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China Mobile Communications SWOT and PESTLE Analysis

ID : 52231653| Feb 2023

COMPANY PROFILE -China Mobile Communications

Business Sector :Telecommunications

Operating Geography :China, Hong Kong, Pakistan

About China Mobile Communications :

Formerly known as China Telecom Mobile Communication Bureau, China Mobile Communications Corporation was founded in 1997 and is based in Beijing, China. It is a telecommunication company providing mobile voice and multimedia services. As of May 2016, it is the world’s largest mobile phone operator by subscribers (835 Million).

China Mobile Communications Revenue :

Rmb 708.4 bn ($102.8 bn) (FY ending 31st December, 2016)

Competitive Analysis of China Mobile Communications

SWOT
PESTLE
The SWOT analysis for China Mobile Communications is presented below:
Strengths
Weaknesses
1. First mover in the 4G services
2. 64% of market share in 4G services
3. World’s largest VoLTE network
4. Unflagging pursuit of customer service excellence
1. Limited geographical presence
2. Steady decline in net profit
3. Incompetence in decision making
Opportunities
Threats
1. Expansion into rural markets in China
2. International expansion		1. Introduction of foreign players
2. High number of low-value customers
3. Withdrawal of Chinese government from China Mobile
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Detailed SWOT Analysis of China Mobile Communications

Threats

1. Introduction of foreign players: The Chinese telecom sector has heavy regulations and is currently screened off from international competition. Recently the Chinese government has been contemplating opening up the sector to foreign players. As the industry becomes more open, China Mobile will need to also concentrate not only upon the competitive potential of local firms but also that of international players.

2. High number of low-value customers: In order to gain a competitive advantage over its rivals, China Mobile has added huge number of subscribers mostly in the low-price, low-value segment. This shows that it is a volumes player rather than a premium player. With recent advancement in technological breakthroughs like 4G, China Mobile faces a threat to its business model and in turn will have to offer high value added services to stay in the competition.

3. Withdrawal of Chinese government from China Mobile: China Mobile enjoys a strong relationship with the Chinese government partly because of the fact that it is a SOE which might change in the future. With the opening up of the Chinese economy, the government would most likely be assessing the trade-off between the economic payoffs and social dividends.

 
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China Mobile Communications SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). China Mobile Communications SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/china-mobile-communications/ [Accessed 14 Dec, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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China Mobile Communications SWOT analysis has been conducted by Devang Vinchhi and reviewed by senior analysts from Barakaat Consulting.

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