St Cloud State Univ Teliasoneras Alliances and Acquisitions in Eurasia Case Study Hi, please read it carefully and i will upload the case in attachment. C

St Cloud State Univ Teliasoneras Alliances and Acquisitions in Eurasia Case Study Hi, please read it carefully and i will upload the case in attachment.

CASE WRITE-UPS

The case study is a fundamental learning method as the business discipline is by nature an applied science. First, you skim a case for the basic facts: What company? Who are the principal actors? What are the key events? Then, go back and reread the case carefully with a focus on defining the challenge(s)/problem(s) to be addressed.

In general, there are no “right” or “wrong” answers for a specific case – different approaches and insights are possible, depending on your perspective and approach. However, application of knowledge and analytical models we cover in this course is an essential part of the case analysis. Regardless of your approach, I will expect you to draw logical conclusions and (if appropriate) make recommendations that: (a) address the identified issues; (b) follow logically from your analysis and conclusions; and (c) make sense (are feasible) in the context of the case situation.

In short, case analysis assignments are designed to evaluate and develop your skills in:

Identifying key issues (decisions or actions required in a given situation; description of the challenge(s) to be addressed)

Analyzing business situations (choosing appropriate analytical tools/frameworks from those introduced in the course; understanding the organizational and environmental contexts, identifying and analyzing opportunities and threats, and competitive advantages and disadvantages; and evaluating options)

Recommending specific strategies and actions (to address the identified strategic issues).

The length of each case analysis report should be approximately 3 to 4 pages, double spaced, including figures, tables, and references. In your case write-up, choose and answer at least 2 Case Discussion Questions provided with the case in the textbook. Make sure that the report is divided into sections in a logical manner.

*Note* please do not copy from any website and make it in your words Part Three Integrative Cases
449
Integrative Case 3.5
Teliasonera’s Alliances and Acquisitions in Eurasia!
Canan Mutlu (University of Texas at Dallas)
How did TeliaSonera leverage alliances and acquisitions to acquisitions. Its alliances and acquisitions throughout
grow in Eurasia markets, which are not known to be “easy” Eurasia resulted in enviable performance in many host
markets?
countries, often commanding either the number one or
number-two position shown in Exhibit 1.
Today, climbers can have 3G access on Mount Everest to To overcome its liability of foreignness, Telia-
brag about their experience on top of the world. How- Sonera leveraged its decades of telecom expertise
ever, not many people know that it is a Nordic company developed in Nordic countries in Eurasia. It was the
providing this service in such an alien environment. world’s first operator of 4G networks first deployed
The company is TeliaSonera, which provides telecom- in Europe. Although it did not offer 4G in Eurasia,
munications services in a wide geographic area, from the generally better-quality network investments pro-
Nordic countries to Nepal, which includes the emerg vided TeliaSonera a leading edge in Eurasia, com
ing and highly valued Eurasian markets. TeliaSonera pared to local competitors. This high investment
is the fifth-largest telecom operator in Europe. It has cost turned into a larger and more satisfied customer
operations in Azerbaijan, Belarus, Denmark, Estonia, base, upgrading TeliaSonera into leading positions
Finland, Georgia, Kazakhstan, Latvia, Lithuania, in most countries.
Moldova, Nepal, Norway, Russia, Spain, Sweden, Tajiki- TeliaSonera faced certain challenges due to weak
stan, Turkey Ukraine, and Uzbekistan
institutional settings, especially in former Soviet Union
How could a Nordic company with roots in highly countries in Eurasia. Although each country was in a
developed markets in Europe expand in such politically different phase of transition to become a market econ-
risky and institutionally ambiguous settings Savvy use of omy, the economic, legal, and regulatory systems were
alliances and acquisitions throughout Eurasia appeared still highly bureaucratic and risky. The ambiguity in
to be a key. Itself the result of the merger between Telia the institutional frameworks brings additional risks for
of Sweden and Sonera of Finland in 2002, TeliaSonera businesses, significantly increasing the costs of invest-
certainly understood the importance of alliances and ments. The telecom industry has further liabilities in
Exhibit 1 TeliaSonera’s Operations in Eurasia
POPULATION
BRAND
NAME
Azercell
Geocell
TELIASONERA
OWNERSHIP
51%
100%
51%
COUNTRY
Azerbaijan
Georgia
Kazakhstan
Moldova
Nepal
Russia
Tajikistan
Turkey
Uzbekistan
9 million
4.4 million
16.5 million
3.6 million
28.5 million
141.9 million
7.1 million
73.7 million
27.8 million
GDP
GROWTH
2.8%
5.5%
5.9%
4.5%
4.5%
4.8%
5.8%
4.6%
7%
Kcell
Moldcell
Ncell
MegaFon
Tcell
Turkcell
Ucell
100%
80%
44%
60%
38%
94%
MARKET SUBSCRIPTION MARKET
POSITION RATE SHARE
1
4 million 55%
1 2 million 44%
1
9 million 50%
2
907,000 32%
2 4.1 million 42%
2 57 million 26%
1 1.7 million 36%
1 34 million 55%
2 7 million 32%
Source: www.tlasonara.com
450
Part Three Strategizing Around the Globe
terms of heavy infrastructure spending and related fix opportunities. The base stations (cell transmission
costs. TeliaSonera’s success in its Eurasia expansion towers) increased from 300 to 1,500 in three years. As
was largely due to its utilization of strong business and a result, the percentage of the population covered by
government ties that had been developed in decades mobile TeliaSonera networks increased from 44% to
throughout the company’s (and its predecessors”) his- 80%. Another significant contributor was the hiring
tory in the region.
of local employees. Other than employing 25 expatri-
In addition to the challenges, the markets in emerg- ates, Ncell created 500 solid jobs for locals in a variety
ing economies in Eurasia presented many opportuni- of positions.
ties. In contrast to Europe, fixed landlines were not TeliaSonera’s operations in Eurasia aimed to be
as developed in Eurasia. This, in turn, made these the trendsetter in these highly dynamic and low-pene-
countries rely more on mobile networks. This, in fact, tration markets. For example, its alliance with a local
meant a jump into a higher technology for consumers player, Koell (in which TeliaSonera held a 51% share),
in Eurasia. Moreover, mobile network penetration was was the first company to launch GPRS technologies that
lower in Eurasia than in TeliaSonera’s mature mar- provided the people of Kazakhstan the opportunity to
kets, thus offering a great deal of potential for Telia- access mobile Internet, WAP, and MMS services. Kcell
Sonera. There were fewer competitors, which enabled owed its reputation to providing the best network cove-
TeliaSonera to attain higher margins.
rage and also distribution systems in the whole country.
Another significant aspect of market conditions There was also a great potential for mobile data in
is the expanding and younger population in Eura- Kazakhstan, due to the young and dynamic popula-
sia, in contrast to the stagnant and older population tion. Already 8% of total Kcell revenues in Kazakhstan
in Europe. Eurasia thus provides enormous growth came from mobile data in kcell.
opportunities for TeliaSonera. Moreover, improved
macroeconomic situations and economic growth led to Case Discussion Questions
strong subscription intake, which increased revenues
1. Many multinational companies fail in their expan-
by 16% in 2010.
sion in emerging economies. What are the main
Nepal is an interesting case study for TeliaSonera’s
capabilities and resources that drive TeliaSonera’s
challenges in Eurasia. After TeliaSonera’s 2008 acqui-
successful growth in Eurasia markets?
sition of 80% equity of Nepalese youth brand MeroMo-
2. Given the institutional differences between Euro-
bile, the start-up company, which was now called Ncell,
pean and Eurasia markets, what are the main
grew into a GSM leader in the whole country. How-
ever, the road to success had serious difficulties. There
challenges faced by TeliaSonera in Eurasia?
was an ongoing political and security crisis involving
Which strategies enable TeliaSonera to minimize
the risks of these challenges?
terrorist attacks and union strikes, which negatively
affected multinationals. TeliaSonera contributed to
3. How does TeliaSonera differentiate itself from
the cfforts to overcome such host-country difficulties
its competitors in Eurasia?
by offering world-class technologies to this country Sources: Based on publicly available information and press releases of Telia
traditionally suffering from poor telecommunica-
Sonera. The following sources were especially helpful (1) TeliaSonera CEO’s
speech, Annual General Shareholders Meeting, April 6, 2011:12TeliaSonera
tions, and by generating local jobs and employment Annual Report 2010

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