PEST市場分析TelenorDoingBusinessinBrazil

1、For Lecturer Use Only:Score:INTERNATIONAL BUSINESS ENVIRONMENTAUTUMN TERM 2009-2010GROUP COURSEWORK SUBMISSION COVER SHEETInstruction to Students:1. Students should complete a coursework submission form and attach it to the front of any coursework handed in.2. Everything must be securely attached to

2、gether including any loose disks.3. Make sure your coursework is complete and posted as a whole.4. Make sure you post your coursework in the correct ftp address.5. You must keep a copy.Module Details:Module Code: Group 2Module Name: International Business EnvironmentScheduled Coursework due date:Nov

3、. 12th. 2009Submission Date:Nov. 11th. 2009INTERNATIONAL BUSINESS ENVIRONMENTAUTUMN ASSIGNMENTInnovation into the Future Telenor doing business in Brazil Team: Group 2 November 2009CATALOGUEINTRODUCTION -4THE BUSINESS ENVIRONMENT IN BRAZILAND THE ANALYSIS FOR TELENORu Internal environment -5u Extern

4、al environmentq Political environment -6q Economical environment -7q Social environment -9q Technological environment -10u Customer-11u Competitor-11u Marketing-13CONCLUSION-14REFERENCE-16INTRODUCTIONA Brief Overview of the ResearchTelenor Group is among the largest mobile operators in the world. Th

5、ey have pioneered the Norwegian telecommunication industry. The core business of Telenor Group is telecommunications.The Telenor Group is dynamic and flexible in its business approach, always exploring new markets and new technologies to make long-term investments. Furthermore, this company is now a

6、 driving force in the industry, engaging in pioneering research and technology development and other areas that are important to develop the core business of Telenor further. This is part of the reason why we chose Telenor to extend a new market in Brazil.Brazil has been named the winner to host the

7、 2016 Olympics, which provides a large opportunity for foreign investment. In Brazil, if you want to make a phone call you must dial the phone stations number first, then you can enter the number you want to, its very hard for a foreigner to make a phone call. So that it is the time to have a change

8、.Ø Telenor provides voice, data, content and other communication services in 13 countries across Europe and Asia. Not including the South America, especially the Brazil.Ø Telenor Group's ambition is to be a leading global mobile operator, while delivering attractive returns to our shar

9、eholders.Ø There is a very complicated way to have a phone call in Brazil.Ø The population of Brazil is the fifth of the world. It was 186,957,906（June 2nd, 2008）. It has a large consumed market.THE BUSINESS ENVIRONMENT IN BRAZILAND THE ANALYSIS FOR TELENORu Internal environmentTelenor Gro

10、up is a Norwegian leading provider of telecommunications services worldwide. The company has a strong footprint in Central Eastern Europe and Asia and a leading Nordic position in mobile, broadband and TV services.Brief introduction· 172 million mobile subscriptions worldwide (Q3-2009)

11、83; Strong subscription growth, particularly in our Asian operations · Listed as No.1 on Dow Jones Sustainability Indexes 2008 · Revenues 2008: NOK 110 billion · Workforce: more than 40.000 employees (Q2-2009) · Listed on the Oslo Stock Exchange · Headquarters in Norway

12、· Main Stockholder：1THE GOVERNMENT, BY THE MINISTRY OF TRADE AND INDUSTRY 894 683 140NOR53,97 %2FOLKETRYGDFONDET78 518 861NOR4,74 %3JPMORGAN CHASE BANK NORDEA TREATY ACCOUNT*53 398 241GBR3,22 %4STATE STREET BANK AN A/C CLIENT OMNIBUS*29 887 056USA1,80 %5BANK OF NEW YORK MEL S/A MELLON NOMI

13、NEE*26 659 144USA1,28 %There are up to 40,000 telenor employees around the world .In addition to having professional skills, these employees are also encouraged to make climate friendly choices in their work and daily lives. From this information, we can see Telenor is a competitive and creative com

14、pany .It is also a potential company overseas. The unique enterprise culture and governance principles make it an excellent company with abundant strength.From this we can find that Telenor has a lot of experiences in entering a new country. So that it is a good opportunity for Telenor to entering t

15、he Brazil market.u External environmentn Political environmentCOMPETITION LAW AND POLICY IN BRAZIL A political factor is an important part of the external environment that influences managerial decisions. Here is the analysis of the political environment in Brazil.The specified effects are:Ø To

16、 limit, restrain or in any way injure open competition or free enterprise;Ø To control a relevant market of a certain product or service;Ø To increase profits on a discretionary basis; Ø To abuse ones market control.Telecom Industry Structure:Ø Ministry of Communication (MOC): Re

17、sponsible for macro telecom policy such as telecom law, the new licenseØ Anatel: The independent organization established in 1997 to support privatization and implement the specific policy,Ø CPQD: Provide the consultant service for Ministry of Communication and Anatel.Brazil is a Federativ

18、e Republic country and is one of the largest Democracies in the world. The Federation is set on six fundamental principles: sovereignty, citizenship, dignity of the people, social value of labor, freedom of enterprise, and political pluralism.Ø Brazil government wants more overseas investment t

19、o join in the Brazil telecommunication.Ø Lowering tariffs would facilitate the access of domestic consumers and producers to the worlds most competitive products and reduce the need for tariff concession schemes.Ø Political stability：Brazil is considered a low risk in respect of War, Terro

20、rism and natural disasters.There are 48.7% men and 51.3% of women in Brazil. 67.9% of men have their jobs and 45.5% of women have their jobs. Brazilian people are always friendly and cheerful. Smiles go a long way. Brazilians are collectivist, they consider work as the expansion of family, so they c

21、oncentrate on work .They also put corporate interest in the first place. Cities in Brazil are vibrant and exciting with carnivals and music. Therefore, we can employ local stuffs, and provide Telemar as a technical competitive product.As an abundant country, Brazil has continued to liberalize and en

22、hance the transparency of its trade regime. From these political factors, we can conclude Brazil is a potential investment target.n Economical environmentl GDPSince 2002, Brazil has a growth of its GDP. At the year of 2008, its GDP was 1.13 trillion. In the near future, Brazil needs more investment

23、so that its economy could grow fast. Brazil's GDP is the highest of Latin America, boosted by large and developed agricultural, mining, manufacturing, and service sectors, as well as a large labor pool.The GDP diagram from 1995 to 2007 of Brazill Inflation RateThe inflation rate of Brazil used t

24、o be high. Since 2005, the government has adjusted the brackets yearly, to take inflation in account. So it becomes lower and economy became better. Index of inflation rate: 5.7 % (2007) 3.6 % (2008)l TradeThese years, the export and import of Brazil is so close. Agriculture, resource are the advant

25、ages of the country. Exports: $55.1 billion; Imports: $55.8 billionBesides, according to the International Monetary Fund and the World Bank, Brazil has the ninth largest economy in the world by purchasing power parity (PPP) and tenth largest at market exchange rates. The investment in Brazil from fo

26、reign countriesBrazil has a big market. There are so many labor resources. And Brazil has a population of 181.6 million people. We can have local staffs, local partners and cross-cultural communication.Ø More and more investment came in Brazil since 1990s. Brazil is a member of WTO.Ø Curre

27、ncy exchange is exceptionally favorable at the moment, making it cheap for foreigners to invest or buy a property,Ø Brazil is becoming one of the greatest opportunities for property investors. n Social environment The first language in Brazil is Portuguese. Most people in Brazil speak Portugues

28、e. Small amount of people speak Japanese, Germen, Spanish, Italian, English and so on. Thus, Telenor can use Portuguese to provide their serves.Rio de Janeiro is the host of 2016 Olympic Games, which provides a large opportunity for foreign investment. Leaders of Brazil here say winning the Olympics

29、 would be a transformational moment for Brazil, an affirmation of its rising global importance and a shot in the arm to the self-esteem of Cariocas, Rios residents, 85 percent of who supported the Olympic bid in a recent poll by the International Olympic Committee. “It would be overwhelming for our

30、city, for our citizens and for Brazil as a whole,” said Carlos Osorio, the secretary general of Rios Olympic bid committee. As for Telenor, we could use the great Olympic opportunity to not only advertise the company, but also make strategic alliances with industry leaders.n Technological environmen

31、t New Technology Introduction to Brazill Broadband developmentØ ADSL2+ has been widely applied in Brazil, the bandwidth of which can reach 12M, and it is the base of deploying IPTV service.Ø 3G Pilot and Mobile IP Core Networkl InnovationØ Next-Generation technology: UMTS/GSM, CDMA, N

32、GN, IP DSLAM, NG-SDHØ More creative services: Voice, Data, MultimediaØ Customized solution: Full understanding of requirements from developing countriesl High Performance DeliveredBy teaming with Accenture, Telenor Networks has vastly improved the cost-effectiveness of its workforce, and r

33、educed operating costs by as much as 25 percent. The innovative, wide-scale initiative to transform Telenor Networks was delivered on-time and under budget.The government of Brazil provides finance support for technology researching .Technology keeps rapidly developing in this country.Take 3G (3rd-g

34、enenration) for example.Brazil is the fifth largest telecom market at the year of 2007, Brazil raised 2.94 trillion dollars in the first day of its auction of 3G spectrum. It shows that Brazil starts to build 3G. Ahead of other countries, there are signs that 3G is the most popular net and more and

35、more countries will use 3G in the near future.In general, the development of technology in Brazil provides a good platform for foreign enterprise.u CustomerAs for Telenor, we can build a long-term partnership with customers; make partner programs in logistics, engineering and support.An officer from

36、 Brazil telecommunication office said that Brazil would be invested from $10,560,000,000 to $15,528,000,000 each year until the year of 2018. The important areas are the broad networks and mobile phones. Now the number of people who has a mobile phone is 130,000,000 and it will increase to 275,000,0

37、00 at the year of 2018. Brazil has a great potential telecom market. The telecom management and operation is at a relative high level in Brazil, and its telecom supervisory also sets an example for the developing countries. In the year of 2008, the subscriber quantity of fixed phone, mobile phone an

38、d internet was 53 million, 150 million and 53.9 million, and the telecom operating revenue was totaled at US $55.8 billion, up US$7.4 billion than 2007. Therefore, more and more people in Brazil will use mobile phones. Brazil has a great potential telecom market, and it is a great chance to get into

39、 the mobile phone market. u CompetitorsPanorama of the competition (2005):Ø Cellular: High (highest share 40%)Ø Long distance: High (highest share 25%)Ø Local fixed line: Low (highest share 97%)At the year of 1970s, Brazil government reforms the telecommunication. The government combi

40、ned thousands of little telecommunication companies into one big company-Telebras. Everything went well at first. But later, some shortage appeared. Monopoly can not make any progress to Brazil telecommunication. At the year of 1998, the government broke up Telebras then recombined it into 12 compan

41、ies, especially in the mobile phones.Brazil is now growing socially and economically, being the new target of professional investors. Foreign investment is largely encouraged by the Brazil government and you own 100% of land and property. The History of Brazil Telecom Market:From the picture bellow,

42、 we can see the competitive economy of Brazilian telecom industry.Four companies dominate the Brazilian mobile phone market: Vivo, Claro, TIM Brazil, and the Oi/Brazil Telecom merger. In 2008, regional incumbents Oi and BrT began the process of merging. This reduced the number of operators from nine

43、 to six, of which two only have a 0.3% market share between them.u MarketingMarket EnvironmentBrazil telecom market competition is much higher than Norway, and it will help Norwegians operators to learn from it:Ø Norwegians telecom market is expanding rapidly and can be beneficial for Brazil as

44、 well;Ø Since it is a very complicated way to have a phone call in Brazil，Telenor can develop a new technique in Brazil, where its science and technology have achieved a significant position in the international arena in the last decades, to omit the signal exchange stage.Strategy in Brazil Mar

45、ket:As Brazil has made a lot of progress from Telemar/Oi, now we can use this technical for Telenor to extend the Brazil market. And we can use the Olympics special opportunity to develop the products which contain Olympias theme. Telemar/Oi CRBT User Development CrazilyTelenor can provide diversifi

46、ed services to local as marketing strategies:Ø Consumers, which can be shared with Brazilian operators; 3G Pilot and Mobile IP Core NetworkØ Cooperate with CTBC in Brazil to establish a 3G trial office;Ø Provide the total solution for CTBC, Telemig and Telemar/OI, including IP core ne

47、twork, which can evolve to 3G smoothly.Ø Make partner programs in logistics, engineering and support and make strategic alliances with industry leaders. Ø Provide VoIP (Voice over Internet Protocol) services.CONCLUSIONIn conclusion, we want to indicate that we strongly recommend that Telen

48、or get into and extend their business in Brazil. The reason in fact has been given in the business environment analysis report; here following is an analysis and stress.l Brazil has continued to liberalize and enhance the transparency of its trade regime. Brazil government wants more overseas invest

49、ment to join in the Brazil telecommunication. Lowering tariffs would facilitate the access of domestic consumers. For political stability, Brazil is considered a low risk in respect of War, Terrorism and natural disasters. Therefore, it is a potential investment target.l Since it is a very complicat

50、ed way to have a phone call in Brazil，Telenor can develop a new technique to omit the signal exchange stage.l Brazilians are collectivist, and they put corporate interest in the first place. Therefore, we can not only employ local stuffs, who have professional skills, but also cooperate with local partners and make cross-cultural communication.l