China Mobile Companies Strategic
i) Business Level Strategies
Business level strategies access how companies compete in given industry. The 5 business level strategies include quality, cost
, distribution, technologies as well as intellectual property (IP). One of the most effective way of analysing business level strategies is by conducting 4P market analysis.
For each of its sub-brands, China Mobile has a separate price approach in its marketing mix. As a result of the fierce competition China Mobile confronts, it has adopted several methods for its three brands, M-Zone, GoTone, and EasyTown, but the most notable differentiation for mass markets is a low pricing. Since Easy Town concentrates on large markets rather than specialty businesses, its rates are cheaper. M-Zone, on the other hand, offers entertainment-related services at a somewhat higher cost (Lei and Lee 2020).
China Mobile is the biggest telecom service provider, offering GPRS services in 161 countries and global roaming services in about 231 nations. China Mobile also boasts the biggest customer base of telecom service users in the world, with a particular concentration on rural areas inside China as well as in underdeveloped and emerging nations.
High-quality, high-definition ads as well as CSR initiatives that focus on improving China Mobile's brand image as a value proposition and a socially conscious business (Lei and Lee 2020). Given that the urban market has nearly reached saturation, China Mobile's promotion of bundle packages for unlimited talk and internet services in rural regions continues to be a primary priority.
With over 400,000 employees, China Mobile's people strategy of its marketing mix primarily relies on a skilled staff providing value and service to the consumers. A strong team of workers also aids in meeting China Mobile's distributional demands.
ii) Corporate Level Strategies
The high degree of strategic decision making, company level plans address activities relating to the firm's goal, the procurement and distribution strategy
of resources as well as the integration of the plans of multiple SBUs for optimal efficiency. Strategic choices are made by the firm's upper executives. Visioning, goal-setting, resource allocation, and prioritizing are the four most commonly acknowledged fundamental elements of business strategy.
The goal of China Mobile is to establish a world-class business and to play a significant role in the development of China's digital economy, cyber power, including smart society. The company pays high attention while assignment its financial resources in different branches (Fu 2021). The resource allocation of the company has been found to be highly dependent on the rate of available data.
Competitive Analysis and Advantage in the industry
For understanding the competition, Porters 5 forces analysis has been done bellow.
Rivalry within the industry The rivalry between organization are moderate. The reason behind this is China mobile gets operated in a highly regulated market.
In addition, China Mobile confronts little to no rivalry from current or, as one shall examine, new companies due to its status as a monopolistic player and the size of its market share (Guo and Zhou 2021).
Entry and Exit barriers
Anywhere around the globe, the telecom industry has high losses, that implies that potential businesses looking to enter the market must invest a significant amount of money (Lei and Lee 2020). This is made worse in the Chinese market, in which the lack of innovative technology available to emerging businesses and the requirement for a robust distribution network due to the sheer size of the nation make this force medium to weak in strength.
Power of suppliers
Due to the existence of a single technology standard and the low level of technological competence of the Chinese telecom sector, suppliers have almost little ability to influence China Mobile.
Power of Buyers
Since there are so few companies in the Chinese telecom industry, the power of buyers is constrained just like it is for some other factors. China Mobile has a near-monopoly on the industry, as seen by the manner it has amassed a sizable user base in the course of a decade, along with low price sensitivity and minimal dependence on customisation (Lei and Lee 2020). Despite occasional government intervention, China Mobile's sizable user base also affords it the authority to determine rates.
Threat of substitutes
There are relatively few alternatives to mobile telecommunications since China is still predominantly an agricultural nation where the countryside still struggles despite the world-class cities. China Mobile really shouldn't worry about landline replacement because it is similar to other developing markets where the transformation from postal interaction to telephony skipped the landline process and directly moved into the mobile phase (Gao, Z., Sim, J.Y. and Liao, X., 2019). However, the slow adoption of the internet has made China Mobile wary of possible substitute from voice over internet protocol.
The company's huge client base (expected to be close to half a billion) is one of its strongest points, but it should be noted that because it is a state-owned business and competes in a monopoly competition, these factors must be taken into consideration (Huang et al. 2019).China Mobile has firmly established itself in the worldwide market as evidenced by its inclusion in the 2007 list of the Top 100 Significant Brands around the world.China Mobile is expanding at a blistering rate of around 50 percentage points each year, which implies that within a few years it will be well ahead of the global competitors by any measure. Although China Mobile has the statistics and the quantities to support its leading position, one of its main weaknesses is that it isn't yet abreast of the technological curve. This was partially caused by issues it faced switching from the CDMA network to the GSM system. Another flaw is that China Mobile has mostly focused on the local market up to this point. China Mobile is strongly dependent on its agreements with local companies even for its growth into Africa, which implies that it has not yet established a distinct international brand (Li and Li 2020).
The firm may anticipate a significant increase in subscribers if China continues to expand quickly, but the overheated local market may force it to go outside of China for future expansion.The business has had annualised profit growth rates of more than 20 percent, similar to several other SOEs or State Owned Enterprises in China. It can use the untapped rural market in China as an opportunity to make up for its shortcoming in its inability to switch to 3G technology, allowing China Mobile to begin over free of any historical problems
The Chinese telecom industry is still highly controlled and protected from global competitors, which poses a concern given that the Chinese government has been considering opening the market to foreign companies recently (Fu 2021). Its comfortable connection with the Chinese government is in part due to the fact that it is an SOE, but this might alter in the near as the industry gradually opens up and the government weighs the trade-off between social benefits and financial gains
The level of political stability of China is low and the percentage of corruption in the nation is high. This in turn impose negative impact on the business industries.
economic The GDP and per capita of the nation is high and this impose positive impact on the nation. China Mobile Limited possess the potential to use the economic factors of the nation like inflation rate, growth rate, economic indicators like Wireless Communication industry’s growth rate (Fu 2021).
The spending power of the consumers are high due to high perception income. This in turn impose positive impact on the telecommunication industry.
Technological China is highly advanced in technology. This in turn helps the telecommunication organizations to provide effective telecommunication. There are multiple examples of innovative products completely redesigning the norm for an entire industry.
Legal Before entering such markets, a company should carefully consider its options because doing so might result in the theft of its secret competitive advantage. When entering a new market, China Mobile Limited's leadership should take some legal considerations into account (Fu 2021).
• Antitrust legislation in the nation's wireless communications sector and generally.
• Legal discrimination
• Patents, intellectual property law, and copyright
A series of environmental law s are there in China. China has made progress in its fight against environmental issues over the past several decades by putting a number of environmental regulations into effect (Guo and Zhou 2021). The decrease in energy intensity and pollution emissions shows how effective these efforts have been.
Key success factors
The key success factors of China mobile are as follows:
1. Heavy investment in Telecom Sector
2. Success of Mobile Game in Chinese Market
3. Increased level of users