A Feasible Study on China Mobile Expansion in Myanmar

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A Feasible Study on China Mobile Expansion in Myanmar

Master of International Business
Course: Global Business Operations
Course Code: INTBUS 721
Lecturer: Zaidah Mustaffa

Submitted by:
Jiaqi Li (Chris) Content

1. Executive Summary………………………………………………………………………………………………............1 2. Introduction…………………………………………………………………………………………………………………1 3. Company Analysis…………………………………………………………………………………………………………3 3.1 Introduction of China Mobile…………………………………………………………………………………………….3 3.2 Rural-led Strategy and Outcome……………………………………………………………………………………….3 3.3 Overseas Expansion in Pakistan……………………………………………………………………………………….3 4. Country Analysis……………………………………………………………………………………………………….4 4.1 Country Brief………………….…………………………………………………………………………………...4 4.2 Myanmarese telecom industry overview……………………………………………………………………………4 4.3 PEST Analysis…………………………………………………………………………………………………..……...5 5. Entry Mode Analysis………………………………………………………………………………………………………7 5.1 Theoretical Exploration of Motives……………………………………………………………………………………..7 5.2 Entry Mode---Joint Venture (JV)………………………………………………………………………………………..8 5.3 Opportunities and Risks for China Mobile……………………………………………………………………………..8 6. Recommended Management and Operational Practices…………………………………………………………..9 6.1 MNCs-host Government Relationship Analysis………………………………………………………………………9 6.2 Recommendations…………………………………………………………………………………………………......10 7. Conclusion………………………………………………………………………………………………………………..11 8. Appendices……………………………………………………………………………………………………………….12 9. References………………………………………………………………………………………………………………..15

1. Executive Summary
This article studies the feasibility of China Mobile entering into Mymarese telecoms industry. Building on several theories and frameworks, this analysis focuses on the possibilities of expansion into Mymarese market (including country analysis), dynamics of China Mobile’s overseas expansion in Myanmar, as well as methods used in expansion. According to the analysis, it is suggested that although Myanmar, as the poorest country in the world, takes initiatives in economy later than other countries, its business outlook would be optimistic. China Mobile, facing fierce competition in the native market that is close to saturation, is looking for opportunities of overseas expansion. The analysis of China Mobile’s successful experience on Chinese undeveloped areas and spreading business in Pakistan indicates that there is a strong possibility for China Mobile to penetrate into Myanmarese telecoms market, as Myanmarese government announced that its telecoms industry was open to foreign companies.

2. Introduction
As telecoms industry has grown rapidly in recent years, many telecoms companies seek opportunities of overseas expansion. Myanmarese new policy on telecoms attracts amount of attention from big foreign telecoms companies including China Mobile. The purpose of this article is to explore how China Mobile expands its business into Myanmarese telecoms market. Firstly, there is a company analysis of China Mobile including company brief, its unique strategy in undeveloped areas and former expansion in Pakistan. Then, this study will examine Myanmar investment environment through PEST analysis. After that, an entry mode analysis will be presented, which includes theoretical exploration of entering motives, potential opportunities and risks for China Mobile’ s expansion. Finally, after analyzing the coopetition between Myanmarese government and China Mobile, there will be recommendations in terms of political response to the partner coopetition mode, successful Chinese rural-led strategy and financial support. A final conclusion will be given at the end of this article.

3. Company Analysis
3.1 Introduction of China Mobile
China Mobile Limited (CML), China’s largest communications operator and the listed subsidiary of stated-owned by...
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