International Business Strategy

This presentation discusses the international business strategy of MTN Group, a telecommunications company. It covers the external and internal business environment analysis, including political, economic, social, and technological factors. It also includes a SWOT analysis, highlighting the company's strengths, weaknesses, opportunities, and threats. The presentation concludes with recommendations for enhancing the company's competitive advantage.

PowerPoint
International Business Strategy
1

INTRODUCTION
2

Introduction continue….
 Telecommunication can be described as the exchange of information over a large
distance through the utilization of electronic means.
 These medium include mobile phones, computers, and the voice over internet
protocol among others.
 There are also other convenience services that the company offers such as ATM
TopUp, voicemail among others. There are other such services such as MMS,
SMS, e-mail SMS, the internet and mobile banking services.
 The company has managed to get more than 164.5 million users globally. The
company has licensed such as Internet Service Provider in 13 countries and GSM
in more than 20 nations in Africa.
 The company headquarters are in South Africa, and it has its presence in West and
Central Africa, South and East Africa and the Middle East and North Africa.
 The MTN Group's strategic objective is to improve the company operations with
various appropriate partnerships with many organizations and individuals (Oyebisi
& Agboola 2003).
 Some of the connections have been with Banc ABC which helps in the
enhancement of customer services for services of money loading and withdrawing
for their mobile phones use (Gerry & Kevan 2002).
3

External and Internal Business Environment for MTN
 Due to the increase in the number of entrants into the market, MTN should
develop a shock absorber to ensure it protects the brand name and continues
being the number one choice for the customers.
 This analysis is to establish the company's performance within its
environment. There will be consideration of internal and external business
environments (Godwin 2013).
 The external forces are the PEST including political, economic, social and
technological factors. On the other hand, the internal environment will be
done through the SWOT Analysis.
External Environment Analysis
 MTN Group is being impacted the government policies and regulations
such as tax, registration of licenses, minimum wage income and others.
There is requirement for government approval in the situation where the
company need to develop relevant infrastructure. The irregularities in
policies impact the business operations (Frances 2006).
4

Economic Factors
 This factor influence the customer purchasing power and business cost. The level
of economic either develops or destroys the GDP.
 The deregulation of the telecommunication sector contributed to the introduction
of a Global System for Mobile Communication.
 The company was required to install base stations which cost a lot impacting
them economically (Godwin 2013).
Social Factors
 This entails the company relation with the society. MTN Nigeria has ensured
various social services for the betterment of the population. Some the incentives
included the introduction of free night calls and family and friends where there
could be communication at lowered rates. Other strategies to give back to the
community include the introduction of free weekend calls, Ringtones and special
caller tunes (Gerry & Kevan 2002).
 In Nigeria, MTN was the first to have bonus introduction for every recharge.
This shows that the company has the society in mind and continuously devices
new ways of giving back to the society.
 The company has been known to sponsor medical care services in some rural
areas.
5

Technology
 MTN's E-objectives entails being the leaders of technology through the
development of innovative applications of technology in the
achievement of goals (Nkanga 2007).
 The company has developed various products aimed at utilizing the
emerging technology such as 3.5G Mobile Broadband, mobile internet
conference calls among others.
6

SWOT Analysis
7
In the evaluation of the MTN Group's current
international business strategy, there will be the use of
the internal and external environmental analysis
together with its SWOT analysis (Godwin 2013).

Strengths
 MTN Group is the first which has been able to acquire strong domination the
telecommunication market in Nigeria.
 A recent survey done by the Nigerian Telecommunication Union shows that the
company has 60% of the entire market and it is expanding while compared with
other competitors such as Econet (Oyebisi & Agboola 2003).
 Since the company was the first to develop domination in the Nigerian market
initially, it has been able to possess that domination, and this provides them with
high turnover rates concerning the number of subscribers and sales (Nkanga
2007).
 There is a very wide gap in the profit margin of MTN in comparison with its
competitors.
 The company has also managed to dominate the TV stations to make the
advertisement for their products and services.
 They have been able to identify strategic places for an exhibition such as
billboards. This has helped the company a strong market share.
8

Afghanistan
9
• In Afghanistan, the company has been able to understand
customer business and has a strong brand name such as
Afghanistan's Areeba and Iran's Irancell (MTN Group
Limited, 2013)
• It also reaches more than 240 cities and towns across the
country.

Weaknesses
 Concerning the international presence, the company is struggling
concerning technology.
 In Nigeria, it has poor mobile reception which affects the effectiveness
of its services. There have been instances of call clashing and there
lacks effective distribution of calls to the recipients (Cavero &
Cebollada 1997).
 The have been reports of slow and frustrating internet services. In
Afghanistan, the company has low advertisement.
10

Opportunities
 In both Nigerian and Afghanistan, the company has been growing.
After the introduction of mobile services, there has been the increment
of demand for services across the country (Gerry & Kevan 2002).
 This translates to the provision of a clear opportunity to continue with
its development plans.
11

Threats
In Nigerian market, the company
experiences competition from three major
competitors such as Zain, Multilink, and
Globacom. The competition is due to the
provision of calls and other services at
cheaper rates (MTN Group Limited, 2013).
In Afghanistan, MTN Group faces great
competition from other telecommunication
companies such as Roshan, Etislat and
Aghan Wireless.
12

Recommendation
 The company will need to enhance its competitive advantage. So far the
company the company has been able to provide better and services marketing
activities.
 Most of the competitors have made errors in their strategic plans. This means the
company needs to develop better plans and innovative products so as to edge its
competitors (Godwin 2013).
Conclusion
 Currently, MTN had been able to provide the environment to many citizens in
its base of operation.
 The company has also ensured to be socially responsible by taking care of the
society.
 This has been through the creation of various recreational centers which in the
end promotes its brand.
 The company is proved to be more innovative in comparison to its competitors
but much need to be done to compete favorably with global competitors.
13

REFERENCES
Frances, O., 2006. Taxation policies brings
fears to the telecommunication
operators,;pp. Thisday Nigeria, pp. 10-11.
Gerry, J. & Kevan, S., 2002. Exploring
corporate strategy. 6th ed. London: Prentice
hall.
Godwin, J., 2013. Price competition,
regulations impact MTN. [Online] Available
at: http://www.itweb.co.za/index.php?
option=com_content&view=author&id=116
2 [Accessed 4 February 2017].
MTN Group Limited, 2013. MTN Group
Annual Report for the Financial Year Ended
31 December 2016.. MTN Group Annual
Report , 31 December.14

15
Adejumo, J., 2013. Etisalat Strategies Captivate Subscribers. [Online]
Available at: http://www.hallmarknews.com/2013/etisalat-strategies-
captivate-subscribers [Accessed 27 March 2014].
Cavero, S. & Cebollada, J., 1997. Brand choice and marketing strategy: An
application Frances, O., 2006. Taxation policies brings fears to the
telecommunication operators,;pp. Thisday Nigeria, pp. 10-11.
Gerry, J. & Kevan, S., 2002. Exploring corporate strategy. 6th ed. London:
Prentice hall.
Godwin, J., 2013. Price competition, regulations impact MTN. [Online]
Available at: http://www.itweb.co.za/index.php?
option=com_content&view=author&id=1162 [Accessed 4 February 2017].
Nkanga, E., 2007. How have Telecoms subscribers fared?. Thisday Nigeria,
pp. 5-6.
Oyebisi, T. & Agboola, A., 2003. The impact of the environment on the
growth of the Nigerian IT industry. The Guardian, 17 April, p. 6.