China Mobile Limited

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ASSIGNMENT 2

Of

GLOBAL BUSINESS CHALLENGES

On

CHINA MOBILE

SUBMITTED BY
ISHA GROVER
ROLL NO. B-28
11013166

China Mobile Limited was incorporated in Hong Kong on 3 September 1997. The Company was listed on the New York Stock Exchange and The Stock Exchange of Hong Kong Limited on 22 October 1997 and 23 October 1997, respectively. The Company was admitted as a constituent stock of the Hang Seng Index in Hong Kong on 27 January 1998. As the leading mobile services provider in China, the Group boasts the world's largest mobile network and the world's largest mobile customer base. In 2010, the Company was once again selected as one of the "FT Global 500" by Financial Times and "The World's 2000 Biggest Public Companies" by Forbes magazine, and was again recognized on the Dow Jones Sustainability Indexes. As of 31 December 2010, the Group had a total staff of 164,336 and a customer base of 584 million, and enjoyed a market share of approximately 69.3% in Mainland China. The Group's GSM global roaming services covered 237 countries and regions and its GPRS roaming services covered 186 countries and regions. The Company's majority shareholder is China Mobile (Hong Kong) Group Limited, which, as of 31 December 2010, indirectly held an equity interest of approximately 74.21% in the Company through a wholly-owned subsidiary, China Mobile Hong Kong Limited. The remaining equity interest of approximately 25.79% of the Company was held by public investors.

MARKET ENTRY STRATEGIES
* IMPROVE QUALITY AND ENHANCE CAPABILITY
The Group adhered to the principle that "network quality is the lifeline of any telecommunications company" and continued to maintain its overall leading position in network capability and quality. The total number of 2G base stations (554,000), the percentage of base stations connected by self-owned optical fiber (96.2%) and the number of WLAN access points in operation (545,000), all demonstrated the Group's leading position in network scale and capability. Network performance indicators such as wireless connection rate of 99.26%, voice call drop rate of 0.54% and SMS delivery rate of 99.69%, continued to demonstrate a leading quality of our network despite the high data usage volume. The Group has preliminarily set up a network quality evaluation system based on customer perception. It improved network quality from the perspective of customer experience and assured customer satisfaction. The Group organized competitions to identify key issues impacting network quality and to develop solutions, with a view to optimizing the networks, resolving a number of problems hindering network quality enhancements. The Group launched the "Error- Free Billing Assurance" campaign, and has preliminarily established a closed-loop mechanism for managing abnormal voice usage bills. Through centralization, the Group's business support capability continued to improve. The Group introduced measures to enhance product quality of its value- added business, further achieving end-to-end improvements. The preliminary setup of a quality management system and an automatic testing system for value-added businesses was established. The enhancement of network and business quality has laid a solid foundation for the Group's continuous development of its business in a complex and competitive environment.

* IMPROVE SERVICES AND ENHANCE SATISFACTION
The Group adhered to its mantra of "Customers are our priority, quality service is our principle" and endeavored to build its new competitive advantage in services. The Group actively developed electronic channels, and the proportion of business activities processed through electronic channels increased steadily. The model of "Unified Portal and Unified Navigation" was implemented in general. Campaigns were launched to improve service quality. Key issues such as long waiting time at sales outlets, 10086 hotline connection rate and spam filtering were further improved....
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