Navigating Global Markets in Telecommunications

Introduction

The world is increasingly becoming a global village with the internet making it quite easier to access and use information from miles away including communication and networking, As a result of this, a wide range of companies have effectively managed to expand their business scope and market from the national level to an international level thereby serving the global market. One such company in question and that will be used in the discussion within this essay is Ooredoo- Telcom company. Ooredoo is a leading international communications company delivering mobile, fixed, broadband internet and corporate managed services tailored to the needs of consumers and businesses across markets in the Middle East, North Africa and Southeast Asia (Ooredoo.com, 2019). It is a community focused company guided by a vision of enriching people’s lives and stimulating human growth by leveraging communications to help people achieve their full potential. Ooredoo has a presence in markets such as Qatar, Tunisia, Kuwait, Iraq, Oman, Palestine, Algeria, the Maldives, Myanmar and Indonesia and among the milestones of the company achieved so far include being the first company in Qatar to launch eSIM technology which allows mobile phones to work without a traditional SIM card, the company also confirmed the connection of more than 400,000 homes to its fiber network and was the first company in the world to launch commercial 5G network its biggest and most globally prominent achievement in 2018 (Gulf Times, 2019).

Just like any other mobile or internet business Ooredoo developed an expansion plan with the major aim of being one of the biggest telecommunications company across the world by 2020. According to Forbes (2018) the company’s international growth and expansion strategy was majorly based on three aims: Capturing consumer wireless markets, enabling fixed wireless as well as managing data services. further the company has concentrated its expansion along Europe and Asia as well as North Africa through the development of its Asia-Africa-Europe subsea cable system which links the internet hub of three different continents to Qatar Bowen (2019) in addition highlights that the company entered a deal with Nokia Qatar which has significantly enables the development of a nationwide mobile network in Qatar. The company through its various sub companies including Ooredoo Kuwait, Ooredoo Palestine, Ooredoo Algeria, Ooredoo Tunisia and many others have enables expansion into previously uncovered territory of mobile telecommunications within Europe, Asia and Africa significantly maximizing its revenues over the last decade leading to its development and achievement of international status and being among the top 20 telecommunications companies across the globe (Forbes, 2018).

Operating in the international market for any company regardless of the business structure and format is bound to come along with a considerable level of challenges and Ooredoo has not been exempted from some of these challenges including: Finding Reliable partners to enable a further easier and seamless expansion of the mobile network (Hill, 2019). As a result the company has only been able to expand effectively within immediate borders of Qatar in Asia, Europe and Africa. In addition high level of competition especially in the Telecommunication industry from companies such as the USA and China limit the extent with which Ooredoo can effectively and profitably expand their connection and businesses. Unfamiliar culture and Human resource has also been a major challenge for the expansion of Ooredoo services across the globe (Hill, 2019) Qatar being a Muslim country subscribes to cultures that are inherently and fundamentally different from a wide range of areas across the globe as such, establishing effective contact and developing effective human resource to be able to establish expansions within the non Muslim areas still presents a major challenge for the company and thus limits its expansion plan and process.

Development of cross cultural training and communication mechanisms within the company to be able to communicate and interact with the non-Muslim countries is one of the most effective ways of solving the culture problem that significantly impacts Ooredoo expansion. One of the major steps of impacting easier multinational expansion of whichever business is multi cultural training which enables employees and personnel within the company to be able to learn about different cultures driven by different beliefs and religion (Lopez, 2016). Ooredoo personnel can be trained on how to interact and negotiate with Non-Muslim country business people or individuals to be able to develop plans that are profitable for both companies. With increased understanding and appreciation of the cultural diversity a common ground for business transaction can be establish to limit the challenges the company experiences during expansion. In addition through multi cultural training and understanding different ways and policies of business within different countries, the company is in a much better position to identify and enter into partnerships with significantly developed companies within different countries thereby further minimizing the challenges they have in finding viable partners for expansion plans and strategies. This partnerships subsequently minimize the level of competition that the company faces upon entry into a different market thereby enhancing its significant growth and development (Lopez, 2016).

Barone (2019) defines Free Trade Agreements as a pact between 2 or more countries within a region to minimize or cut out barriers in trade between the countries, that is in export/import transactions. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. Free trade agreements are developed within a cooperation of countries such as the Gulf Cooperation Council (GCC) and the Greater Arab Free Trade Area (GAFTA) all of which Qatar is a member of and as such applies for Ooredoo. These trade agreements are signed by all member countries and enforced within their territory thereby affording companies of member countries a wide range of benefits such as subsided or no government tariffs, quotas and prohibitions that would limit business conduction and growth within these countries (Barone, 2019). As such limited challenges are experienced by Ooredoo in operating within the member countries of the councils. Free Trade Agreements also enables the establishment of trade patterns across national boundaries which enable businesses to effectively expand within the territories of the member countries

Conclusion

Global dominance is at the core of objectives of several fortune 500 and multinational companies with an aim to spread their businesses all across the globe and maximize profitability. Ooredoo is one such company that is fuelled with being among the dominant telecommunication companies all across the world by 2020. While it currently only operates within Europe, North Africa and parts of Asia, having achieved a wide range of its milestones including being the first company to develop and test 5G network, the company is effectively positioned for expansion all across the globe. While this vision is however is still hampered by challenges such as cultural differences and lack of effective partnerships to able to effectively expand across all continents, the membership of Qatar in GCC and GAFTA among other international cooperation’s affords the company benefits with treaties such as Free trade agreements which minimize the cost of conducting business internationally within these member companies. This is beneficial as it effectively supports the companies continued growth and expansion strategies which are aimed eventually at global domination in the telecommunications industry.

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References

Barone A. (2019). Free Trade Agreement (FTA). [online] Investopedia.com Available at https://www.investopedia.com/terms/f/free-trade.asp

Bowen M. (2018). Nokia lands Ooredoo Qatar network expansion deal. [online] intelligentio.com Available at https://www.intelligentcio.com/me/2018/04/22/nokia-lands-ooredoo-qatar-network-expansion-deal/

Forbes (2018). #1451 Ooredoo Q.P.S.C. [online] Forbes.com Available at https://www.forbes.com/companies/ooredoo-qpsc/#70f796105b71

Gulf Times (2019. Ooredoo highlights key milestones. [online] gulf-times.com Available at https://www.gulf-times.com/story/618390/Ooredoo-highlights-key-milestones-of-2018

Hill B. (2019). What are some challenges that firms face for international marketing? [online] chron.com Available at https://smallbusiness.chron.com/challenges-firms-face-international-marketing-3356.html

Lopez G. J. (2016). The importance of cross cultural training. [online] linkedin,com Available at https://www.linkedin.com/pulse/importance-cross-cultural-training-gracie-johnson-lopez

Ooredoo.com (2019). Company Overview. [online] ooredoo.com Available at https://www.ooredoo.com/en/investors/company_overview/