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Pestle and Swot Analysis of China Mobile 2018

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    China Mobile is an investment holding company engaged in telecommunications and related businesses such as mobile businesses which offer voice, roaming and data services, wireline broadline businesses and Internet of Things. China’s telecom market is a prominent oligopoly with China Mobile accounting for over 80% of all net profit in China’s telecom market (Yoo 2017) China Mobile has over 887million customers (Statista 2018) with competitors China Unicom and China Telecom having 284.16million and 249.96million customers respectively. It accounts for 70% of China’s telecom market. Various external factors have hindered the growth of China Mobile and by using a pestle analysis, we realize how the political factors like Trump’s order to block China Mobile from operating in the US affects its profitability, the effect of unemployment on China Mobile. In addition, we look at how developments in technology and demographics like increase of consumers using smartphones can favor further growth of China Mobile. Using the swot analysis, we identify China Mobile’s major strength and weaknesses that can be improved upon.

    NO CITATION FOR THIS WORK WAS RECORDED

    China Mobile Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand the broad macro-environment of China Mobile and the Chinese mobile & telecommunication sector in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
    • Use our swot analysis example to gain an overall understanding of China Mobile's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
    • To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.

     

    1.0 INTRODUCTION


    China Mobile was founded on September 3rd, 1997 in Beijing China and is the biggest telecommunications company in China accounting for over 70% of China’s telecom market ahead of major competitors China Telecom and China Unicom with 10% and 20% market shares respectively (Chepkemoi 2017). China Mobile is engaged in telecommunications and related businesses such as mobile businesses which offer voice, roaming and data services, wire line broadband and Internet of Things, China Mobile is the world’s 3rd largest telecom behind AT& T and Verizon. However, in terms of mobile subscribers, China Mobile is the biggest mobile telecom globally with over 887million customers ahead of competitors China Unicom and China Telecom with 284.16million and 249.96million customers respectively (Ponciano 2018; Statista 2018). 
    In 2017, China Mobile recorded an annual revenue of 740billion Yuan with 114.3billion Yuan in net profit, a 5.1% increase in net profits from 108.8billion yuan in 2016 due to boost from 4G subscriber growth (Si 2018).  However, China Mobile’s growth has been affected by various macro-factors such as government policy and competition from fellow telecom companies which have hindered the growth of some of its businesses. In this report, we analyze how the different macro factors from the Chinese business environment, competition, and internal weaknesses are impacting the growth prospects of China Mobile while highlighting major opportunities and threats for the company.

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    Pestle and Swot Analysis of China Mobile 2018

    Mariam Peyton
    Latest posts by Mariam Peyton (see all)

      China Mobile is an investment holding company engaged in telecommunications and related businesses such as mobile businesses which offer voice, roaming and data services, wireline broadline businesses and Internet of Things. China’s telecom market is a prominent oligopoly with China Mobile accounting for over 80% of all net profit in China’s telecom market (Yoo 2017) China Mobile has over 887million customers (Statista 2018) with competitors China Unicom and China Telecom having 284.16million and 249.96million customers respectively. It accounts for 70% of China’s telecom market. Various external factors have hindered the growth of China Mobile and by using a pestle analysis, we realize how the political factors like Trump’s order to block China Mobile from operating in the US affects its profitability, the effect of unemployment on China Mobile. In addition, we look at how developments in technology and demographics like increase of consumers using smartphones can favor further growth of China Mobile. Using the swot analysis, we identify China Mobile’s major strength and weaknesses that can be improved upon.

      NO CITATION FOR THIS WORK WAS RECORDED

      China Mobile Strategy Case Study


      Key Learning Outcomes

      By the end of the case, students should be able to:

      • Understand the broad macro-environment of China Mobile and the Chinese mobile & telecommunication sector in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
      • Use our swot analysis example to gain an overall understanding of China Mobile's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
      • To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.

       

      1.0 INTRODUCTION


      China Mobile was founded on September 3rd, 1997 in Beijing China and is the biggest telecommunications company in China accounting for over 70% of China’s telecom market ahead of major competitors China Telecom and China Unicom with 10% and 20% market shares respectively (Chepkemoi 2017). China Mobile is engaged in telecommunications and related businesses such as mobile businesses which offer voice, roaming and data services, wire line broadband and Internet of Things, China Mobile is the world’s 3rd largest telecom behind AT& T and Verizon. However, in terms of mobile subscribers, China Mobile is the biggest mobile telecom globally with over 887million customers ahead of competitors China Unicom and China Telecom with 284.16million and 249.96million customers respectively (Ponciano 2018; Statista 2018). 
      In 2017, China Mobile recorded an annual revenue of 740billion Yuan with 114.3billion Yuan in net profit, a 5.1% increase in net profits from 108.8billion yuan in 2016 due to boost from 4G subscriber growth (Si 2018).  However, China Mobile’s growth has been affected by various macro-factors such as government policy and competition from fellow telecom companies which have hindered the growth of some of its businesses. In this report, we analyze how the different macro factors from the Chinese business environment, competition, and internal weaknesses are impacting the growth prospects of China Mobile while highlighting major opportunities and threats for the company.

      Already a Subcriber?

      Forgotten your password? Click Here

      Not a Subcriber?

      GET UNLIMITED ACCESS

      TO ALL OUR FREE SAMPLES

      FOR
      FREE

      Services We are Offering

      We are more than a free study and revision tool.
      We also provide on demand research and custom writing services.

      Make writing your assignment paper as easy as 123!

      123 Writing is the #1 exam revision and assignment study platform in the UK.

      Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.

      Our Standard subscription typically retails for £299.88 a year.

      Today, you can join at 80% discount.

      Here’s a full breakdown of everything you get as a Standard or Premium subscriber...

      » Get access to our database of more than 5,770 answered premium strategy case studies

      Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.

      » Free access to past exam & assignment answers

      Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.

      » Get extra assignment related help from our writers & tutors

      Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).

      » Get free assignment & essay writing help worth up to 7K words

      Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).

      » Fast & speedy answers to on-demand case solutions & assignment questions

      Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).

      » Get exclusive Q&A sessions with our subject matter writers

      Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).

      » Free access to test bank questions & answers, study notes and practice quizzes

      Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.

      » Free access to video tutorials & study packs

      Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.

      » Access to textbook chapter reviews and answer solutions

      Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).

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