Vodafone & China Mobile comparison on basis of SWOT Analysis ppt

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This is created by Engr. Abdul Rahman & Engr. Raham Taj of UET Peshawar Pakistan.This Power point presentation is about the comparison of the two largest GSM Network companinies of the world on the basis of SWOT Analysis i.e. Vodafone & China Mobile.

Transcript of Vodafone & China Mobile comparison on basis of SWOT Analysis ppt

Page 1: Vodafone & China Mobile comparison on basis of SWOT Analysis ppt
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Presentation on

COMPARISON BETWEEN

CHINA MOBILE & VODAFONE COMPANIES ON THE BASIS OF

SWOT ANALYSIS

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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CONCLUSION & SUGESTIONSFOR 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.

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CONCLUSION & SUGESTIONS(continue) FOR VODAFONE COMPANY:

• As there is extremely high penetration rates of new companies in key 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.

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CONCLUSION & SUGESTIONSFOR 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

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CONCLUSION & SUGESTIONS (continue for China Mobile)

• As the company is not globally diversified.(e.g. the Vodafone has trade 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.

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