Where they are now?
Relative to foreign GPS operation systems, GPS operation services are still in an introductory period in China. The division of work between various links of the industry chain is fairly ambiguous, while the market pattern is rather chaotic. Currently, GPS operators in China mainly include GPS terminal makers which integrate the development, production, sales and operations of terminal products and system software into one body; software developers, who mainly develop system software, also engage in operations, while third parties operate independently.
As entities with different backgrounds swarm into the market, overlapping investment and resources cause inevitable waste. This is not good in forming or upgrading a comprehensive and healthy industry chain. In addition, the entry threshold for GPS operations is rather low. With one operation platform, capital input of 300,000-500,000 Yuan, and several workers, enterprises can engage in GPS operations. For the time being, operators compete viciously and seek to rapidly take up market share to compete for customers. Some operators adopt unfair competition practices such as make false commitments to users, adjust services fee rates at will, and viciously squeeze competitors. These seriously harm the standardization of market order and the formation of a benign market atmosphere.
Currently, China's GPS operation market is still at an opening stage. Operators have yet to gain a mature understanding about automobile and personal services. The result is that the automobile and personal services provided are of unsatisfactory quality. However, what cannot be ignored is that inadequate work on GPS hardware and software is also an important reason for the staggering quality of GPS operation service in China. GPS navigation services with high precision and high stability require high quality GPS terminals. But, GPS terminals in China remain at an assembly stage.
Where the road lies?
GPS operations have just started in China. Everything is still a bit chaotic. But, such operations have unique advantages. Building upon advantages and improving deficiencies will be the best breakthrough point for GPS operators in China to search for a way out. GPS operators need to establish close contact with the transportation administration department and the government decision-making department in China to get core resources such as transport information and policy support from these departments. This is the advantage of local operators. It is also the access barrier, which foreign enterprises can hardly avoid. Local enterprises should therefore actively establish benign interaction with the concerned departments to ensure smooth data and information sources.
As for the exploration of service models and the improvement of service quality, operators in China can use international operators' successful experiences as reference and carry out localized reconstruction. Successful international operators such as Onstar and Wingcast all use automakers as the leading force to guide the development of the pre-installed auto navigation market. This automobile system maker-led navigation operation model is more helpful for operators to achieve comprehensive monitoring and control of terminal product quality and service quality.
Geographically, GPS terminal production and software R&D in China are mainly concentrated in the Pearl River Delta Region where the economy is thriving and the electronic product industry is growing fast. A large number of GPS operators take root there. As operators in the region are gradually gaining strength, the natural concentration of businesses will be good for establishing an operations network, with Pearl River Delta as the core and branching out around the whole country.
The right road will lead us to the next stop: The GPS operation industry, which survives fierce market competition, will get fat business profits. More importantly, its contribution to society - improved dynamic navigation will help the improvement of the intelligent transport system, thus eventually easing urban traffic congestions in China. Of course, contributing to smooth urban transport in 2008 will also be a precious present which the GPS operations industry will give to the Beijing Olympic Games.
The expansion of any new field will inevitably meet with expected or unexpected difficulties. China's GPS operation industry is no exception. But, market standardization and prosperity hinges upon continuous strategy adjustment, accumulation of experiences, and even failures. The process is painful, but the result is happy. The beautiful scenery at the terminus can hardly keep people from stopping. Careful positioning and understanding the direction of development will carry GPS operations in China forward in full gear.
