Swot Analysis Of China Telecom Marketing Essay

In this chapter, we will execute SWOT analysis to each company chiefly based on their one-year studies, every bit good as forecast their future tendencies and external environments development in the approaching old ages through their hereafter schemes and intelligence. SWOT summarizes the cardinal issues from the concern environment and the strategic capableness of an organisation that are most likely to impact on scheme development. This can besides be utile as a footing against which to bring forth strategic options and assess future class of action. ( Johnson, G.2008 )

Strengths: features of the concern, or undertaking squad that give it an advantage over others

Failings ( or Limitations ) : are features that place the squad at a disadvantage relation to others

Opportunities: external opportunities to better public presentation ( e.g. do greater net incomes ) in the environment

Menaces: external elements in the environment that could do problem for the concern or undertaking

6.1 SWOT analysis of China Telecom


Absolutely taking broadband resources and web substructure in China. They have really strong advantages in fixed communicating field[ 1 ].

Strong abilities in the development of new concern because their flush web resources and assorted concern types.

The first telecommunications operator in China to print “ Cloud ” calculating scheme and solutions[ 2 ].

To introduce the information traffic selling theoretical account, through beef uping gross revenues and selling to heighten clients ‘ experience and cultivating users ‘ wont of use to increase informations gross[ 3 ].

They will endeavor to heighten their strengths in invention, service, efficient centralization and operation direction, and take more solid stairss towards the end of being a “ world-class incorporate information service supplier ” so as to make more value for stockholders[ 4 ].

China Telecom owns a great saddle horse of clients in China, and they have good client relationship. With 77 million wireline broadband endorsers and 126 million Mobile endorsers[ 5 ], they have a great advantage in the market portion.

China Telecom has advanced service quality ; they build the Group Customer Service Center to provide more perfect services to their clients[ 6 ].


As a state-run company, it has a heavy societal duty. There are more than 400 1000s employers working in this company, and the company besides have a responsibility to assist some backward countries build communicating webs, every bit good as make investing in the basic web installations. So the company ‘s operation cost is really high[ 7 ].

Complex organisation construction of the company taking to their market reaction velocity is comparatively slow, and the cost of invention is high[ 8 ].

The get downing point of Chinese new web development is lower than the European states.

The channel of distribution is weak because of the restriction of province policies and profession[ 9 ].

The company ‘s scheme merely concentrate on the current operation, the deficiency of long-run scheme and strategic planning endowments make the company be weak in the overall state of affairs[ 10 ].

The late web substructure can non provide specific services to clients because China Telecom has advanced web substructure which are largely used to run into the demand of general service, non based on the existent market demands.


In 2011, China ‘s nomadic telecommunications market has bit by bit migrated from 2G to 3G services. With accelerated growing in 3G services, the market potency was immense[ 11 ].

China has launched its ain domestic 3G nomadic engineering standard TD-SCDMA, which will dispute CDMA2000 and W-CDMA[ 12 ].

Government finding to put in China ‘s telecommunications industry guaranting that it becomes advanced[ 13 ].

With 1.3 billion citizens, the size of the telecom markets is the biggest.

China is actively using its political and economic ties with major emerging markets, which contribute China Telecom ‘s Strategic cooperation all over the universe[ 14 ].

At present, 3G service and wireline broadband service are still in a period of high growing. The commercialisation of new services such as nomadic Internet, “ Cloud ” computer science and Internet of Things is farther accelerating, which will open up a new country for the Company ‘s development[ 15 ].


Since 2010, the authorities ‘s investing in 3G will be reduced bit by bit, and the development of the telecom industry will be driven chiefly by ingestion[ 16 ].

In recent old ages, a batch of foreign companies solicit telecom endowments in China by high-salary or high-welfare policy. As a consequence, the encephalon drains of China Telecom become serious[ 17 ].

In China, there are comparatively rigorous restriction by industry policies in the facet of concern licence, Internet services and telecom fees etc.

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In the present China telecom market, the control of inequality has restricted the development of China telecom[ 18 ].

The telecom market is going saturate and competition between domestic telecom companies become more intense[ 19 ].

The integrating of the information industry and escalating market competition in China.

6.2 SWOT analysis of Royal KPN


KPN is ranked amongst the most sustainable European telecommunications companies for the 2nd twelvemonth in a row[ 20 ].

The figure of families that KPN can function with fibre services has grown aggressively[ 21 ].

Strong Operational Performance in footings of telephone services[ 22 ].

The strong KPN trade name. KPN has a figure of other consumer trade names in different states, because they have a varied client base which calls for a suited scope of merchandises and services.

KPN will beef up their market places in the Netherlands by an enhanced focal point on merchandise and service quality, a more efficient organisation and a tighter policy on costs.

KPN will make a agile organisation by simplifying the organisational construction and by offering a clearer set of merchandises and services in both the concern and consumer markets in the Netherlands.

KPN purpose to increase the client base for fixed and nomadic telephone and see peculiarly good chances for the fibre web. They will go on their Mobile International Challenger scheme in the coming old ages.


Business market size worsening due to monetary value force per unit area, continued rationalisation and macroeconomic impact[ 23 ].

Concentrated grosss from Netherlands, with other geographicss lending really less in footings of net incomes[ 24 ].

Customers lose in traditional nomadic service because of new Internet communicating services[ 25 ].

Lost market portion to rivals in the nomadic sector due to what clients perceive to be high monetary values and inflexible service bundles[ 26 ].

Market reaction velocity is comparatively slow, taking to a downtrend in the operation gross[ 27 ].


Strategic acquisitions- chances across the Earth, and the company said that “ KPN will go on to research all strategic options ”[ 28 ].

Increasing demand for the more profitable 3G services, assortment of 3G services besides supply more wide development infinite to KPN.

4G ‘s jumping up request the support of a sustained investing[ 29 ].

The crisp rise in nomadic cyberspace use, as is data use, the telecom and ICT landscape is continuously developing[ 30 ].

The turning scope of new and profitable services based on cyberspace protocol[ 31 ].

Technological chances from Smartphone, tablets, fibre and cloud services[ 32 ].


Competitive force per unit areas from its more planetary rivals.

The European local telecom markets tend to saturate.

Regulatory issues across Europe. Due to MTA ( Matanuska Telephone Association ) impact, the ordinance about Roaming and Spectrum may take down KPN ‘s growing in ARPU[ 33 ].

Increasingly utility text messages or voice calls with instant messaging or voice over cyberspace protocol services such as Skype[ 34 ].

European debt crisis and looming recession impact the company ‘s concern and corporate market, lead to consumer assurance worsening.

NMA ( National Media Association ) starts an probe sing possible collusion of nomadic operators on propositions in the nomadic market. Regulator OPTA announces to set KPN on close supervising further to alleged misdemeanors of duties based on the Telecommunication Act[ 35 ].

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6.3 SWOT analysis of Deutsche Telekom


The widely basic web installations across all over the Europe and strategic partnerships[ 36 ].

Bid sum of clients with high trueness and upscale markets.

A prima Internet service supplier with more than 25 million broadband endorsers and strong public presentation of broadband services[ 37 ].

Absolutely taking engineering advantage in telecom industry and comprehensive concern services. It is puting a broad scope of merchandises and services in the Telekom cloud[ 38 ].

The planetary celebrated trade name with wide market distribution and their concern services provide all over the universe[ 39 ].

They will go on to put in cardinal growing countries despite unfavourable ordinance. They are constructing modern broadband webs both radio and wireline, which makes them a major subscriber to the on-line society.

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They are concentrating on innovation- with some countries, such as nomadic cyberspace and cloud computer science, already bring forthing significant grosss[ 40 ].

They will be puting in overhauling the web and go oning their attempts to set up T-Mobile as the bearer that offers clients the best value for money.


High operate force per unit area from the company ‘s high debt[ 41 ].

Fast expand lead to the company ‘s graduated table is excessively bid, every bit good as the market reaction velocity is comparatively slow.

Relatively lower service quality than the other taking telecom companies in Europe[ 42 ].

The cost of direction is excessively high because of the corporate amalgamation and acquisition in recent old ages[ 43 ].

Competition from other European and planetary operators means small market portion growing.

The falling fix-line concern markets make a large loss in company ‘s gross[ 44 ].

Limited presence in Asiatic markets[ 45 ].


Germany is the largest national economic system in Europe and the ingestion degree is high[ 46 ]. The fact means that Deutsche Telekom has a comfy development environment and concern markets.

Germany has Europe ‘s largest telecom market, with mean incursion in the broadband and nomadic sectors[ 47 ].

High informations volumes, a flourishing smart phone market and client demand for high-velocity webs in local market[ 48 ].

Corporate amalgamation and acquisitions over the universe.

Increasing demand for the 3G services and new webs engineerings such as 4G and nomadic cyberspace use[ 49 ].

Positive mentality for cloud computer science. Harmonizing to experts, in 2020 many companies will no longer hold their ain waiters and alternatively exchange to overcast[ 50 ].

The development of modern radio engineerings highlights their original proficient advantages[ 51 ].


Government intercession. Government intercession could set downside force per unit area on the stock and increase political hazard.

Unfavorable ordinance and the infliction of particular revenue enhancements in some states in Southern and Eastern Europe[ 52 ].

Difficult economic state of affairs in Europe every bit good as the immense challenges that Deutsche Telekom are confronting in telecom industry- go oning intense competition in their nucleus concern with web connexions.

Depression of European telecom industry and the local market tend to saturate.

The deficit of endowment in Germany ‘s telecom industry[ 53 ].

User ‘s demand for the service quality is going higher and higher[ 54 ].

Increasingly utility web services threatened the traditional concern.

6.4 Decision

In reasoning, we can see from the SWOT analysis, China Telecom is one of the universe ‘s largest telecom supplier due to the China ‘s immense population and possible market, so the company ‘s advanced engineering, invention ability, every bit good as 3G ‘s spring up in China will convey a immense concern value to China Telecom. This is intending the same immense potency investing chance for the investor. It will be a really good period to put in China Telecom. Besides, Mobile Internet, “ Cloud ” computer science and Internet of Things will open up a new country for the Company ‘s development. That is all the good intelligence that brings investors more benefits from their investing. But China ‘s telecom concern is immature comparatively because the late start and China Telecom as a state-run company has a heavy societal duty and limited develop environment. For investors, put in state-run company means they will run into more investing limitation. High operating costs, rigorous restriction policies and increasing competition will be immense challenges to China Telecom. That besides means more investing hazard for investors. Harmonizing to the president of China Telecom, Wang Xiaochu ‘s study in 2012, China Telecom is taking to be the “ world-class incorporate information service supplier ” . To heighten their strengths in invention, service, efficient centralisation and operation direction will be China Telecom ‘s nucleus scheme in the hereafter.

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Royal KPN is a taking telecom supplier of Netherlands, with strong operational public presentation particularly in telephone services. It will be a strong advantages at present when the demand for varies of telephone services is turning quickly. The company ‘s stable development schemes make it be one of the most sustainable European telecommunications companies. So it can be seen that invest in KPN is favourable and safe. Then, increasing use of new communicating engineerings such like nomadic cyberspace will do a batch of concern chances to the company. Besides, Company ‘s acquisitions and telecom services across geographicss will farther advance the company ‘s development. We believe that KPN will pull more investors as the development of new communicating engineerings and the company ‘s extension schemes. But the competition from other European telecom companies means limited market portions, every bit good as the concentrated market and regulative issues across EU, giving immense force per unit areas to the company. Besides, planetary economic lag and debt crisis in European besides make inauspicious influence to the company ‘s development. For investors, the concentrated telecom markets and staggering economic system in Europe means they will acquire comparatively few returns when they invest in KPN at present. And the debt crisis in EU besides leads to investing hazard. In the coming old ages, we can see from KPN ‘s new scheme 2011-2015, they will advance the “ Strengthen ” , “ Simplify ” and “ Grow ” scheme and aspirations towards their ends in 2015, purpose to give more favourable merchandise and services to client.

Deutsche Telekom is the largest telecommunications company in Europe with widely basic web installations and scheme partnerships. A batch of investors prefer to take Deutsche Telekom because its planetary celebrated trade name with wide market distribution and their concern services are provided all over the universe. High telecom engineering, high trueness clients and upscale markets make the company have strong competition powers among the increasing rivals in Europe. So invest in Deutsche Telekom is general considered to be faithfully. But undue corporate amalgamation and acquisition scheme, every bit good as the company ‘s high debt make high operating force per unit areas to the company. These inauspicious factors in company ‘s operation will menace the net income returns in the investor ‘s investing. Besides as an EU state, regulative issues, rigorous competition and debt crisis in Europe will be large challenges to the company. In the hereafter, Deutsche Telekom will go on to put in cardinal growing countries despite unfavourable ordinance. They are constructing modern broadband webs both radio and wireline, which makes them a major subscriber to the on-line society. They will besides concentrating on invention with some countries, such as nomadic cyberspace and cloud computer science.

In general, all of the three companies have their several advantages and disadvantages. Increasing competition, saturated markets and regulative issues are the state of affairss which the telecom industry must to confront with. How to equilibrate the increasing demand for new web services and the loss of traditional concern will be the cardinal points to every telecom supplier. For investors, despite we can see that invest in China Telecom will hold much potency due to the increasing demands for new services, but the immature telecom markets and limited develop environment in China intend higher investing hazard than the other two companies. Invest in KPN and Deutsche Telekom are both considered to be safe and faithfully, because their strong trade names, advanced web installations and engineerings. We can see that, be contract with the inauspicious economic environment and ordinance in Europe, KPN comparatively good development schemes help them cut down many losingss, and meet more concern chances in new proficient demands. Deutsche Telekom ‘s low market reaction velocity and high cost lead a higher loss in their traditional communicating services. So we prefer to take KPN for investors to make investing due to the company ‘s sustainable competition advantages and future development schemes.