First, China Mobile Beijing Winter Olympics performed well
The simple, safe and wonderful Beijing Winter Olympics came to an end, and the Chinese sports delegation performed well at the Winter Olympics at the doorstep, winning 9 gold, 4 silver and 2 bronze. China Mobile, which is not the official communications service partner of the Beijing Winter Olympics, also performed well at the Winter Olympics on its doorstep.
China Mobile's 5G ice and snow team won a total of 6 gold and 2 silver at the Winter Olympics. The super popular Gu Ailing successfully achieved the personal goal of "participating in all three competitions and standing on the podium", "Flying Elephant on Ice" Ren Ziwei successfully crowned "Double Champion", "Four Dynasties Elder" Xu Mengtao won the golden tears in the arena, and figure skating combination Sui Wenjing and Han Cong held hands for 15 years to finally complete the Winter Olympic gold medal dream.
China Mobile Migu Video, Mobaihe, and Video CRBT "Iron Triangle" give full play to the advantages of 5G, 4K/8K, VR, AI and other technologies to create a "5G + ice and snow" full-scene immersive viewing experience for users, triggering a national ice and snow boom.
Winter Olympic champion Wang Meng and the famous mouth Huang Jianxiang's commentary in the Migu video live broadcast room made the audience laugh, "My eyes are the ruler, I will definitely win, no need to watch the replay!" Wang Meng's golden sentence was widely circulated on major platforms.
With the outbreak of China Mobile's 5G ice and snow team on the field, as well as the outbreak of Huang Jianxiang and Wang Meng in the live broadcast of Migu video, Migu video has successfully surpassed "Aiyouteng" and "Jitter" in the past month.
On February 8 and 9, China Mobile's stock price rose sharply for two consecutive days, and the market value rose by more than 130 billion yuan on the 9th alone, with a total market value of 1.43 trillion yuan, ranking fourth in the market value of A-shares. You know, this is the day after China Mobile landed on the main board of the Shanghai Stock Exchange on January 5, the "green shoe" mechanism expired, and many people waited to see the break after China Mobile took off the "green shoe".
Second, China Mobile's Performance of the Winter Olympics is the successful practice of the concept of "value management based on scale"
The Winter Olympics are over, and China Mobile's outstanding performance in the Winter Olympics is worth summarizing in all dimensions. Some people are impressed by China Mobile's vicious vision in the selection of spokespersons; some people take stock of the black technology used by China Mobile at the Winter Olympics, and some people are worried about how the huge traffic brought by the copyright of the event will be retained...
My concern is whether China Mobile's outstanding performance at the Winter Olympics can be replicated?
China Mobile's Performance of the Winter Olympics is a successful practice of the concept of "value management based on scale".
First of all, China Mobile has played its own network scale advantage to provide high-quality communication guarantee for the Winter Olympics. Secondly, it has played the advantage of contact scale, whether it is the business halls throughout the city and countryside, or the circle of friends of mobile employees, it is a powerful contact point for the spread of the Winter Olympics. Of course, the scale advantages of mobile users, broadband users, Migu users, Magic Hundred and users are also indispensable, which is the basis for ignition and outbreak.
Needless to say, the rise and fall of the stock price is the vote of the market.
The scale advantage is undoubtedly the most prominent advantage of China Mobile. The network of 700,000 5G base stations is the largest in the world; if China Mobile's communication service is regarded as an APP (why not as an APP?). The user scale of 960 million mobile customers is second only to WeChat, surpassing all operators in the world, and also surpassing Taobao, QQ, Douyin, etc.; the scale of 240 million wired broadband households is the largest in the world.
If the value management concept based on scale is successfully copied in other fields, then China Mobile is very worth looking forward to.
Third, from economies of scale to economies of scale
Value management based on scale is both an economy of scale and a scope economy.
Economies of scale mean that the unit cost of an enterprise decreases with the expansion of production scale, and its benefits increase with the expansion of production scale. Economies of scale are often caused by huge fixed costs, so average costs continue to fall as production increases.
Mobile communication networks have typical economies of scale, and the investment in network construction in the early stage and the investment in service outlets are huge. The specific cost of adding a mobile user is small and negligible.
After years of rapid development, the growth of China Mobile's user scale has slowed down, and the economy of scale effect has peaked. Relying on rapid growth in scale to reduce unit costs and increase profitability is no longer sustainable.
Having an advantage in scale does not equate to an economy of scale. The opposite of a process in which the increase in scale leads to a decrease in average costs is also true. When scale growth slows, the unit cost of growth increases without the fixed cost becoming.
For example, a branch has 1,000 channels, 10 years ago to put 2 million number cards per year, a net increase of 1 million users; and now only 200,000 number cards per year, a net increase of 100,000 users. Although the number of users is still growing, the number of channels has not changed, and assuming that the cost of channel input has not changed, then the channel cost of each net increase in users is 10 times that of 10 years ago. Note that the cost of a net increase in the channel mentioned here is not the remuneration paid by the operator to the channel, but the actual cost incurred.
When the scale of users peaks and the growth of scale slows down, enterprises can also achieve development by increasing the value of unit users. Specific to operators, it is to increase the ARPU value. The way to increase the ARPU value can be to increase the user's usage, such as increasing the DOU from 1 G to 10 G, and the ARPU will increase accordingly if the unit price of the traffic is unchanged. Contrary to expectations, the embarrassment faced by operators is that while traffic is growing rapidly, the unit price of traffic is reduced faster, and the increment does not increase revenue.
Another way to improve ARPU is to provide customers with new products and services, which fall within the scope of the economic effect.
The so-called scope economic effect refers to the economic phenomenon that when an enterprise switches from exclusively providing one product service to providing multiple products and services, the average cost decreases. The scope economy effect is an effective way to realize the scale value; the scope economy can use and play the scale advantage, and the scale is the basis and powerful weapon for the scope economy effect.
China Mobile operates based on the value of scale, provides more value-added services, and even extends to the 2B business, in the final analysis, it is all about benefiting from the economic effect of the scope.
Fourth, the key to value management based on scale
China Mobile is not only a professional company of Migu Culture, nor is it a product of Migu Video. Other professional companies and other products can also use China Mobile's scale advantage to start the economic effect of the scope, why only Migu can succeed in the Winter Olympics this time?
One answer is that this time Migu has created a first-class product for the positioning of a world-class enterprise.
The copyright of the event is first-class, the spokesperson is first-class, the commentators are first-class, and the supporting technology is first-class. The product created by the Winter Olympics live broadcast is also first-class.
First-class products can be accepted and liked by users; if the content and commentary of migu's winter Olympics live broadcast are very poor, it is useless to have a huge user scale.
First-class products can be promoted by employees and channels; if the live broadcast of the Migu Winter Olympics is very poor, no matter how hard employees and channels try to promote it, even if the promotion is out, users will not use it.
China Mobile has the advantages of scale such as users, networks and channels, and the employees of China Mobile have strong execution. One of the keys to achieving scale-based value management is to have first-class products and services.
If China Mobile has first-class smart door locks, first-class sweeping robots, first-class home-school communication products, first-class smart retail products... Mobile employees will be able to quickly scale this product and service, forming a new scale advantage.
The question is, why has China Mobile rarely created such a first-class product as Migu Winter Olympics live broadcast in recent years?
One answer is that China Mobile does not work with first-class partners. China Mobile has strong strength, how can it not have first-class partners?
Because when employees put forward procurement needs, the first thing they think of is not to find the strongest partner, but to answer the questions that may be asked when they are inspected: Why choose this? And nothing else? The starting point for demand is to avoid responsibility, not to find the best.
Procurement and bidding are high-risk areas. In order to reduce costs and control risks, China Mobile has standardized procurement and bidding. From the perspective of avoidance of liability, low price has become the most secure and decisive option, and the easiest option to answer "why this".
Unfortunately, low prices are often accompanied by low quality. The quality of the physical products that win the bid at a low price will not be good, the quality of the project construction at a low price will not be high, and the maintenance of equipment that wins the bid at a low price will not be timely and efficient.
In actual work, the specific management personnel will understand the principle of one penny for one, and there will be no strict requirements for product quality and project maintenance quality.
As a result, there are no first-class products and services.
To sum up, the key to scale-based value management lies in having first-class products and services, it is difficult to create first-class products and services without first-class partners, and the reason for not having first-class partners is that employees who put forward demand "don't want" to purchase first-class partners.
China Mobile's Performance of the Winter Olympics is based on the successful practice of the value management concept of scale. If you want to replicate China Mobile's Performance of the Winter Olympics, you need more first-class products and services, you need first-class partners, and you need employees to "want" to purchase first-class partners.
As for how to make employees "want" to purchase first-class partners, it is another topic, which will be recounted in another article. (C114 Contributing Author Huang Fushan)