Case report Chunghwa Telecom 102208042 101504030 102208021 102208059

Case report Chunghwa Telecom 102208042 張雅涵 101504030 王懷庸 102208021 林恩立 102208059 鄭貴桓 100208006 張鎮程

Telecommunication industry of Taiwan

Elements �A transmitter that takes information and converts it to a signal. v A transmission medium, also called the "physical channel" that carries the signal. w A receiver that takes the signal from the channel and converts it back into usable information. For example, in a radio broadcasting station. � the station's large power amplifier transmitter � free space channel transmission medium � radio receiver convertion

History Nationalized industry Telecommunication industry belongs to the government, so it’s a monopoly. 1987 Comprehensive Liberalization Telecommunication industry becomes comprehensive liberalized in Taiwan because ISR(國際單純語音轉售)is acceptable. 2001 Liberalization With the internationalized trend of the industry, legislation being done by the government.

Quantity of companies rapid growth since 2010 2007 2008 2009 2010 2011

Market Share-Olygopoly CR 2=32. 86%+21. 44% >50% Chunghwa Telecom 21. 44 32. 86% 21. 2% Taiwanmobile FETnet Asia Pacific Telecom vibo telecom

Earnings (unit: hundred-thousand) A Little bit fewer, but much more higher than years before 2001 (3, 186). 3810 3760 3710 3660 3610 3560 2005 1 2006 2007 2008 2009

Quantity of 4 G users CHT TW FET Tstar APT

The mode of operation

Vertical Integration Supplier • The interior supplier of CHT Senao International • Mobile Seller • Telecommunication • Focus on “ Fixed Network, • Sell the products of mobile telecom and Mobile Telecom, Data related products communication , satellite communication, etc. ”

Profit of vertical integration ü Raising the efficiency ü Reduce the cost ü Increase the branch office ü Lower the price to benefit the consumer

Mergers and acquisitions 1. Internet Data Center service 2. Internet integrate Software Development 1. Sell mobile products 2. Related products 1. Set the websites 2. Make animation 3. Digital content

Comprehensive effects of merger Chief Telecom(是方 電訊) • Increase the Internet data center control room rental business • Depending on Chief Telecom to test the Voice over Internet Protocol market Senao International (神腦國際) • Retail sales of senao has become the products and service distributor to be in charge of the CHT Spring House Entertainment Tech. Inc (春水堂科技娛樂) • Develop the mobile internet platform “emome” Sochamp (中華碩銓) • Develop the traffic smart industry

SWOT analysis

Strategy • The superiority of Chung Hua is the widest scope of base station than other telecommunication companies. • And the Chung Hua established few decades ago, so the visibility of the company is better than others.

Weakness • The weakness of Chung Hua is internal equipment might older than other ones. • And employees doing things without efficiency. • The price of Chung Hua is usually higher than others.

Opportunity • Taiwan are going to promote 4 G new technique. Chung Hua can rely on this opportunity to increase its market share.

Threat • There are many competitors sharing the markets with Chung Hua. This is the threat of Chung Hua, because of this threat pricing is more important to it.

Product Promotion Strategy of Chunghwa Telecom

Importance of Promotion to Chunghwa 1. The total number of users 中華 台哥 遠傳 亞太 2. Rising of 4 G Lite →Fierce competition and new product make Chunghwa Telecom must put emphasis on promotion.

Strategy 1: Channel • Chunghwa Telecom invest in Senao International Co. , Ltd. in 2007, which makes every retail sales of Senao has their counter • Taking advantage of existing access, Chunghwa Telecom need not spent lots of cost to build customer base. • More the store, more the advertisemant.

Strategy 2: price discrimination 1. According to identity: • Students can apply 399 internet project with their student ID • Form a campus group then enjoy the lower price to communicate to each other that NT 0. 03 per second. 2. According to willingness:

Strategy 3: preferential treatment When choosing the telecom, which friends or family have is the top issue. Therefore, Chunghwa Telecom advertise that if customer change their telecom to Chunghwa, they can enjoy the 4 G all-youcan-eat and free all calls made within the network with lower than a thousand NT dollar

Pricing Strategy of Chunghwa Telecom

Situation • Oligopoly: There are only 4 main companies in this market. And each of them choose price discrimination, which contains basic fee and the fee per minute. • Market Segmentation: Different projects for each kind of users, kid or adult, 3 G or 4 G, and so on.

Example The higher basic fee the project has, the more fix services it provides.

Price Discrimination The degree : third – degree Obviously, different kinds of users face different prices. Those who uses greater amount face a cost-effective price because of their ability to bargain. That is, they have higher elasticity. Therefore, there are more projects to satisfy their favor.