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Untitled
Essay
The company was established in Hong Kong on September 3, 1997, and it is
currently among the top providers of telecommunication services in mainland
China. China Mobile is owned by the Chinese government, which also operates
a subsidiary with its headquarters in Hong Kong. Hong Kong is home to the sole
and biggest organization in the country. On October 22, 1997, China Mobile was
listed on the Hong Kong Stock Exchange Limited, and on October 23, 1999, it
was listed on the New York Stock Exchange. Furthermore, on January 22,
19998, China Mobile was admitted as a structured stock member of the Hong
Kong Hang Seng Index (Safonov et al., 2021). With over 8 million users across all
31 provinces, China Mobile offers a wide range of communication services.
459,152 people work for the organization, making sure that every consumer is
served efficiently. The corporation, which provides mobile phones and runs the
network to which they are connected, is a massive telecommunications
company that has a monopoly-like grip on the market. Additional services
include information and communication services, wired broadband, mobile
data operations, and voice. With ownership ratios of 27.28% and 72.72%,
respectively, state investors and China Mobile Communications Group Co., Ltd.
are China Mobile's main shareholders.
In the 2007 Brandz Top 100 Brands list by Millward Brown, China Mobile came
in at number five. Ten (or even less) years ago, this was unheard of. This news
indicates that the company has evolved from being a business to a brand, with
equity and value associated with it. IBBC, China Construction Bank, Bank of
China, and other Chinese brands are also included in the top 100. Although

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many claim that Chinese businesses lack marketing clout, this may be starting
to change. The business has recently made good earnings. China Mobile has
repeatedly pursued acquisitions. It initially seized control of Jiangsu Mobile
(Chu, 2017). Additional noteworthy acquisitions include Beijing Mobile,
Shanghai Mobile, Tianjin Mobile, and Hebei Mobile (2000) as well as Fujian
Mobile, Henan Mobile, and Hainan Mobile (1999). These changes have led to
rapid expansion. In the Chinese market, China Mobile is the leading company.
In 2006, it reported a 67.5% market share. With more clients than any other
mobile phone service, it is the biggest digital mobile phone company in the
world.
The head of China Mobile claims that the country's mobile technology lags
behind that of its foreign rivals by many years due to phone malfunctions. In
general, 3G technology trailed behind. A portion of the issue stems from the
decision to switch to the TD-SCDMA network, which many view as being less
effective than the 3G alternatives available in the US and Europe (which
competitors have chosen to implement). The business does not diversify
internationally(Zhang et al., 2020). As evidenced by Bharti Airtel's SWOT
analysis, telecom businesses frequently conduct business across borders
through acquisitions, joint ventures, and strategic partnerships. This can
1
endanger the business in the event that the Chinese market has a severe or
protracted downturn. Even while China Mobile has the volume and numbers to
support its leading position, one of its biggest flaws is that it is not yet at the
forefront of technological advancements. This is partially because of issues
with older phones and related challenges while moving from CDMA to GSM
technologies. The corporation was consequently unable to make a smooth
transition to 3G networks.

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Due to the rapid expansion of the Chinese economy, there is a large demand for
technology, gadgets, and mobile phones. With 520 million mobile phone users,
China is the largest mobile phone market in the world, according to the Chinese
government (Fleischmann and Srikantaiah,2011). By 2010, this figure may rise
to 600 million. China's average customers are propelling the country's mobile
telecoms industry forward. According to BBC News, China Mobile recorded net
profits of over 24.1 billion yuan (£3.4 billion; £2.2 billion) from January to March
2008, up 37% from the same period in 2007. The majority of China's future
growth is expected to occur in rural areas as cities become oversaturated, and
big operators will most likely pursue this market. For China Telecom, 3G
technology presents the greatest opportunity. The company can anticipate a
considerable increase in subscribers as China's economy continues to grow at
an accelerated rate; nevertheless, an overheated domestic market may push
the company to consider outside expansion in the years to come. This does not,
however, negate the reality that, in contrast to prior years when their approach
was far more aggressive, China Mobile is now prepared to tap into the
expanding domestic market, albeit to a limited amount.
Most new subscriptions are undervalued and used infrequently. As a result,
typical income declines as the mobile industry grows and price competition
increases (Huang et al., 2022). Because Chinese consumers are using new
value-added services, mobile service providers are waiting for the launch of 3G
mobile technology to revitalize the market and increase demand. Given that the
Chinese government intends to permit new carriers to enter the market, China
Mobile may encounter increased competition in the future. In China, 70% of the
2G market is dominated by China Mobile. By 2010, China Telecom hopes to take
15% of the 3G market, while China Unicom plans to become the biggest 3G
operator. China Mobile and the PRC government have an agreement that

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imposes several service requirements on China Mobile. The business can

subsequently be obliged to offer services that benefit society but are not
lucrative. Furthermore, the corporation has been awarded a limited frequency
(Zhang, 2011) by the Ministry of Information and Industry, which will not
accommodate a high volume of users in the future. The fact that China Mobile
has up to now played the "numbers game" by primarily adding customers in the
2
low-cost, low-value category poses a serious danger to the company's
earnings.
China Mobile had to work hard to start its worldwide trip and maintain its
dominance of the domestic market, as the previous SWOT analysis shows.
Currently, the stock is being watched closely by many Western investors, which
is quite an accomplishment considering that its 1997 IPO failed to elicit much
interest outside of Hong Kong, where its growth started. Transform from a
small business to a market leader. The massive Chinese telecom company
China Mobile has gained attention recently due to its explosive customer
growth and quick expansion. It was once viewed as a protected but inefficient
state-owned organization, but it has since evolved into one of China's leading
businesses with aspirations to take over other countries' marketplaces.

References
Safonov, M., S. Usov, S., V. Arkhipov, S. and P. Sorokina, L., 2021, January. SWOT
analysis of mobile applications in the high education e-learning of the Chinese

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language. In Proceedings of the 2021 12th International Conference on E-

Education, E-Business, E-Management, and E-Learning (pp. 89-94).
Chu, Y., 2017, January. SWOT analysis and Countermeasures of India market
3
environment for domestic mobile phone. In 2017 International Conference on
Education, Culture and Social Development (ICECSD 2017) (pp. 21-25). Atlantis
Press.
Zhang, N., Xu, X., Jiang, X. and Pang, J., 2020, December. SWOT Analysis of
Satellite Mobile Communication System Based on GAHP. In 2020 2nd
International Conference on Information Technology and Computer Application
(ITCA) (pp. 376-382). IEEE.
Fleischmann, K.R. and Srikantaiah, T., 2011. SWOT analysis of mobile phones in
four countries: Comparing India, Ethiopia, Kuwait, and the United States.
Proceedings of the American Society for Information Science and Technology,
48(1), pp.1-4.
Zhang, X., 2011. The Competitive Advantage Analysis of the Telecommunication
Corporation after the Restructuring of China’s Telecommunications Industry in
4
2008: Case study of China Mobile Communication Corporation.
Huang, L., Wang, K., Wu, F., Lou, Y., Miao, H. and Xu, Y., 2012. SWOT analysis of
5
information technology industry in Beijing, China using patent data. In
Computational Science and Its Applications–ICCSA 2012: 12th International
Conference, Salvador de Bahia, Brazil, June 18-21, 2012, Proceedings, Part I 12
(pp. 447-461). Springer Berlin Heidelberg.
Pang, J., Xu, X. and Lu, X., 2019, December. Development Strategy Analysis of
Satellite Mobile Communication System Based on SWOT. In Proceedings of the
2019 5th International Conference on Systems, Control and Communications
(pp. 44-49).
Sammut-Bonnici, T. and Galea, D., 2014. SWOT analysis.

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Appendix
SWOT analysis

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1. in the event that → Wordy sentences Clarity

if

2. serious Wordy sentences Clarity

3. phone → phones Incorrect noun number Correctness

4. study → Study Confused words Correctness

5. the information Determiner use (a/an/the/this, etc.) Correctness

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