China Mobile Limited Essay Example | Topics and Well Written Essays - 1500 words

China Mobile check - Essay ExampleThe telecom diligence has undergone reforms which guide been driven by the regulations of the European Union (EU). Through successive liberalization directives and harmonization directives, the EU has played a vital role in liberalization of the EU telecom market (OECD, 2001). Italy promptly has a comprehensive regulatory regime which enables it to promote competition in the vault of heaven. Italy also has one of the to the highest degree pro-competitive approaches among all the OECD members in monitoring service quality and coverage of carrier pre-selection. China Mobile Limited (CHL) is one of the worlds largest mobile ne 2rk operators, headquartered in China and having operations in Mainland China, Hong Kong and Pakistan. in spite of its presence only in three countries it has the largest customer base in the world of approximately 650 one thousand thousand with a market share of 65% in Mainland China (China Mobile Limited, 2012). CHL has b een evaluating the prospects of entering the European markets as a strategy seeking puzzleth and expansion. Besides, the government in China also encourages Chinese companies to nail overseas. Growing organically is time consuming and hence CHL intends to enter into alliance or acquire majority stakes in an existing mobile network operator (MNO). Telecom Italia (TM), the leading service provider in Italy is heavily indebted and running in losses (Sanderson, 2012). The organization needs funds to grow but is already in heavy debts. CHL has an opportunity to enter into an agreement with TM and fund their growth. CHL is cash-rich and has abundant network as well. In entering new markets the risk and control is proportionately related to the investments. CHL washstand fund their growth but this would require positive stakes, which implies high investments. Low investments would not give CHL controlling stakes without which CHL would have to function as the other stakeholders insis t. However, CHL would need the support of the existing MNO as the two countries are wide apart in cultural dimensions, particularly in uncertainty avoidance and long-run orientation, according to Hofstedes dimensions. Thus, CHL would have to adapt to short-term orientation in decision-making and accept risks as well. Risks overwhelm obtaining controlling stakes in the company by paying more than the market price. Since CHL has experience in technology this would help offset risks from not having country-specific experience (Braunstein, Jussawalla and Morris, n.d.). The Italian economy is in trouble and the governmental condition in Italy is unstable too (Sanderson, 2012). However, in the telecom sector there are no restrictions on foreign ownership and on shareholding of a single party (OECD, 2001). Therefore, even though CHL would have to change its strategy to adapt to Italian cultural standards, they would make profits because of their experience in the sector and the strength of financial resources. However, they may not be able to make profits in the number 1 few years but eventually they would be able to get return on their investments. showtime solar First Solar has been one of the largest and most successful solar panel manufacturers so further but it faces stiff competition from Chinese manufactures which has driven down the prices by 50 percent (Bullis, 2012). repletion of panels and sales below production cost by Chinese manufacturers has intensified competition (Wang, 2012). Technologically, First Solars thin-film, cadmium-telluride solar panels are less efficient than the silica solar panels made by the Chinese manufacturers. First Solars panels can be used for large, ground-mounted installations. However, this has limited market and the company is no longer able to sustain selling its products below