Global Marketing Management Report: Afrihost in India

This report provides a comprehensive analysis of global marketing principles, using Afrihost, a South African telecommunications company, as a case study for potential expansion into the Indian market. The report begins with an introduction to global marketing and a background on Afrihost, detailing its services and market position. It then delves into market research, including an analysis of India's telecommunications market size and growth, along with a PEST analysis to assess political, economic, social, and technological factors. The report also employs Porter's Five Forces framework and competitor analysis to evaluate the competitive landscape. A market strategy is proposed, including a discussion of entry modes, segmentation, targeting, positioning, and the marketing mix. Finally, the report offers recommendations, including the application of Porter's generic strategies, to guide Afrihost's successful entry into the Indian market, concluding with a summary of key findings and suggestions. The report is a valuable resource for understanding the complexities and strategies involved in global marketing.

Global Marketing

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Executive Summary
The main aim of this paper is to understand the concept of Global marketing. In this paper, the
concept of global marketing has been discussed. Afrihost has been taken into consideration
which is South African company of telecommunication. The company decided to develop the
business in Indian market. In this paper, the telecommunication market of India has been
analyzed. As per the PEST Analysis, it is observed that the economic, technological and political
factors are favorable for the company but social factor is unfavorable that affects the business. It
is suggested that the firm has to enter the market in the mode of Joint venture or partnership. The
marketing plan is also developed for the company which is used while enters the Indian market.
Porter’s generic strategies are also suggested that helps it to beat the competitors of Indian
market.

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Contents
Introduction.................................................................................................................................................3
Company Background.................................................................................................................................4
Market Research and Findings....................................................................................................................7
Market Size.............................................................................................................................................7
PEST Analysis.........................................................................................................................................8
Porter’s Five Forces Framework............................................................................................................10
Competitor Analysis..............................................................................................................................13
Market Strategy.....................................................................................................................................13
Mode of Entry.......................................................................................................................................13
Segmentation, targeting and positioning:...............................................................................................13
Market Mix................................................................................................................................................17
Recommendations.....................................................................................................................................18
Porter’s Generic Strategies....................................................................................................................18
Conclusions...............................................................................................................................................19
Bibliography..............................................................................................................................................21
Appendices................................................................................................................................................25

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Introduction
Global Marketing defines the process of adjusting the marketing strategies of the organization in
order to implement the conditions of other countries. Global marketing is the widest concept as it
not only about selling the product or service globally. It is a procedure of planning, generating,
positioning, and promoting the products or services at a global level. It supports the organization
to expand the business successful in the new market. Global marketing not only helps to expand
the business at the global level but also helps in many areas. It is observed that the companies
face the challenges while entering the new market such as competition and domestic culture. It is
essential for the company to develop the strategies to achieve the success in the business in new
market (Al‐Khatib, Al‐Habib, Bogari, and Salamah, 2016). The organization has to analyze the
host market before developing the strategies as it helps to develop the strategies according to
market condition. After the analysis, the company developed the marketing plan so that it
achieve the success and grasp the high market share in the new market. In this paper, the
discussion has been made on the concept of global marketing (Gillespie, 2015). In this report,
Afrihost has been taken into consideration to analyze the marketing or to develop the business at
the global level. Afrihost has a strong image in South Africa but now it wants to expand the
business in Indian market to grasp the market share and earns the more revenue. But before
entering the market, it has to develop the marketing plan to gain the competitive advantafe as
well as market area or share.
This paper is classified into four stages. In the first stage, the information about the company and
its market will be discussed. In the second stage, market analysis will be done in order to analyze
the market situation and trends of host country. In the third stage, market strategy for entrance

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will be suggested to the organization to enter the Indian market. In the last stage, the
recommendations will be discussed which is beneficial for the company to survive in the market
for long time.
Company Background
Afrihost is an Internet Service providing company which operates the business in South African.
The company provides the number of services such as ADSL broadband, wireless, fixed, fibre,
mobile and web hosting. It was established in the year 2000 by CEO Gian Visser, Peter Meintjes,
and Brendan Armstrong. Greg Payne is the last CEO who joined the company at last. Earlier, it
was the web hosting and general IT service provider company but after the year 2009, it was
joined as the broadband market (Afrihost, 2019).
Services
The company provides the Web hosting services to consumers. In the year 2018, it provides
broadband and telecoms services. It also offers VDSL, ADSL, fiber-to-the-home, mobile voice
and broadband, mobile data services. For the customer services, the company received the
complaints for the service delivery. It sets the range of complaints to provide the accurate
services to customers.
Achievements
Organization won various industry awards in telecommunication industry for its services such as
Fibre and ADSL. It also gets the rewards for its customer care services.
Market

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Afrihost operates in telecommunication industry in the market of South Africa. It is one of the
most advanced infrastructures on the continent. There are many services provided by this sector
such as Telkom, Broadband InfraCo, Liquid Telecom South Africa and municipal providers as
well as from mobile network. The mobile network service is improving continuously. As per the
statistic report, the market share of mobile operators of South Africa from the year 2011 to 2019
has been increases which depicts that the demand of telecommunication sector has been
increases. As per the research, it has been evaluated that the demand of the industry has been
increases with the percentage of 42.4% (Budde, 2019).
Market profile
South Africa is more focus on the well-being of citizens since its transition to democracy in the
early time 1990s. In the recent years, the income structure of inequality getting high. As per the
economic condistion of the market, it has been analyzed that the government of South Africa is
decided to spend around 38billion (USD 2.6billion) over the next 36 months for upgrading the
signaling systems, preway and stations (Research, 2019).

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(Source: Research, 2019)
All these graphs define the current market situation of the South African market in economic
terms. The GDP rate has been decreases from the past years such as 2014, 2015 and 2016 but
still it is improving from the last year it will increases by 4.62 to 4.96. The unemployment rate
has been increases in the market which directly affects the demand of telecom industry. But in
the GDP sector, service industry has high percentage such as 61.35% (Research, 2019).
Key Competitors
There are many companies who operate the business in the telecom industry with the excellence
services. It is observed that these companies reach at the peak point of success in the business
and also grasp the high share in the market. Telkom, Vodacom, Cell C, and 8ta are the four
companies those gets the licensed to operate the business. Apart from these companies, Neotel,

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Internet solutions, Sentech, Gateway, and DoBroadband are the others who operate the business
and give the high competition to the companies. Although, there are many companies compete
the company but the top competitors are Neotel, Telkom, and Vodacom as these firms have high
value of goodwill in the market. The companies not only have high brand image but these are
also remains the first priority of consumers (Research, 2019). Afrihost has to develop the
strategies for grasping the high market share or compete with these companies. According to the
analysis, these companies are the top famous company that provides the services to customers.
Neotel is the second largest telecom companies in the South Africa industry.
Market Research and Findings
Afrihost operates effectively in the market of South Africa. It has been observed that the
organization earns the high revenue in the market. But now, it’s decided to operate the business
at the global level. The organization thinks to enter the Indian market but it has to analyze the
market before entering the market. The analysis will be done by using the different tools and
activities. The macro environment of Indian market has been analyzed.
Market Size
India is the current world second largest telecommunication market. It has been found that the
economy of India is rising rapidly and it also contributes substantially in the GDP of India. It has
been evaluated that the total revenue of mobile services in India is expected US$ 37 billion in the
year 2017. Compound Annual Growth Rate (CAGR) of India is 5.2 percent from 2014 to 2017.
As per the research, it has been evaluated that the people of India have over the180 million
smartphones by 2019. The percentage of mobile market of India is contributing in global market
by 13.5 percent. The Indian telecommunication services market is growing with the 10.3 percent

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year by year and it is expected that it will reach at US$ 103.9 billion in the year 2020. As per the
investment analysis, it has been evaluated that the government and companies of India invests
US$ 18.38 billion during the year 2000 to 2016. According to analysis of market, it can be said
that the organization has the great chance to enter the Indian market as the telecommunication
market of India is operating at the higher level.
(Source: IBEF, 2017)
PEST Analysis
Political
It has been analyzed that the government of India controls the telecom industry by implementing
the regulation such as TRAI (Telecom Regulatory of India) which was founded in the year 1997.
The telecommunication department was established in the year 1989. In the year 1994, the
government introduces the policy with the name of New Telecom Policy in which it was
announced that the companies who enter the market whether it is public or private require
issuing the license. The government of India developed the National e-Governance Plan to set up
over 1 million internet-enabled common service centers across India (IBEF, 2017). This plan
supports the organizations to sales the great number of services to consumers as the demand of

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customers has been increases. India’s government also introduced the Digital India Programme
in that all the sectors such as healthcare, retail, and the others can easily connected through
internet. The initiative taken by the India’s government reduces the frauds and also increases the
revenue in the industry.
Economic
(Source: Statista, 2019)
The Indian economy is recognized as the growing economy of market. India is the country which
stands at the fifth position in largest economy in terms of GDP and also the third largest by
purchasing power parity. The government and companies are investing in the industry in order to
grow rapidly in the market with the motive to earn the profit and for the improvement of
economy. Earlier, the companies providing the similar services to consumers with the same
capabilities but nowadays the companies work hard in order to expand its network (Leonidou,
KatsikeasSamiee, and Aykol, 2018). Nowadays, the government of India and the companies plan
to make India 5G-ready by 2020. The 5G internet services give the opportunities to telecom
industry to reach at the global markets. The government of India decided to contribute $2.2

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trillion to make the India 5G ready. The telecom industry have sale about 8644 units of
frequencies across eight bands including 4G airwaves. As per the investments by the
government of telecom companies, there is a big chance for the organization to enter the Indian
market to develop the brand image in the market (The Economic Times., 2019).
Social
In India, people more believe in religion, languages, and customs. People of India have different
religions and customs in different places. Nowadays, there are still number of people who do not
believe in modern activities and tools. They always try to use the local products instead of
advance technology product from outside the country. This mentality of consumers affects the
sales or turnover of the company. In the Indian culture, gadgets are restricted to use after a
certain age and youngsters are also not allowed to use those gadgets. This culture can also affect
the revenue of the company and also influence the organization to take step back. But youth of
India uses the mobile networks in most of the time for their entertainment as compare to the
other age of people. It develops the chance for the organization to enter the Indian market and
earns the high revenue (IBEF, 2017).
Technology
Information technology (IT) sector in India contains of two major components such as IT
services and (BPO) business process outsourcing. The sector has been increases in the
contribution of GDP. This sector has been growing rapidly in terms of revenue such as US$ 160
billion in the year 2017 (The Economic Times., 2019).The government of India is highly
invested in the mobile networks and internet services to develop the Indian economy or to

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become the fastest internet servers. The initiative taken by Indian government develops an
opportunity for the firm to enter the market to help the government in development of India.
Porter’s Five Forces Framework
The threat of new entrants
It has been seen that the degree of threat of new entrants is low as there is high capital is required
to enter the telecom industry. The new entrants can enter the market but the companies have to
face the challenges such as high capital and the others. If the companies enter the market with
low capital than probably it cannot survive for long time as the tools and instruments used to
provide the network services consumes high cost to survive in the market (Ratten, 2017).
The other reason that founded is that the existing firms in telecom industry have high brand value
in the market. These companies also operates at the international level by using the advance
technology and instruments such as Airtel, BSNL, Vodafone, Reliance and the others. These
organizations have high brand value in the market and these are also first priority of consumers
in terms of buying the telecom services. It is not possible for the new entrants to beat the existing
companies in terms of their brand image and consumers demand. The company has to introduce
the new services in the market by using the advance technology in order to beat the existing
companies. But using the new instruments or advance technology needs the high amount of
capital to buy those instruments (Steenkamp, 2017).
Bargaining Power of Suppliers
It has been analyzed that the suppliers have high power just because that there are few number of
suppliers in the market those delivers the excellent services to the companies. In terms of
benefits and disadvantage, it is observed that the companies have both pros and cons of suppliers