Knowledge Transfer Model within Strategic Alliance in Telecommunication Industries

Features of Telecommunication Industry

Telecom industry, also known as telecommunication industry or communication service, is one of the three mainstay industries in IT field. It is divided into communication services and communication device manufacture. For a long time, scholars regarded telecom industry as a branch of IT industry, and now with the fast pace of development in telecom industry, it has separated from IT and flies on its own colours. As a combination of high-intelligence and device manufacturing, the main features of telecom industry are listed as following:

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  Intelligence intensive, knowledge intensive and technology intensive: In telecom industry’s R&Ds, high-level personnel is not only demanding, it also requires a joint collaboration and a fully communicated mechanism. This phenomenon determines the majority of staffs in telecom industry possess a high level of education, and here lies the firm’s core value;

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  Highly creative and highly innovative: Growth and advancement in telecom industry is based on large amount of inventions and creations. In modern society, the ability of renewing technology and developing scientific research achievements are significant factors on judging a telecom firm;

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  High output and high profit: Industry of telecom is a collection of capital, technology and knowledge. As the growth of capital, technology and knowledge, the scope of telecom business extends larger and as a result, brings not only larger output, but also acceleration of economies of scale. Hence, level of resources utilization turns better, labour productivity raises, and cost of production descends in the meanwhile. It has a rather low margin cost so to speak;

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  High risk: What lies behind a communication enterprise’s high profitability is high risk. To start with, this communication field requires a large amount of input at the starting line. Considering the uncertainty of R&D. millions of invest can be easily evaporated. Secondly, so far, this market area remains a small number of category, and the price is still way too high before it goes in great quantity, and the specialization of market can be affected by the interference factor of market demand.