Porter’s National Diamond Analysis for Vodafone's Business Expansion in Myanmar

Running head: GLOBAL AND INTERNATIONAL BUISNESS CONTEXT
GLOBAL AND INTERNATIONAL BUISNESS CONTEXT
Name of the Student
Name of the University
Author note

1GLOBAL AND INTERNATIONAL BUISNESS CONTEXT
Table of Contents
Introduction...................................................................................................................... 2
Porter’s National Diamond Analysis.................................................................................2
Factor Condition........................................................................................................... 3
Political factor............................................................................................................4
Economical Factor.................................................................................................... 4
Social and Environmental Factor..............................................................................4
Technological Factor.................................................................................................5
Related and supporting industries................................................................................5
Strategy, Structure, and Rivalry....................................................................................6
Demand Condition........................................................................................................7
Chance.............................................................................................................................8
Government..................................................................................................................... 8
Market Entry Strategy...................................................................................................... 9
FDI policy in Myanmar..................................................................................................9
Advantages.................................................................................................................10
Limitation.................................................................................................................... 11
Recommendations......................................................................................................11
Contemporary Management Issues...............................................................................12
Cross-cultural management and communication difficulties.......................................12
Foreign laws and regulation....................................................................................... 12
Conclusion..................................................................................................................... 13

2GLOBAL AND INTERNATIONAL BUISNESS CONTEXT
Introduction
The Myanmar telecommunication sector has made a rapid change in their global
expansion and also accumulatesnumbers of mobile companies to encourage the
support of their infrastructural development. Some of the inland Myanmar mobile
companies are doing their business in a success rate and this range like Telenor brand.
This company has some franchised outlets also and they have new and latest handsets
like T100M, T200M, T300M and all these handsets have glass screen with high-
resolution camera in front and backside (Riasi, 2015). Vodafone is one of the strongest
companies in Europe. They want to extend their business in Myanmar and in that case,
at first, the company has to understand the internal market of Myanmar and what are
the opportunities of this new company to extend their market. However, in thesector of
telecommunication Vodafone is a unique name which is familiar in worldwide but as per
the aspects of thehandset and mobile phones, the company has started to move on
their business (Vodafone.co.uk, 2018).
Porter’s National Diamond Analysis
There are strategic aspects and choice of functions that are important to
understanding the market position of the nation. Myanmar shares the border with China,
India, Bangladesh, Laos, and Thailand so the nation has apolitical and economic
advantage due to deep sea ports. The prices of the handsets range from US$46 to
US$1500. The range of mobile uses is extending in so efficient way that 70% of the
rural people in Myanmar used mobiles for their daily works. Their business in Myanmar,
Vodafone needs to understand some deriving factors that expected better growth in
their business expansion (Fainshmidt, Smith & Judge, 2016). Through Porter’s Diamond
analysis the opportunities in Myanmar market in mobile phone industry has discussed.

3GLOBAL AND INTERNATIONAL BUISNESS CONTEXT
Factor Conditions
Related and Supporting Industries
Strategy, Structure and Rivalry
Demand Condition
Chance
Government
Figure 1:Porter’s National Diamond Diagram
(Source: Created by Author)
Porter’s Diamond model is a part of thestrategic analysis and strategic planning
process. There are basically four segregations that impacted on the national economy.
In case of Myanmar infrastructure, the range of product and services are thekey factor
that holds the entire market and in case of penetrating a market there is some limitation
and cautionary factors have in mind of the investing group.
Factor Condition
At first, the importance of Factor condition has emerged in this section and the
section covers the possible penetrating chances for Myanmar in case of extending
business in mobile phones. Vodafone has a good networking system in global term but
as they are focusing on their handsets so their business can improve a lot in Myanmar
(Anton, 2015). There are some external factors that influence the business and as
Chinese companies are making abetter strategic commitment in Myanmar and
developing their business, European companies also put their step forward and come
up for the challenges they made in case of doing business in Myanmar.