| Besides their traditional usages of making calls and sending SMSs, mobile phones are now assuming new functions with the development of this Internet era. Various APPs flood in every day to change the life styles of mobile phone users in this new age. The conventional businesses of the operators, like voice or SMS services, are quickly shrinking when instant messaging tools offered by many internet companies are threatening to take their place. However, there is always an opportunity in every crisis. Revenues of operators from the web traffic business have been skyrocketing at an average growth rate of 46% in the recent two years, and are beginning to replace the dominant role of voce business in their total revenues. Major operators have been engaged in a battle of life and death in their operation of the web traffic business.Almost all of the operators have noticed the important role of traffic business in their operation and have begun to shift their business focus toward it while adjusting the product structure accordingly; however, the operation of traffic business is not simply about improving data usage and stimulating user consumption. The operators are still facing many problems typical in traditional SOEs, e.g. redundant organizational structure, old-fashioned marketing model, and inflexible response system, which put them at a disadvantage in their competition with the highly efficient and flexible internet companies. So they have to solve many troubles in their road to develop the traffic business. Against such a background, operators have to provide answers to how to face the awkward situation where the traffic increases while there is no change in the revenue, how to improve the value of the traffic, how to cope with the competition from internet companies based on their own unique advantages, how to accurately and efficiently operate their traffic business before they can increase their market shares, increase their revenues, build their competitive advantage, and gain sustainable development. This paper, based on relevant theories including PEST analysis, SWOT analysis, and 4P’s marketing model, studied the case of Z mobile company. In consideration of the practical situation faced by Z, this paper analyzed its marketing environment in operating the traffic business, described current marketing situation of the traffic business, identified the problems, explained the causes, and proposed corresponding solutions. Finally, on basis of the 4P’s marketing theories, it proposed a scheme for optimization and improvement based on its existing marketing strategy from the perspectives of product, price, place and promotion. |