Introduction to the report

As of July 2004, the number of users in China's mobile market has reached 310 million, and the number of users continues to rise. However, the ARPU value of mobile communication operators still shows a downward trend, and the growth rate of mobile communication business revenue continues to slow down. At the same time, new mobile services are being launched continuously. Analysys predicts that the scale of new services will reach 7.366 billion yuan in 2004, with a growth rate of 89% and is expected to continue. New mobile services will become the main factor driving total revenue and ARPU value.

The current management situation of new services by domestic mobile communication operators is as follows: adding new business departments (or data departments, value-added business departments, etc.) to the original organizational structure set up according to traditional voice services. The New Business Department is responsible for the planning, research and development, and marketing promotion of new businesses; the relationship between the New Business Department and other departments such as the Marketing Department and the R&D Department is relatively independent, resulting in conflicts in departmental functions and resources, a lack of systematic planning for the operator's brand system, and new business There are problems such as inconsistent marketing and promotion with the original voice business.

With the increasing number of new business types and the different characteristics of various new services, new business management will become more complex. The existing new business management model cannot well solve the new business and traditional voice services. Conflict issues in marketing and R&D. Analysys Consulting, as the first consulting company to intervene and focus on researching new domestic communications businesses, completed this report based on its years of accumulation in the telecommunications market, combined with in-depth interviews with industry professionals and analysis of secondary data.

In this study, Analysys Consulting analyzed the problems of the current management structure in managing new businesses, conducted an in-depth analysis and believed that the new mobile communications business has product attributes, and recommended the introduction of management suitable for the characteristics of the new business. ideas and models, and conduct detailed analysis on the main aspects such as production process, management structure, brand strategy, support system, etc., and finally propose new ideas and solutions for the new mobile communications business management model. At the same time, this study also conducts a detailed examination of the organizational structure and brand strategies of several major operators in Asia-Pacific, providing reference for domestic operators in terms of organizational structure and brand strategies.

The main contents of this report are:

● Research on the user scale and market size of the mobile communications market, and analyze the current status and trends of the market size and user size of each new mobile communications business Research.

● Analyze the characteristics of new mobile communications services, reveal their differences from traditional voice services in many aspects, and conduct an in-depth analysis of the current status and existing problems of domestic operators in new service management.

● Analyze the product attributes and characteristics of the mobile communications business, propose a product management model suitable for new business management, and propose specific methods from the aspects of foundation, analysis tools, processes, organizational structure, marketing strategies, support systems, etc. and suggestions.

● Examine the organizational structure and brand strategy of Asia-Pacific mobile communication operators SKT, DoCoMo, and Hutchison in new business management and provide reference.

● Detailed analysis of the organizational structure and brand strategy of domestic mobile operators and put forward specific suggestions.

Analysys found

● New mobile communication services have become the new focus of competition among operators.

New mobile communications business has grown significantly, but its proportion in total business revenue is still not high. New services will become the dominant factor in driving total revenue and ARPU value. Users' new service usage habits are the basis for 3G operation profitability. New services will become the new focus of competition among operators.

● New business has stronger product attributes.

New services consist of a variety of services and will continue to increase, while traditional voice services are single. New services and traditional voice services, as well as different services, have different characteristics, different life cycle lengths and stages, as well as different marketing methods and user habits.

● The current management model of new services of mobile operators is an adjustment to the management model set up for traditional voice services.

The data business department (or business development department or value-added business department) of each operator is responsible for the development and promotion of new services. Since new services are gradually introduced with the advancement of communication technology, the data business department is also a department added based on the organizational structure set up by operators for traditional voice services.

● The current new business management model has problems that cannot adapt to the development of new business.

The management of new business lacks systematic planning; the management structure of new business conflicts with the original organizational structure; the marketing promotion caliber is inconsistent and lacks strategic planning; the marketing orientation is still mainly based on technology; the assessment and evaluation methods are single; Poor communication mechanism.

● New business has product attributes and characteristics.

New mobile communications services meet product definitions. Mobile communication products refer to anything provided in the market that can meet people's communication and entertainment requirements. The new business of mobile communication has expanded the form of mobile communication products from voice to images, music, etc.; from meeting people's call requirements to games, making friends and other leisure and entertainment requirements.

● Management of new business, organizational structure and brand strategy are crucial.

New business will become a profit growth point in the future and is of great significance to operators, so corresponding management models should be established. Elevating new business to a strategic level requires cooperation in organizational structure and external marketing brand strategy. Organizational structure is the cornerstone of new business management, and brand strategy is a powerful means of new business marketing.

● The organizational structure and brand strategies of foreign operators can provide reference for domestic operators.

→ SKT’s organizational structure and brand strategy have obvious effects.

SKT has made adjustments to its organizational structure, such as dividing the functions of the original Internet department into the technology department, marketing department and customer service department, and moving towards a product management model. The brand strategy adopts user brands and subdivides six major user brands, and targeted product offerings and tariff measures have achieved results.

→ DoCoMo is leading in organizational structure and brand strategy.

DoCoMo has set up specialized product and business management departments in its organizational structure to conduct unified management of various businesses and has the ability to unify

coordinate and allocate other departments and resources. The brand strategy uses product brands, I-mode has achieved great success, and FOMA is currently rising very quickly.

→ Hutchison’s brand strategy is still being adjusted

Due to the fierce competition in the Hong Kong market, the original competition method focused on tariff measures. At present, with the launch of 3G business, it is developing in the direction of product brand

.

● The organizational structure of domestic operators needs to be adjusted, and the brand strategy is not yet clear.

The organizational structure of China Mobile and China Unicom mainly follows the original organizational structure set up for voice business. The management department for new business is the data business department (or new business development department) added to the original structure. , value-added business department).

In terms of brand strategy, China Mobile focuses on the three major user brands of Global Communications, China Travel and M-Zone. China Unicom focuses on six U brands including China Unicom, Positioning Star, Interactive Vision, Palm Broadband, Magic Book and Cai e.

Analysys recommends

● For new business management of mobile operators, it is recommended to introduce new ideas in product management models and build an overall framework for new business management.

→ Establish a new understanding of the product attributes of new businesses.

This is the conceptual basis for constructing the entire product management model. Through product concepts, the crux of the shortcomings of the original management model can be solved

and a new management method can be established.

→ Establish a series of analysis tools based on product management - product classification, strategy, life cycle management, etc.

Product classification is the premise of product management. Without classification, there is no individual management of products. The product strategy indicates the share and growth of the product in the operator's various products, and is an overall description and management method.

The product life cycle is the description and management basis for the development status of a single product.

→ Establish an organizational structure consistent with the product management system.

Establish a new business organization structure with matrix management. Establish a product management department as the business management department to lead and coordinate the participating departments in the product process process, and seek effective management of new business using the product management model.

→ Establish a product development process that adapts to new business characteristics.

Standardize the development process and coordinate resources using product management methods. The product development process includes product demand stage, research and development, trial commercial use, commercial use and commercial evaluation stages.

→ Establish a brand marketing strategy that adapts to the characteristics of the new business.

Brand strategy is an inevitable requirement for product marketing as product varieties increase, market competition becomes fierce, and user market segmentation occurs. Brand strategy

Not only applies to manufacturing companies, but also to operators of new mobile services as products.

→ Establish support systems—management information systems, etc.

Establish a series of support systems that conform to the product management model, including information systems, etc.

● In terms of organizational structure, it is recommended that operators establish an organizational structure adapted to new business processes for new business management. This is the institutional and organizational guarantee for new business management.

→ Integrate internal processes, adjust the organizational structure, and establish a product management department to unify business management.

→ Grasp the development trend of mobile value-added services, and organize the product management department to formulate the operator's overall product development plan.

→ Determine the horizontal functions of the product management department—unify the management of various businesses and formulate overall plans.

→ Determine the vertical functions of the product management department—coordinate the R&D department, marketing department, sales department and other departments involved in the entire process from product production to promotion.

→ The basis of product grouping in the product management department—product classification.

Establishing a product management department requires classified management of various new mobile business products. Reasonable product division methods become the basis for effective

classified management.

→ The important function of the product management department-the relationship with SP.

In view of the characteristics of new business, the product management department needs to coordinate the cooperative relationship between new business and external SP in the internal production process, and

incorporate SP into the internal management system as much as possible, In order to weaken the independence of the SP, control the end customer resources, establish the operator as a unified platform and occupy the dominant position in the industry chain.

● Regarding brand strategy, it is recommended that operators establish a brand strategy that adapts to the characteristics of new services in terms of new business management. This is a powerful means of marketing new services.

→ Determine the basis for choosing a brand strategy.

Selection basis 1: Technical means to achieve product differentiation. Different technical means determine the differences in the content, form and effect of communication products. Having the technical means to differentiate products will have an advantage in adopting product branding strategies. On the contrary, adopting a user brand strategy is a more reasonable choice.

Selection basis two: The competitive environment of the market where the operator is located. Under the same technical means, the degree of competition and market maturity of operators are also the main factors that determine brand strategy. In the early stages of market development, the number of products is limited and user needs are unclear. Operators need to adopt a product brand strategy to differentiate products, promote product concepts, and enhance user awareness of the product. On the contrary, when the market

is highly competitive and has a wide variety of products, a user brand strategy should be adopted to meet the needs of market segments.

→ Overall suggestions for operators—implement branding for products.

Each operator already has many types of product brands, but they still lack systematization, management has not yet been standardized, and new products launched lack business system planning

Some product designs are still technology-oriented, with weak brand awareness. There are many types of businesses, but they are managed by a single business.

There is no perfect product category management, which brings obstacles to customer recognition and internal management. Operators need to implement branding systems for their products.

→ Suggestions for China Mobile - further segment user brands.

The current three major mobile brands have gradually evolved in the development of the market, forming user divisions into high-end, low-end and young people. In the 2G and 2.5G era, we should and must follow the market development progress and proactively divide the market. For example, for primary and secondary school students

Mobile phone users, elderly users and married women can also segment user brands.

→ Suggestions for China Unicom - Segment user needs under product brands.

As China Unicom continues to enrich its product brands, it should also segment users according to customer needs so that its products can better serve

customers.

Research Method

This report mainly uses in-depth interviews and other qualitative research methods, based on the analysis of the interview results of major domestic and foreign mobile communication operators, combined with Analysys’s analysis of new mobile communication services Long-term tracking and monitoring of survey data, as well as the collection and analysis of second-hand information, resulted in relevant conclusions and suggestions for new mobile communications business management models.

● First-hand information mainly comes from in-depth interviews with major domestic and foreign mobile communication operators, as well as Analysys’ long-term tracking and monitoring of new mobile communication business research data.

→ In-depth interviews with major domestic and foreign mobile communication operators

■ Research objects: Domestic and foreign mobile communication operators, including Japan’s DoCoMo, South Korea’s SKT, Hong Kong’s Hutchison, and China Mobile

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, China Unicom, etc.

■ Research content: Development status of new mobile communications services, management status, marketing strategies, etc.

■ Research method: in-depth interview.

→ Analysys’ research data on long-term tracking and monitoring of new mobile communication services

■ Research objects: various mobile communication operators.

■ Research content: Number of users of new mobile communications services, market size, etc.

■ Research methods: tracking monitoring and Analysys forecasting methods.

● Secondary information mainly obtains some public information through the following channels.

→ Industry public information

→ Public opinions expressed by senior industry experts

→ Government data and information

→ Relevant economic data

→ Corporate Annual Report, Quarterly Report

→ Network Information

Report Contents

1 Research on China Mobile Communications New Business Market Status and Development Trends

1.1 Research on China Mobile Communications Market Development Trend

1.1.1 China Mobile Communications User Development Status

1.1.2 China Mobile Communications Business Revenue and ARPU Status

1.2 Research on the market development trend of China Mobile Communications’ new services

1.2.1 Types of China Mobile Communications’ new services

1.2.2 Market of China Mobile Communications’ new services Scale

1.3 Characteristics of China Mobile Communications’ new services

2 Research on the management model of China Mobile Communications’ new services

2.1 Comparison of the characteristics of traditional mobile communications services and new services Analysis

2.2 Existing management model of new mobile communications business and existing problems

2.2.1 Existing management model of new mobile communications business

2.2.2 Problems existing in the existing management model of new mobile communications services

2.3 New management ideas to solve existing problems—product management model

2.3.1 The basis of the product management model—product Concept

2.3.2 Analysis tools of product management model - product classification, product strategy, product life cycle theory

2.3.3 Process of product management model - product process management

2.3.4 The organizational structure of the product management model - matrix management

2.3.5 The marketing strategy of the product management model - brand management

2.3.6 Products Relevant support systems for management models—information systems, etc.

2.4 Two key issues—organizational structure management based on product processes and brand management based on product marketing

3 New mobile communications Business process-based organizational structure management

3.1 Process-based organizational structure management and its application in new mobile communications services

3.2 Analysis of organizational structure management of foreign operators

3.2.1 SKT’s new business and organizational management structure

3.2.2 DoCoMo’s new business and organizational management structure

3.3 Analysis of the organizational structure management of domestic operators

3.3.1 China Mobile’s organizational structure management

3.3.2 China Unicom’s organizational structure management

3.4 Two related questions about the organizational structure

3.4.1 The basis of product grouping of the product management department - product classification

3.4.2 The relationship between the product management department and SP

3.5 The organizational structure of the product management model

4 Brand strategy of new mobile communications business

4.1 Brand strategy theory and its application in new mobile communications business

4.1.1 Definition of brand strategy

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4.1.2 Brand strategy classification - product brand and user brand

4.1.3 Basis for selecting operator brand strategy

4.2 Analysis of brand management of foreign operators

4.2.1 SKT’s brand management

4.2.2 DoCoMo’s brand management

4.2.3 Hutchison’s brand management

4.3 Analysis of brand management of domestic operators

4.3.1 China Mobile’s brand management

4.3.2 China Unicom’s brand management

4.4 Summary

5 Analysys recommendations

5.1 The management of new mobile communications services should adopt a product management model

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5.2 Process and organizational structure management of new mobile communications business

5.3 Brand strategy management of new mobile communications business

Figure list

Figure 1 -1 Development of the total number of users of China Mobile Communications

Figure 1-2 Development of revenue from China Mobile Communications services

Figure 1-3 ARPU of China Mobile Communications

Figure 1-4 Market size of new services of China Mobile Communications

Figure 1-5 Number of new business users of China Mobile Communications

Figure 2-1 Typical management model of new services by domestic operators

Figure 2-2 New management ideas for new mobile communications services - product management model

Figure 2-3 Product definition of new mobile communications services

Figure 2-4 Differentiation of mobile communication business products, services, applications and technical concepts

Figure 2-5 Product classification idea of ??mobile communication business 1

Figure 2-6 Products of mobile communication business Classification idea two

Figure 2-7 Product strategy of mobile communication business

Figure 2-8 Product life cycle of mobile communication business

Figure 2-9 Mobile Product process of communication business

Figure 2-10 Management structure of mobile communication business

Figure 2-11 Information system of new mobile communication business product management model

Figure 3-1 Organizational structure of new mobile communications business product management model

Figure 3-2 SKT’s new business list

Figure 3-3 DoCoMo’s new business evolution

Figure 3-4 DoCoMo’s organizational management structure

Figure 3-5 China Mobile’s new business evolution

Figure 3-6 China Mobile Group’s new business organizational management structure

Figure 3-7 New business organization and management structure of China Mobile Group Branch

Figure 3-8 New business evolution of China Unicom

Figure 3-9 China China Unicom’s new business organization and management structure

Figure 3-10 DoCoMo’s product classification example

Figure 3-11 Hutchison’s product classification example

Figure 3-12 Example of product classification of China Mobile Group

Figure 3-13 Example of product classification of China Mobile Guangdong Branch

Figure 3-14 Example of product classification

Figure 4 -1 SKT’s user brand

Figure 4-2 SKT’s brand system

Figure 4-3 DoCoMo’s brand system

Figure 4-4 Hutchison’s brand System

Figure 4-5 Hutchison’s business rates

Figure 4-6 China Mobile’s brand system

Figure 4-7 China Unicom’s brand system

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Figure 5-1 Product management model of new mobile communications services

Table contents

Table 2-1 Comparison of characteristics of traditional mobile communications services and new services

Table 2-2 Problems existing in the existing management model of new mobile communications services

Table 3-1 Organizational management structure of new mobile communications services

Table 4-1 Product brands Differences from user brands

Table 4-2 SKT’s JUNE brand

Table 4-3 China Unicom’s product brands

Table 4-4 Operators Brand strategy analysis

Number of report pages: 83 pages

Number of report words: 30839 words

Report charts: 38/7

Report price: Paper version ￥15,000 RMB

Electronic version ￥15,500 RMB

Paper version + electronic version ￥16,000 RMB

Contact person ：Yin Chunlan

Tel: 86 21 62988989/62986869/62996869/62991819

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Fax: 86 21 62665877

E-mail: yinchunlan@c114.net.cn