Research On Marketing Strategy Broadband Service In MS Branch Of China Mobile Communication Company

The rivals took the advantage of household broadband service to snatch the high end mobile subscribers, since the reconstruction of the telecommunication industry in 2008. In the short term, China Mobile need to expand new business and obtain the dominance of market through All-service competiveness. In the long term, the development of wired broadband services can drive the network infrastructure construction and make full preparation for transmission network of 4G services. In the meanwhile, China has a huge market potential of household broadband service, for its FTTH subscribers penetration and Internet access bandwidth are much lower than worldwide developed countries, and the government have also issued a series of polices to drive the development of broadband service as the strategic public infrastructure, and as well as the information consumption. Along with the saturation of traditional communication market, the wired broadband services will become China Mobile’s new revenue growth point. However, MS branch of China Mobile was used to carry out network infrastructure construction and household broadband business development relying on Railcom, without its own market service system including product design, distribution channel and services.This paper is aimed to explore the development strategy of MS branch of China Mobile’s broadband services. Firstly, the paper will make analysis on the macro environment from 4 respects of economic, social, political and technical environment by the means of PEST, then make SWOT analysis on MS branch of China Mobile’ strength, weaknesses, opportunities and threats based on the broadband market competition and resources, finally propose that the differentiation and cost leading strategy should be employed. Specially, on one hand, MS branch of China Mobile should carry out differentiated competition strategy by taking advantage of FTTH access technology, excellent service and integration of MS Radio and television Network Company’s premium program. On the other hand, MS branch of China Mobile should exploit synergies in scale and reputation advantage of mobile communication market, as well as internal cost and income advantage and external network access resources of MS Railcom and Radio and television network company to realize rapid penetration of broadband market through the low pricing strategy. According to the planned strategy, this paper then investigates on the broadband market penetration and demand of urban mass market, group market, campus market and rural market, and carry on the market segmentation, targeting and positioning according to STP method. Then make a deep market strategy analysis by using the 4Ps theory. Specifically, we should benchmark competitor and bundle household broadband business with personal ones in the respect of product designing and pricing for customer retention; enhance the pull force on customers by promotion and brand building; spur on the transformation in channel system of MS branch of China Mobile for All-service operation by speeding up the construction of direct channels and promotion of electronic channels, as well as strengthening marketing service ability of traditional social channel. Finally, for the effective implementation of the marketing strategy, the paper gives proposals in respects of infrastructure construction, organization structure optimization and quality of service enhancement.