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Cross Border Competitveness

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Submitted By jasmincita
Words 3871
Pages 16
Crossing borders: MTC’s Journey through Africa

1) What are MTC’s key strengths and weaknesses?
Some of MTC’s key strengths are its over 20 years of experience in the cellular business and the resulting strong brand recognition the company enjoys. MTC was the first mobile telecommunications company in the Middle East. The company quickly achieved expansion through the acquisition of several existing telecommunications companies in the region: MTC-Vodafone in Kuwait and Bahrain, Atheer in Iraq, FastLink in Jordan, MTC Touch in Lebanon, Mobitel in Sudan, and Celtel in Africa. The success of the Celtel brand in Africa, for example, “had bred an almost unique degree of loyalty in its customers.” The fact that all these brands became local icons in their own right motivated the company to push for expansion outside the regional arena and into a global market by uniting the group under a single brand. The company introduced “One network,” which was the world’s first borderless mobile phone network, and this specific service gave an edge to the company against its competitors.

MTC’s weakness and biggest challenge is the level of competitiveness the company is faced with as it enters new markets. Having to transition from an almost hegemonic position (when everybody else was afraid to enter the African market and the company had a booming market all for itself), to a position where several big telecoms threatened to become industry leaders in the targeted regions. In order to overcome such challenge the company needs a lot of innovation but it first has to solidify its identity and power as a global brand rather than dividing success among all the different acquisitions operating individually across the different regions.

2) What, if any, are the significant commonalities and differences across the various African markets in which MTC operates? Are there

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