Strategic Control translated by Dr. Arabi,
[2] ZTE Representative Office in Tehran
Seyed Mohammad; Hakkak Mohammad,
[3] Official website of TCI (Telecommunication
Tehran, Cultural Research Bureau, (2003)
Company of Iran): www.tci.ir
[15] Ali Ahmadi, Alireza; Fathollah, Mehdi;
[4] Official website of MCI (Mobile Company of
Tajoddin, Iraj, A Comprehensive perception on
Iran): www.mci.ir
Management, Tehran, Tolid Danesh, (2003)
[5] Fred, R. David, How Companies Define their
[16] Gafariyan, Vafa; Kiyani, Gholamreza, Five
Mission Long Range Planning 22, No. 3,
Commands for Strategic Thinking, Tehran,
Tehran, Cultural Research Bureau, (June 1988)
Farda, (2007)
[6] Fred, R. David, Strategic Management,

translated
by
Dr.
Ali
Parsaiyan,
[17]
Dr.
BNET
Business
Dictionary,
http://dictionary .bnet.com/definition/SWOT+
Mohammad Arabi, page 17, Tehran, Cultural
Analysis.html
Research Bureau, (June 1988)
http://www.maxi-pedia.com/quantitative+
strategic+planning+matrix+QPSM
[7] Pahlavaniyan, Hossein, Strategic Management

Usage, Yazd; Nikou Ravesh, (2006)
28
www.SID.ir
Archive of SID
ZTE
1
1387/11/27 :
1387/7/24:

2000 .
ZTE 135

.
ZTE ZTE .
.
ZTE
.
: ) EFEM
() IFEM () SWOT
() QSPM (
.1
29
www.SID.ir

ZTE's Strategies for Iran Telecom Market

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Archive of SID

Intl. J. Humanities (2009) Vol. 16 (1): (15-29)

At the end, based on the method

1. Assistant Professor of Payame Noor University, Email: m_amini@pnu.ac.ir

Strategy Compiling Case Study: ZTE (A Chinese Telecommunication Co.)

Successfully put through the first CDMA2000 1x

call using ZTE equipment

and international companies. Since most of the

2001: Constructed ZTE's first CDMA network

products are based on high technology and imported

for China Unicom, with a capacity of up to 1.1

from world class level companies, this paper is

focused on foreign actors in Iranian market only.

Constructed the world's first Soft switch network

Main actors in Iran telecom market since the

for China Netcom

establishment of telegraph and fixed telephone

Ranked No. 3 in the 'Top 50 listed companies

lines have been: Siemens, Alkatel, NEC, Erksson,

with greatest development potential' in China

Securities Journal-Asia Business magazine

After the appearance of mobile communication,

2003: Strategic emphasis on international

Nokia entered to this market as well.

business, with the number of international

Up to year 2000, Siemens, Alkatel, NEC and

marketing staff increased by over 100%

Eriksson have been dominating the Iran telecom

2004: Listed on the Hong Kong Stock Exchange

market for wired and transmission networks.

as the first A to H listed Chinese enterprise

Since 1992 to 2000, three companies (Nokia,

Provided telecoms services for the 2004 Olympic

Siemens, and Erickson) have been manipulating

Games in Athens ADSL system covered 16

Iran telecom market for mobile telecommunication.

facilities throughout the event

With appearance of Chinese companies here,

2005: Ranked as one of the 'Top 100 Information

the actors on wired and wireless networks started to

Technology Companies' by Business Week

lose their marketing share rapidly.

Joined the league of global telecoms giants by

Following is a brief introduction to ZTE which

teaming up with Alcatel, Ericsson, France Telecom

has succeeded to play an active role as a Chinese

and Portugal Telecom

company in Iran telecom market.

Became China's largest wireless equipment

1985-1996: Started transition to a multi-product

provider with a global wireless capacity exceeding

R&D strategy, embracing wireless switching,

100 million lines.

transmission, access, videoconferencing and power

ZTE overview: As one of the first Chinese

supply systems in 1996

telecoms equipment provider to pursue business in

Became the first Chinese telecoms equipment

overseas markets, ZTE now has over 8000

provider to attain ISO9001 quality standard

employees working around the world.

Since 1996, the company has provided its