International Business: Expanding Vodafone's Telecommunication Services in Nepal

This assignment discusses the process of internationalization and its importance in expanding business operations. It focuses on Vodafone's plan to enter the telecommunication market in Nepal and evaluates the impacts of host country conditions, including the macro environment and national competitiveness. The assignment also analyzes the cultural factors influencing the internationalization process and recommends the most suitable entry and internationalization strategies for Vodafone in Nepal.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Provide a brief overview of the chosen organisation and its product (s) or service (s) readiness
for internationalisation.................................................................................................................3
Critically evaluate the impacts the host country conditions covering the macro environment
factors and its national competitiveness......................................................................................4
Analyse the host county’s culture and its impact on the internationalisation process of the
company.......................................................................................................................................6
Recommend the most appropriate entry strategy and the internationalisation strategy for this
company in its internationalisation process. Justify your recommendations..............................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International Business is also known as Globalisation. It is explained as the process of expansion
of business at an international platform for the purpose of covering large market area for earning
profit. It is necessary because high revenue can be generated through which chances of
sustaining within the market increases automatically. Whenever any of the entity enters into new
market, there is high possibilities that they can allow their customer to connect with organisation
which is directly beneficial for both the parties. In context of the file, the chose organisation is
Vodafone which is deals in telecommunication. Here, company is willing to expand its business
within Nepal.
In this particular assignment, different topics will be discussed where detail discussion
regarding the business will be done. Along with this, company will try to evaluate the impact of
host country with the help of macro environment. Even culture of host country with its major
impact on the internationalisation process. And in the last part recommendation will be given
that how company can enter into the market.
MAIN BODY
Provide a brief overview of the chosen organisation and its product (s) or service (s) readiness
for internationalisation.
Vodafone is one of the multinational telecommunication industry dealing in 25 different
nations and it is currently partner with 47 different nations. It was founded on 16th September
1991 by Earnest Harrison and Gerry Whent. Currently the headquarter of the company is located
in London, England UK. The present CEO of the company is Nick Read who is willing to invest
in new country where they can earn huge amount of profit. In current situation, it is one of the
world’s second largest organisation (Carranza, 2017). It is necessary to understand that company
has been providing the effective services like telecommunication, e-wallet and many more which
allows to attract more number of customers in a very manner. The services which is being
delivered by the organisation are beneficial for the public at large as it provides fast internet with
minimum amount of money. The main reason for the company to expand its business within the
new market because of the current situation of the telecommunication within the nation. There
are two bigger company in Nepal i.e., Nepal Telecom and Ncell which has been providing its

services effectively but they are giving those services at a very high prices. It will simply allow
the company to attract more number of customers in a short time period.
Critically evaluate the impacts the host country conditions covering the macro environment
factors and its national competitiveness.
In present scenario, the world of telecommunication has been growing at a rapid speed
where lots of services are being provided to the customers. It is necessary for any of the
organisation, it is necessary for them to understand that whenever they try to enter into the new
market then they must be able to determine that about the new area where company likes to enter
with the help of macro environment model (Clark and Wójcik, 2018). In context of Vodafone
UK, they have entered into number of new market for the purpose of obtaining the effective
result but it will be important for them to analyse about the external factor which might impact
positively or negatively upon the business organisation. Below, there is the detail description
about the macro market for Vodafone at the time of entering into the market of Nepal.
PESTLE Analysis can be defined as the business model which allows the business
organisation to identify about the external factor which might have an impact upon the working
policies of a company. In context of Vodafone, PESTLE analysis will be helpful for them at
them time of expanding their business within the market of Nepal.
Political Factor: It is the factor which has a connection with the decisions which are
being made by the government and political stability is also one of the major area which is to be
considered in it. In context of Vodafone, when they will enter into the market of Nepal, it will be
one of the major problem for them because of the unstable government due to which plans and
policies for MNCs might change. It is necessary to understand that this factor will have a
negative impact upon the organisation because overall expenses might increase for the company.
Economic Factor: It can be easily said that economic factor is one of the core factor
whenever any of the company perform its business in international market. In recent period of
time the demand of telecommunication has increased significantly which indicates that it is
necessary to follow all of the rules and regulations as per the guidelines. In current scenario, the
purchasing ability of the customers have a direct impact upon business organisation. In context
of Vodafone, they are needed to understand that Nepal is one of the under developing nation but
still their economic performance is quite better because of foreign earning. It will have a positive

impact upon company for sustaining within the market where chances of earning the profit will
be high.
Social Factor: The factor relates with the believes, living standard and social trends
which can affect the purchasing capability of the customers. In context of the Vodafone, they are
needed to understand that people of Nepal requires faster internet service at a reasonable price. If
company will be able to do so then it will allow them to attract more number of customers in a
very short time of duration (Tumwebaze and Ijjo, 2015). Even Vodafone has been working very
hard to provide effective internet and other services at a reasonable price. In short, this can be
among one of those factor which will have a positive impact upon business organisation.
Technology Factor: It is among one of those factor which is very essential for any of the
organisation in order to grab a market. It simply provides the way to deal with every single
situation in best possible manner. Introduction of modern technology with the
telecommunication will improve the communication process. In case of Vodafone, they must
understand that in context of technology Nepal is quite far behind then other nation which means
company like Vodafone will have additional benefits. It is because they are working in
telecommunication sector since many year and even they have been able to introduce new
technology at a very minimum price. It will simply attract more number of customers towards
the company.
Legal Factor: This factor has a connection with laws and regulation which is required to
be followed by any of the organisation. It is necessary for Vodafone that there are high rate of
taxes and changes with legal compliances which is needed to be followed. It will increase the
overall expenses of a company at the time of performing its business in Nepal (Crothers, 2017).
It might have a negative impact upon the business of Vodafone because it will have a huge
impact on overall percentage of profit of a company.
Environmental Factor: Current scenario says that every nation focuses on protection of
environment and due to which it becomes mandatory for the business organisation to work
according to requirement of environment. In context of Vodafone, they are among one of those
organisation which focuses on reduction of carbon footprint. Another area which is company
mainly focuses is to recycle and reuse the electronic waste which is generated at the time of
conducting operations of a business. In simple words, other telecommunication company in

Nepal has been not able to do much and more for environment due to which this factor will have
a positive impact for the company.
These are some of the external factor which is required to be focused by the company like
Vodafone while expanding their business in international market. If all of this factors will be
Analyse the host county’s culture and its impact on the internationalisation process of the
company.
In present scenario, it is necessary for any of the business entity to identify about the
culture of the nation where they are going to conduct their business activity. It is necessary
because it will simply allow the organisation to identify about the necessary steps which are
required to be taken by the company in order to attain their goals. In context of Vodafone, it
becomes the responsibility of management to identify about the culture of Nepali people so that
at the time of providing the services of telecommunication they can meet out the requirement of
customers through which their goals can be accomplished easily (Rodrik, 2018). Talking about
the culture of host country like Nepal, they are among one of those country where different
category of people lives where some of them are reach and some of the them are not. But, still
people of Nepal like too explore new services which new technologies are includes and which
can be beneficial for them. It will have a positive impact upon the organisation like Vodafone. In
current scenario people of Nepal are dependent upon Wireless services which as compared to
phone data because it is quite expensive which cannot be afforded by everyone. If management
of Vodafone will be able to work for the betterment of local people where they can provide
internet facilities at cheaper prices, then process of internationalisation will be effective for the
company to attain the goals. In short, process of globalisation will be beneficial for the company
like Vodafone when they will enter into the market of Nepal.
Recommend the most appropriate entry strategy and the internationalisation strategy for this
company in its internationalisation process. Justify your recommendations.
There is different process through which any of the organisation can enter into the new
market in order to attain its goals and target on specific time period. It is necessary to understand
that whenever any of the company enters into the market they must try to take the help of
existing company dealing in the similar market so that attracting to customers can become easy

with low amount of investment. Below, some of the popular way through which organisation can
enter into new market has been discussed in detail.
Joint Venture: It is one of the most important process in which two or more than two
organisation comes together for the purpose of earning profit at a higher speed. It is completely
based on certain terms and condition which is must be fulfilled (Greer and Hauptmeier, 2016).
Here, authorised person must be selected who will take charge to control every single duty which
is needed to be performed.
Partnership: This is among one of the process through which company can enter into the new
market. Here, organisation likes to enter into the contract with the help of partnership where
profit sharing is based on the investment.
Buying a company: This is among one of the process through which company gets the option to
globalise its business (Tian and Slocum, 2014). In this types of business activity, company tries
to buy those company which is under performing and unable to provide the services which are
required by the customers.
Talking about Vodafone, it will be important for them to enter into the market of Nepal
with the help of Joint Venture with telecommunication company of host country. It is because
they already have a customers and if company like Vodafone will improve the technology then
there will be huge possibility of increasing the total number of customers in short duration.
CONCLUSION
From the above discussion, it can be concluded that process of globalisation is lengthy but it
simply increases the way to earn higher percentage of profit for the company in short time of
duration. Any of the company can only perform better if they have proper knowledge regarding
macro environment. It is necessary for any of the company to understand that they must be able
to determine the appropriate way to enter into the new market for attracting more customers.

REFERENCES
Books & Journals
Carranza, M. E., 2017. South American Free Trade Area or Free Trade Area of the Americas?:
Open Regionalism and the Future of Regional Economic Integration in South America:
Open Regionalism and the Future of Regional Economic Integration in South America.
Routledge.
Clark, G. L. and Wójcik, D. eds., 2018. The New Oxford Handbook of Economic Geography.
Oxford University Press.
Tumwebaze, H. K. and Ijjo, A. T., 2015. Regional economic integration and economic growth in
the COMESA region, 1980–2010. African Development Review, 27(1), pp.67-77.
Crothers, L., 2017. Globalization and American popular culture. Rowman & Littlefield.
Rodrik, D., 2018. Populism and the Economics of Globalization. Journal of International
Business Policy, pp.1-22.
Greer, I. and Hauptmeier, M., 2016. Management whipsawing: The staging of labor competition
under globalization. ILR Review, 69(1), pp.29-52.
Tian, X. and Slocum, J. W., 2014. What determines MNC subsidiary performance? Evidence
from China. Journal of World Business, 49(3), pp.421-430.