MTS India: Organic Growth, Partnership, or Exit?
(8 pages of text)
In June 2015, Mobile TeleSystems (MTS) India was considering its future in the Indian telecom market. MTS India, a global telecommunications (telecom) brand, had been operating in the country since March 2009. It had gone through difficult phases marked by India’s regulatory regime and the global economic crisis. Although the Indian telecom market had immense potential, MTS India’s success was stifled by a lack of telecom resources and in the inability to successfully manage the macro environment. Over the years, the company had adopted multiple strategies to drive business growth. However, due to the incompatible telecom ecosystem, including technology and devices, the company was not able to achieve its intended objectives in India. The chief executive officer was evaluating several strategic options in light of intense competition and a geopolitical crisis faced by MTS India’s parent company in Russia.
This case can be used at the graduate level in strategic management, international marketing, and integrated marketing communications courses to depict the entry strategy for a global brand in an emerging market. (Students should already be familiar with the basic nature of the telecom industry.) After completing the case, students should be able to do the following:
- Understand the important considerations for a firm deciding which markets to enter and when to enter them
- Recognize the consequences of late market entry in a highly competitive market
- Consider the decisions and potential barriers faced by a company in developing an appropriate market footprint
- Analyze the relevant ecosystem in which a company must operate
- Identify the constraints and challenges that a company faces in creating a global service brand
- Recognize the role of integrated marketing communications in the brand-building process
Information, Media & Telecommunications
India; Russia, Large, 2015
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