TeliaSonera: A Nordic Investor in Eurasia
1-By using Porter`s Five Forces, TeliaSonera had fewer competitors in the Eurasian market, the mobile penetration in the markets is low comparing to Europe. The technological knowledge and better quality network gave TeliaSonera a leading edge in the region compared to local competitors, and that minimized the threat of new entrants to the market. The threats of substitutes were low; the high investment led to the development of large and satisfied customers, the large population came from the high quality provided with increased the trend of mobility serves and broadband services that expended TeliaSonera's position in most countries.
2-There are several capabilities and resources that drive TeliaSonera`s successful growth in Asian markets. First, TeliaSonera leveraged its decades of telecom expertise developed in Nordic countries in the developing countries of the Eurasia region. The technical know-how and deep customer understanding of the company enabled operations in difficult areas to be smoother and less problematic. Second, TeliaSonera faced certain challenges due to weak institutional settings, especially in former Soviet Union countries in Eurasia. TeliaSonera’s success in its Eurasia expansion lay in utilization of strong business and government ties that were developed in decades throughout the company’s history in the region. Third, the market conditions in Eurasia countries present many opportunities for technology companies. Mobile network penetration is lower in Eurasia than in TeliaSonera’s mature markets, offering a great deal of potential for TeliaSonera’s mobile operations. Fourth, aspect of market conditions is that there is a larger and younger population that is the number one customer group of new technologies and telecom services in Eurasia countries. This provided a huge sales opportunity for TeliaSonera’s telecom services in the region.
3- TeliaSonera faced certain challenges due to weak...
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