Tele2: Navigating Contemporary Business Issues in Globalization

This essay explores the contemporary business issues faced by Tele2 in a globalized environment. It discusses how globalization influences the telecom industry, impacting areas such as market competition, technology adoption, and regulatory frameworks. The analysis incorporates Roland Robertson's perspective on globalization, emphasizing interconnectedness and cultural amalgamation. It further examines the impact of currency fluctuations, economic recessions, and technological advancements on Tele2's strategies. The essay also utilizes Porter's Five Forces model to analyze the industry, considering factors like competition, substitution, and the roles of suppliers and buyers. It highlights Tele2's approach to data protection, customer service, and pricing strategies. Furthermore, it addresses the importance of understanding cultural contexts for global expansion and the need for sustainable strategies. The essay concludes by emphasizing the significance of regulatory frameworks and the impact of data manipulation on individual identity in the global market.

Contemporary Business Issues In a Globalized Environment
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Conclusion.......................................................................................................................................9
Reference List................................................................................................................................10
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Introduction
Each organization follows certain practices to bring success. These strategies are built to make
the individual familiar with the issues affecting the business infrastructure. In contemporary
time, the market has become too competitive due to incorporation of new ideas and opinions.
Globalization is a phenomenon which has incorporated such issues which can affected the
industry in one way or the other. To exist in such competitive market structure it is always
necessary for the business organization to deal with such contemporary issues. Tele2 is the
organization chosen for the discussion located in UK. The global issues affecting the telecom
industry are discussing vividly in this essay.
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Discussion
When the business is expanding their infrastructure irrespective of the demography, proper
resources will be accessed by the organization for its growth. Globalization defines the
interrelated relationships between the organization and socio-economic-political structure of the
society. When the organization expands it in global market then it has to deal how the global
issues are influencing it to take any decisions. It is the advent of globalization, which brings
freedom to the market capitalism, and the entire world acts like a global village well connected
with each other. It is the process of amalgamation of different cultures coming together.
Roland Robertson believes that globalization does not mean only this interconnectedness but it
also defines how this interconnectedness influences to let the world think as a single unit
(Robertson, 2014). For the growth of international economy, it is necessary to integrate national
economies. It has been noticed that there are global companies, which want to expand their
business across the world, but such strategies do not affect their domestic product. Globalization
influences the global demand for services, goods, technology, labour, and information (Reader,
2017). This competitive market of telecommunication always wants to provide the best service to
its customers.
From the last decades, it has been seen that globalization has influenced a lot in transforming the
global demand for information in both domestic and international market. With the uprising of
telegraph network, subdue the geographical barriers. It is noticed that from the onset of 19th
century that telegraph connection communicates with the different European colonies forming a
wide network (Drufuca et al., 2017). Currency status of a nation depends on the choices of the
customers as well as the change in economic outlook globally. This indicates the impact of both
social and economical scenario in industries and organisations. The world economy operates
from a financial pool controlled by International Monetary Fund (IMF). Even in the
industrialized nation, one can notice a constant struggle among the currencies. Early 20th century
witnessed the global economic recession, which has affected the world economy completely
(Ravenhill, 2017). Economic depression is a negative effect of recession leading to the
unemployment. This results in constant reduction in production as well as in income. American
currency faced a sudden loss after the war with Iraq. With the effect in the currency status of
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USA, the entire world currency also got affected. Due to the complete industrialization,
employment gets affected, as the machines are replacing the man power in each sector.
Globalization has an indelible effect on our contemporary life. Telegraph system usually
managed by the state, sometimes this modern communication uses the old networks of
communication.
It is seemed that globalization defines this interdependence among the economical structure
across countries making the world as a closely connected network. The aim of globalization is
connecting the world irrespective of any national identity, declining any racial or religious
discrimination. In shaping our cultural identity, technological advancement has played an
important role with the objective to connecting the entire world. Telecommunication industry has
showed a lot of advancement to make the communication better every day. For the last few
decades, the telecommunication industry has taken mostly cost effective strategies for making
stronger connection (Gillespie and Goddard, 2017). With the advancement of technology, it is
easy for connecting your near ones by using different platforms like whatsapp, sms, google+,
skype or any other calling apps using strong internet connection. Expansion of satellites, internet
connection, fibre optic cable have made the connection very easy for anyone to connect
declining the cultural discrimination. The global communication has changed the political
economical social aspects of the world.
McLuhan with his innovative coined term “global village” means to say when the individuals are
not isolated due to their geographical existence. Tele2 takes such strategies, which can bring
revelation in the technology. They make such technological development by introducing pricing
strategies with strong connectivity provided to the customers (Battistella, 2014). The
organization believes that the customers are the highest stakeholders and so they always provide
services dedicatedly. They not only think to take the connection on national basis but they want
to extend their global market with the strong connectivity.
In developing nations one can notice how there is an advancement of technologies. Anyone can
easily share such technology in their own nation because with such advancement in technology
one can incorporate the transfer of technology across nations. This transfer of technology makes
the entire world well connected.
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The main interest of Tele2 is to deal with any kind of information in real time. They ensure that
the customer’s data analytics remain under complete protection. Tele2 has a flexible approach
for their customers so that they get proper solution according to the needs. As a service provider,
they always take such smart strategies, which always make them distinguished in the market.
Globalization has affected different environmental issues like socio-politcal-economical
structure. For the organizational success, it is necessary to analyze closely each factor of the
environment. To make an industry analysis the model, which is used here, is Porter’s five forces
model one can analyse an industry on the basis of different factors like presence of constant
threat, substitution, role of suppliers and buyers, and rivalry.
It has been noticed that there is a convergence within the industry where different
telecommunication companies coming together for sharing the same network. In the recent ages,
there is no need for proper infrastructure in telecommunication industry. There are many
companies use the services, which are coming as a bundle in the devices. Telecommunication
has the objectivity to provide communication to the customers in mobility. Internet’s new
technological advancement has introduced different forms of services each day. With the coming
year the status of the technology will be developed more. The service provider always thinks
about the quality of service to deliver the best data services along with the voice service to the
consumers (Asimakopoulos and Whalley, 2017). New technology has introduced infrastructure
like city wide wireless connection where the customers have no need of good connectivity. In
mobile virtual network operators (MVNO) different telecom companies use other’s mobile
services infrastructure. These service providers utilize the infrastructure shared by other
companies as the bundling device with data and voice services. With the sharing of the network,
the companies take the strategies, which have a long-term plan for pricing strategies.
Now the consumers are given this ability to choose between different mobile operators. Due to
the reason for such wide range of options, the telecommunication market has become more
competitive. The constant competition, which exists between the service providers, is that which
company will provide the best kind of service to the consumer. Ofcom is the corporation of
controlling the pricing strategies as well as the activities of different service provider according
to the opinions of the customers (Na et al., 2017). To stay within the competitive business, it is
always necessary to understand the pricing strategy of the telecommunication industry. The main
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pricing strategy used by the company for the better utilization of the product is that one can
easily add those competitive strategies in marketing by introducing offers. Either the company
has to look after the pricing strategy or they have to introduce such technology, which has not yet
introduced. The company has incurred high expense due to the advertising purpose to keep a
check on rivalry among other companies.
Tele2 has kept its status in the telecommunication market by incorporating such tools, which are
helpful in making the communication industry strong. The marketing strategies taken by the
company is in the hope of making the lifestyle of an individual a better one. The strength of the
company is to make well-connected services across the nation. They know how to incorporate
such strategies in the daily life of an individual. When the company expands it, local market into
globally they invest their strategies without understanding the cultural context of other nation.
Tele2 takes such strategies to expand into the global market; therefore this required such long
term vision which has left an affect in the global economy (Betz, 2016). In most of the cases
these local service providers fail to expand their markets globally because they neglect their
strategies in the national market. Therefore, this leads to the loss of revenue in the local market.
Due to the rise of rivalry among other service providers, it always brings a negative impact on
the service provider’s strategies. Due to the effect of globalization, the telecommunication
industry has incorporated such long-term plans, which has affected largely the global economy.
Tele2 understands clearly the market segmentation as well as the requirement of the consumers.
Therefore, their main objective is to make profit continuously without affecting its expansion
globally. The company always wants to take pricing strategies seriously because it is through
such schemes, which are affordable to the consumers (Tang and To, 2015). The success of the
business depends on the demand and supply chain, this is a symbiotic relation, if a company
fulfils the demands of its consumers the supply chain will definitely increase. With the new kind
of emerging technologies, each company always focuses how to introduce competitiveness in the
market. It is noticed that in the market a lot of telecom licenses and frequencies can be noticed
easily, that shows the impact on the global economic market.
PESTEL analysis has always looked after those aspects to understand the macro environment
perspective. Globalisation is removing the differences among different social class
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this is also beneficial for the organisation as the services have no more remained confined in the
hands of upper class people only.
Tele2 has dealt with different issues to look after before expanding its business globally. For the
expansion of any industry, it is seen that the company has to follow such regulatory framework
as issued by European Union. (Weidmann et al., 2016). They think internet communication as
the basis amenity, and the government should acknowledge that right of the individuals. So the
society is running towards a net neutrality society. In the recent ages, the data information of an
individual has been used for manipulating the electoral polling.
So the telecommunication industry has somehow made the identity of an individual is not under
any security or in other words it is under the constant surveillance of the government. Anyone
can easily understand that the telecommunication industry has introduced an individual identity
in the global market in such a way that the political parties are manipulating such information for
their own interests. The economic factor of an industry is dependent mainly on the factor of
demand and supply of the product. The steady growth of the company is dependent on the profit
made by it. This profit is based on the both domestic and international market and how the
demands of the products have been fulfilled. The CEO of Tele2 explains the financial framework
in such a way that it thinks about the distribution of excess equity cash flow to the shareholders
(Nardotto et al., 2015). The organization has taken such sustainable strategies, which can bring
effective value to customers.
For the organizational success, social factors play an important role. In the recent times it is
noticed that the obsession of young generation with the technology. The technology has entered
in the premises in our livelihood in such a way that we cannot think of a single day without the
engagement of technology. The technology has now affected the society irrespective of ages.
The demographic changes in Europe have an immense impact on the social structure in the
future (Wang et al., 2014). People are staying in better livelihood with lesser fertility rates have
been notices in EU’s population. It is noticed that the number of children will also get affected in
coming decades, with the older persons in higher proportion. This ageing issue will be a big
difficulty in the next century. The population expansion in the world is affected by the enormous
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growth from the developing countries. These first world countries in the coming are expected to
drop down their population structure to 13.6% from 19.6%. So the company will notice young
people in less number than the competitors.
Tele2 has thought of making the use of the network in such a way that it brings any kind of
environmental changes. With the collaboration of Vinnova and EU, Tele2 has taken the project
SooGreen seriously. For bringing any kind of environmental changes, it is necessary to think
about such strategies which can be beneficial for both the consumers and the organization.
Within few years Tele2 has expanded its market all over Europe, so it has some responsibility to
take for sustainable strategies (Brammer et al., 2015). It is the only network, which has taken the
initiative like putting down the bandwidth of the network during the less active periods like
night. In such way they can save energy to some extent rather than making it a complete useless.
Other environmental measures taken by Tele2 are like using more digital phases in daily life, or
the offices to be built on hydroelectric power, or using solar energy for the base stations.
Conclusion
In contemporary world, the issues have an impact on the business strategies can be of different
kinds. The success of an organization is dependent on the strategies taken by the management.
Tele2 is one of the biggest service providers in Europe by providing affordable opinions to the
consumers. Telecommunication industry is an expanding industry after understanding financial
structure of the society. The organization always has to take such strategies like new update in
technologies, regulatory measures, or analysis of the risks in the market. Tele2 has become
globally acclaimed due to its constant improvement process and implement those improvements
for the betterment of the technology.
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