Assignment On Evaluating Internationalization Strategy
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Added on 2020-01-16
Assignment On Evaluating Internationalization Strategy
Added on 2020-01-16
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EvaluatingInternationalizationstrategy
EXECUTIVE SUMMARYInternationalisation is the spreading of business functions of a company across theinternational borders or in different continents. MTN Group is aiming a business expansion inmarkets of Ukraine and China. Before implementing any international expansion plan, it isimportant to analyse and evaluate the factors which can hinder growth or progress in these regions.Business environment is made up of different components that are involved in the functioning of anenterprise (Allen, 2016). The effect can be positive or negative depending on the implementedstrategies of MTN. The environmental audit for MTN Group has been performed using the internal and externalanalysis tool i.e. SWOT and PESTLE. These two help in assessing the impact of activities in bothexternal and internal business environment of the company. From employees to impact of foreigninvestment policies on the operations of MTN Group are presented. Despite of having a strongstrategic position in the market of South Africa, the sustainability and feasibility factors arefavouring expansion in Ukraine rather than China (Barton and Bruder, 2014). It is important tounderstand all the dimensional aspects of international expansion because large number of resourcesare at stake. Any sort of negligence at this point can lead to huge loss to the company.The two target countries that are chosen for international developments are China andUkraine. The entry mode and strategies which are adopted by MTN Group in this approach areidentified after evaluating the outcomes of SWOT. The purpose or motive behind operation of MTNGroup is to provide mobile communication services to people worldwide. This motive can beachieved only when proper utilisation of opportunities is done (Bernard, Grazzi, and Tomasi, 2015).The company's motive behind international expansion in these targeted countries has beenexplained. Current status of competition in both international and domestic markets is quite fierce.The telecommunications giants like Vodafone and Virgin mobile are leading the markets withmaximum customer share. In such a situation there are certain difficulties that can be experienced by MTN Group inthe near future when business operations will be expanded. The situation of competitive advantagewith sustainability can be achieved by the company only when there is scope of development. It ispossible only when the products and services are unique and hard to be reciprocated. Hence, it isrealised that organisation has to make certain changes in its operations and current productionprocess. When customers feel that their purchase or investment in company's products and servicesis worth, then market position is said to be strengthened. On the other hand, it is recommended thatMTN Group should develop its strategies by checking relevance in the targeted markets. The threats
from substitution and existing competitors will be reduced if strategies are prepared with properanalysis of current market situation (Brouthers, 2013).
TABLE OF CONTENTEXECUTIVE SUMMARY..................................................................................................................3INTRODUCTION................................................................................................................................6ENVIRONMENTAL AUDIT OF CURRENT MARKET...................................................................7SWOT Analysis of MTN.................................................................................................................7INTERNATIONALISATION...............................................................................................................9Macro analysis for Ukraine .............................................................................................................9Micro analysis of Ukraine................................................................................................................9Macro Analysis of China.................................................................................................................9Micro analysis of China.................................................................................................................10Internationalisation motives...........................................................................................................10Mode of Entry................................................................................................................................11Evaluation of National Competitive Advantage............................................................................13CONCLUSION .................................................................................................................................13RECOMMENDATIONS ...................................................................................................................14REFERENCES...................................................................................................................................16.......................................................................................................................................................18
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