The strategy that was used by MTN Group to expand to different parts Essay

The strategy that was used by MTN congregation to expand to varied parts of the African and fondness Eastern markets - Essay ExampleIn 1994, the brass authority granted a license to Vodacom and Mobile Telecommunication Network (MTN) to operate mobile strait networks in South Africa (Oxford Business Group, 2008). The MTN Group had the vision to be the leading provider of telecommunications in appear markets (Erasmus and Shenk, 2008 p61). This has been the watchword of MTN and the group is now operational in 21 countries in Africa and the Middle East (Banhegyi, 2007). In tout ensemble these countries, MTN has access to over 488 million people and has over 28 million subscribers (Banhegyi, 2007). It is now listed on the Johannesburg Stock Exchange. In Africa, MTN has operations in Botswana, Cameroon, Cote DIvoire, Nigeria, Congo, Rwanda, Swaziland, Uganda and Zambia amongst other nations. MTN Group has its headquarters in South Africa where it all started. This paper examines the strategy that was used by MTN Group to expand to different parts of the African and Middle Eastern markets. It ordain examine the strategies from the context of dominant theories and ideas relating to international business. The second part of the research will examine the strategies for further expansion of MTN into other markets around the world. MTN Group Expansion Strategy In rear to examine the expansion of MTN to different countries around the world, important elements and aspects of International Business will be examined. This involve unveiling Mode Entry Timing Firm Size Institutional Matters Entry Mode Entry mode describes the methods and systems used by a business to expand into a international country (Andexer, 2008). It describes the unlike approaches that a business uses to create a presence in a foreign land. Popular methods entangle franchising, licensing and joint ventures (Ireland et al, 2011). According to Singh (2008), MTN expanded to other countries thro ugh a mixture of Greenfield Investments and Mergers/Acquisition. A Greenfield Investment is the founding of completely rising operations in a foreign land (Paul, 2009 p357). In some countries, MTN created raw telecommunication companies that were meant to provide services. This was particularly popular in smaller and war thorne African countries that had limited infrastructure. This touch investing and creating new infrastructure from the scratch. done this, MTN exported their resources to these new venues. They applied principles from South Africa and learnt about the local environments. Through this, they built brands and new systems in the foreign nations that they operated within. In other countries, MTN expanded through mergers and acquisitions. Mergers and acquisitions involve forming rugged partnerships or acquiring other businesses in order to being operations in a new country (Johnson and Turner, 2009 MacDonald et al, 2011). MTN Group purchased other companies like Ar eeba and Spacefon technologies in several parts of the continent (Bridge, 2009). These two companies were wandering(a) brands in the Middle East and Sub-Saharan Africa (Pan, 2011). MTN just purchased these companies and took over their assets and began to operate in their capacity as an independent company in these foreign countries (Venter et al, 2009). Through this mixture of mergers and acquisitions and greenfield investments, MTN was able to set up different operations around the world. The shareholders of the South African company expanded their scope of control and took over these foreign and new markets. The mergers were mainly