We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

The strategy that was used by MTN Group to expand to different parts of the African and Middle Eastern markets - Essay Example

Comments (0) Cite this document
Introduction “The way South Africans communicate changed significantly in 1994” (Oxford Business Group, 2008 p115). This is attributed to the country's Apartheid system which kept the Black majority of the nation under strictly restricted conditions was abolished…
Download full paperFile format: .doc, available for editing
Polish This Essay93.5% of users find it useful
The strategy that was used by MTN Group to expand to different parts of the African and Middle Eastern markets
Read TextPreview

Extract of sample
"The strategy that was used by MTN Group to expand to different parts of the African and Middle Eastern markets"

Download file to see previous pages In 1994, the government authority granted a license to Vodacom and Mobile Telecommunication Network (MTN) to operate mobile phone networks in South Africa (Oxford Business Group, 2008). The MTN Group had the vision “to be the leading provider of telecommunications in emerging markets” (Erasmus and Shenk, 2008 p61). This has been the watchword of MTN and the group is now operational in 21 countries in Africa and the Middle East (Banhegyi, 2007). In all these countries, MTN has access to over 488 million people and has over 28 million subscribers (Banhegyi, 2007). It is now listed on the Johannesburg Stock Exchange. In Africa, MTN has operations in Botswana, Cameroon, Cote D'Ivoire, Nigeria, Congo, Rwanda, Swaziland, Uganda and Zambia amongst other nations. MTN Group has its headquarters in South Africa where it all started. This paper examines the strategy that was used by MTN Group to expand to different parts of the African and Middle Eastern markets. It will examine the strategies from the context of dominant theories and ideas relating to international business. The second part of the research will examine the strategies for further expansion of MTN into other markets around the world. MTN Group Expansion Strategy In order to examine the expansion of MTN to different countries around the world, important elements and aspects of International Business will be examined. This include: Entry Mode Entry Timing Firm Size Institutional Matters Entry Mode Entry mode describes the methods and systems used by a business to expand into a foreign country (Andexer, 2008). It describes the various approaches that a business uses to create a presence in a foreign land. Popular methods include franchising, licensing and joint ventures (Ireland et al, 2011). According to Singh (2008), MTN expanded to other countries through a mixture of Greenfield Investments and Mergers/Acquisition. A Greenfield Investment is the “establishment of completely new operations in a foreign land” (Paul, 2009 p357). In some countries, MTN created new telecommunication companies that were meant to provide services. This was particularly popular in smaller and war thorne African countries that had limited infrastructure. This involved investing and creating new infrastructure from the scratch. Through this, MTN exported their resources to these new venues. They applied principles from South Africa and learnt about the local environments. Through this, they built brands and new systems in the foreign nations that they operated within. In other countries, MTN expanded through mergers and acquisitions. Mergers and acquisitions involve forming strong partnerships or acquiring other businesses in order to being operations in a new country (Johnson and Turner, 2009: MacDonald et al, 2011). MTN Group purchased other companies like Areeba and Spacefon technologies in several parts of the continent (Bridge, 2009). These two companies were sprawling brands in the Middle East and Sub-Saharan Africa (Pan, 2011). MTN just purchased these companies and took over their assets and began to operate in their capacity as an independent company in these foreign countries (Venter et al, 2009). Through this mixture of mergers and acquisitions and greenfield investments, MTN was able to set up different operations around the world. The shareholders of the South African company expanded their scope of control and took over these foreign and new markets. The mergers were mainly ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The strategy that was used by MTN Group to expand to different parts Essay”, n.d.)
Retrieved from https://studentshare.org/business/1402350-international-business
(The Strategy That Was Used by MTN Group to Expand to Different Parts Essay)
“The Strategy That Was Used by MTN Group to Expand to Different Parts Essay”, n.d. https://studentshare.org/business/1402350-international-business.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Middle Eastern Studies
The recent civilian revolts within the Arab states seem to be a trip back into history. The ‘Arab Spring’ of 2010-2012 has seen the emergence of resistance against ruling governments (particularly those that are military-led) including Egypt, Libya, Tunisia, Bahrain, Morocco, Syria, Greece and Algeria.
3 Pages(750 words)Essay
Middle Eastern Studies Journal
Others include the bloody civil wars of Lebanon of 1976-1989; Sudan’s civil war 1959-1971 and 1983-2010 of which the drums of war are once again being sounded between Sudan and the newly independent Southern Sudan over the vast oil of the south. Common characteristics of these conflicts were the conventional use of large armies and the high levels of firepower and destruction.
3 Pages(750 words)Essay
Contemporary Middle Eastern History
A new ‘challenge’ was sought to reflect the changed geopolitical landscape and international relations referred to as the new world order. Knowing this context within which the book was written helps to understand Samuel Huntington’s ideas better
6 Pages(1500 words)Essay
Middle eastern cultures 201
The culture has graduated itself from the ancient times to a more modern society, where western outfits are a common scene in nations like Egypt and Turkey. Yet, the commonalities in Middle Eastern
4 Pages(1000 words)Essay
How does the Black-White paradigm affect Jews position in American society in the early twentieth century How does Jews classification as a Middle-Eastern group impacted Jews identity as Whites What argument did Jews used to oppose their classific
ation had been centered on how to integrate black Americans into the larger society with the exclusions of any meaningful discussion on how the Jewish Americans fit into American life. Because of this seeming oversight, Jews were sort of “below the radar” in the public eye
1 Pages(250 words)Essay
Middle Eastern Studies
rough two main ways: Firstly, via the partitioning of the former Ottoman Empire largely by France and Britain according to their own interests and perceptions; Secondly, the resultant of anti-imperialistic struggle, revolutions and conquests (Gelvin). So how did the influence
3 Pages(750 words)Essay
Middle Eastern Comparative Law
Rulings are not solely dependent on being objective particularly where sacred law is practiced. Judges have to be aware of the specific components of the sacred law to execute it, objective or not. There are different ways to view the Sharia based on one’s role in
3 Pages(750 words)Essay
Unilever and Nestle are facing political and economic challenges in middle eastern and north African countries
22% of its revenue comes from drinks such as tea and coffee, thus the largest revenue generator (Fred 2008, 184). Unilever has continued operating on the sound financial principles that saw its founding in 1929. The company incessantly makes
1 Pages(250 words)Essay
Middle eastern humanities
In these countries, there are both urban and rural foods. In addition, foods differ with the regions such as plains, mountain, sea, streets and nomadic foods. Heine (8) states that although there are
2 Pages(500 words)Essay
Middle Eastern Humanities
Unlike other types of music from other parts of the world, Middle Eastern music has overlapping rhythms. This means that as the drummer plays a particular rhythm, the violinist will play a different rhythm and so will the tambourine. The
4 Pages(1000 words)Essay
Let us find you another Essay on topic The strategy that was used by MTN Group to expand to different parts of the African and Middle Eastern markets for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us