A system dynamics approach to competitive strategy in mobile telecommunication industry

This paper analyses the mobile carriers' competition strategies by using balanced scorecard and system dynamics (SD) modelling. Four indexes are used to evaluate two major Chinese mobile telecom carriers, which are Internal Business Index, Financial Index, Market and Customer Index and Innovation and Learning Index. With these four indexes, a SD model is developed based on systems methodology, which includes eight sub‐systems and 80 variables. Considering the government's regulation policy, the two carriers' competitive strategies are studied through modelling and simulaton. The result shows that for carrier B, improving the investment efficiency is more important; while for carrier A, the product innovation is an essential issue. This research explores an effective way to construct an analytical framework for dynamic competitive strategy.