The technological advances of the last decades have led to an increasing interdependence of the global economy. The agreements between countries in the world have changed and companies now operate in different countries with a speed and efficiency previously unthinkable. These dynamics have also led to the development of the so-called emerging markets, and currently to the growth of economies in transition or to those considered underdeveloped. The African continent with its enormous potential in terms of demographics and infrastructural development attracts local as well as foreign firms. One of the most important sectors experiencing rapid developments and changes is the telecommunication industry. This was due to the introduction of several technologies in countries where this type of services was almost non-existent previously, or reserved for a small elite only, while now becoming available for a wider proportion of the population. For this reason, the purpose of this research is to investigate the internationalisation process and strategy of telecommunications operators in African countries. More precisely, two companies with a different country-of-origin are chosen for this study: Orange from France and MTN Group as a South African telecommunication provider. The study firstly presents how usability and access to certain services positively contribute to social and economic growth of countries, with special attention to how the dynamics of the ICT sector have evolved in the contexts of various emerging African economies. After providing a theoretical foundation with the Uppsala model and a closer examination of drivers for the African market, the chosen companies were analysed with special regard to their degree of market commitment and market diversification. The findings of the study suggest that firms within the telecommunication industry can leverage their opportunities with the help of the favourable drivers for the African market, but also indicate a need for a re-evaluation of the Uppsala Model. The internationalisation process and strategy followed by firms within the telecommunication sector is not strictly applicable on a theory but is subject to constant changes resulting from technological and infrastructural developments in the external environment.
Gli sviluppi tecnologici degli ultimi decenni hanno condotto a una crescente interdipendenza dell’economia globale. Gli accordi tra paesi di diverse aree geografiche del mondo sono conseguentemente variati e le compagnie ora operano a livello internazionale ad una velocità ed efficienza prima impensabili. Queste dinamiche hanno permesso anche lo sviluppo dei cosiddetti mercati emergenti e attualmente favoriscono la crescita delle economie in transizione o di quelle considerate ancora sottosviluppate. Il continente Africano, con il suo enorme potenziale in termini demografici e di sviluppo infrastrutturale, attrae società sia locali che estere. L’industria delle telecomunicazioni è tra i più importanti settori che hanno registrato rapidi trasformazioni e cambiamenti. Questo grazie all’introduzione di svariate tecnologie in paesi dove in precedenza esse erano quasi inesistenti, o riservate esclusivamente a una ristretta nicchia d’élite, e che ora diventano invece accessibili per una più ampia parte della popolazione. Per questa ragione, l’obiettivo di questa ricerca è di investigare il processo e la strategia di internazionalizzazione di operatori del settore delle telecomunicazioni nei paesi africani. Più precisamente, sono state selezionate due aziende provenienti da due diverse nazioni: la francese Orange ed MTN Group, gestore di telecomunicazioni con sede in Sud Africa. L’elaborato inizia con una presentazione di come la fruibilità e l’accesso a determinati servizi contribuiscano positivamente alla crescita economica e sociale di un paese, con speciale attenzione a come le dinamiche nel settore ICT si siano evolute nei contesti di varie economie africane in via di sviluppo. Dopo aver fornito una base teorica, utilizzando il modello della scuola di Uppsala e un’analisi approfondita dei fattori di forza per il mercato africano, le aziende selezionate sono state analizzate con particolare riguardo al loro grado di gestione delle risorse e di diversificazione dei loro mercati. I risultati dello studio indicano che le compagnie dell’industria delle telecomunicazioni possono incrementare le proprie opportunità grazie alle condizioni favorevoli che presenta il mercato africano, ma mostrano anche che è necessaria una riformulazione del modello della scuola di Uppsala. Il processo di internazionalizzazione e le strategie perseguite dalle aziende nel settore delle telecomunicazioni, infatti, non è strettamente riconducibile a una teoria, ma piuttosto è soggetto a costanti cambiamenti dovuti alle innovazioni tecnologiche e strutturali dello scenario circostante.
Internationalisation of Telecommunication Companies in Africa: The Cases of MTN and Orange
FUMAGALLI, MIRIAM
2019/2020
Abstract
The technological advances of the last decades have led to an increasing interdependence of the global economy. The agreements between countries in the world have changed and companies now operate in different countries with a speed and efficiency previously unthinkable. These dynamics have also led to the development of the so-called emerging markets, and currently to the growth of economies in transition or to those considered underdeveloped. The African continent with its enormous potential in terms of demographics and infrastructural development attracts local as well as foreign firms. One of the most important sectors experiencing rapid developments and changes is the telecommunication industry. This was due to the introduction of several technologies in countries where this type of services was almost non-existent previously, or reserved for a small elite only, while now becoming available for a wider proportion of the population. For this reason, the purpose of this research is to investigate the internationalisation process and strategy of telecommunications operators in African countries. More precisely, two companies with a different country-of-origin are chosen for this study: Orange from France and MTN Group as a South African telecommunication provider. The study firstly presents how usability and access to certain services positively contribute to social and economic growth of countries, with special attention to how the dynamics of the ICT sector have evolved in the contexts of various emerging African economies. After providing a theoretical foundation with the Uppsala model and a closer examination of drivers for the African market, the chosen companies were analysed with special regard to their degree of market commitment and market diversification. The findings of the study suggest that firms within the telecommunication industry can leverage their opportunities with the help of the favourable drivers for the African market, but also indicate a need for a re-evaluation of the Uppsala Model. The internationalisation process and strategy followed by firms within the telecommunication sector is not strictly applicable on a theory but is subject to constant changes resulting from technological and infrastructural developments in the external environment.È consentito all'utente scaricare e condividere i documenti disponibili a testo pieno in UNITESI UNIPV nel rispetto della licenza Creative Commons del tipo CC BY NC ND.
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https://hdl.handle.net/20.500.14239/703