Mtv Networks: the Arabian Challenge

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ICMR Case Collection

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Icfai Center for Management Research

MTV Networks: The Arabian Challenge

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BSTR294 - Teaching Note

 2009, Icfai Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means- electronic or mechanical, without permission. To order copies, call +91-40-2343-0462/63 or write to Icfai Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email Info@icmrindia.org. Website: www.icmrindia.org

BSTR/294

MTV Networks: The Arabian Challenge
TEACHING NOTE
ABSTRACT

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MTV Networks (MTVN) had over the years developed a reputation for its ability to provide localized content without diluting what MTV stood for. However, the company faced the most challenging test in late 2007 with its launch of MTV Arabia in the Middle East, which some experts considered as the biggest launch in the channel’s history. While the market in the Middle East offered MTVN with huge opportunities due to its huge youth populace, MTV’s controversial content that was known for angering religious, political, and conservative communities could easily backfire in the conservative environment prevalent in the region. On the other hand, too much localization to suit the tastes of the region could dilute MTV’s global brand. The case discusses in detail the strategy adopted by MTVN to enter and expand in the Middle East and also the challenges faced by the channel.

The case will help the students to:

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TEACHING OBJECTIVES & TARGET AUDIENCE

Understand the issues and challenges in entering and expanding operations in new markets which were culturally different from the organizations home/traditional/existing markets.



Understand the pros and cons of entering a new market with a standardized/adapted product to suit local preferences.



Analyze MTVN’s strategy in the Middle East, identify challenges and explore strategies that the channel could adopt in the future

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This case is meant for students of the MBA/MS level programs in the Business Strategy curriculum. The case is also suitable for International Business/International Marketing/Brand Management curriculum.

TEACHING APPROACH AND STRATEGY
This case can be used effectively in classroom discussions as well as in distance learning programs. In the classroom mode, the case moderator can initiate the discussion by giving a brief introduction about the MTV and the channels experience in global markets. This can be followed by a discussion on the localization strategy adopted by MTV in various markets and the challenges it faced while lauching in the Middle East. The students can further analyze the strategy adopted by MTV in the Middle East and the challenges it faced in expanding its operations in the region. The moderator can take the discussion further with the help of the following questions.

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MTV Networks: The Arabian Challenge

1. Experts felt that one of the biggest challenges faced by MTV while launching MTV Arabia was the prevalent culture in the Arab world. Discuss the Arab culture. How is it expected to pose a challenge to MTV?

2. Critically analyze MTV’s strategy in the Middle East. Comment on its entry strategy and also its strategy of providing mixed content to the market. Do you think MTV will be able to succeed in this market?

Suggested Student Assignment:
Do a SWOT analysis of MTV Arabia. What should the company do to mitigate the risks while taking advantage of the opportunities presented by the market?

ANALYSIS
1. Experts felt that one of the biggest challenges faced by MTV while launching MTV Arabia was the prevalent culture in the Arab world. Discuss the Arab culture. How is it expected to pose a challenge to MTV?

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The Arab world contains 22 countries – Algeria,...
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