Bharti Airtel Limited Foreign Operations

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Introduction

Expansion into the foreign markets is one of the most significant features of every multinational organization. Expansion into foreign markets can be viewed as one of the most aggressive means of widening target markets of a given multinational organization. This paper will examine the foreign operations of Bharti Airtel Limited and how it can expand to another foreign country.

Bharti Airtel Limited

The choice for this company is informed by its aggressiveness as it enters new international markets. It also has several opportunities to expand into the foreign market as well as challenges. The company is headquartered in India and is considered for expansion to the Kenyan market.

The choice for Kenya as Bharti’s next foreign market is due to the reason that it is the country in which the company is just about to enter. The company is known to be amongst the world’s top telephony that utilizes the most current technological development in providing telecom services to various customers.

Possible Opportunities and Challenges

Bharti Airtel has several opportunities as it undertakes to enter the new foreign market. First, it is important to note that the company can enter the new market by acquiring the weak telephony companies within the Kenyan market segment. The company has a competitive advantage over the potential competitors in the Kenyan market segment.

The opportunity it has with this respect is that it is able to either acquire or merge with other companies. In this case, it will also be able to work with employees and product distributors who are already conversant with the market and hence be able to penetrate the market within a short time following initial entrance (Jain, 2003).

Second, the company already has a large capital base and also enjoys a huge number of customers both within the domestic and foreign market. With this, the company will be able to attract more revenues due to economies of scale. Besides, the cost of telephone communication in the Kenyan market is relatively higher than the rates in other parts of the world.

Therefore, due to its economies of scale, the company will be able to capture the market from its stiff competitors by offering low prices of its communication products. Lastly, it is important to note that the government in Kenya is offering a significant number of incentives meant to attract foreign direct investments. Due to this, Bharti Airtel Limited can take advantage of these incentives and establish itself within the new market (Sinkovics, 2009).

As much as the company has a good number of opportunities in the new market, there are a number of challenges that it is bound to face. One of the challenges is that of multicultural employees; by entering the new Kenyan market, Bharti Airtel will have to deal with people whose cultural practices are completely different from those of India. It therefore means that the company has to be conversant with the culture of the people of Kenya.

Again, the company is likely to face some legal issues with regards to business operations. There may be some legal differences between India and Kenya and this may pose business challenges to the company (Sinkovics, 2009).

Aspects to Consider Before Making Decision

The first aspect to consider is culture; as the company prepares to get into the new market, it is important for the company to ensure that it is well knowledgeable on the diversities of different cultures operating in various market segments. Second, it is crucial that the employees and all the company stakeholders cultivate a global mindset.

Having a global mindset is very significant for every organization that targets foreign markets. In this case, by having a global mindset, Bharti Airtel Limited will be able to focus on the global dimensions of international market. It is also important for the company to evaluate both of its financial and human resources; the company needs to have sufficient resources to enable it deeply penetrate the international market (eBook Collections, 2010).

Capabilities Transnational Organizations Need In Order Function Effectively In Multiple Environments

In order to operate in multicultural environments, it is important that a transnational organization is able to manage cultural diversity of its employees. Being able to handle cultural diversity of the employees will assist in the coordination of the company’s global business operations.

Further, it is crucial that a transnational organization should be able to create connections with international clients and business partners; international business connections are very beneficial to transnational organizations and being able to create such connections is productive (eBook Collections, 2010).

It will also be of great importance that a transnational organization should be able to conduct market research in order to determine or find out much about the international market; with respect to this, the organization should be able to gather information concerning all types of business environments and consequently take advantage of the opportunities arising from the research findings.

Conclusion

Global market is very important for every transnational organization. Bharti Airtel is an Indian based company that operates in a range of international market segments. The company is presented with opportunities such as government incentives and the ability to acquire and merger with other companies that already exist in the new market. Besides, it is important that the company should have global business mindset that will enable it to strategize its global business operations.

Reference List

eBook Collections. (2010). The Quest for Global Dominance. Cultivating a Global Mindset. eBook Collections

Jain, S. (2003). Handbook of research in international marketing, Volume 2001. New York: Edward Elgar Publishing.

Sinkovics, R. (2009). New Challenges to International Marketing. New York: Emerald Group Publishing.

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