China Mobile Communications vs Nippon Telegraph and Telephone.

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China Mobile expanded their services overseas into Pakistan. The company bought Paktel in 2007. Then they launched the brand Zong and in 2014 it became the largest network in Pakistan. It also has presence in San Francisco and London and has international roaming partnerships with 406 operators in 237 countries and regions. China Mobiles is the biggest telecommunication company in China and Pakistan is considered as #6 under the World biggest public companies in China under ICBC Bank, China construction Bank, Agricultural Bank of China, Bank of China, and PetroChina.

NTT principal presence is centered in Japan, being the owner of most of Japan’s “last mile”, so it enjoys oligopolistic control over land lines in the country. NTT is listed on Tokyo, Osaka, New York, and London stock exchanges, and it’s the third largest telecommunications company in the world in terms of revenue. It is by far the biggest telecommunication company in Japan and is considered #3 biggest company in the country under Toyota Motor and Mitsubishi UFJ Financial.

China Mobile

NTT

#6 biggest company in China

#3 biggest company in Japan

#1 telecommunication company in the country

#1 telecommunication company in the country

#1 biggest telecommunication company in the world

#5 biggest telecommunication company in the world

Historical Events

China Mobile as we have seen is one of the biggest and more successful companies in the entire world. They have been doing great things in the las couple years, and they have won recognition and acknowledgements.

In 2014 The Company was listed among the “FT Global 500”, ranked #25. It has been included under Dow Jones Sustainability Indices for the last 7 years. It also was named one of the “BRANDZ Top 100 Most Powerful Brands” for 9th consecutive year, ranked 15th among all companies and 1st place among all chines companies. And it is included under the Forbes Global 2000 as well.

NTT, in February of 1987 was listed on stock exchanges in Tokyo, Osaka, Nagoya, Kyoto, Hiroshima, Fukuoka, Niigata, and Sapporo with an initial Public Offering price: 1.6 million yen. By 1994 NTT listed on New York Stock Exchange and also on London Stock Exchange. On November of 1999 the company accomplished a record sale of shares with 952,000 million government-owned shares sold. In July 2010, NTT and South African IT company Dimension Data Holdings announced an agreement of a cash offer from NTT for Dimension Data's entire issued share capital, in £2.12bn ($3.24bn) deal. In late 2010, NTT's Japan-to-US transpacific network reached 400 Gbit/s. In August 2011, its network capacity was expanded to 500 Gbit/s.

YOOOOOO

Key factors of success

Nowadays in our globalized world, business seek many different goals through different strategies, but there are many factors that contribute positive or negatively in order for a business to succeed.

Those factors differ in every country and business environment, specifically talking about how business are done in Asia, we may face many different approaches, due to cultural differences which determine the behavior of companies and people, taking in consideration employees, consumers and stakeholders.

After analyzing two different telecommunication companies, China Mobile and Nippon Tel & Tel, we found the main factors off success in their market. Those unique characteristics in each market that over time helped to built the biggest telecommunication companies in the world.

The Chinese giant, China Mobile Communication Corporation (CMCC) found the help to become the world’s largest mobile network and the world's largest mobile customer base in the following key factors:

- Innovation

The company knows that through constant innovation they can obtain significant benefits. One example of how CMCC benefit by investing in innovation plans is the development of 4G technologies. This technology helped to increase their market share, the flow of traffic or connections and the company’s income. Also another example could be the introduction of desirable products in order to satisfy the consumer’s needs.

- Government support

We found that the role that government plays in the Chinese business environment is very important, especially in the case of CMCC, because it owns 72.85% of the company. So it was through the congress that the license to develop the TD-LTE technology or 4G was possible, as well it helped to release the latest company strategy called “NovoNet 2020”. Another way in which China Mobile boost their profitability was by subsidies, reducing the cost of smartphones.

The book “Big Business, Big Responsabilites” (2010), exposes the relationship between the government and big business and we can conclude that the interaction of those two works specially in China, due to the power that the ownership of the enterprise and the direction that it provides, is possible to generate changes. By controlling big companies the government can easily accomplish public objectives, for example one of the Chinese government objective was to develop rural areas and modernize agricultural techniques, so CMCC developed a Rural Information Network in order to provide information in rural communities, as well as offering affordable prices, the 27.15% of public shareholders considered very risky the strategy, because it required a big investment and people in those areas may not be able to pay the services and then incurring in losses, surprisingly the expansion of the network to those areas in China became a factor for the company’s growth and benefit.

- Strategic cooperation

The company had established some strategic cooperation agreements with another companies form different industries in order to be competitive and obtain benefits. Some of those strategic partners are: Huawei, Shanghai Pudong Development Bank, Thai True Corp and Paktel now called Zong. Some of the benefits are derived from mobile finance, e-commerce and the expansion to foreign markets, giving the company the opportunity to grow and diversify their offer.

- Telecommunication networks

China