In the 1990s, two entrepreneurs made audacious, early entries into cellular telecommunications in Sub-Saharan Africa, both forecasting excellent market opportunities there. Adesemi, one firm, would finally go bankrupt. The other company, Celtel, would ultimately succeed and make a star of the international business community, its founder, Mo Ibrahim. Why the difference in result? Emerging markets often present poor rule of law, bringing several challenges to company success-from the demand for bribes to regulatory obstacles, hold-up problems, and even civil war.
Mobile Telecommunications Two Entrepreneurs Enter Africa Case Study Solution
This case explores strategies that can limit these crucial non-market risks in entrepreneurship and foreign direct investment. Students will step into the shoes of both businesses by investigating their entry strategies, wrestling with the challenges they confronted, and diagnosing the reasons why a common insight about a new business opportunity turned out to be prescient-and led to extremely different endpoints.
PUBLICATION DATE: February 25, 2014 PRODUCT #: KEL805-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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