OBJECTIVES OF THE STUDY

All companies are having their own planning and business strategies but the company who is having the best, is the most successful company among its competitors. So the company can get success within its competitors by applying best and effective marketing strategies. The Primary objective of the project was to understand the Marketing Strategies Adopted for selling Chinese Mobile. To attain this objective various other sub objectives are needed to be achieved. These are listed below. To analyze the Availability & Visibility of various brand of products with special reference to Chinese mobile. To find out the Market share of Chinese Mobile in terms of Sales in Bareilly. To analyze the consumer preference to various brands of Chinese Mobiles through the Retailers. To analyze marketing strategies adopted by Chinese Mobile.

INTRODUCTION OF TOPIC
Marketing strategy
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Developing a marketing strategy Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: o Leader o Challenger o Follower o Nicher Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. o Product differentiation (broad) o Cost leadership (broad) o Market segmentation (narrow) Innovation strategies This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: o Pioneers o Close followers o Late followers

 Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers: o Horizontal integration o Vertical integration o Diversification o Intensification A more detailed scheme uses the categories: Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies. Strategic models Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal

brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. Real-life marketing Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable. For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.

PRESENT STATE OF AFFAIR

China Mobile Limited was started in 1997. Originally it was called China Telecom (Hong Kong) and then China Mobile (Hong Kong) and finally China Mobile Limited as we know it today. Its public offering in 1997 generated capital of USD $2.5 million. Headquarters : Queen's Road, Hong Kong Key people : Wang Jianzhou (Chairman & CEO) It is the worlds largest mobile network. China Mobile has also the greatest number of mobile subscribers. As of 2009, it is the world's largest mobile phone operator, with over 508 million customers,the largest Chinese company listed overseas and the largest telecom in Asia. A state-owned enterprise directly controlled by the government of the People's Republic of China but also a public company that is listed on the NYSE and the Hong Kong stock exchange, China Mobile has dominated Chinese mobile services since its inception. Services : Mobile services Value-added mobile services IP telephony The Chinese mobile industry has grown with incredible speed with 282 million cell phone subscribers at the beginning of 2004. This means that more than 25% of the new customers across the world mobile communication market are coming from China (CellularOnline 2004). According to Yan (2003) when considering that the diffusion rate of Chinese Internet use with only 49.7 million subscribers in 2002, 206.6 million subscribers in the mobile communication market in same year directly underscores the priority status of mobile technology. This also suggests

a higher acceptance rate of wireless internet than of wired Internet in China. In this China-specific situation, in which mobile technology seems to supersede wired Internet technology, it is foreseeable that mobile technology would be the best venue for introducing e-commerce technology. Up until 2004, the Chinese mobile communication market was dominated by two large companies, China Mobile and China Unicom. However, as China joins the World Trade Organization (WTO), this duopoly mobile market will be open for foreign operators from 2007. There are some indications that the mobile communication market has started to warm up to foreign rivals while the two domestic companies are losing their dominance to the Chinese mobile users (CellularOnline 2006). With the expected increasing competition in the Chinese mobile communication market in the near future, there is a need for systematic research on Chinese consumers in the mobile market. Making profits or even surviving in this largest but extremely competitive market may depend on an accurate understanding of Chinese mobile users, especially given Chinas unique cultural disposition and economic dynamics. Therefore, it is valuable to fill the gap of international dimensions in the field of mobile technology researches and to investigate how Chinese consumers in the largest world market behave and react to this newly adopted but rapidly diffused mobile technology. For investigating Chinese consumers technology acceptance process, this research adopted the Unified Theory of Acceptance and Use of Technology (UTAUT) developed by Venkatesh et al. (2003) with finding how the theory can be useful to explain Chinese adoption of the mobile technologies. UTAUT has been considered the most prominent and unified model in the stream of Information technology adoption research with high robustness of the instruments regarding the key constructs (Li and Kishore 2006). Most of the previous studies were based on and conducted in developed countries, mainly in the United States and European nations. The legitimacy of applying standardized research methodologies and results from

these western nations to understand the rapidly evolving Chinese mobile technology market is questionable (Zhang and Prybutok 2005). As noted by researchers, there is a need to test the models of IT acceptance in different cultural settings such as China because culture has been recognized as a significant construct impacting IT acceptance (Straub and Brenner 1997). Particularly, regarding attitudes toward mobile technology, Harris et al. (2005) emphasized a critical role of cultural factors and found significantly different usage patterns on attitude formations to various mobile services including SMS from Hong Kong and United Kingdom users even two countries have similar mobile technology infrastructures. Individuals are socialized early in life into a national culture with a group of values which influence what information is processed (Hofstede 2001). In particular, the moderating effect of variables introduced in the original UTAUT, such as gender, education and Internet experience, are expected to differ from the results of western market research because the nature of these moderators seems to be inherent in cultural settings. Thus, this research applies the extended UTAUT to the context of researching Chinese consumers mobile technology adoption and seeks to identify the characteristics of Chinese consumer mobile adoption behaviors. A specific interest of this research is to investigate the effects of culturally driven moderating variables such as gender, education, and past experience of the Internet. As such, this research can anticipate related problems concerned with the challenges of managing technology acceptance in China with providing great understanding of mobile technology acceptance patterns.

China was for long a nation addicted to opium and the Opium wars of the nineteenth century are testimony to it. But with the defeat of the American puppet Chiang Kai Shek and the establishment of a communist regime in 1949, China began to move ahead. But the real change came in the eighties and nineties when China adopted market economics and launched an array of products that were good duplicates of products of other companies. China Enters Mobile Market China also entered in to the lucrative mobile phone market and flooded the entire world with mobile phones. The phone though slightly lacking in quality to say Nokia and Samsung, never the less were marketed at a third of the prices of the established brands. This was good market economics to break into the consumer market by showcasing a mobile phone almost similar to the established brands, but at a much cheaper price. Price as we all know is one of the factors of market economics and this China has scored. They are able to generate and market mobile phones that are extremely cheap. This is because the input costs in China are low and the economy is basically state-owned. But the result is very beneficial for the consumer. Price as a Factor Chinese mobile phones have now flooded the Indian market and a visit to the Manish market near Crawford market will reveal a bewildering variety of mobile phones on display. These mobiles ranging from a few hundred rupees to about 3000 rupees are in my opinion certainly worth their value, as similar phones of the established companies would cost at least 3 times this price. Even in the USA the Chinese phones have created a market for themselves. No wonder that

the established manufacturers are alarmed. The Chinese made phones are sold in thousands and in real terms have revolutionized the concept of mobile phones. The Chinese phones come with a range of gadgetry that is surprising. You get phones that will catch Television, double cameras and videos and all standard functions in a normal mobile phone. Earlier the Chinese phones were without the IMAEI number, but the new phones are distinct and cater to the latest Government regulations. Durability of Chinese Phones The only question mark is about the durability of the Chinese products. My friends have purchased Chinese mobiles and they are working well over a year. But I have a lurking feeling that the phones may have a shorter life span as compared to the established players. But with an abysmal low price, this has to be expected. Also these phones are not repairable and once a piece goes bad it has to be just thrown in the dust bin. Last Word Chinese mobiles are now even available with the latest 2G and 3G technology as well as satellite phones. All in all the Chinese made mobile phones have certainly shaken a moribund west and it is a tribute to eastern genius. It will be a good idea if India can take a leaf out of the Chinese book. Would it not be a pleasure to see Indian manufactured products like mobile phones on the world market? As an Indian I would love it.

For the six months ended 30 June 2011, the Groups operating revenue maintained favorable growth, reaching RMB250.1 billion, up 8.8% over the same period last year. Revenue from the value-added business contributed 32.2% of operating revenue, reaching RMB80.4 billion and up 18.5% over the same period last year. The wireless data business achieved revenue of RMB19.3 billion, an increase of 42.8% over the same period last year. Continuing to lead the industry in terms of profitability, the Groups profit margin reached 24.5%, and profit attributable to shareholders increased 6.3% over the same period last year to RMB61.3 billion. EBITDA rose 6.5% over the same period last year to RMB124.2 billion, with EBITDA margin reaching 49.6%. Basic earnings per share grew 6.3% over the same period last year to RMB3.05. Underpinned by its sound capital structure, solid financial position and strong cash flow generating capability, the Group is favorably positioned to manage risks and achieve sustainable growth. BUSINESS DEVELOPMENT In the first six months of 2011, the Group maintained relatively good momentum in its business development. The Group has seen notable growth in new customer additions. Its total customer base exceeded 610 million by the end of the reporting period, with a net addition of 32.77 million customers and the mid-to high-end customer base remaining stable. In the meantime, the number of corporate customers continued to climb steadily, reaching 3.1 million. Voice usage volume continued to increase. Total voice usage volume was 1,886.5 billion minutes, up 13.3% over the same period last year. Average minutes of usage per user per month (MOU) reached 528 minutes and average revenue per user per month (ARPU) was RMB70. The 3G customer base grew rapidly. By the end of the

reporting period, the Group had 35.03 million 3G customers, continuing to boast the highest number of customers in the 3G market. The value-added services business grew rapidly, with SMS and MMS

maintaining steady growth, and Wireless Music, Mobile Reading, Mobile Gaming and Mobile Video all enjoying increases in customer bases and revenue. Wireless data business grew rapidly and continued to demonstrate high growth momentum. Accounting for 7.7% of total operating revenue, this revenue stream has become an important driver of the Groups growth. Leveraging the advantages of our large customer base and network size, we continued to expand to new areas and explore new business models in order to effectively push forward our business development in mobile Internet and the Internet of Things. We furthered Mobile Markets viability as a one-stop shop for applications development and downloads and as a comprehensive sales platform, and we accelerated the integration of its value chain as well as the process of its internationalization. These all helped Mobile Market maximize its impact on the mobile Internet field. By the end of June 2011, Mobile Market had 86 million registered customers and 2.4 million registered developers, among whom 890,000 active developers already had their applications put on-line. In the first six months of 2011, 260 million application downloads were recorded. Mobile Market has become the largest shopping mall for Chinese application software in the world. For the Internet of Things, the Group proactively explored various sales and marketing The Group models, further promoted the usage of application templates and standardization of products, and improved its product portfolio management. strengthened cooperation with local governments to vigorously promote the building of Wireless City. The governments of over 130 cities in 25 provinces have signed cooperation agreements with the Group

to establish Wireless City which is widely used in hosting government web portals, energy management programs, intelligent traffic control and digital communities. This helps enrich application variety and increase our customer loyalty. Adhering to our mantra of Customers are our priority, quality service is our principle, the Group undertook a series of programs to improve customer satisfaction. New measures were taken to better protect customer rights, such as improving transparency of spending for customers. In the first six months of 2011, we had the lowest monthly rate of complaints from customers among all our peers in the country. NETWORK DEVELOPMENT AND EVOLUTION The Group is committed to the belief that network quality is the lifeline of a telecommunications company. To cope with the trend of booming mobile data traffic resulting from the popularization of intelligent terminals, we proactively sought to implement a forward-looking and well-coordinated Four Networks development strategy, under which we allocated our resources in a scientific way and strengthened network construction according to the different technological features and capacities of 2G, 3G (TD-SCDMA), WLAN and the future TD-LTE networks. And in so doing, we were able to ensure that our overall network quality continued to lead the industry. The Group further expanded WLAN coverage to include over one million access points by the end of June 2011. At the same time, we continued to enhance our WLANs operating quality and its capacity to carry data, which helped divert the wireless data traffic effectively. In the first six months of 2011, the dataflow on our WLAN accounted for almost 50% of our wireless data traffic.

The 3G network built by our parent company with our assistance currently covers all the county-level and above cities in China. Good network quality was achieved coverage of 3G network in heavily trafficked areas. We have actively promoted home-grown innovation and have made through network optimization and enhanced continuous

significant progress on TD-LTE. In the first six months of 2011, our large scale testing of TD-LTE across six cities and the showcase TD-LTE network in Beijing progressed on schedule. This year, together with international mobile operators, we introduced the Global TD-LTE Initiative which was subsequently endorsed by 24 mobile operators, forming a common ground for the industry to take forward the global commercialization of TD-LTE. CORPORATE MANAGEMENT AND GOVERNANCE In 2011, we continued to look for ways to further streamline our low-cost, highly efficient operations. A centralized management model implemented across multiple operational fronts including has been financial

management, network maintenance, equipment procurement, customer service, brand building and new business operations. The Groups subsidiary, China Mobile International Limited, has been established and started operations, and our terminal company was restructured, signifying that the Group has made a substantive step towards specialized functional operations as part of its management strategy. Abiding by corporate governance principles of integrity, transparency, openness and high efficiency, the Company has instituted a sound governance structure and taken practical measures to ensure best corporate governance practices.

In the first six months of 2011, we carried out thorough internal financial audit, internal control audit and risk evaluation. The Group also conducted special audits focusing on certain high risk areas in order to improve and optimize management systems. The Group further enhanced its closed-loop management systems to avoid material operational risks. These improvements will help the Group achieve long-term, sustainable and healthy development. APPOINTMENT OF DIRECTOR On 26 July 2011, the Board of Directors of the Company was pleased to announce that, as proposed by the Nomination Committee of the Company and after review and approval by the Board, Mr. Xi Guohua was appointed as Executive Director and Vice Chairman of the Company. We firmly believe that Mr. Xi Guohuas expertise and extensive experience in telecommunications business management, operation and technology will be of great value to the Company. I take this opportunity to welcome him as a member of the Board. CORPORATE DEVELOPMENT The Group attaches great importance to corporate social responsibility. In the first instance, the Group makes a solid contribution to society by providing an extensive and reliable network and narrowing the digital divide. In addition, the Group has done its part to address climate change and has participated in various philanthropic initiatives. During the first half of 2011, in the wake of several natural disasters such as the earthquake in Yunnan province and the heavy rains in southern China, telecommunications service and we acted ensure swiftly to provide emergency the smooth flow of mobile SOCIAL RESPONSIBILITY AND SUSTAINABLE

telecommunications, which were essential to the relief work conducted in affected areas. Fully committed to energy saving and emissions reduction, we

furthered our Green Action Plan by promoting energy- saving technologies and innovations in various areas of our operations, including adopting precision temperature control in facility rooms, and using solar, wind and other natural energy for power supply in our telecommunications base stations. Our power consumption per unit of telecommunications traffic decreased by 8.7% over the same period last year. Through the China Mobile Charity Foundation and other philanthropic activities, we contributed to education support, childcare and poverty aid, among which, the Warm China 12.1 Fund China Mobile Care Operation, has financed 14,292 children who are either living in extreme poverty condition or are orphans who lost their parents to AIDS. AWARDS AND RECOGNITION In the first half of 2011, our achievements continued to be recognized. The Company was again included and ranked 16th in the Financial Times FT Global 500, and moved up to 34th from 38th place last year on Forbes Magazines Global 2000 list. The China Mobile brand was named one of BRANDZTM Top 100 Most Powerful Brands by Millward Brown and Financial Times for the sixth consecutive year, and the brand value increased by 9% and ranked 9th among all companies considered. In the same period, Standard & Poors and Moodys kept our corporate credit rating at AA-/Outlook Stable and Aa3/Outlook Positive respectively, in line with Chinas sovereign credit rating. DIVIDENDS In view of the Groups good profitability in the first six months of 2011 and taking into consideration its long-term future development, based on the dividend payout guidance for the full year of 2011, the Board declared an

interim dividend of HK$1.580 per share for the six months ended 30 June 2011. The Board is of the view that the Companys good profitability and strong cash flow generating capability will continue to support the future sustainable development of the Company and provide shareholders with a favorable return. FUTURE OUTLOOK Cross-industry competition arising from the convergence of industries, intensified competition among the traditional telecommunications industry players and the slowdown of growth all present the Group with challenges. At the same time, the continuous development of the national economy and increasing domestic consumption will further boost demand for telecommunications and information services. Favorable external factors such as the Chinese governments support for home-grown telecommunications technology will gradually fuel the Groups future development. The vigorous growth of mobile Internet and the popularization of the Internet of Things will also present us with a broad range of opportunities. Facing both opportunities and challenges, we will fully implement our sustainable development strategy, pushing for constant innovation and the realization for added value through cost-effective operations. We will expand into new areas and lead the development of mobile Internet and Internet of Things to achieve greater scale, which we think will be essential to value creation and growth going forward. We will explore new models to build compatible and integrated platforms to offer win-win opportunities and future competitive advantages. We will strengthen our customer service orientation and business innovation to solidify our leading position in the market. We will

build high quality, efficient, forward looking, integrated and open networks. At the same time, we will continue promoting the operation of 3G networks. Leveraging our international influence, we will accelerate the worldwide development of TD-LTE technology. We will look for appropriate investment opportunities in an active but cautious manner to broaden our presence in the telecommunications market. As always, we will strive to create value for our shareholders

PLAN AND POLICIES

The telecommunications industry in China is dominated by three state-run businesses: China Telecom, China Unicom and China Mobile. The three companies were formed by a recent revolution and restructuring launched in May 2008, directed by Ministry of Information Industry (MII), Nationals Development and Reform Commissions (NDRC) and Minister of Finance. Since then, all the three companies gained 3G licenses and engaged fixed-line and mobile business in China. As a result of Chinas entry to the World Trade Organization (WTO) in 2001, a new regulatory regime is now being established and foreign operators are gradually being allowed to access the market. Although Chinese customers keep complaining that they need to pay higher prices for products and services and receive lower-quality services than customers in America or Europe, foreign travellers often feel that telecommunication services in China are cheap and convenient. As Chinas 2nd generation of mobile communications equipment market is dominated by European and North American companies and because of the unique characteristics of mobile communications, most of Chinas mobile communications equipment demands are filled by imports. The quickly rising Chinese manufacturers, however, led by Huawei Technologies and ZTE are turning to South American, Southeast Asian and African countries for business opportunities and are increasingly raising their market share in China. As of 2009, Huawei Technologies is expected to surpass Nokia-Siemens Networks and Alcatel-Lucent to become the 2nd largest manufacturer of telecommunications equipment. As of June 2010, there were a total of 1.1 billion phone users in China, of which 306 million were fixed-line telephone users, and 796 million were mobile phone users.

Introduction The Chinese telecommunication sectors growth rate was about 20% between 1997 and 2002. China fixed-line and mobile operators have invested an average of 25 billion US dollars on network infrastructure in the last years, which will be more than all western European carriers combined. As a result, with 1.3 billion citizens, China owns the worlds largest fixed-line and mobile network in terms of both network capacity and number of subscribers. Only one out of ten Chinese citizens had a phone five years ago. Today more than one out of three have a fixed telephone subscription and more than 1.25 million cellular subscribers sign up in China every week. Chinas accession to the World Trade Organization (WTO) on December 11, 2001 resulted in the gradual opening of the telecom services market to foreign companies. Chinas two mobile operators, China Mobile and China Unicom, will continue to expand their mobile networks in 2005 in a way that not only increases network coverage but also gives flexibility to offer more data services to their customers. They will continue to have great demand for base stations, switches and network optimization solutions. Historical overview Before 1994, the Ministry of Posts and Telecommunications (MTP) provided telecom services through its operational arm, China Telecom. Pressured by other ministries and dissenting customers, the Chinese government officially started the telecom industry reforms in 1994 by introducing a new competitor: China Unicom. China Unicom could hardly compete with the giant China Telecom. In 1998, due to a ministerial reorganization, the MTP was replaced by the new Ministry of Information Industry (MII). The MII took two large scale reshuffling actions targeting the inefficient state-monopoly. In 1999 the first restructuring split China Telecoms business into thee parts (fixed-line, mobile and satellite). China Mobile and China Satcom were created

to run, respectively, the mobile and satellite sectors but China Telecom continued to be a monopoly of fixed-line services. The second restructuring in 2002 split China Telecom geographically into North and South: China Telecom - North kept 30% of the network resources and formed China Netcom (CNC) and 70% of the resources were retained by China Telecom - South or simply the new China Telecom. Parallel to this double fission, the telecommunications division of the Ministry of Railways (MOR) established a new actor in 2000: China TieTong. These resources consisted of a 2,200,000 km long nation-wide optical network, based on Asynchronous Transfer Mode (ATM), Synchronous Digital Hierarchy (SDH) and Dense Wavelength Division Multiplexing (DWDM) technologies and several submarine cables, in particular with the USA, Japan, Germany and Russia. To sum up, in the last decade the Chinese telecom industry has changed from a state-run monopolistic structure to state-run oligopolistic structure. In May 2008, MII, NDRC and Minister of Finance announced the third restructuring proposal and also launched three 3G licenses. With the rapid development and serious competition, Chinese telecom operators face challenges on shrinking landline users, too rapid growth on mobile business, low profit services and great gaps among the carriers. The third revolution was to combine six main telecom operators into three, aiming of developing 3G business and full telecom services, and avoiding monopolistic and over competition. Regulatory environment The MII is responsible, among other duties, for elaborating regulations, allocating resources, granting licenses, supervising the competition, promoting research and development and service quality as well as for developing tariff rates. The MII has built up a nation-wide regulatory system composed of Provincial Telecommunications Administrations (PTA) with regulatory functions within their respective provinces. A number of other significant

institutions also influence the industry, such as the State Development and Reform Commission (SDRC). Following its WTO accession, China is starting to make plans, including adopting western-style telecommunications law and setting up an independent regulatory and arbitration body to deal with the telecom operators. Foreign participation Prior to its WTO accession, Chinas policy protected the national emerging telecom industry since it was and is a national priority sector. Only foreign equipment vendors were allowed to invest in China. Authorization for the investments was conditioned on technology transfer. International telecom carriers were banned from accessing the market. As part of the WTO commitments, the Chinese government is opening gradually the carriers market to foreign investors. There are some geographical limits to this opening but they will be progressively relaxed. In 2005 foreign investors will be allowed for form joint ventures, investing up to 50% in Internet services in the whole country, up to 49% in the mobile sector in 17 major Chinese cities and up to 25% in fixed-line basic services in Beijing, Shanghai and Canton (Guangzhou). Finding a Chinese partner to form a joint venture with, preferably a major carrier is mandatory for a foreign company wishing to access the Chinese market. Foreign investments come, in order of importance, from the United States, Canada, Sweden, Finland, Germany, France, Japan and South Korea. Main companies from these countries already have one or more Joint Ventures. Notice that many of them result in divorce.

Market overview As of June 2010, China has 306 million fixed-line subscribers and 796 million mobile customers, totaling 1.1 billion telephone users. Chinese telecom operators focus their effort on voice. Revenues from data only account 5%. New technologies are being deployed to provide differential services. These technologies include ADSL, wireless LAN technology, IP (Internet Protocol) telephony and services associated with mobile communications such as Short Messaging Service(SMS), Multimedia Messaging Service (MMS), ring tone download etc. Premium SMS connectivity is allowing entrepreneurs and established businesses to profit from revenue taken directly from users' monthly phone bills or pre-paid credit. One of the first companies to offer such Chinese Premium SMS connectivity to the world market and to advise on the regulations and requirements involved are mBILL via. Chinese operators are often cautious in purchasing cutting-edge technologies. Mobile communication, especially Global System for Mobile (GSM) is the most profitable sub sector and reports 46% of all total revenues. Halfway between mobile and fixed, Xiaolingtong is a limited mobility service based on Personal Access System (PAS) / Personal Handy Phone System (PHS) technology. It consists of a wireless local loop that provides access to the fixedline network. With over 50 million users, PAS/PHS competes in big cities head to head with traditional mobile services since prices are typically far cheaper. Telecom operators As of 2009, the telecom operators in China are exclusively Chinese: two fixedline operators with nation-wide licenses - China Telecom and China Unicom three mobile carriers - China Telecom (CDMA and CDMA2000), China Mobile (GSM and TD-SCDMA) and China Unicom (GSM and WCDMA). The State has control and majority ownership of all of them. Most of them are financed in Hong Kong.

China Telecom is one of the largest telecommunication SOE in China, including 31 nearly autonomous provincial enterprises in mainland China. It runs land-line and mobile phone networks, operates PAS system and provides telecom network-based voice, data, multimedia and information services. In 2008, the company acquired CDMA network from China Unicom. A second focus point is broadband based on Ethernet and ADSL. In Jan 2009, China Telcom was one of the three companies having 3G license, CDMA2000.

China Mobile not only operates basic GSM services but also valueadded services such as General Packet Radio Service (GPRS) data transfer, a TD-SCDMA 3G network, IP telephony and multimedia. It ranks the first in the world in terms of network scale and customer base.

China Unicom merged with China Netcom in Oct 2008 and obtained WCDMA license in Jan 2009. The company offers mobile phone services, operates domestic and international landline network, and provides broadband multimedia services and IP telephony and valueadded services.

China Netcom was acquired by China Unicom in Oct 2008. China Satcom is formerly licensed to engage in all kind of satellite related services such as transponder lease, domestic television broadcasting, public Very Small Antenna Aperture (VSAT) communications, video conferencing, data broadcasting, IP telephony and satellite based high-speed Internet access. In March 2009, the company officially announced its basic telephone services (excluding satellite transponder lease and sales) were merged with China Telecom. The other part, satellite related services will be merged with China DBSAT,

China TieTong, formerly affiliated with the national rail network, is a smaller operator that merged with China Mobile in May 2008.

China Voice Holdings Corp is also licensed to engage in video conferencing, data broadcasting, IP telephony and satellite based highspeed Internet access and is the largest corporation in conjunction with foreign owned corporations which hold many of the state run contracts for the Chinese government.

Network equipment suppliers in China The leading international suppliers of network equipment - Alcatel-Lucent, Cisco, Ericsson, Nortel and Siemens - as well as the major international suppliers of portable phone sets - Ericsson, Motorola, Nokia, Samsung, and also Siemens - are well known in China. A large number of Chinese companies compete now with foreign corporations not only in the Chinese market but also in other countries. Datang is the main TD-SCDMA manufacturer, and UTStarcom, the main PAS/PHS manufacturer. Huawei leads the SMS market and Great Wall stands out in the broadband sector. Other recognized Chinese equipment suppliers are Shanghai Bell and Zhongxing Telecommunications Equipment (ZTE). Furthermore, Amoi, Konka, Ningbo Bird and Kejan are the most representative Chinese mobile phone manufacturers. Online and mobile gaming Chinese fixed line telecom operators will work with their business partners, online gaming operators and ISPs/ICPs, to provide online games and mobile games in 2005. This can be a market of billions of U.S. dollars. Online gaming/mobile gaming developers work with the telecom operators directly or work with gaming operators and ISPs/ICPs to market their games in China. Wireless LAN Chinese fixed line telecom operators, China Telecom, China Netcom and China Tie Tong (formally China Railcom), may increase their efforts in building wireless LAN networks to provide their customers with fast and easy wireless

access to the internet. The fixed line telecom operators will continue to promote ADSL and other broadband access technologies in China. Public safety system With increasing awareness of the importance of governments ability to deal with critical situations, there is a growing demand for emergency response systems in China. Without an organization like the National Emergency Number Association (NENA) in the United States, China has not yet developed a national technical standard for its emergency response system. At present, large and economically well-off cities in China like Beijing, Tianjin, Nanning and Chengdu have started building public safety networks by introducing TETRAbased digital trunking system that integrate with their existing analogue systems. More Chinese cities followed in 2005. There has been development of database software, interoperability consoles and data management systems.

SWOT ANALYSIS

SWOT analysis, with its four elements in a 2x2 matrix. SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business, or project team that give Weaknesses (or Limitations): are characteristics that place the Opportunities: external chances to improve performance (e.g.

it an advantage over others

team at a disadvantage relative to others

make greater profits) in the environment

Threats: external elements in the environment that could cause

trouble for the business or project Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development. Matching and converting One way of utilizing SWOT is matching and converting. Matching is used to find competitive advantages by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted a company should try to minimize or avoid them. Internal and external factors The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories:

Internal factors The strengths and weaknesses internal to the External factors The opportunities and threats presented by the

organization.

external environment to the organization. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent

strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix. SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats. It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important. Use of SWOT analysis The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey. Criticism of SWOT Some findings from Menon et al. (1999) and Hill and Westbrook (1997) have shown that SWOT may harm performance. SWOT - landscape analysis

The SWOT-landscape systematically deploys the relationships between overall objective and underlying SWOT-factors and provides an interactive, query-able 3D landscape. The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the dynamic performance of comparable objects according to findings by Brendan Kitts, Leif Edvinsson and Tord Beding (2000). Changes in relative performance are continually identified. Projects (or other units of measurements) that could be potential risk or opportunity objects are highlighted. SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use (for ex. capital value fluctuations). Corporate planning As part of the development of strategies and plans to enable the organization to achieve its objectives, then that organization will use a systematic/rigorous process known as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors.

Set objectives defining what the organization is going to do Environmental scanning

Internal appraisals of the organization's SWOT, this needs of products/services and an analysis of the

to include an assessment of the present situation as well as a portfolio

product/service life cycle Analysis of existing strategies, this should determine relevance from the results of an internal/external appraisal. This may include gap analysis which will look at environmental factors

Strategic Issues defined key factors in the development of a Develop new/revised strategies revised analysis of strategic Establish critical success factors the achievement of objectives Preparation of operational, resource, projects plans for strategy Monitoring results mapping against plans, taking corrective

corporate plan which needs to be addressed by the organization

issues may mean the objectives need to change

and strategy implementation

implementation

action which may mean amending objectives/strategies. Marketing Main article: Marketing management In many competitor analyses, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. Accordingly, management often conducts market research

(alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site)

observation

Marketing managers may also design and oversee various

environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis. Using SWOT to analyse the market position of a small management consultancy with specialism in HRM. Strengths Reputation marketplace Weaknesses Opportunities Threats in Shortage of Well Large consultants rather Expertise HRM consultancy at established than well consultancies operating level position with a operating at a defined minor level Other small to partner level market niche at Unable to deal Identified multi- market disciplinary assignments or lack of

partner level in with

for consultancies

consultancy in looking areas other than invade the

because of size HRM ability

STRENGTHS
China Mobile was listed fifth in Millward Brown's Brandz Top 100 Brands in 2007. This would have be unheard of 10 years ago (or even less). The news means that the company is becoming more than a business since it is now also a brand i.e. possessing brand equity and brand value. Other Chinese brands to break the top 100 were the Bank of China, the Chinese Construction Bank and IBBC. It is argued by many that Chinese companies are not strong in relation to marketing but perhaps things are changing. China Mobile's has the world's largest GSM network, which encompasses all 31 provinces, autonomous regions and directly-administered municipalities in Mainland China and includes Hong Kong, too. The company has made good profits over recent years. China Mobile has gone down the acquisition trail on a number of occasions. In its early days it took over Jiangsu Mobile (1997). Other important acquisitions include Fujian Mobile, Henan Mobile, and Hainan Mobile (1999); - and Beijing Mobile, Shanghai Mobile, Tianjin Mobile and Hebei Mobile (2000). These developments have delivered strong growth. China Mobile is number one in the Chinese market. It recorded a 67.5% market share in 2006. It is the world's largest digital mobile company, and serves more custom As of 2009, it is the world's largest mobile phone operator, with over 508 million customers, the largest Chinese company listed overseas and the largest telecom in Asia ers than any other mobile supplier.

While a state-owned enterprise, it is listed on both the NYSE and the Hong Kong stock exchange. China Mobile expanded overseas in 2007, with the purchase of Paktel in Pakistan, and launched the ZONG brand there a year later. In May 2008 the company took over China Tietong, a fixed-line telecom and the third largest broadband ISP in China, thus adding internet services to its core business of mobile services.

WEAKNESSES
According to the head of China Mobile, China's home-grown mobile technology is a few years behind that of its international competitors since it was having problems with handsets. Essentially 3G technology was lagging behind. Part of the problem was the choice to swap to TD-SCDMA's network which many would consider inferior to the 3G technology offered by European and American alternatives (which their competitors have decided to adopt). The company is not globally diversified. Telecoms companies tend to trade in more than one country, usually through acquisition, joint-ventures or strategic alliances (for example the Vodafone company has trade in many countries.). This may leave the company exposed if the Chinese market were to go into a deep or sustained decline. Although it is the largest GSM company in the whole world regarding the number of costumers but still its revenue is prety 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
The Chinese economy has undergone enormous growth, which has lead to the huge demand for mobile telephones, devices and technologies. According to the Chinese Government, China is the world's largest mobile market with 520 million mobile phone users. This number could reach 600 million by 2010. Budget users in China are driving growth in the mobile telecoms sector. China Mobile reported a net profit between January and March 2008 of around 24.1bn yuan (3.4bn; 2.2bn) which is a rise of 37% on 2007 according to BBC News. 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. As it is the largest GSM company basis on the number of customers ( which is 508 million by 2009) , it can become the world larget GSM providing company on revenue basis as well, by extending its netword across the globe as that of the Vodafone which extended its network to 31 countries across the globe. China Mobile Company ( i.e. ZONG mobile company) can beat all the other companies in Pakistan e.g. Mobilink, ufone , warid , telenor, by reducing there cost, introducing new services for example Mobile Money Transfer Service as Vodafone did start it in many countries across the globe and other services as well because it is largest company in the world so it will not affact its revenue that much if they reduces there cost comparing to other companies in Pakistan. It can extend its netword to Europe ( where it should compete with Vodafone) , to . USA, to Latin America , to Africa, to Middle East , to Russia, to Mongolia ,

to Australlia and many other regions and countries. Than this company will become unbeatible. It can increase its customers by sponsering more and more international events e.g. in sports , it can sponser Foot ball Word cup, Cricket word cup,

THREATS
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 price 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. 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. China Mobile has a number of service obligations under agreements with the Chinese (PRC) Government. So the business may be obliged to provide unprofitable services that pay a social dividend. Added to this the 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. As Vodafone is the emerging GSM provider company on the basis of number of customeres 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.

FINDINGS
China and India, whose population together totals up to 2.5 billion, are today the engines of growth in the midst of rapid economic transformation in the global economy. In fact, they are major factors driving the shift of the global economic focus towards Asia. This study finds that as far as telecommunication industry is concerned, it is playing a major role in this rapid economic development of both the countries and will continue in future. Although Indian and Chinese telecom industry has been growing for so many years but the opportunity is still very large as tele density is still around 20 and 4o percent in India and China. This study also concludes that there is basic difference between the Indian and Chinese telecommunication industry especially in the structure. Indian telecom industry includes players like Indian companies, foreign companies and government companies but Chinese telecom industry includes only domestic players in service providing but having domestic as well as foreign players of telecom equipment supply. One interesting thing as far as role of intermediaries is concerned in telecom industry is that Indian telecom almost depends upon intermediaries for their service selling but it is not the same situation with Chinese telecom industry who are very less dependent on intermediaries for their service selling rather they are doing this activity by themselves. This study clearly concludes that Chinese telecom companies are not so much concerned with retention of customers as they are enjoying monopoly in their respective field but it is not the same case with Indian telecom companies as the competition is very tough and customer retention is main attention for each company. In making corporate marketing strategy on the one hand Chinese telecom companies are enjoying the benefits of policies of government in service

providing sector as they are free of fear of foreign competitors but telecom industry of India do not enjoy such benefits as the Foreign Direct Investment limit is 74% in telecommunication sector. India also dont have support of domestic telecom equipment supply companies as all the supplier are foreign companies but the Chinese telecom industry have support of their domestic companies like Huawei and ZTE which are supplying telecom equipment. In the last this study concludes that there are quite similarities as well as dissimilarities in the marketing methods of Indian and Chinese telecom industry and it is mainly due to different marketing environment and policy regarding telecom sector available in both countries.

CONCLUSION AND SUGGESTION

As the company is not globally diversified. Telecoms companies tend to trade in more than one country, usually through acquisition, joint-ventures or strategic alliances (for example the Vodafone company has trade in many 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. According to the head of China Mobile, China's home-grown mobile technology is a few years behind that of its international competitors since it was having problems with handsets. Essentially 3G technology was lagging behind. Part of the problem was the choice to swap to TD-SCDMA's network which many would consider inferior to the 3G technology offered by Vodafone. And China Unicom wants to become the biggest 3G operator in China. So in order to take competitive advantages from their competators, they should start implementation of 3G technology. As there advertisements are very less as compare to Vodaphone so they should increase there advertisement. The sponserships of china mobile fone is very less as compare to voda fone so they should increase their sponsership to get compatitive advantages. The bandwidth utilization of china mobile fone compani is only 44MHz which is less as compare to voda fone, due to which its blocking capability of calls in

busy hours is more than voda fone and so it has poor quality of services than voda fone

BIBLIOGRAPHY
WEBSITES

www.wikipedia.com www.google.com www.chinamobile.com

BOOKS