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Mtn Internal Analysis


Submitted By toez
Words 3092
Pages 13
Value creation is an objective of every firm, as they seek to provide value to its stakeholders and most especially its customers. Aside adding value, success is also a major objective for firms. The drive to be successful in their industry has led firms to develop strategies to enable them have a competitive edge. Resources of organisations generate value and when combined with its capabilities creates competitive advantage for that organisation. To gain and sustain competitive advantage, firms have to implement value creating strategy that cannot be imitated by its current or potential competitors (Barney, 1991).
The telecommunication industry in Nigeria was controlled by a monopolist (Nigerian Telecommunications Limited (NITEL), but this changed after the auction of telecom licences to other operators, leading to stiff competition.
Operators in the telecommunication industry are relentlessly competing for market share, making managers to employ different strategies to place them ahead of their competitor. (Esonwume, 2010), yet one operator was able to beat its rivals. MTN is regarded as the most profitable and widely subscribed operator in Nigeria. This paper gives a background of the industry and firm, examines key areas where MTN has been successful and the extent to which this advantage can be sustained in an attempt to answer the research questions. The research questions are as follows: 1. What strategies has MTN Nigeria adopted to become a leading telecom operator? 2. Does the firm have competitive advantage? 3. Is MTN Nigeria competitive advantage sustainable?

Background of the industry.
As at 2000, communication in Nigeria was deficient, with approximately 500,000 lines serving 100 million Nigerians. NITEL, the sole operator in the telecommunications sector provided substandard and inefficient service, making

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