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China-Mobile
BusinessManagementMarketing

China Mobile Marketing | Strategies used by China Mobile

by Shamsul July 14, 2021

 

China Mobile Marketing | Strategies used by China Mobile

 

China mobile has a customer base of 820 million, with 312 million users of 4G services only in china. Due to China Mobile Marketing service in 115 countries and international valuable roaming services, it has become the largest operator of 4G in the world. Its enhanced broadband wireless services helped achieve 30 % more data traffic growth in 2015 than in 2014. This data makes it the leader business vertical based on voice and data services.

Targeting, Segmentation, Positioning strategy of China Mobile Marketing:

China mobile makes use of demographics and psychographics segmentation-based variables for catering to the needs of tech-savvy users. Its targeting strategy mixes selective and differentiating targeting methods that provide value-added and wireless broadband services to corporate and retail customers. With china’s economic and socio-cultural development, data traffic market sales are increased by increasing percentage. It leads to china’s mobile establishment from more than just a communication network-based company, and now it is very well known as 4G LTE and wire-line data provider.

Competitive Advantage as a part of China Mobile Marketing:

China mobile operates from its home country, which gives it a better understanding and knowledge of the economic and demographic country conditions, which has an advantage over other peer companies working in China. This factor plays an important factor in defining their success in the market. A diversified service /product portfolio has always been helping this company to maintain long-lasting and worthy relationships with its customers leading to the decreased cost related to customer acquisition. One of the best competitive advantages it has over other companies is that its proprietary outlets are spreading in different regions of china with 20000+ numbers of outlets.

BCG Matrix of China mobile’s Marketing Strategy:

Its mobile services, Voice services, and mobile data service businesses are Stars because China mobile company is the leading player in the Chinese market. Its position is dominant in every business vertical it is contributing.

Distribution Strategy as a part of China Mobile Marketing:

China mobile is using different delivery channels that help make its services available for its customers. Its apps, network coverage, 20k+ proprietary outlets, internet, infrastructure capabilities are the reasons behind the fast and increasing services provided to end customers.

Brand Equity as a part of China Mobile Marketing:

China mobile is branding through high-quality services, enhanced visibility due to different mediums related to tandem, world-class infrastructure. All these factors are aiding the company to secure positive words from customer’s mouths. Data analysis of 500 companies is done on the basis of 2015 data ranked China Mobile in the top 10. China brands as per Brand services and finance which makes a great fortune.

Competitive Analysis as a part of China Mobile Marketing:

China Mobile is working on strengthening its development and research and has cultivated an innovative culture due to which the company is now ahead of the competitors. Several competitors that provide high-quality services are high, so tariff rates also have strong competition. Still, china’s mobile company is making more profit due to its robust data services network and customer care’s quality-based services.

Market Analysis as a part of China Mobile Marketing:

China Mobile has 63 % shares in the market and is the leading LTE 4G service provider. In comparison, competitors like Vodafone, Airtel, MTN, etc. are having difficulty facing domestic players-dominated competitive markets.

Customer Analysis as a part of China Mobile Marketing:

Its customers belong to different age groups, willing to contact their close ones through telephonic communication. That’s why China Mobile handles its valuable customers’ growing needs and demands through its wire-line, digital, and dedicated line-based services.

 

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Diamond Model
BusinessMarketingScholarly

Competitive Advantage in China and Saudi Arabia

by Shamsul October 1, 2019

 

After making an intensive study on 100 industries in ten nations Porter (1990), presented a theory of international trade which explains why economies tend to gain international success within a specific industry (Davies and Ellis, 2000).

The Diamond Model of National Advantage comprises of four determinants.

The first of these is factor conditions which include capital human and physical resources along with the knowledge and physical infrastructure of the country.

The next category deals with demand conditions like the growth rate and size of the home demand, demand structure within the country as well as those procedures through which local demand conditions are internationalized.

The third category deals with related and supporting industries that work with supplier clusters, institutions of knowledge-inputs and as well as end-users within close proximity which fosters competitiveness and innovation.

The fourth factor is structure, strategy, and rivalry. This factor deals with ways through which firms are being managed and are selected to compete along with those ways through which education and employer talent is shaped by the industries.

 

Porter’s Diamond of National Advantage Framework

Applying Diamond Framework in the Context of China and Saudi Arabia’s Competitive Advantage

 

Factor Conditions

Porter (1998) indicates factor conditions to be those factors of productions that are required for competing in industries. This factor is further grouped into broad categories like physical resources, human resources, capital resources, knowledge resources, and infrastructure. In Saudi Arabia, domestic factor conditions can be explained as generalized factors. Atmospheric conditions of the country serve as its competitive advantage. The intensive summer season in Saudi Arabia facilitates the growth of dates which is also a major exporting item.

With respect to machinery and skilled labor, extensive investments made by the authorities to overcome this issue. National competitiveness is rendered to be the ability of the industries of a country to generate wealth of the nation (Zinnes, Eilat and Sachs, 2001; Kao, et al., 2008). The government is heavily investing in education however; the shortage of skilled workers still remains considerable. Knowledge resources lack the requirement of the private sector. Saudi Arabia has shown great progress in terms of resource utilization.  However, there is still a lot to do for gaining national competitiveness to its highest level.

Competitive Advantage

China, on the other side, has access to cheap labor. These workers are trained extensively so as to equip them with specific knowledge which is a prerequisite for obtaining competitive advantage (Lenzi 2009). With respect to capital and physical resources, China has maintained its vital competitive position by producing basic products at lower prices. China is inducting efficiency within its production process which is a determining factor for sustainable growth. The low points of the country include access to qualified labor. The country is investing in education heavily however; the knowledge resources are not sufficiently aligned with the requirements of the industries.

 

Demand Conditions

In the local market, companies can create their competitive advantage when buyers from the home market create more advanced products and innovate faster in comparison to its competitors; however, in the world market, demand conditions are expressed in the form of quantitative world imports by the country. Being the largest oil producer, Saudi Arabia is certainly the highest oil exporter which accounts for 76.9% of its total export bill. Other considerable exports include organic chemicals, plastics, and aluminum. In order to increase local demand, industries are heavily investing in R&D so that technology inputs can be assessed and implemented according to customer demands.

Most noteworthy, the population of China, the total $2.282 export bill roughly translates to $1,669 for every resident in the country. Furthermore, the unemployment rate in the country is 4.05%. Major exports depend on several categories. These include electronic equipment, furniture, and related items, machines and engines, medical and technical equipment, vehicles and other items. Innovation in the country fostered by yielding products that are short, small and thin and which are also acceptable globally.

Comparing the demand conditions of both the countries, you can assess that the demand conditions of China are relatively expanded to more categories as compared to Saudi Arabia. Moreover, innovations to increase local demand are also fostered more by China which is the basis of its fast-paced economic development.

 

Related and Supporting Industries

According to Porter (1990), related and supporting industries rendered as those with which firms share and coordinate activities within the value chain. Or those involved in products that are complimentary for the firm within a nation’s scenario. This involves suppliers’ inputs and sharing of information between consumers so as to improve the innovation and up-gradation process.

Saudi Arabia

In Saudi Arabia, the presence of related and supporting industries that are internationally competitive in different industries will support their respective sectors Jasimuddin, Sajjad M. (2001). These industries are capable of producing inputs that are crucial for internationalization and innovation. The production inputs provided are very cost-effective along with playing a major role in the up-gradation process which stimulates other companies operating within the chain to innovate. Different industries relate and support to their relative companies like the dates industry uses its related and supported industry to be Dates Packaging Industry, Dates Processing Industry, Cellulosic Industry, and Logistics Industry. On the other side, home-based competitiveness in related industries is very low in Saudi Arabia. Companies are unable to benefit from the flow of information. Moreover, technical interchanges as that accelerate the rate of up-gradation and innovation.

China

Chinese national advantage in its related and supporting industries is somehow similar to Saudi Arabia. The country has effective resources through which it can make its production process cost-effective, rapid, and early and many times in the most preferential way. Chinese electronics appliances companies are highly competitive in the international market and other Chinese companies are supplying two-thirds of the world’s electronic appliances. Home-demand in China is higher as the citizens are demanding more products of their own country rather than those imported from other countries. The demands of local buyers provide earlier insight into customer requirements to the companies which help them in innovating faster and a sophisticated competitive advantage than other foreign firms (Liu, 2003).

On comparing this national competitive advantage of the diamond model. We got the result that both countries have the implementation of a cost-effective production inputs system. Certainly, it helps them in innovating their products faster. However, home-demand factors are superior in China than in Saudi Arabia. There are relatively less related and supporting industries in Saudi Arabia whereas, China is gaining at a fast pace in its industrialization revolution.

 

Company, Strategy, Structure, and Rivalry

According to Porter (1990), the presence of strong domestic rivalry is a very important factor to concern as it encourages companies to upgrade. First of all, in Saudi Arabia, the oil sector comprises of intense monopolistic overtones as it is the largest oil producer. National contexts and circumstances have a strong impact on the organization and management along with drafting the nature of the domestic rivalry. Competitiveness within a particular industry is a result of the convergence of different management practices and modes that work in favor of the country. Saudi Arabia is the largest producer of oil. It emphasizes a strategy that controls the demand, supply as well prices of oil and related products for the mutual benefit of every player within the value addition chain and which fits within the character of the Saudi Arabian management system.

In China, government intervention is at its highest point. It seems that the government strategy is to avoid internal competition so that the companies concentrate on competing with companies operating on a global basis. With respect to the Chinese management system, people are comfortable working in more engineering and technical backgrounds. Where there is a complex demand accuracy manufacturing procedure, after-sale service, careful process of development and a highly disciplined system of management.

Comparing Saudi Arabia and China

Comparing both the countries, we can sit that in Saudi Arabia, successful competitors are mostly small and medium-sized firms. They are operative privately whereas, in China, there is strict regulation for following a hierarchical management practice and managers mostly have a technical background.

 

Part 2

In order to improve the competitive advantage of Saudi Arabia. It is very important that it works upon its labor policy. Above all, manufacturing procedures that offer cost-effectiveness. Hence, the below mentioned are some recommendations that have made China a leader in attaining national competitive advantage in comparison to other countries in BRICS.

 

Recommendation 1:

Cost Leadership

China has managed to attain cost-leadership by delivering valuable products at lower prices. This is obtainable by continuously working upon improving operational efficiency. It exports products that are of low cost and at a reasonable quality level. This is possible because of the low standard of living which allows paying workers less.  Saudi Arabia should work upon improving its labor force which will, as a result, affect its operational efficiency, thus attaining cost-leadership in different industries.

 

Recommendation 2:

Differentiation

Differentiation is another factor that provided a competitive advantage to the Chinese economy. Industries in the country should differentiate in offering high quality and unique products. Moreover, firms should also focus on delivering products faster so that they can reach more customers. The best thing about this strategy is that companies can charge a premium price for their products. That results in a relatively higher profit margin.

 

Recommendation 3:

Focus

This strategy helps in understanding and serving the target market better and effectively. Maintaining focus on a specific target market is achievable through either using the differentiation strategy or the cost-leadership strategy. For example, community banks maintain their focus on high net individuals or small businesses that are ready to pay a bit more like fees for the service.

 

Recommendation 4:

Innovation and Value Creation

This is a very important factor for achieving national competitiveness as consumers demand innovated products that are of also high quality continuously. Saudi Arabia should work more upon innovation on its products which suit the demands of the end-users.

 

 

 

 

Resources:

 

  • Davies, H. & P. Ellis (2000). Porter’s Competitive Advantage of Nations: time for a final judgment. Journal of Management Studies, 37(8), 1189-1213
  • Dragan (2016) Does china provide a sustainable competitive environment? Available at: http://chph.no/2010/06/14/does-china-provide-a-sustainable-competitive-environment/ (Accessed: 22 November 2016).
  • Gaber Mohamed M. Abdel Gawad, Tarek Tawfik Alkhteeb and Mohammad Tariq Intezar (2014) ‘Determinants of Competitive Advantages of Dates Exporting: An Applied Study on Saudi Arabia’, Published by Canadian Center of Science and Education, 6(4), pp. 1–9.
  • Jasimuddin, Sajjad M. (2001), Analyzing the competitive advantages of Saudi Arabia with Porter’s model, Journal Of Business and Industrial Marketing, Vol 16 No 1 pp. 59-68,
  • Kuah, A. and Day, J. (2005) ‘Revisiting the Porter Diamond’, 5, -(-), pp. 1–29.
  • Liu, P. (2003). Exporting motivations and Saudi SMEs: An exploratory study. Proceedings of 8th Asian Business Research Conference 1–2 April 2013, Bangkok, Thailand.
  • Masnat Al-Hiary, Bashir Al-Zu’bi and Amer Jabarin (2010) ‘Assessing Porter’s Framework for National Advantage’, -, 6(1), pp. 1–16.
  • Porter, M.E. (1990) The competitive advantage of nations. Available at: https://hbr.org/1990/03/the-competitive-advantage-of-nations (Accessed: 22 November 2016).
  • Zehra, R. (2012) Porter’s diamond model of national advantage for Lebanon. Available at: https://prezi.com/gjoe0pxduxkn/porters-diamond-model-of-national-advantage-for-lebanon/ (Accessed: 22 November 2016).
  • Zinnes, C., Y. Eilat, & J. Sachs (2001). Benchmarking competitiveness in transition economies. Economics of Transition, 9(2), 315-353
October 1, 2019 1 comment
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Hemp Oil
Health

China As The Best Hemp Oil Producer

by Shamsul September 18, 2019

Hemp Oil:

It is known that hemp seed oil has lots of advantages. Many people throughout the world are consuming hemp. People are using in various forms like dressings, pasta, and capsules. Yet, not many people know that it originates from the pressed seed of Cannabis sativa. This oil is one of the best of all nutritional oils which are available in the universe. The miracle of hemp oil is that it has several purposes. People use in various fields like cosmetic, medicine and nutrition.  China remains as the biggest producer of hemp. Other countries also produced in smaller scales in several countries. The countries like North Korea, Chile, and other European countries included. In its origin, people use this oil for several traditional medicines since the Ming Dynasty known as Ma Zi.

At first, people are surprised that the origin of hemp is Cannabis sativa in which this plant has been famous as the main source of marijuana. The leaf of this plant has a psychoactive substance delta-9 THC (-tetrahydrocannabinol) content. This matter becomes one of the most controversial topics among some nations. Most of the countries declared as banned drugs. However, some countries just import hemp oil from China. It was the world-leading producer. They also import from some other smaller countries like Chile.

 

Best Hemp Oil

Historical Research on Hemp Oil:

Based on historical research, hemp oil extracted seed was not merely from China though it has been famous as the most productive plants during the 16th century. Yet, several other countries which cultivate and use hemp in their best agriculture products include South American’s Mayan and Aztec, Egypt, Persia, India, and also some ancient North America civilizations. These days, many countries in Europe have cultivated these plants, thanks to its versatile function for the sake of human being’s good purpose. There is good news from recent researches. If you consume hemp with suitable quantity, the substance can resemble cultivated grains seeds like rye and wheat which are free from THC.

 

Actually, there is no reason to stop the using of hemp oil though there are still several countries ban the entrance of this substance. China, as the biggest producer of this oil, has reached abundant profit from this oil because almost all highly developed countries import this product in massive amounts. Not only this oil is beneficial for food products, but it is also very much favorable for almost all cosmetic companies which really need hemp oil to increase their products’ popularity.

 

Read More:

Why Human Body Needs Hemp Oil

September 18, 2019 0 comment
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