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.

II.

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?

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

Groupings
ME and Africa (Nigeria,
Kenya, etc.)

Strategy
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 panregional 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

IV.

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

1480403

Kristian Gonzalez
GM8470 - Global Strategic Management
Prof. Kannan Ramaswamy

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