Crossing Borders MTCs Journey Through Africa Case Solution

The strengths of MTC also include having experience in operating in African market. This strength is highly relevant for expansion of operations in African region. For instance possessing one of the earliest licensed to provide services in Uganda have enabled the company to reach a 60% market share with more than half its subscribers coming from areas outside Uganda's main urban areas. Brand equity in consumers markets is also a key strength of MTC which is gained on the basis of innovative product offerings. MTC was the first mobile operator to introduce the concept of regional tariffs without international roaming charges. Acquisition of other telecom operations is an added strength. MTC had acquired a controlling stake of 65% in VMobile, Nigeria's third-largest mobile operator. 

The weakness of MTC is facing maturity in those markets where it has a large market share. For instance, mobile penetration rates are over 100% in Kuwait (103%), Bahrain (140%), Qatar (115%), and the UAE (134%). This implies that MTC cannot gain further growths from the market it already possess. 

2. What, if any, are the significant commonalities and differences across the various African markets in which MTC operates? Are there meaningful groupings of these markets (in Africa and the Middle East) that you think should sensibly inform MTC’s strategy?

The most significant commonalities in African markets pertain to economy of the region. African market as a whole contains 34 of the 49 least-developed countries in the world. There are also problems of corrupt and uncertain political environment shared by these countries which makes economic planning in the region highly difficult. These markets of sub-Saharan Africa countries were still highly dependent on agriculture and commodity exports, both of which were subject to destabilizing influences like periodic droughts and price fluctuations. Hence, purchasing power in the region is quite low. A positive commonality among these countries is increased GDP growth rates to around 6% in recent years. While this growth was projected to continue in the near future, it is not clear if it is sustainable. 

These markets share another common feature specific to telecom markets. These countries of African possess the fastest-growing market in the mobile telecom industry. Also, majority of these countries have the lowest telecom penetration rates in the world and mobile phones accounted for 90% of all telephone connections in all these countries. 

3. How should MTC hope to create value as a regional telecommunications giant?

MTC hopes to create value as a telecommunication giant in the region by offering ease to the consumers through various innovations. MTC plans to launch an innovative distribution method in African markets which will enable consumers to recharge their mobiles by even a small amount. This is an alternative to card scratch technology. Further, MTC hopes to create value by offering data-based services offers for the consumers beside simple voice calling feature. Through these value propositions, MTC hopes to capture significant market share.