China Mobile is the most profitable telecom company in Asia and will implement blue ocean strategy

JasonYoo

China Mobile is the most profitable telecom company in Asia and will implement blue ocean strategy [Copy link]

In the eyes of the State-owned Assets Supervision and Administration Commission, China Mobile has become the national team of China's telecommunications industry; as the largest telecommunications company in Asia by market value, it is still a gold mine for investors; many people are curious: Wang Jianzhou's market value has doubled in 18 months since he took office, which is equivalent to creating another China Mobile or 5 China Unicoms in the capital market. How far will this miracle go?

　　In the past 18 months, Wang Jianzhou, president of China Mobile Communications Group Co., Ltd. (hereinafter referred to as China Mobile), may be the most popular CEO in the Hong Kong capital market and even in the New York Stock Exchange. From suspicion to trust, Wang Jianzhou may also be the CEO who has experienced the most ups and downs of the capital market in 18 months. On March 20, China Mobile (Hong Kong) Co., Ltd. (hereinafter referred to as China Mobile Hong Kong) released its first quarter operating data, which was as high as 27.6% over the previous quarter, and the monthly new users exceeded the average level of 3 million last year, easily jumping over the 4 million mark.

　　On March 18, Wang Jianzhou, Chairman and CEO of China Mobile Hong Kong, announced in Beijing that China Mobile has moved from the stage of "striving to become a world-class telecommunications operator" to the journey of "becoming a world-class telecommunications company."

　　Wang Jianzhou made the above statement to some media in Beijing at a typical publicity media meeting of state-owned enterprises. Apparently, this statement was recognized by the leaders of relevant departments of the State-owned Assets Supervision and Administration Commission. Wang Jianzhou also used the term "national team of mobile communications" for the first time to explain China Mobile's international status.

　　The respect gained by Asia's No.1

　　As early as a month ago, investors had been secretly calculating when China Mobile Hong Kong's share price would break through HK$50 per share and reach a market value of over HK$1 trillion.

　　In November 2005, China Mobile Hong Kong's market value exceeded US$96 billion for the first time, becoming the largest stock in Asia. As of press time, China Mobile Hong Kong's market value exceeded US$115 billion, which is equivalent to creating another China Mobile or five China Unicoms compared to the market value when Wang Jianzhou took office as president of China Mobile.

　　China Mobile, Asia's largest telecom stock, has experienced the ups and downs of the capital market in 18 months, which is little known. Wang Jianzhou once said with a smile, "If you make investors make money, they will be very happy; but if you do not do well and make them lose money, their attitude will also be very obvious."

　　In February 2006, Wang Jianzhou, who was attending the 3GSM exhibition in Barcelona, was interrupted by applause several times during his speech. The more than 2,000 attendees were excited that China Mobile spent 9 billion yuan to build village access projects and that the value-added business revenue exceeded 20% of the total revenue. Among them were many fund managers and analysts from investment institutions.

　　Some of them cast their vote of confidence in Wang Jianzhou, who had been the president of China Mobile for half a year, just a year ago.

　　Needless to say, the operator's top management "reshuffle" on November 1, 2004 had a negative impact on the capital market. As it was unclear what this personnel change would bring to operations, many analysts rated China Mobile as "neutral" or "underperforming the market."

　　Wang Jianzhou, who had only been in office for 38 days at the time, admitted that at that time he had to familiarize himself with the company on the one hand and do a good job of public relations with all walks of life on the other, which was quite stressful.

　　It was not until March 2005 that China Mobile Hong Kong announced its 2004 performance. A few days later, Wang Jianzhou was interrupted by countless applause when he spoke at a forum at the Shangri-La Hotel in Hong Kong about China Mobile being "both a financially sound and profitable company and a fast-growing company". This is also the origin of the well-known industry allusion of "elephant running fast".

　　After that, China Mobile's stock price continued to rise, and Wang Jianzhou received more and more applause in meetings of all sizes. From this time on, China Mobile could rightfully use the term "dominant operator" all the time.

　　However, for Wang Jianzhou, as the "captain" of 100,000 employees, building China Mobile into the "national team of mobile communications" and joining the ranks of world-class telecom operators may make him more gratified than the applause from the outside world.

　　The Blue Ocean Strategy of the “National Team Captain”

　　On March 18, China Mobile President Wang Jianzhou told the Financial Times that China Mobile will implement the "blue ocean strategy" in 2006. This will also be one of China Mobile's key tasks in 2006.

　　The most important principle of the so-called "blue ocean strategy" is to abandon competition within the limited market, change strategic thinking, and thus create a market space without competition, a strategy that serves to achieve sustained profitable growth.

　　Looking back to the end of 2004, Wang Jianzhou, who had just joined China Mobile from China Unicom, felt deeply the pain of price wars under homogeneous competition. At that time, one of the most important tasks of his daily work was to review and approve the tariff packages reported by various provinces.

　　If Wang Jianzhou was asked to talk about the "blue ocean strategy" at that time, he would probably be "willing but unable".

　　However, what makes Wang Jianzhou very happy is that over the past year or so, the CEOs of provincial companies who used to be good at price wars in various provinces would often mention a book to the leadership of China Mobile Group during meetings - "Blue Ocean Strategy". This is also the origin of the "Blue Ocean Strategy".

　　Regarding how to implement the "blue ocean strategy", Wang Jianzhou explained: China Mobile's "blue ocean strategy" is also called the "three new strategies". It is also called the "three major driving forces" of China Mobile's growth.

　　Wang Jianzhou said that the so-called "three new"s, the first "new" is new customers; the second "new" is new services, with the proportion of mobile value-added services exceeding 20%, which is relatively rare among mobile communication companies in the world; the third "new" is new traffic, with the per capita use of mobile communications increasing every year.

Wang Jianzhou also said that this year China Mobile has set its sights on developing the county and rural markets, and will also step up efforts to promote new services such as MMS, WAP, and wireless music, and accelerate the development and promotion of new services such as mobile search, mobile instant messaging, and mobile blogs, so that China Mobile can continue to maintain a rapid growth rate.

　　Wang Jianzhou explained how he played the role of "captain of the national team" in this way: "Our contribution to the country is also reflected in the fact that we use equipment produced by the domestic telecommunications manufacturing industry, which has driven the development of the domestic communications equipment manufacturing industry."

　　At present, the soft switching system, intelligent network system and a large number of communication core network systems used by China Mobile are all provided and manufactured by domestic communication equipment manufacturers. The large orders from the leading operators have obviously driven the development of the domestic communication manufacturing industry.

　　In addition, Wang Jianzhou once again solemnly stated that China Mobile will continue to build a win-win value chain with mobile communication value-added service partners. At the same time, Wang Jianzhou believes that new services such as mobile search engines and mobile blogs will also be a good boost to the entire mobile phone value chain.