International Marketing for Etisalat in Abu Dhabi - Report Example

International Marketing Contents Contents 2 Company Back Ground 3 Identification of Market 3 Environment Analysis 4 Political Environment 4 Economical Environment 4 Social Environment 5 Technological Environment 5 Legal Environment 6 Environmental Analysis 6 Different market entry methods 7 Licensing method 7 Foreign Direct Investment method 7 Turnkey projects 8 Joint Venture 8 Strategic Alliance 9 Franchising 9 References 10 Company Back Ground Etisalat is an Abu Dhabi based telecom service providing company. The company is the leading service provider in Middle East market. The company is one of the largest corporations in GCC region. The company is having presence in 19 countries across two continents Asia and Africa. The market value of the company is 84 billion Dh. The company is having a reach history of 40 years. The company is one of the top most innovative telecommunication companies in the world. It has huge installation of fibre optic cables in UAE. The company is among one of the 5 companies of the world who has introduced 3D Television network in the country. The company over the years has contributed the economy of UAE greatly. The company is having a very well equipped technological expertise to provide great telecommunication services and internet services to its customer across 19 countries. The company is trying to expand its market more. All the different credit rating agencies like Standard and poor’s, Moody’s and Fitch has awarded good credit rating to the company. It shows that the company is having very strong balance sheet and good overall financial conditions. Identification of Market The company has identified its new market. The company wants to open its business in India. It is great market for the company. India is having second largest population in the world after China. Tele communication network is also second largest in the world. It opens a huge market for the company to open its new business. Indian telecommunication market has undergone a huge liberalisation process from 1990’s. Different players has come into the market and doing good business in India. Major parts of Indian telecommunication industry covering telephony, television broadcasting Industry and internet. The market is having 3rd largest internet users in the world. It opens up a huge opportunity for Etisalat to open its account in India. In the year 2010 and 2011 telecom sector of the country grew by 7%. Indian telecom market has attracted huge Foreign Direct Investments in between 2000 TO 2014 which is $ 59,796 million. Some of the major competitors in the industry are BSNL, Vodafone, Airtel, Docomo and Reliance. As the market is having a huge customer base so it opens a huge opportunity for the Gulf based company to open its account into the market. Environment Analysis Here in this section of the essay Environmental analysis of India would be done with the help of PESTLE analysis. Political Environment India is a democratic country. It is the world largest democracy. The political scenario in India is very stable. Prime minister of the country is the supreme political power elected by citizen of the country. The country is having strong bases of democracy. The democracy is run by a prescribed constitution of the country. The country is having some problems with its neighbour Pakistan. Otherwise the country is having very peaceful political environment. There is no military intervention in the country’s political environment. The country is governed by elected cabinet of ministers. The country follows federal structure which is a combination of Central and state government. Economical Environment The country’s GDP is 10th largest in the world. In terms of purchasing power parity the country is 3rd largest in the world. The country weathered the storm of global financial meltdown very well due to the strength of its economy. But recently the country has experienced reduce in their growth which was 5 % in 2012-13. In the financial year 2011-12 the growth were 6.2%. Currently the country is facing fiscal deficit and higher inflation. The INR depreciated considerably. But very recently after the general election inflation has came down little bit. Economical environment of the country is suitable for the company (Coleman, 1988, pp. 154-158). Social Environment Social condition of India is changing rapidly. The country is having a large part of their citizen below less than 30 years of age. It shows that the country is having a very modern and young society with advanced thinking. The country is having lots of people and languages. In India every state is having different social back grounds backed up by different languages, food habit and culture. Social environment for women is also very impressive. Indian society is growing day by day. The country is having perfect social environment for the company to open its business. Technological Environment Technological environment in India is also very good. The country is focusing on research and development very seriously. The country is one of the largest Information Technology hubs of the whole world. The country is having modern facilities of space technology. Mobile technology is having one of the highest users in the world in India. The country has undergone through revolutionary changes in terms of wireless technology. The country is using 3G and 4G system of wireless technology. The country has seen remarkable improvement in automobile technology. It shows that the country’s technological environment is full of potentials and improving day by day so technological environment of the country is pretty suitable for the company to open their business (Fitzroy and Herbert, 2007, pp. 35-43). Legal Environment Indian legal environment is very detailed and well designed. Supreme Court of India is the highest legal authority in the country. In every district of the country there is one district court. Every state of the country is having one high court. Indian legal system is free from any political and other intervention. It has a very separate and independent identity. There are lots of British influences in the Indian legal system. Apart from this the country is having lots of fast track court for settling any legal issue in a very first pace. Robust legal system is very suitable for Etisalat to open its business in India. Environmental Analysis India is emerging country in the world. It has a very important role in climate protection and usage of renewable energy. As the population of the country is very high the country is having certain environmental issues like open air defection and poor sausage systems. But over the year’s environment ministry of government are focusing very hard and coming up with different laws to maintain the environmental balance. The results are very clear and obvious. All the different companies are having clear environmental guidelines which are to be followed for environmental sustainability of the country. Legal environment of the country is also very proper for the company to open its business in India (Shapiro and Glicksman, 2004, pp. 78-85). Different market entry methods Here in this section of the essay different market entry methods are discussed for Etisalat to entering into Indian market. Licensing method Here in this method Etisalat can provide license to any Indian player to use their service. In this way Etisalat can enter in to the market. It is a very sophisticated process to give license to other company. With help of this method the company can be able to get some market share with the help of the license purchasing company. This international method would allow Etisalat to give license to any Indian company. The company would get loyalty for giving license to the Indian company. Etisalat can provide licensing in the form of trade mark, patent and operating technique. Here the company has an opportunity of less spending and getting large ROI. It would be a very less risky method for entering into Indian market. Here the company can save lots of money and time for entering in to Indian market (Jenster, Hayes and Smith, 2005, pp. 78-86). Foreign Direct Investment method It is also very effective method for Etisalat to enter into Indian market. Here in this method the company would have direct ownership in Indian market. The company can do this investment either by buying any local Indian company or the company has to create its own establishment in the country. The company need not to create any new establishments if they buy any local players of India. It would reduce lots of time for Etisalat to open its new business in India. It would reduce lots of establishment cost also. On the other hand the company can go for total new establishments in India. It would increase the time and would enhance the expense for the company for setting up new business in India (Coade, 1997, pp. 112-116). Turnkey projects It could be a very effective market entry method for Etisalat. With the help of this method the company can start its business in hugely potential Indian market. In this method the company would assist any Indian client to in terms of any telecommunication related installation like setting fibre optic networks or opening any new network and etc. Here in this method the company would start the project from the scratch and will make it operational for the Indian company. Here the local Indian company would get a ready project which has been readied by Etisalat. The Indian company only has to turn the key of the project and the project would start working. This is a very good way for the Etisalat to enter in to Indian market. It would help the company to get more and more business in Indian market in future (Navarro, 2006, pp. 145-57). Joint Venture Joint venture can be also very effective method for Etisalat to expand its business in India. In this method the company need to find another company which is having same kind of business mentality and objective. It may be any company from India or any other part of the world. But their common goal and business policies must fall inline. It would help the company to reduce its risk for entering into Indian market. Two companies can divide the risk of the business. In this method Etisalat can share its knowledge and expertise with other company on the other hand Etisalat can learn different new tools and techniques. It would be mutually beneficiary methods for both Etisalat and the other company. In this method of joint venture a third entity of business would be created. Etisalat is a business house and the other company is also a separate business house when both of them come together it would create a third business or corporation. In this method risks are limited and well defined for Etisalat in its business expansion in India (Abrams and Abrams, 2003, pp. 137-142). Strategic Alliance It is also a very practical method for Etisalat to enter into Indian market. There are lots of big players are there in Indian market. Etisalat can make strategic alliance with any of those players. In this alliance the company can provide the assistance of different technical expertise to solve different problems of its Indian allies. Here in this method all the branding and promotions and marketing would be done by the local company. Etisalat would only provide its valuable experience and expertise. It would help Etisalat to expand its business in India. It would lower the risk for the country as the investments and responsibilities are limited for the company. It would help the company to recognize itself among Indian customers. In this method company can expand its business in little time and expenses are also less for the company. Franchising This is also a very effective method for Etisalat to expand its market in India. Here Etisalat would distribute its home strategy to any Indian strategy. This is very similar to the licensing method of business expansion. Here the company can introduce some franchises in Indian market providing all the same services of Etisalat to Indian customers. Here in this strategy all the franchise of the company can take the service of other Indian players. It is very widely use market expansion strategy. Here choosing right franchise in Indian market is very important for the company. The method is time saving and less expensive for Etisalat. References Abrams, R. and Abrams, R. M. 2003. The Successful Business Plan: Secrets & Strategies. Toranto: The Planning Shop. Coade, N. 1997. Managing International Business. London: Cengage Learning EMEA. Coleman, W. D. 1988. Business and Politics: A Study of Collective Action. London: McGill-Queens Press. Fitzroy, P. and Herbert, J. M. 2007. Strategic Management: Creating Value in a Turbulent World. New York: John Wiley & Sons. Jenster, P. V., Hayes, H. M. and Smith, D. E. 2005. Managing Business Marketing & Sales: An International Perspective. Copenhagen: Copenhagen Business School Press DK Navarro, P. 2006. The Well-Timed Strategy: Managing the Business Cycle for Competitive Advantage. New York: Pearson Prentice Hall. Shapiro, S. A. and Glicksman, R. L. 2004. Risk Regulation At Risk: Restoring A Pragmatic Approach. New York: Stanford University Press. Read More