At present, China¡¯s IT market has become an important component of the world¡¯s IT market, however, China¡¯s IT market is the basis of Chinese IT enterprises, China¡¯s IT industry should meet opportunities and challenges with BlueOcean and RedOcean strategies.
The local market position is important.
China¡¯s IT market is an important part of the world¡¯s IT market. Looking back from 30 years ago, the scale of China¡¯s IT scale was small, it was low-end market, and the market was relatively closed, there were great obstacles between IT products and service localization. Today, China¡¯s IT market has changed a lot, and it has become the fastest growing market in the world. In China¡¯s IT market, more and more products¡¯ services and scales are on top, the products and services are in-phase with the world, at the same time, the speed of market updating, new products and services adoption is faster than the international standard.
From some figures, we can see that China¡¯s IT product combined market ranks second in the world. Among them, the number of Internet users ranks second with 17% of the world; the PC market ranks second with 10% of the world, it is estimated that by 2015, it will rank first; the digital equipment product ranks first in the world. Most of China¡¯s key IT products rank first in the world. All these bring some revelations to us that China is not only the giant of manufacturing world IT products, but also the biggest IT market of the world. We will become the world center of R & D, master the high-end innovation, we hope that China will not only do processing, but also marketing, R & D and innovation, we should cover the entire value chain as far as better.
The factors lead the success of China¡¯s IT enterprises
China¡¯s IT market leads the success of Chinese IT enterprises. In Chinese market, Chinese enterprises have more advantages than multinational companies: better understanding of the market demands, closer to the users and so on. The experience of those Chinese large enterprises such as Huawei and Haier prove that China¡¯s market is the basic point of the internationalization of Chinese enterprises. The first thing is to get a higher level of development in the domestic market in order to face the competition in the international IT market. However, some enterprises can rely on the international market, for example, taking advantages of outsourcing to develop businesses, this is the experience of some Indian companies, we hope more companies will do so.
What is the relationship between China¡¯s IT market and international IT market? We can make use of the advantages in China¡¯s IT market, and expand the share in China¡¯s IT market. China¡¯s IT market accounts for 10% - 20% of the international IT market, if you do a good job in China¡¯s market, in another word, you possess sufficient strength to go to the world and get businesses from the international IT market which is more and more intense. Overall, the IT market is a very valuable resource for IT industry, the stimulating function is very important, we should take good use of the resource of China¡¯s IT market and support the industrial development.
RedOcean refers to very stinging competitions, often means the old markets, but BlueOcean refers to emerging markets without sufficient competition. China¡¯s IT market should belong to the BlueOcean of IT markets and it is an emerging market with great demands. Moreover, the scale of China¡¯s IT market is large; the opportunities of creating BlueOcean are more than in the international markets.
There are these kinds of BlueOcean in IT market, such as mobile communications, broadband networks, and services related to Internet, a wide range of information equipment, open-source software solutions and actively promoting the use of open standards. There are many emerging fields without fierce competitions, they haven¡¯t formed monopoly. RedOcean has become monopoly; some multinational companies have occupied the monopoly positions. However, China¡¯s enterprises should think from another aspect, consider the national development strategy and the security of market, but not only foucusing on the profits of the enterprise. The assumption of implementing RedOcean is the support of the state. RedOcean strategy cannot only rely on the enterprises, but some supports from the state, such as the support of developing science and technology, the market support of government procurement, the guide of implementing open standards and combining product, study and research.
The support of developing science and technology. Give certain subsidies to the research on common technologies, this is consistent with the ¡°WTO¡± spirit and the requirements of national long-term development program, this aims to speed up the development of science and technology industry and support the research on the common technologies in IT industry.
The market support of government procurement. In order to purchase the domestic goods, the ¡°WTO¡± procurement agreement can only be effective with the signatories of the members. At the end of last year, China officially started this negotiation, and this will take years. The financial department supports the management approach of independent innovation of procurement, this is good for improve the implementation of government procurement and enhance the implementation.
The guide of implementing open standards and combining product. Russian, Indian and other countries¡¯ governments are implementing the guide of open standards to open-source software, China is emphasizing more and more on implementing open standards. For example, 3G and TD-SCDMA are guided by the national standards. The open standards promote fair competition, domestic enterprises and IT markets.
Study and research. The national independent innovation strategy points out to build a technical innovation system which regards enterprises as the mainstay, market-oriented and integrating of product, study and research. More of China¡¯s technical resources and results are in colleges, we should learn from those developed countries and regions, explore a number of related issues such as science and institutional innovation, in order to achieve a better result of product, learn and research.
