Question

Task Description

Critically discuss three key corporate strategies that businesses use for international expansion. In the context of internationalization of business engagements, alliances, and joint ventures are widely used. Discuss with examples of the recent challenges businesses are facing in managing their international operations.

Please note:

Each student is required to write a critical and analytical argumentative essay on strategic business management and planning issues using contemporary concepts, theories, and models. The students will have to use their cognitive knowledge and practical case examples to develop arguments and substantiate their points of view.

As Masters students, you are required to engage in research as per the Australia Quality Framework (AQF) guidelines.

Two specific requirements need to be considered. Students need to demonstrate “a body of knowledge that includes the understanding of recent developments in the discipline and/or area of professional practice, and demonstrate "knowledge of research principles and methods applicable to a field of work and/or learning”.

Answer 1

Companies use 3 key strategies namely:

• Joint Venture where expertise and experience are shared and markets get corroborated like Tata Motors and JLR
• Strategic alliances where public and private companies come together to form consortium for example IDBi Federal Life Insurance where Federal Bank has majority stake to brinh strong cash flow and boost balance sheet and leverage brand name of IDBi into Indian Markets
• Third being merger and acquisition like Tmobile amd Sprint where everything and every stakeholder gets integrated and consolidated into one.

Powerful example of merger amd acquisition is seen in Indian Telecommunications markets where Bharti Airtel acquires Tata Teleservices and Aircel, While Vodafone acquires Idea and BSNL is into merger proposition with MTNL.

Telecommunications industries summary

Telecommunications industry in India faces an Oligopolistic market structure with combined revenue potential of 30 billion Us dollars and taxation rate at 33 % with 4 large players of equal sizes namely BSNL, Vodafone Idea limited, Bharti Airtel, Reliance Jio. The industry has grown at stagnant rate from 3% to 4% however has been largest contributor to GDP at 11% and contributes 11,00,000 jobs yearly in India. However key challenges remain industrial prices set by Jio as rock bottom, heavy taxation and cumbersome merger acquisition regulations amd strong consumer pressure on low prices.

Industrial output has grown from 22billion dollars ro 30 billion dollars a sper GSMArena, TRAI data, DoT data. FDI in Telecommunications has increased however hummongously by 57%but the consumer demand for data and calls has grown enormously by 322% and so has the prices fallen to 5 Rupees per 1 GB data as compared to 250 rupees for 1 GB data in 2014. The Government has too allowed foreign investment and global players tobid for spectrum auction and hence net FDI is higher and dollar inflow and suprlus too is high.

The biggest drivers of growth pattern are changibg consumption preferences to higher usage plans, lower prices which drive higher affordability, 4G coverage and infrastructure sharing. The Demonetization in 2016 in India saw huge losses to telecoms sector and similarly the 2008 Recession also impactes financial health of 10 players existing erstwhile which led to substandard growth in Telecommunications sector in 2009 era.

Recommendations for expansion including heavy bid for spectrum auctions, cutting down 3G tower and adoption of mass bubdled plans across rural areas for widened coverage and tieups with smartphone vendors becomes the need of the hour.

By and large we conclude and infer that rising taxes and increasing compliance as well as competitive pressures from incumbents coupled with cheap dirt prices will keep industry revenues subdued for while and will only improve after 4 quarters as expected by Crisil and ICRA. With adevent of 5G, we expect the future to cross 100 billion dollar opportunities in India with tonnes of commercial use cases and techtonic changes in Technology which will see unprecedented growth as industry stabilises and consolidates itself leading to firm prices and saturated demand and wide scale adoption of 4G and 5G services.

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