The major telecommunications companies have adopted similar strategies to expand in Africa, including acquiring existing companies, forming joint ventures, and obtaining licenses to operate in new markets. They target countries with low telecom penetration and aim to provide basic, low-cost services. However, differences remain in their brand positioning, level of innovation, and focus between more developed versus less developed African nations. Managing the cultural and economic differences across Africa poses challenges to their pan-African strategies.
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
emerging nokia - should they focus on developed or emerging marketsSaurabh Arora
Should Nokia’s growth strategy be to focus on the developed markets, emerging markets or both?
Case Analysis
Handset manufacturer worldwide market share of 38% in 2009
Market leader in emerging markets like India(60%) and China(40%)
Financial performance pre-2008 was exceptional
Known for innovation
Offers products at all price points
Post-2008 started losing ground in developed markets
European market revenue declined by 15% in 2009
Exited the Japanese market after 20 years of operations
Nokia was fifth most valuable brand globally in 2000
Analysis of Emerging Market
Employed the cost leadership strategy: Purchasing power low in emerging markets hence Nokia provided cost effective products successfully.
First time purchasers: Only 20% of the emerging market were not first time purchasers
Services as the key selling point: People of emerging markets wanted value added services bundled with the phone
Analysis of Developed markets
Consumers not very price sensitive
Delivering innovative products more important
57% of the market goes for a second phone, most of the time for an upgrade
Emergence of i-phone, considered as replacement for normal handsets with users looking for upgradation
Growing competition from companies like Samsung, LG, Motorola and Sony Ericson was also making things worse for Nokia.
New Operating System – e.g. – Emergence of OSs like Google’s Android and Microsoft’s Windows mobile further bothered Nokia.
Inability to understand demand – Nokia failed to understand growing demand for touch phones
Why focus on Emerging Markets?
As Nokia has already gained the following benefits by being the first mover, it should strive hard to maintain it’s market share in developing economies. Advantages it has –
Earlier entry, early start of the learning curve. Its crucial and experience is tough to imitate.
Nokia can develop enhanced reputation by being pioneer and using its already established brand image
Absolute cost advantage can be gained by early commitments to supplies of materials and distribution channels….
Recommendations- Emerging Market
Nokia should concentrate on Improved as well as Basic phones as the market is still evolving
Tie up with Telecom players and bring dual sim phones to increase the switching cost
It should follow innovations in developed countries and adapt them to emerging markets in order to stand against competition.
One general strategy should be to outsource the services part as it is not Nokia’s competency and customers are giving more regard to services (Exhibit 6)
Instead of charging customers for Life tools, revenues should be earned from advertisers.
Case study: The Rise and Fall of Nokia By by Juan Alcacer, Tarun Khanna and Christine Snively.
Nokia provides telecommunications network equipment and services.
It was world’s leading manufacturer of mobile telephone handsets.
BUT Had to sale it’s assets to the Microsoft for $7.2 billion.
The sale marked as “sad ending to Nokia”.
Nokia revitalization - Strategy to revitalize NokiaVinit Gandhi
A revitalization strategy for Nokia from a B School Graduate view. Intent of this exercise was to provide with an insight on how revitalization can be performed.
Case solution of PSI in social marketing Nikita Patel
Solution of case of social marketing in which first case analysis and central idea ,Marketing analysis,Raja;s success and maya's Failure and Future plan for maya.
House of Tata: Acquiring a Global FootprintAbhigyan Singh
The 134-year-old Tata Group with 95 operating companies (31 of them publicly traded) and 230,000 employees, it is India's largest private-sector employer, its biggest taxpayer, and its greatest foreign-exchange earner.
emerging nokia - should they focus on developed or emerging marketsSaurabh Arora
Should Nokia’s growth strategy be to focus on the developed markets, emerging markets or both?
Case Analysis
Handset manufacturer worldwide market share of 38% in 2009
Market leader in emerging markets like India(60%) and China(40%)
Financial performance pre-2008 was exceptional
Known for innovation
Offers products at all price points
Post-2008 started losing ground in developed markets
European market revenue declined by 15% in 2009
Exited the Japanese market after 20 years of operations
Nokia was fifth most valuable brand globally in 2000
Analysis of Emerging Market
Employed the cost leadership strategy: Purchasing power low in emerging markets hence Nokia provided cost effective products successfully.
First time purchasers: Only 20% of the emerging market were not first time purchasers
Services as the key selling point: People of emerging markets wanted value added services bundled with the phone
Analysis of Developed markets
Consumers not very price sensitive
Delivering innovative products more important
57% of the market goes for a second phone, most of the time for an upgrade
Emergence of i-phone, considered as replacement for normal handsets with users looking for upgradation
Growing competition from companies like Samsung, LG, Motorola and Sony Ericson was also making things worse for Nokia.
New Operating System – e.g. – Emergence of OSs like Google’s Android and Microsoft’s Windows mobile further bothered Nokia.
Inability to understand demand – Nokia failed to understand growing demand for touch phones
Why focus on Emerging Markets?
As Nokia has already gained the following benefits by being the first mover, it should strive hard to maintain it’s market share in developing economies. Advantages it has –
Earlier entry, early start of the learning curve. Its crucial and experience is tough to imitate.
Nokia can develop enhanced reputation by being pioneer and using its already established brand image
Absolute cost advantage can be gained by early commitments to supplies of materials and distribution channels….
Recommendations- Emerging Market
Nokia should concentrate on Improved as well as Basic phones as the market is still evolving
Tie up with Telecom players and bring dual sim phones to increase the switching cost
It should follow innovations in developed countries and adapt them to emerging markets in order to stand against competition.
One general strategy should be to outsource the services part as it is not Nokia’s competency and customers are giving more regard to services (Exhibit 6)
Instead of charging customers for Life tools, revenues should be earned from advertisers.
Case study: The Rise and Fall of Nokia By by Juan Alcacer, Tarun Khanna and Christine Snively.
Nokia provides telecommunications network equipment and services.
It was world’s leading manufacturer of mobile telephone handsets.
BUT Had to sale it’s assets to the Microsoft for $7.2 billion.
The sale marked as “sad ending to Nokia”.
Nokia revitalization - Strategy to revitalize NokiaVinit Gandhi
A revitalization strategy for Nokia from a B School Graduate view. Intent of this exercise was to provide with an insight on how revitalization can be performed.
Case solution of PSI in social marketing Nikita Patel
Solution of case of social marketing in which first case analysis and central idea ,Marketing analysis,Raja;s success and maya's Failure and Future plan for maya.
The pdf is brief analysis on Strategies used by Airtel.
Contains PESTLE Analysis, SWOT Analysis, VRIO Analysis of Airtel. A brief about Telecom Industry and Corporate structure of Airtel.
Bharti had a very low “Net Debt to Equity Ratio” of 0.05 at the end of Dec., 2009 which means that it was virtually a debt free company
It is good to have low debt but zero debt is not a desirable situation as debt can increase the shareholders’ return on their investment due to tax advantages associated with borrowing
Call for a Remote Telecommunication Strategy (RTS) Broadband for the Bush All...Ninti_One
Daniel Featherstone and Apolline Kohen presented to the Australian Rangeland Society 18th Biennial Conference "Innovation in the Rangelands" in April, in Alice Springs.
IE IMBA Application: Question H - by Alicia M. Rivasamrivascortez
H. What do you believe are the greatest challenges facing the sector or industry you would like to specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?
Ponencia para el taller "El papel del Estado en la promoción de la banda ancha" en Lima (Perú) el 18 de mayo de 2011.
Presentation for the workshop "The role of the state in the promotion of the broadband" in Lima (Peru) May 18th 2011.
The Future of Telecoms in Africa, Feb 2014, DeloitteAdrian Hall
Africa can no longer be considered the Dark Continent. Given the rate at which mobile connectivity is growing, it seems only natural that the way business is done will change. But how will Telco’s embrace this change and are they even ready for it?
Management of frequency spectrum is more important in order to avoid interference.Spectrum Management processes are
established in a framework largely determined
by national needs.The decisions about national goals cannot be
imposed from outside: they are rightly a matter
for a sovereign government and the people, in
the interests of the people.
• Therefore any process establishing a
regulatory framework for spectrum access
must involve the key stakeholders: the
spectrum users and the public.While users of the spectrum have immediate
needs, which should be met if possible, there
are also uses in the future which must be
allowed for in the planning.
• The regulating authority must achieve a
balance between the current use and possible
future uses, such that growth is not hindered.
In prepaid markets where the majority of subscribers own more than one SIM card, it is only through nationally-representative surveys that accurate and disaggregated data can be
collected. Nationally-representative demand-side surveys are the only means through which reliable estimates on gender, urban-rural ratios and income groups can be drawn. In 2017,
Research ICT Africa (RIA) conducted the After Access Survey as part of a 20-country Global South survey in Nigeria and six other African countries: Ghana, Kenya, Mozambique, Rwanda,
South Africa and Tanzania. The Survey in Nigeria demonstrates that a significant portion of Nigerians (71%) do not use the Internet while 36 percent do not have mobile phones.
Among the surveyed countries, Nigeria ranks second in Internet penetration, behind South Africa, though the penetration level in Nigeria is still low at 29 percent, not much more than half that of South Africa.
The main barriers to Internet use in Nigeria are affordability, web literacy and a lack of access devices such as smartphones and computers. The Survey also demonstrates, as it did with voice services, that the mobile phone plays a significant role in enabling access to the Internet at household and individual levels. Among the individuals who reported having used the Internet, 89 percent claimed to use smartphones. Nonetheless, the high prices of both devices and services constraints uptake by non-users as well as the extent of use by users, hence the need to develop policies and regulations that increase the affordability of access to smart devices and services for low-income earners.
What is the future of the Telecommunications industry in AfricaDavid Graham
Deloitte recently completed an in-depth analysis of the telecommunications market in Africa, its trends, and the drivers of it. We are convinced that there will be consolidation in the telecommunications sector and inevitably more inbound investment as the market opens up and the economic returns improve.
Part 2 of 3: a panel discussion on "Mobile telecommunications in developing countries" at Warwick Business School 08/10/2007
Windfred Mfuh; Doctoral Researcher, WBS
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
1. AFRICA STRATEGYIN TELECOMMUNICATIONS INDUSTRY TEAM 9 – GREENWICH COHORT Thu Ha LeAlmudena Jimenez CruzStephano BosmanClarisse HerbreteauNabila LarakiJacob Parackal
2. AFRICA STRATEGY IN TELECOMMUNICATIONS INDUSTRY Macro environment Political, economic, social, technological, environmental, legal Competitors Industry environment The organization Markets
3. P Political factors: Many African countries are just out of the civil war. Corrupt previous governments have left behind them disorderly regulatory regimes. Governments tend to intervene in the industry. E Economic: factors: 6% growth rate predicted in the sector for the year 2011 in Africa. Very fertile market, with a significant increase in consumption of new technologies. Sensitive economical disparity depending on the regions of the continent Tremendous investment in the sector since 2007. S Socio-cultural factors: Women in sub-Saharan African countries contribute over 40% of the economic activity of most nations. The literacy of women is low. Increase in the use of mobile phones. L Legal factors: Unified licensing introduced in 2006. Continuing liberalization of VOIP (Voice Over Internet Protocol). Privatization of national telecommunications services in the region is continuing with significant premiums over reserve prices being paid. MACRO ENVIRONMENT OF AFRICA T Technological factors: 3G mobile services Expansion of GSM networks Upgrades in data transmissions due to rapid growth of ADSL and wireless broadband services. E Environmental factors: Stress on saving energy due to high energy consumption in the industry. New technologies for energy saving network towers and grids.
13. 1. Virgin Mobile Joint venture with Cell C in South Africa since 2006 Cell C is 100% owned by 3C Telecommunications Virgin’s marketing know-how Opportunities and colonial ties Try-out of emerging market Africa strategy
14.
15.
16. Introduction of “Mobi cash “ the first money transfer and payment in MoroccoIntensive marketing campaigns and promotions offers Africa strategy
17. 3. airtel Operates in 16 African Countries. Mode of entry: Acquisition Focus: Rebranding, improved network coverage, excellent customer care and range of products to chose from. CAPEX: Expand with lower capex and discussion with the government for utilizing USO fund for network. Partners: Looking for strategic partners and setting up of base in Nairobi. Telecom Population: Increase minutes of usage from 50-60 minutes to 250 minutes and increase the net density. Make Phone the mobile laptop for the common man in Africa. Africa strategy
18.
19. MORE CUSTOMERS: focus on private customers and business sector. Better services and stable profit.Africa strategy
20. 5. vodafone Operates in 9 countries with high market shares: Egypt (44.35%); DCR (49%); Kenya (73%); Lesotho (80%); Mozambique (40%); South Africa (59%); Tanzania (46%), Ghana (17%), Libya (15%) Market entry mode: acquisition (Telecom Egypt 1998, Safaricom Kenya 2000, Ghana Telecommunications 2008); joint venture with Telkkom and Venfin in South Africa => Vodacom 1993; non-equity partnership agreement with AlmadarAljadid Libya 2010. Shift towards multi-media and high-end data services, . Focusing on the business segment through including IT Services within its portfolio. Africa strategy
21. 6. orange Implemented in 15 African countries, primarily focused on the French-speaking areas of North and West Africa, and has then expanded its operations to the English- speaking region of Africa and to other more rural areas. Development and modernization of services through “3G network”. Offer low-cost handsets In Kenya, launched “One Kenyan Shilling per MB” tariff to become the most affordable internet bundle Launch of “Orange Money” online payment services Africa strategy
22.
23.
24. Wages are low; many workers speak English, French along with the enormous number of the available workforce.
25.
26. AFRICA EXPANSION STRATEGY Virgin FDI Vodafone Vivendi Acquisition Orange Etisalat License Airtel Joint-venture Per capita income High (>$4,000 ) Medium ($1,000-4,000) Low (<$1,000)
27.
28. Brand name: While others operates under its own brand name in Africa, Vodafone operates under name of its subsidiariesin some African countries e.g. Safaricom in Kenya, Vodacom in South Africa, AlmadarAljadid in Libya
29. Geographic expansion: Virgin only operates in South Africa, Vivendi operates in 4 Northwest African countries, others expand to operate in most areas of Africa.
30.
31. Possible benefits and problems of current strategy BENEFITS • Integrate into an existing business that already knows the culture and how the country does business • Able to use partners’ network to offer its customers a range of service, which utilize ‘home’ network capabilities as well as extended coverage within Africa • Enable to meet their needs for unified communications, centralized customer care and services using local network. • Lower cost of operation • Benefiting from lower roaming charges • Powerful brand association PROBLEMS • Cultural, administrative, geographical and economical distances (CAGE framework) • Increase in cost of integrating and management • Decreased corporate performance and services • Potentially lowered industry innovation • Suppression of competing businesses • Decline in equity pricing and investment value • Conflict for control and decision-making between Parent company & subsidiary • Governments’ support could decline (E.g: Vivendi and Morocan government)
32. REFERENCES Airtel http://www.airtel.com/wps/wcm/connect/airtel.in/airtel.in/Home [Accessed 5 March 2011] Etisalat http://www.etisalat.ae/index.jsp[Accessed 3 March 2011] http://www.ameinfo.com/137846.html[Accessed 3 March 2011] http://www.bi-me.com/main.php?id=25953&t=1&c=33&cg=4&mset=[Accessed 3 March 2011] http://www.balancingact-africa.com/news/en/issue-no-254/money/uaes-etisalat-buys-5/en[Accessed 3 March 2011] http://www.arabianbusiness.com/etisalat-considers-africa-investments-198228.html[Accessed 3 March 2011] International Telecommuncations Union http://www.itu.int/ITU-D/ict/publications/world/world.html [Accessed 15 March 2011] GDP http://www.indexmundi.com/g/r.aspx?t=0&v=66&l=en [Accessed 6 March 2011] National Income per capital http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD [Accessed 12 March 2011] Orange http://www.itweb.co.za/index.php?option=com_content&view=article&id=38751:orange-outlines-strategy-for-africa[Accessed 6 March 2011] http://euroafrica-ict.org/wp-content/plugins/alcyonis-event-agenda//files/Orange_development_strategy_in_Africa.pdf[Accessed 6 March 2011] http://hbr.org/product/orange-cameroon-a-global-telecommunications-compan/an/BAB136-PDF-ENG[Accessed 6 March 2011] http://www.telecompaper.com/commentary/france-telecom-sets-tough-goal-to-double-emerging-markets-revenue[Accessed 6 March 2011] Vodafone http://enterprise.vodafone.com/discover_global_enterprise/global_reach/ [Accessed 3 March 2011] http://www.safaricom.co.ke/index.php?id=1025 [Accessed 3 March 2011] http://allafrica.com/stories/201002161110.html [Accessed 3 March 2011] http://www.vodacom.co.za/vodacom/ [Accessed 3 March 2011] Vivendi http://www.vivendi.com/vivendi/Maroc-Telecom,953#Network [Accessed 3 March 2011] Virgin http://www.virginmobile.co.za/ [Accessed 3 March 2011]
38. appendix 2 - POTTER’S FIVE FORCES MODEL The most attractive industry is one in which barriers are low which means that few can hardly enter in the market and non-performing firms can exit easily. Threat of new entrants: LOW. At first glance, it might look like the more profitable the industry is, the more attractive it will be to new competitors; although the attractiveness of the industry is depend on other factors: The capital required to set up this kind of industry in Africa, where the infrastructure is obsolete , is very high. The access to distribution is also another big barrier taking in consideration that getting telecom licenses is not easy. Customer loyalty in this kind of industry is quite high so, that is a factor that could motivate strong-branded companies to establish themselves in Africa. Many African governments provide subsidies to home-companies, which made even harder playing in this industry. Threat of substitute products or services: LOW / MODERATE. Recently it has come out the threat of new substitutes: the voice over IP (VoIP), which is a way to transmit voice conversations over a data network using IP, and the Internet telephony (or “peer-to-peer” telephony), which allows voice calls to be made between PCs over the public Internet using IP. However, at the moment, this threat is reasonable moderate. The quality of the sound is not as better as it could be with a regular call. Although some people that usually call over long distances can instead of picking up a phone go to a computer and call through that but it is not because it is more convenient, it is because just the high price of a long-distance call. The low costs of computer calling could potentially take over most long distance calling. The more local calls and business calls would be more secure for the mobile market, although cell phones with the ability to use the internet to make calls are being made available and will soon take a considerable market share of calls made. Bargaining power of consumers: LOW. The threat of buyers in this industry can be considered fairly low. The individual buyer has no impact on the price of the products offered. Africa market size is huge. While in United Stated and Europe the market has achieved their maximum and they are sutured, in Africa the market is experimented the fastest growing at the moment and it is expected to continuously increasing. Telephone and data services do not vary much, regardless of which companies are selling them. For the most part, basic services are treated as a commodity. Buyers are not usually tough, however, customers seeking low prices from companies that offer reliable service. The telecom industry is expected to always increase. The technology could be improved, change to new system that force companies to be constantly undated but it is not expected to be abandoned.
39. Bargaining power of suppliers: HIGH. The suppliers in this industry are those who provide the broadband switching equipment, fiber-optic cables, mobile handsets and billing software, but also, managers and engineers. We can say that supplier’s power in some aspects of this industry is high. There are few dominant suppliers taking in consideration the limited pool of talented managers and engineers, especially those well versed in the latest technologies that place companies in a weak position in terms of hiring and salaries. The brand of the supplier is very strong. You can think in the case of a highly-demanded fashionable phone (ex. I-phone) that is only offered by a company that have sign a contract of exclusivity with Apple. Just for that exclusive right to be the i-phone provider, the company will increased the number of customers who want to have an i-phone. Their role in the quality of the service is also very strong. If a Company have a signal service that does not provide a good reception in a certain area, the customers who live there will switch for another company who provide better reception. As we saw before, in the case, for example, the phones supplier, is very easy to find a new customer, above all, when the product or service provide for the supplier is so demanded. Competitive rivalry within an Industry: HIGH In the telecom industry, technological advances are crucial to have a competitive advantage in the market. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits, until competitors imitate them. Rivalry will be more intense if there are equally size competitors, but in almost all African countries we find a clear market leader firm which dominated the market share. There are a few numbers of large firms worldwide that competes for the market share; this lowers the threat of rivalry. The firms that are in the business, however, fight to increase their market share and that increase the threat. The Industries that have a high fixed cost encourages competitor to manufacture at full capacity by cutting prices if needed. In this field, companies apply the vertical integration which is a strategy to reduce a business' own cost and thereby intensify pressure on its rival. Is not very hard to switch to another company, the rivalry among companies here is also high. Due to all companies which play in this industry play with huge amount of capital and pursue aggressive growth strategies, the barriers to leaving the industry are very high and competitors tend to exhibit greater rivalry. Accordingly, we can affirm that the telecom industry in Africa is very attractive.
With Airtel’sOnLine Pay, customers are able to transact mobile money using their Airtel Money accounts.- Launched a customer relationship management solution named Airtel Treasure Hunt in Niger, Uganda, Zambia and Congo. The innovation known as Dynamic Pricing Service gives Airtel the ability to price Voice and Data services dynamically based on location, cell load, time of day, subscriber type and/or subscriber activity.
EXPANSIONSTRATEGY: BE AVAILABLE IN MORE COUNTRIES AND TO MORE CUSTOMERS.MORE COUNTRIES: It developed a long-term strategy that would maintain the rate of growth, revenues and profit margins for its stakeholders by diversifying its source of income REGIONAL and INTERNATIONAL markets. The INTERNATIONAL market strategy consist of betting on high population markets with low penetration.MORE CUSTOMERS: Its subscriptions comes not only private customer but also customer of the business sector of small and mid-sized businesses.Going to markets with enough room for growth offering high quality services and NOT BEING NECESSARILY ON LEADER POSITION in the respective market = continuous growing and stability.
Vodacom increased its stake in Vodacom Group by acquired additional 30% stake in 2005 and 2009 which gives it 65% stake of Vodacom. Vodafone operates in Lesotho, Tanzania, DR of Congo, Mozambique through Vodacom. In Egypt, Kenya and South Africa, Vodafone launched “ultra-low cost handsets”In Kenya and South Africa, lauched M-PESA, a payment solution. It unveiled the cheapest SMS tariffs in the Kenya’s telephony market.
We use income per capita by countries and investment capital to figure out if there is any link between them in the expansion strategy of 6 telecom companies. We assume that Joint-venture will require less amount of investment than buying license to operate, whereas acquisition will require highest investment.From the graph, we can see that Airtel and Vivendi have built its presence in Africa through acquisition in all destinations, whereas, Vodafone, Orange and Etisalat have a range of different strategies to enter different markets. Virgin has operated in only 1 African country through Joint-venture.
Sub-Saharan countries tend to be more open to foreign equity ownership than those in other regions, where no countries except Sierra Leone and Sudan have restrictions on foreign equity ownership. On the other hand, countries such as Angola, Tanzania,and Uganda have more restrictions on foreign ownership in banking, insurance, and telecommunications than do most other countries. In Ethiopia these industries are completely closed to foreign capital participation. Indeed, Ethiopia is one of the most restricted countries measured by IAB, with foreign equity limits in most of its service sectors.
VIVENDI:Maroc Telecom has launched recently mobile contracts under the name of universal music “forfaits universal music” to encourage young Moroccan vivid with music to download music tunes and videos directly from Universal Music Productions to their mobiles. However, all Moroccans are accustomed to get music illegally , and such methods of encouragement will not lead to success since many Moroccans come from the middle class society.=> ISSUES: Intense use of piracy in Africa , and especially with its subsidiary Maroc Telecom impacts on the profitability of mobile internet services. Tough regulatory constraints from the Moroccan government regarding promotional offers since they are partly associated to events like religious aids and the new years celebration, and also costly tarriffs from all operators in Morocco (Maroc Telecom, Meditel, Wana )