Analysis of Telefonica case
Analysis of Telefónica Case—re-enter Latin America
After having a conference call with a senior Telefónica official, I fully analyzed the Latin American market and Telefónica’s situation, and I think that re-entering Latin America might be a good choice for Telefónica in the future based on the following reasons.
Latin America emerged as the second most important and favorable region in the developing world for FDI inflows and it had totally 141 billion inward investments in 2008. Moreover, as mentioned in the content, Telefónica and Latin America have common language and deep similarity in culture and history. That will help Telefónica reduce risk of FDI in this region. Also, it is the second time for Telefónica to enter this region, which means that Telefónica would lessen costly mistakes, and have greater possibility to succeed comparing to those beginners.
Latin America is one of the most exciting territories for mobile marketing in the world. Although, after Telefónica quit this region, the UK and US became the main engines of the mobile marketing industry, Latin America still have large space to adopt other competitors due to its large cultural and technological shifts. Moreover, most people here predicted by eMarketer, total mobile advertisement spend in this region are going to reach $581 million in 2016 with an average annual growth rate of 65.5%. By location-specific advantage, If Telefónica decides not to re-enter this region because of the fear from the intense competition, then other enterprises will catch this chance to gain a dominance position and obtain a competitive advantage. It is adverse to Telefónica’s development according to strategic behavior.
ECLECTIC PARADIGM location-specific advantage PRAGMATIC NATIONALISM
When Telefónica choose
If Telefónica accepts my advice to consider re-entering Latin America, then I suggest it still choose the acquisition as it strategy.
Spain’s Telefónica is an international telecommunications
After having a conference call with a senior Telefónica official, I fully analyzed the Latin American market and Telefónica’s situation, and I think that re-entering Latin America might be a good choice for Telefónica in the future based on the following reasons.
Latin America emerged as the second most important and favorable region in the developing world for FDI inflows and it had totally 141 billion inward investments in 2008. Moreover, as mentioned in the content, Telefónica and Latin America have common language and deep similarity in culture and history. That will help Telefónica reduce risk of FDI in this region. Also, it is the second time for Telefónica to enter this region, which means that Telefónica would lessen costly mistakes, and have greater possibility to succeed comparing to those beginners.
Latin America is one of the most exciting territories for mobile marketing in the world. Although, after Telefónica quit this region, the UK and US became the main engines of the mobile marketing industry, Latin America still have large space to adopt other competitors due to its large cultural and technological shifts. Moreover, most people here predicted by eMarketer, total mobile advertisement spend in this region are going to reach $581 million in 2016 with an average annual growth rate of 65.5%. By location-specific advantage, If Telefónica decides not to re-enter this region because of the fear from the intense competition, then other enterprises will catch this chance to gain a dominance position and obtain a competitive advantage. It is adverse to Telefónica’s development according to strategic behavior.
ECLECTIC PARADIGM location-specific advantage PRAGMATIC NATIONALISM
When Telefónica choose
If Telefónica accepts my advice to consider re-entering Latin America, then I suggest it still choose the acquisition as it strategy.
Spain’s Telefónica is an international telecommunications