Orascom Telecom Case

Course: MKTG36048
Date: January 24th, 2012
Sheridan College
Executive Summary

With Orascom’s Algerian office being attacked and its failure to enter the Indian market, they have a real problem assessing risks in internationalization. The company has done really well locally becoming the market leader within Egypt by owning 43.6% of market share within the telecom industry. Algeria showed the right signs for entry as its GDP increased at a rate of 3.8% per year. There was also very little competition in Algeria since there was only one telecom company available. However there were country risks that were not assessed. This resulted in Orascoms office in Algeria to be attacked by angry soccer fans.
India took on new liberalized laws that would open the telecom industry to the private sector and reduce tariffs. The telecom sector was projected to make $43 billion in revenues. This shows that there were investments to be made in the industry as there were millions of new subscribers every year. However, Orascom failed to capitalize on the huge Indian market as it failed in the Indian market within in a short amount of time of entering.
If Orascom follows the recommendation of improving its strategic planning, then the risks of internationalization will be minimized and this will result in the company being very successful entering foreign markets.

Table of Contents

Introduction 4 Environmental Analysis 5 SWOT Analysis 10 Problem Statement 13 Alternatives 14 Recommendation 16 Action Plan 17 Conclusion 18 References 19 Appendix 20

Introduction

Orascome Telecom is trying to assess how to minimize risks on internationalization. With its Algerian office being raided by soccer fans and the company’s failure to succeed in the Indian market, Orascome has a major problem assessing risks.
This report will have