Orascom Telecom: Risks of Internationalization Harvard Case Solution & Analysis

Orascom Telecom Holding S.A.E. (OTH) was established in 1998 in Egypt and has grown exponentially to become one of the largest players in the global telecommunications market. OTH is considered one of the largest and most diversified network operators in the Middle East, Africa and South Asia. Orascom Telecom Algeria (Djezzy) was launched in February 2002 and grew to become the market leader in terms of subscriber numbers, and the quality of telecommunication services. Djezzy serves more than 14.7 million subscribers on its network and had a 62.9 percent market share. After the great success realized in Algeria Orascom, Orascom would further expansion. The manager thought that India could also be a great opportunity, in which Orascom can expand your business. In 2006, OTH agreed to acquire 19.3 per cent stake Hutchison (HTIL) to penetrate the Indian market. India had a great opportunity, as there were strong similarities between the additional Orascom Telecom and Hutchison: both were successful operators offering mobile services in countries with large populations and low penetration of telecommunications services. However, despite it appearing to be a great opportunity, Orascom could not complete this operation because it does not consider the costs in a precise way, and many factors have been ignored, concentrating on the positive aspects. "Hide
by Marina Apaydin, Din Zaki, Farah Zahran Source: Richard Ivey School of Business Foundation 9 pages. Publication date: April 18, 2011. Prod. #: W11096-PDF-ENG

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