China’s Mobile Phone Manufacturing Industry

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How is the mobile phone industry in China different from the one in the United States?

The mobile phone industry in China differs in many aspects of the economy from the one in the United States. The fact that United States is a developed country itself shows up as the major cause of the difference while China is a developing country with a population much higher than that of the United States. A developed country will have little number of people unexposed to mobile or mobile technology. So, an impact of the mobile phones can be seen in lowest strength. But the case of China is different as there can be more than the expected percent of the population with zero knowledge of mobile technology. The innovation of this becomes very much effective in such an environment. Mobile phone industry in United States is a well-informed domain with the Chinese market having many people including daily earners of least informed on various aspects of mobile phone technology.

Are investment opportunities attractive in China’s mobile phone industry?

The investment opportunity in China’s mobile phone industry is very much attractive due to the fact there is population that can be conquered well by the magic of mobile phone technology. “China Mobile built its early success on urban China.” (Part 2: Strategy formulation, n.d., p.152, para.4). It is a fact that already the mobile market has hit the cent percent target in many of the urban areas like Beijing, Shanghai and Shenzhen. The next step is to explore the rural areas. “China Mobile is plunging ever deeper into the interior” explains the steps taken to reach that desired goal. (Part 2: Strategy formulation, n.d., p.152, para.4). New towers are established in those areas that cover deserts, forests, mountains etc. The majority of the largest populations of the world are waiting for achieving the blessing of mobile technology. The farmers and other such workers find the signs as they can speak to the traders from the comfort of their home, while before they had to travel several kilometers to make a call. The people from China are happy about the mobile that they can market their goods and services to faraway places and even abroad. These acceptances can be exploited by mobile innovation in the Chinese population.

What difficulties will the mobile phone industry in China face as it tries to expand?

China Mobile faces many challenges in the manufacturing as well as the marketing sector. The boiling rate of growth in China is the first and most significant threat posed on the China Mobile business. The reaching of the technology up to the latest standards prevailing worldwide influences the China Mobile industry as well. They have to face a hard path all around to achieve those standards. Currently, they are borrowing the technology and techniques developed by the Europeans. China Mobile is trying to develop a self-proposed standard so that they can eliminate borrowing from others. The idea is far better than the existing adoption but the challenge is present in developing one. In a developing nation like China with a vast area and much vaster population, it becomes very difficult in making wider market for costlier mobiles. The demand can be spiked out in the groups of middle-class people who are the majority among the entire population.

Main patterns of development from China mobile

The main pattern of development from China mobile that can be adopted in the mobile industry of other countries is their focus on the major sector of the population in China. They are just focusing on the existing customers, but they are trying to attract those who are unaware of the technology as well as who can get profit from the use of mobile phones like farmers and petty traders. They are trying to keep the level of the marketed mobile phones to co-exist in the existing environment of the user. Another rule that can be saluted is their challenging proposals kept to achieve. They insist on developing their own technology rather than depending on the technology offered by any other countries of the world. This makes clear about their distant view of profit though they may crawl for a while. Also, their success in invading the market despite the tremendous growth rate in the country is praiseworthy and acceptable. They exhibit a power of confidence with all the challenges on their way with full strength.

Globalization is the strategy of approaching worldwide markets with standardized products

The analysis on the fact that ‘globalization is the strategy of approaching worldwide markets with standardized products’ is of greater significance in the contemporary world. The world market exhibits a mixture of technology, goods and services of almost all countries across the world. Goods and services of one country are able to be marketed in other countries through globalization. The market of a country thus has a choice among the products of a number of countries. So, it is natural that the buyers opt for the most efficient product among the available alternatives. Thus, there evolves a fact that “Understanding the nuances of competing in global markets is rapidly becoming a required competence of strategic managers.” (Pearce & Robinson, 2009, slide.4). Therefore, hopefully, the main strategy set by the strategic plans will be delivering the goods with the current peek standards in all aspects or above that. Mobile phones are also included in globalization and global standardization. Many companies are introducing different models of mobile phones with specific attractions of their own. So, each mobile manufacturer will try to market their products with the global standard or above.

Reference List

Part 2: Strategy formulation: Chapter 5 Discussion case: China mobile’s hot signal. Business Week. 152-153.

Pearce & Robinson. (2009). Strategic management: Chapter 5: The global environment: Globalization (11^th ed.). McGraw-Hill Companies.

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China’s Mobile Phone Manufacturing Industry

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