A system dynamics-based study on rivalry in tele-mobile service industry of China

The current mobile service in China displays a highly dynamic competition between two major operators, China Mobile and China Unicom. Most current researches focus on direct comparisons of the relative advantages, weights of which are chosen statically and dynamic relationships between the items compared are usually ignored. This research stands from the view of China Mobile, the bigger and earlier operator, to explore the reason of its shrinking market share after SMS (short message service) becomes popular in China. The dynamics in the service quality, exchange capacity, price are highlighted to show how these factors influence the growth of the whole mobile market and the relative advantage in the competition as well. Long run and short run effects of these factors are differentiated so as to make it possible to suggest some proper policies for China Mobile to sustain the market leadership.