Dhiraagu Company's International Marketing Expansion Analysis

This report analyzes the international marketing potential of Dhiraagu Company, a leading telecommunications provider in the Maldives. The report recommends market expansion into Egypt and India, considering the potential for increased revenue and market share. It explores entry modes, business environment challenges such as infrastructure, protectionist policies, cultural attitudes, and communication styles, and their impact on local organizations. The report also provides marketing mix strategies (product, price, place, and promotion) for the chosen markets and concludes with recommendations to facilitate successful international expansion. The report highlights the company's strengths, including its strong market position, financial stability, and technological capabilities, while also acknowledging the need to navigate challenges related to infrastructure and cultural differences. The report emphasizes the importance of building relationships, understanding communication styles, and adapting to local time concepts. The report also discusses the impact of Dhiraagu's entry on employment, technology transfer, and competition within the local markets.

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International Marketing

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Table of Contents
Introduction...........................................................................................................................................2
Overview of Dhiraagu Company........................................................................................................2
Reasons describing the Potential of the organization to go International.........................................3
Potential Market for Expansion.........................................................................................................4
Egypt..............................................................................................................................................5
India...............................................................................................................................................6
Business environment challenges......................................................................................................7
Infrastructure................................................................................................................................7
Protectionist Policies and High Tariffs...........................................................................................7
Powers of State..............................................................................................................................7
Attitude towards Authority............................................................................................................8
Building Relationships....................................................................................................................8
Communication Style.....................................................................................................................8
Concepts of Time...........................................................................................................................9
Impact of Business Environment of Dhiraangu Company to the Local Organization of India............9
Employment..................................................................................................................................9
Importing New Technology..........................................................................................................10
Awareness of new concepts, methods, and cultures...................................................................10
Competition.................................................................................................................................10
Transfer of Knowledge and information......................................................................................11
Working Conditions.....................................................................................................................11
Advanced Products......................................................................................................................12
Mode of entry..................................................................................................................................12
Joint Venture...............................................................................................................................12
Marketing Mix Strategy...................................................................................................................13
Product........................................................................................................................................14
Price.............................................................................................................................................15
Place............................................................................................................................................15
Promotion....................................................................................................................................16
Recommendations...............................................................................................................................16
Conclusions..........................................................................................................................................17
References...........................................................................................................................................19

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Introduction
The process of taking the reach of the business out of the national boundaries is known as
expansion. The report is being prepared in order to advice Dhiraagu Company to enter in
which international market so that company can its increase its revenue and expand its market
share. The report will provide the suggestions of two countries where they should expand its
business along with the entry mode by which they can enter into the international market.
Further, the report will do the analysis and will reflect the challenges and their potential
impact on the local establishment. The report will also provide the marketing mix strategies
in the chosen country.
Overview of Dhiraagu Company
Source [https://www.facebook.com/dhiraagufans/]
Dhiraagu is the largest and leading telecommunication provider of Maldives; they offer
digital services along with the complete range of data, mobile, TV services, internet, and
fixed-line throughout the Maldives. It is the Maldivian first telecommunications company,
and was situated in 1988 (Batelco Group, 2012). The Dhiraagu name is an abbreviation for
Dhivehi Raajieyge Gulhun, Accurately: Association of Maldives. The world’s longest links
of microwave over water are maintained by Dhiraagu. This link of 65 km through the equator
links Fivahmulah and Gaafu Dhaalu- and hence Gaafu Alifu atoll. Dhiraagu has two
substantial shareholders named as Government of the Maldives and BTC Island. 41.8% of

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holdings are with Government of Maldives and 52% of holding is with BTC Island (Batelco)
and the remaining holding which is 6.2% are with the general public (Dhiraagu, 2018). The
business of the company is depending on the commitment to providing innovative and
creative services and products and a belief that places customer experience on high value.
The customers of the company are government and corporate institutions, small and medium
businesses, and individual customers. They offer complete solutions and provide particular
needs ranging from common telephone services to multifaceted combined private solution of
networking for global customers.
The company continuously try to fix the geographic hurdles and stay in connection with the
customers by the country’s biggest distribution and retail network of 120 agents, 40 exclusive
partners, approx. 3000 retailers, and 40 distributions across the country. In the Maldives, they
offer the broadest coverage including 199 inhabited islands of the country, industrial islands,
and all island resorts.
Reasons describing the Potential of the organization to go International
The Dhiraagu Company has potential to expand its business in different countries where the
company can get new opportunities and can offer their best services to the customers of that
country.
 The Dhiraagu is the largest telecom service provider and has a strong market position
in the Maldives as they offer a complete range of internet, data, TV services, etc. The
company is a well-known name in the telecommunication industry and it shows that
they have a potential that they can place their services in the international market.
 Currently, the company is facing huge competition in the Maldives but the company
is still able to manage its position and image in the market which shows that company

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will survive in the international market and will successfully face the cut-throat
competition there.
 The company is successfully able to maintain the longest microwave links over the
water of the world.
 The company believes in maintaining diverse human resource and culture in the
organization and respect them which is an essential element for the success of the
business. Therefore, they can operate their business in the international market and
will not face such barriers in expanding their market share.
 As per the 2016 third quarter financial statement of Dhiraagu Company, the revenue
of MVR 1.9 billion was recorded by the company in the year’s initial months. This is
an 11% increase of the revenue in comparison to last year’s revenue of MVR 1.7
billion. The company has also recorded a net profit amount in this time duration
which is of MVR 653 million. They earned a 16% increase in the profit in contrast to
previous year’s MVR. Along with this, the company has also received MVR 617
million of revenue in the third quarter and it is 12% more than the third quarter of
2015 (Shaahunaaz, 2016). This data reflects that the company has potential to expand
along with enough funds which are very important for the expansion of the business
in various countries.
 Workforce or employees are very important to the success of the business as many
organizations consider them as the backbone of the business. The Dhiraagu Company
has employees who have skills and knowledge of the technology and has the
capability to implement those technologies effectively. It shows that the company has
potential to bring new software and services for the people of different countries and
can contribute to the development and growth of Maldives and host country.
Potential Market for Expansion

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As the company has the potential to expand its business in different countries. So, it can be
suggested that the Dhiraagu Company can expand its business in Egypt and India.
Egypt
Source [http://streamafrica.com/culture/history-egypt/]
Egypt is also known as the Arab Republic of Egypt, which is located in Africa's north-east
area; although a land bridge is formed by the Sinai Peninsula with south-west Asia (National
Geographic, 2015). Therefore, Egypt is also known as Middle East Country. Egypt is a
continent-wide country, which supports it in becoming Africa's major power, the Muslim
world, the Mediterranean and the Middle-East. Approximately 1,001,450km2 (386,662
miles2) area is covered by Egypt and is surrounded by Gaza Strip and Israel in the north-east;
Sudan in the south; the Mediterranean Sea in the north; the Red Sea in the east; and Libya in
the west (Tour Egypt, 2018). Egypt is the 3rd famous African country and very popular in
middle-east (Ask Alladin, 2018).

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The average speed of internet in Egypt is of 2.2 Mbps (Sarwar, 2018). There are various other
countries like Bangladesh who have a low internet speed of 2 Mbps but these countries are
working hard to improve their stage but Egypt is disentanglement because of the deprived
state of activities in the country presently.
India
India country, formally the Republic of India is situated in South Asia (Facts about India,
2018). By area, India is considered as the largest country, the most famous world's
democracy, world's second popular country and the seventh largest country by area (Maps of
India, 2015). The country from the south is surrounded by the Indian Ocean, on the southeast
Bay of Bengal and on the southeast from the Arabian Sea. The borders of Bhutan, Nepal, and
China to the northeast, Pakistan to the west, and Bangladesh and Myanmar to the east are
shared from India. The Maldives and Sri Lanka are the neighbour countries of India. The
maritime border on India's Andaman and Nicobar Island is shared with Indonesia and
Thailand.
The internet speed in India is low as 2 Mbps, but the country is working hard to improve
these situations (Sarwar, 2018). The Government of India is trying to contact from the
international companies in order to increase the GDP and Foreign Direct Investment of the

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country. This shows that there is the huge scope for improvement and various companies
have opportunities to invest their money in this country.
The Dhiraagu Company can choose to expand its business in India in order to provide their
best services in the country because in India there is huge scope for the international
company to expand and government of India also supports and invite international companies
to set up their business in the country.
Business environment challenges
Infrastructure
The roads, airports, telecommunication, railroads, power grid, education are the problems in
the country which act as major hindrances as the country wants to attain its maximum
economic potential. The on-going development and rising incomes have been demanding the
enhanced and improved infrastructure, for the economic growth and delivering public
services (Gov Export, 2017).
Protectionist Policies and High Tariffs
Investors and Exporters face tariff, often impulsive regulatory and non-transparent system or
rules. Many services of U.S. have restricted entrance to the market. As per the survey of
World Bank on the topic of easiness of operating business for 2016, 130 was the rank of India
out of 189 countries because of its challenging climate of business (Kashyap, 2014).
Powers of State
In 2014, Andhra Pradesh was divided and converted into two states i.e. Andhra Pradesh and
Telangana. Companies who are planning to invest their funds or wants to operate their
business in India such as Dhiraangu should be ready to face these changing economic and

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business conditions across India with 7 union territories and 7 union territories. In India,
decision making and power are decentralized, with changes at the state level in labor
relations, quality of governance, political leadership, education levels, taxation, and
regulations.
Attitude towards Authority
Conventionally a caste community with origins in Hinduism, Indian culture have high
prominence on status and authority. Communication between stages is comparatively closed
therefore the important employee vision or proposals in subordinate positions will be shared
hardly with the superiors (Aswathappa, 2010). If Dhiraagu Company will not study or
understand the Indian attitudes and their impact on business then they have to struggle in
order to bring change as fast as possible and can fail in relating the value and experience of
their employees.
Building Relationships
The culture of Indian business concentrates majorly on trust and relationship building in
place of working quick and hard towards the particular objective of business. The course of
cultural awareness supports a lot to the business operating in India because it helps in
developing strategies in order to avoid frustration, unable to achieve the tangible outcomes,
delayed projects, and common clatter as an outcome of various partialities for associations
and tasks and courses.
Communication Style
Indians like to communicate in unintended high context communication. In other words, they
like to look at the complete picture, which plays important role in maintaining relationships,

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they even give importance to the emotions, body language and they avoid saying ‘no’. The
variance in the style of communication can affect and result in the big challenge for those
organizations who prefer interacting in low context and direct way (Budhwar and Varma,
2010).
Concepts of Time
Polychromic culture is followed in India. In other words, people like to change main concern
areas India is a polychronic culture, in other words, people tend to change priorities on the
basis of their depending on their attitudes and position towards promptness are relaxed. Many
international organizations need devotion to firm’s deadlines and quick decision-making,
therefore they struggle to manage the time as it cannot be controlled (Maclachlan, 2010).
Training of Cultural awareness can provide support and help Dhiraangu Company to
understand the time concept and generating strategies so that they can deal with them.
Impact of Business Environment of Dhiraangu Company to the Local Organization of
India
Employment
The number of possible candidates becomes less if an international company starts operating
in the location near to the local business. This is due to the capability of the international
company of hiring maximum people, and local business will be left with limited applicants
(Johnston, 2018). It results in an increase of wages by the local business to grab talented
applicants. In addition, the local businesses have to provide improved benefits to the
applicants in order to compete with the international business offerings.

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Importing New Technology
The local business can be benefitted with the entrance of an International business in the local
boundary. This is being said because these international businesses bring new technologies in
the host country. These new and innovative technologies can help in reducing the wastage of
resources and saving time. Along with this innovative and advanced technology provide a
way to the country towards the development and growth (Lambregts, Beerepoot and
Kloosterman, 2015).
Awareness of new concepts, methods, and cultures
We live in a world which is comprised of many countries and people of those countries
follow various cultures, religions, values, concept, theories, methods, etc. If an International
company opens its office in the host country then it will be beneficial because it will help the
host country to know more about the international country and their people. Along with this,
the International Company bring its concepts, theories and methods which are applied in
business along with them which provide a new direction and though to the host country.
Competition
The competition increases if an organization set up its business from the home country to the
host country. This competition may be linked to the target market, technological adaptation,
service and product, fast production by companies, cost and price, and quick response, etc.
When a business manufactures products at low cost and sells it cheaper, then it helps in
increasing the market share of the company or business. When a company produces with less
cost and sells cheaper, it is able to increase its market share.
In the market customers get a vast variety of product's choices which influence their
behaviors: they just try to obtain services and goods fast and in an efficient manner than