Issues while Entering a New Market, Biggest Challenge, and Chances of MTV Succeeding in Arabia - Case Study Example

Executive Summary MTV is an international television broadcaster which has established is brand name and looks to further consolidate it. The channel has looked at working in Arabia and has made some modifications in the content of the program based on the cultural requirements of the place and looks towards gauging the manner in which the strategy developed by them will ensure long term success. The culture of Arabia is sensitive and gives importance to religion so MTV has looked towards understanding those. MTV has looked to make amends in their program broadcasting content by ensuring that they are able to adjust and make changes based on the local requirements. This will help to increase the chances of MTV being successful in Arabia but for the long term future in Arabia MTV has to ensure that cultural is aspect is given a priority but at the same time strategies are developed which will not tarnish the brand image of the organization. Thus, the overall strategy which has been developed by MTV shows that the channel will be successful and will have a positive impact on the society. Table of Contents Introduction 3 Basic Information 3 Issues & Challenges while entering a new market 4 Biggest Challenge for MTV in Arabia 7 Arabian Culture 8 MTV’s Strategy in Arabia 9 Chances of MTV succeeding in Arabia 10 Future Direction 11 Conclusion 11 References 13 Introduction The success of any organization looking to work in an international arena is determined by the manner in which the organization is able to deal with the different issues and challenges that the international environment. Developing strategies which look at the different factors and the role they have on the performance of the organization helps to ensure the best possible use of resources and increases the chances of being successful over a longer period of time. This report looks to evaluate the different challenges that MTV has to face while looking to work in Arabia. Based on the different challenges one of the strongest challenges for MTV is identified and the manner in which the strategies of MTV have been developed is looked at. The strategies help to evaluate the manner in which MTV has ensured that the different challenges which they face have been addressed and helps to determine the long term sustainability of the organization. On the overall basis it will help to understand the chances of succeeding and will help to provide the different areas which MTV has to lay stress on so that better strategies are developed for the future. Basic Information MTV is an international television broadcaster which has established is brand name and looks to further consolidate it. The channel has looked at working in Arabia and has made some modifications in the content of the program based on the cultural requirements of the place and looks towards gauging the manner in which the strategy developed by them will ensure long term success. While developing the strategy and making changes to the content of the program MTV has ensured that the brand image is not tarnished and based on it has developed strategies which will ensure the long term success of the organization in Arabia. Issues & Challenges while entering a new market Organizations like MTV which looks to enter the international market develop strategies keeping in mind both the local as well as the globalized image. Entering into a new market definitely provides an opportunity through which the organization will be able to use the wider market and different opportunities which the market provides but also poses different issues and challenges. Some of the issues and challenges which MTV had to encounter while working in Arabia are as Regulation & Compliance: This is one of the strongest challenge that MTV has to face in Arabia as the country is culturally sensitive and requires that the different programs which are telecasted doesn’t goes against their religion or result in political unrest. Strong reforms and legislation has been developed in the direction which looks at ensuring that the societal aspects are not ignored. This thereby requires special focus as programs have to be developed keeping in mind the local requirements and at the same time the regulatory compliances have to be achieved (Devereux and Sutherland, 2009). MTV in order to mitigate this regulatory and compliance risks needs to comply different taxation and other governmental laws and try to enter into tax treaties with the governmental bodies in order to comply with the same. This thereby requires additional development of strategy which will ensure better productivity for MTV and ensure that their brand image is kept intact. Creating an Ethical work environment: MTV further has to look at being ethical and work according to the local condition which will look at developing an environment through which ethical aspects will be looked at. Ethics play an important role in the international level as well as non compliance or unethical means can lead to complete shutdown of the company’s outlets in its operating country (Sorensen, Bent and Yosha, 2001). MTV has to ensure that to keep their brand image they have to adopt strategies which are ethical and helps to develop their brand image as it will have a big role in shaping the performance and will determine the manner in which MTV will be successful. This will help to win the confidence of the local people in Arabia and will provide the required framework through which overall productivity will be improved. Different Culture: MTV faces a strong obstacle from the perspective that the culture of Arabia is different and conserved. People from different culture have different understanding with regard to signs, body language, process of communication, and others which thereby has an impact on decision making. Since, different culture demonstrates different traits it becomes difficult to make people belonging to different culture to come together and requires special efforts from the management to bring the required transformation. To deal with it organizations look to provide specific training which is aimed at improving the understanding of different body language (Cragan, Wright & Kasch, 2008). This helps to facilitate the communication process and helps to devise the required method through which effective communication takes place. This will require that MTV works on this aspect as it is one of the strongest challenges for MTV to deal with while it looks to work in Arabia. Risk of Social Acceptance: MTV faces another risk which arises from the type and quality of program which will be telecasted and the manner in which people living in Arabia will respond to the different programs. It covers a larger area of risk in the international environment as it involves reputation of the business, transparency in its operation and accountability to different governmental bodies in different countries (Norton and More, 2002). Trust of public in the company plays an important role here. MTV need to understand it and has to ensure that their strategy while working in Arabia is to integrate the local culture of the place and at the same time ensure that the strategy adopted by them doesn’t tarnish their global image. This will require broadcasting events and programs which are socially acceptable and doesn’t raise any objections from any section of the society. Corporate Social Responsibility: Working in an international environment increases the degree of corporate social responsibility which increases additional pressure on organizations. This is an aspect which MTV has to look out at as while working in Arabia they have to ensure that their strategies are not against any section of the society (Schmitz, 2010). They need to adhere to the corporate social norms by ensuring that the different programs which are broadcasted promotes their culture and helps in the development of a culture where the organization is liked. This will help to build trust and will ensure that MTV will be able to contribute positively at the social responsibility it has towards the society. Biggest Challenge for MTV in Arabia Out of the different challenges which have been identified for MTV while looking to work in Arabia the biggest challenge facing MTV is the difference which exists due to difference in culture. The fact that Arabia has a culture sensitive population where the people are still conservative and gives additional importance to religion and other sentiments it increases the complexities for MTV. MTV which is a global broadcaster has to keep in mind the cultural requirements of Arabia and based on it has to develop their programs and things which will be broadcasted so that it doesn’t goes against any religion or custom and at the same time doesn’t have an impact on the global brand name of MTV. Since, people with different personality have different ways to do the same things it thereby results in creating gaps and makes it difficult for the entire organization to come together and work as a unit (Mehrabian and Susan, 2007). To be effective organizations have to look towards dealing with the issues by determining ways which will help to remove the differences which exist between the employees and need to create a way which will ensure that communication process becomes effective and provides the organization with an opportunity to grow and develop so that the objective are met. This will require that MTV understands the cultural aspect of Arabia and look at transforming their strategy based on the local culture so that acceptance within the people increases and MTV is able to create a positive impact on the society. MTV needs to rely on understanding the biggest challenge and has to develop strategies which will focus on improving the overall productivity by ensuring better reliance and development of strategies through which better relation is fostered. To be able to integrate with the culture and ensure that the focus remains on the main objective or vision of the organization is important. Organizations to deal with it look to provide special training sessions to the employees so that the gap which exists between different cultures is filled and employees within the organization are able to come together and communicate properly. Lack of communication due to cultural and personality barriers will create doubts in the mind of the employees and will not clearly provide the required direction based on which the group goals and the individual goals can be achieved (Engleberg & Wynn, 2002). This will help MTV to understand the culture and develop strategies which will match with the cultural requirements and ensure long term success of the organization. Arabian Culture The Arabian culture is different from other culture as the culture gives great importance to religion and the culture is religiously integrated. The majority of the population is Muslims where they have a different taste and religions which separates them from other western world countries (Culture, 2013). The influence of religion is very high on the culture which is thereby evident on the political scenario of the region. The difference in culture from other countries of the world is evident from the fact that the style of clothing is different from other parts of the world. The community in Arabia looks to ensure that women wear burqas and stay at home. The women even have to cover their faces which are quite different from the western culture where women are allowed to dress and wear anything they find fit. Even the dress code for men is different where they look to wear robes (Culture, 2013). This requires that MTV while looking to broadcast different programs ensures that the different telecast is not obscene and according to the culture of the country but at the same time has to keep with their global brand image. The culture of Arabia also considers women to be subordinate of men and mostly carry out the work at home. This is different from the culture of western countries were women are independent, work outside their home and have the freedom to take different decisions. The difference in culture on the other hand is so strict that it requires that people adheres to the cultural requirements and carried out the different roles and responsibilities which the religion provides (Culture, 2013). In addition to it Arab culture promotes families living together which are slowly reducing in the western countries as people prefer living alone in isolated families. This is matched by the fact that the Arabian culture is less rigid to time and don’t give much importance to adhering to the time which is seen in western countries. To add on to it government in Arabian countries are secular but give more importance to religion whereas the western countries the role of the government is to protect the people (Culture, 2013). Thus, there exist wide differences in the culture of Arabia in comparison to the culture of western countries which MTV needs to understand and watch out. Understanding the different culture and removing the differences will help to ensure that MTV will be able to develop strategies which will be according to the culture of Arabia and ensure more opportunities of growth and acceptance of the different programs which is broadcasted. MTV’s Strategy in Arabia MTV has looked towards ensuring that their strategy is according to the local requirements and has made modifications in the different programs which are broadcasted so that they are able to present the correct picture before the people. MTV has looked at ensuring that their strategy is based on the local culture and requirements which has been developed. At no cost should the culture of the common people be hurt as it could cause immense damage to the reputation of the company and may also invite huge governmental and other regulations and problems in its operating style (Tsang, 2004). It is most important to match with the cultural requirements of the local consumers. This will help MTV to ensure that the strategy developed by them facilitates in the growth of the business and will help to attract and retain people towards their channel. To be effective MTV have to look towards dealing with the issues by determining ways which will help to remove the differences which exist between the employees and need to create a way which will ensure that communication process becomes effective and provides the organization with an opportunity to grow and develop so that the objective are met. This will help to provide better services to the people of Arabia and will increase the chances of developing strategy which will help to ensure better customer satisfaction. Chances of MTV succeeding in Arabia MTV has looked at transforming the manner in which it carried out its business by making adjustments in the program and ensuring that the programs which is telecasted is as per the cultural requirements of the people. This will help to address the different cultural issues and will help to bring the required transformation through which MTV will be able to attract the youth towards their channel (Walsh & Zhu, 2007). In addition to it MTV has ensured that the changes which have been done doesn’t have an impact on their brand image and looks towards ensuring that the global standards are maintained. The development of overall strategy which is aimed at strengthening the style of working and developing an environment which facilitates in creating an environment which will looks at reducing the cultural gaps increases the chances of being successful in Arabia. MTV by ensuring the same focus will be able to bring the required transformation and ensure better chances of succeeding in Arabia. Future Direction MTV for their long term success in Arabia has to work on the same formula where they look towards broadcasting programs based on the cultural requirement. Since, Arabia is a strong culture sensitive country it requires that the strategies which are developed are based on the local conditions. This has to be matched by the fact that the image of MTV should not be diluted and it should not be treated as a local channel but instead should work as an international channel. This will further require that MTV looks at continuous changes and developments which will be focused on understanding the cultural requirements and making the different adjustments which will lead ensure better viewership and attracting people to the channel. The fact that MTV has been successful over different regions of the world by developing strategies that has helped to understand the cultural requirements this will help MTV and ensure that they are able to bring the required changes which will increase the chances of being successful over a longer period of time. Conclusion The report thereby highlights the manner in which different challenges are being faced by MTV while looking to work in an international arena and especially Arabia. It is clearly evident that Arabia which is a culture sensitive country presents different challenges for MTV because the broadcaster has to look at making changes in the content of the program which will be according to the requirements of the local culture. The culture of Arabia is conservative and requires things which are according to the cultural requirements. MTV has looked to make amends in their program broadcasting content by ensuring that they are able to adjust and make changes based on the local requirements. This will help to increase the chances of MTV being successful in Arabia but for the long term future in Arabia MTV has to ensure that cultural is aspect is given a priority but at the same time strategies are developed which will not tarnish the brand image of the organization. This will help in the overall development of the organization and will facilitate a process through which long term sustenance of the organization will become possible. References Cragan, J. 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