1480403

Kristian Gonzalez
GM8470 - Global Strategic Management
Prof. Kannan Ramaswamy

Case Brief Analysis: Crossing Borders: MTCs Journey Through Africa

I.

Identify the key strengths and weaknesses of MTC.

Strengths: strong base of investment capital, leadership team, singular or one network
competitive strategy, position (in top 3) within the Sub-saharan market, exceptional process to hit
pre-paid market base
Weaknesses: saturation of home market/limited sector growth, limited knowledge/access to
knowledge by leadership team of the African sub-saharan market, foreign ownership bars
competition in African market sector.

Examining the markets across which MTC operates, what are the similarities and differences of
consequence that you see in their country portfolio? Are there meaningful groupings that make
sense? How would such grouping help MTC think of its strategy?

II.

Country Portfolio
Similarities & Differences
African countries = Using
Celtel brand
ME(Middle East) countries =
MTC
ME Countries = saturated
African Countries = growth
potential

Groupings

Strategy

ME and Africa (Nigeria,

Kenya, etc.)

Regional Needs translate to

one market strategy- mobile
African pop.

Muslim and non-Muslim

Dual or Multi-SIM phones for

ME markets
Target needs of Muslim
brotherhood

This categorization and grouping style would help MTC think of their strategy in a tabular format,
and layout. Additionally, segmented demographic approach to ME and African sub-groups would
help it adapt to further segment their market sectors.
III.

What are some specific ways in which MTC could create value through a pan-regional strategy?
Are these strategic approaches sustainable and value creating?

1480403
Kristian Gonzalez
GM8470 - Global Strategic Management
Prof. Kannan Ramaswamy

MTCs One Network strategy may be easier to maintain, sustain its market base.

Gives freedom to the very mobile African culture to travel across the region without
worrying about roaming charges.

Allows Muslims to travel to Mecca from across the Middle East and some parts of Africa
without worrying about mobile coverage/additional roaming charges.

Additional market opportunity could be smartphone/mobile payment services across its

network that could fill in voids in the region such as payment intermediaries

What specific advice would you offer Dr. Saad as he reflects on strategic options in Nigeria? What
about Saudi Arabia?

IV.

Strategic Options for MTC in Nigeria:

Enhance method of loading pre-paid phones and extend to allow for mobile payments (with
added transaction fees for higher tier customers who can afford them)

Market Approach: There are 800 mn in Africa; 28 mn people in Saudi Arabia. To these two
markets, would recommend a market-overbid strategy in order to drive up prices for MTCs
competitors. Expected results = loss of revenue in Saudi and the adjacent ME sectors.

Rebranding Celtel : Celtel brand is very well received in all of Africa changing it all of a
sudden could hurt the MTC brand / perception of the brand and companys consistency