Presentation

on

COMPARISON BETWEEN

CHINA MOBILE & VODAFONE

COMPANIES ON THE BASIS OF

SWOT ANALYSIS
 Group Members:
Abdul Rehman
Reg. No. = 3218
Class No.=86
Raham Taj
Reg. No. = 3277
Class No.= 91
N.W.F.P University of Engineering &
Technology Peshawar Pakistan
 Introduction of
Vodafone:
• British multinational mobile network operator,
founded in 1983
• World's largest mobile telecom. network company,
based on revenue
• 2nd largest company based on customers with 427
million customers
• It currently has operations in 31 countries
• 79,000 employees by 2009
 Introduction of China
Mobile:
• China Mobile Limited was started in 1997
• The world's largest mobile phone operator
• With over 508 million customers
• World’s 2nd largest company on revenue basis
• It currently has operations in 3 countries
 STRENGHTS: (VODAPHONE
COMPANY)
• World's largest mobile telecom. network company, based on
revenue
• 2nd largest company based on customers with 427 million
customers
• It currently has operations in 31 countries
• 79,000 employees by 2009
• Good sponsorship strategy e.g. it sponsors Kshitij ( festival),
Indian Premier League (Criket) etc
 STRENGTHS: (CHINA
MOBILE COMPANY)
• The world's largest mobile phone operator
• With over 508 million customers
• World’s 2nd largest company on revenue basis
• It currently has operations in 3 countries
• the third largest broadband ISP in China
• China Mobile is number one in the
Chinese market. It recorded a 67.5%
market share in 2006.
WEAKNESSES : ( VODAFONE
COMPANY)
• It does not have that much customers as that of China
Mobile although it has got its network in 31 countries
across the globe.

• In Europe its market getting down because of its high

cost.

• Until recently Vodafone (specailly Airtel in India) did

not own its own towers, which was a particular
strength of some of its competitors such as Hutchison
Essar. Towers are important if your company wishes to
provide wide coverage nationally.
 WEAKNESSES : (CHINA
MOBILE COMPANY)

• The company is not globally diversified like

Vodafone.
• Although it is the largest GSM company in the
whole world regarding the number of
costumers but still its revenue is pretty much
less than the Vodafone company.
• GPRS is not yet fully functionled in all of its
covered regions as it is fully functionled in
Vodafone.
 OPPORTUNITIES:
(VODAFONE COMPANY)
• It has got an opportunity to become the largest Stake holders in many
other countries like Germany, Netherlands , Norway etc just like India,
where it has got the largest Stake in the Telecommunication Market.
• It can also improve its research and development of new mobile
technologies .
• It has got a good opportunity to become the largest mobile company
regarding the number of customers by focusing on developing
markets , for example Africa, Latin America, Russia etc.
 OPPORTUNITIES:
• (continue)
It can overtake China Mobile regarding the number of
customers by improving there administration, by providing
more facilities in Urban areas and extending its coverage area
to Rural areas.
• It can extend it Mobile Money Transfer Service to other
countries of the globe for example in India, Albania, African
countries etc, as well which will improve the revenue.
• It can increase its customers by sponsoring more and more
international events e.g. in sports , it can sponsor Foot ball
Word cup, Cricket word cup, Badminton Word cup etc.
 OPPORTUNITIES: (CHINA
MOBILE COMPANY)
• It can increase its customers by sponsoring more and
more international events e.g. in sports , it can sponsor
Foot ball Word cup, Cricket word cup, Badminton
Word cup etc as did by Vodafone in many countries
across the globe.

• It can extend its network to Europe ( where it should

compete with Vodafone) , to USA, to Latin America , to
Africa, to Middle East , to Russia, to Mongolia , to
Australia and many other regions and countries. Than
this company will become unbeatable.
 OPPORTUNITIES:
(continue)
• As it is the largest GSM company basis on the number
of customers ( which is 508 million by 2009) , it can
become the world largest GSM providing company on
revenue basis as well, by extending its network across
the globe as that of the Vodafone which extended its
network to 31 countries across the globe.

• Since the cities have become saturated, much of the new

growth is predicted for rural China and it is this
segment that is most likely to be targeted by the large
operators. 3G technologies provide the largest
opportunity for China Telecom.
 THREATS: (VODAFONE
COMPANY)
• It has got highly competitive market market across the
globe e.g. China Mobile Company emerged as largest
GSM providing company in the whole world.
• If China Mobile company introduced its services in
Europe and India ( the largest markets of Vodafone)
than there would be a great decrease in the revenue of
the company.
• It still lags behind major competitors in the USA.
 THREATS:
(continue)
• There are extremely high penetration rates of
new companies in key European markets.
• European Union regulation on cross-border
cell phone usage by customers
• Development of VoIP communication may
also reduce the use of GSM across the globe,
especially in Europe and America.
 THREATS: (CHINA MOBILE
• COMPANY)
As Vodafone is the emerging GSM provider company on the
basis of number of customers so China Mobile may lose there
customers if Vodafone introduced its network in Pakistan,
China and Hong Kong. And that would reduce their revenue to
a great extent.

• Ministry of Information and Industry has allocated a limited

frequency (44MHz) to the company which will not support
large numbers of subscribers in the future.

• China Mobile could face more competition in the future as the

Chinese Government plans to allow more operators into the
market. China Mobile has 70% of the 2G market in China.
China Unicom wants to become the biggest 3G operator and
China Telecom aims to win 15% of the 3G market by 2010.
 THREATS: (continue)
• It has got highly competitive market market across the globe e.g.
Vodafone Mobile Company emerged as largest GSM providing
company in the whole world on the basis of revenue, and its
number of customers increase day by day because it has
introduced its network in 31 countries across the globe.

• New subscribers are mainly low-use, low-value. So average

revenue is falling as the mobile phone market matures and the
market becomes more prices competitive. So mobile phone
suppliers are awaiting the introduction of 3G mobile technologies
to rejuvenate the market and stimulate demand as Chinese
customers consume the new added value services.
 CONCLUSION &
SUGESTIONS
FOR VODAFONE COMPANY:
• As China Mobile Company emerged as largest
GSM providing company in the whole world.
So Vodafone should increase their
number of customers to compete with China
Mobile Company by decreasing their cost.
• It still lags behind major competitors in the
USA.
So Vodafone should compete in the USA
market by introducing their network in the
USA and it should decrease their cost to the
minimum possible just to cover the market.
 CONCLUSION &
SUGESTIONS
(continue) FOR VODAFONE
• As there is extremely high penetration rates of new
companies in key COMPANY:
European markets.
So Vodafone Company should offer more and
more services to its customers with the minimum cost
possible to stop the penetration of the new competitors.
• Development of VoIP communication may also reduce the
use of GSM across the globe, especially in Europe and
America.
So Vodafone should offer more packages
especially regarding making of calls with the minimum cost
possible. Because it will help the GSM network to compete
with the VoIP communication, otherwise it will greatly
affect the revenue of the Vodafone especially in Europe and
America where the VoIP communication is developing with
enormous speed.
 CONCLUSION &
SUGESTIONS
FOR CHINA MOBILE
• COMPANY:
As there advertisements are very less as compare to
Vodafone so they should increase there advertisement.

• The sponsorships of china mobile is very less as

compare to Vodafone so they should increase their
sponsorship to get competitive advantages.

• The bandwidth utilization of China mobile company is

only 44MHz which is less as compare to Vodafone, due
to which its blocking capability of calls in busy hours
is more than Vodafone and so it has poor quality of
services than Vodafone
 CONCLUSION &
SUGESTIONS
(continue for China
Vodafone has trade Mobile)
• As the company is not globally diversified.(e.g. the
in 31 countries.). This may leave the
company exposed if the Chinese market were to go into a
deep or sustained decline.
So China Mobile should introduced their
network services in other countries across the globe just
like Vodafone who have introduced there services in 31
countries in the world while China Mobile has their
services only in 3 countries.
• As China Unicom wants to become the biggest 3G
operator in China.
So in order to take competitive advantages from
their competitors, they should start implementation of
3G technology.