Emerging Markets
The article under consideration is headlined International Market Entry Strategies of Emerging Market MNEs: A Case Study of Qatar Telecom. It has been written by Al-Kaabi, Demirbag &Tatoglu and published in 2009. It discusses the challenges faced by the company entering the foreign market as well as the stages that it has to go through on this way. Presented paper will discuss them more in details focusing also on the factors that should be considered before entering a foreign market.
Reflecting on the challenges encountered by the foreign companies entering the new country, Al-Kaabi, Demirbag &Tatoglu (2009) stress that they include the cultural differences and the challenges related to the choice of the future location. Additionally, he asserts that the companies should also consider the local economic patterns and political conjecture. He examines the case study of the Qatar Telecom and identifies the five stages of the economic development. The first stage is considered to be the most suitable for the company as mergers and acquisition has greater number of benefits compared with the greenfield investments. Moreover, the latter scheme holds many risks that might endanger the company’s future.
Reflecting on the article, it should be stressed that the authors have omitted some of the factors that should also be weighted by the company in case it decides to go global. In my opinion, the most critical factor is the company’s internal strength and capability to put its operations on the larger scale and capability to transcend them into the totally different cultural, economic and political conditions. In other words, the company’s human resources, management mode and overall strategy should serve as the key cornerstones and factors that should be considered in the process of decision-making in regard to the future strategy and expansion.
References
Al-Kaabi, M. Demirbag, M. &Tatoglu, E. (2009). International Market Entry Strategies of Emerging Market MNEs: A Case Study of Qatar Telecom. Retrieved from …
