Case Essay

Telefonica sobre Espana. Does your analysis cause the same conclusions as Telefonica’s managers?

The textbook points out SWOT while an phrase for “Strengths, Weaknesses, Possibilities, and Threats”. Strengths; Telefonica is a monopoly at this time since it is state owned or operated and this can be described as major power for them. The fact that Spain’s culture and language is comparable to the market in South America is known as a major edge as well.

Weak points; According to the book the prices linked to Telefonica’s service was high. Competitors were looking to exploit this by providing cheaper service with better technology. Firms who can lower their particular profit margin are a key concern to get Telefonica.

Chances; The deregulation of telecoms in South usa (with the cultural commonalities as I described before) looked like there was the perfect opportunity to enter this market and be good. Threats; Due to the many grievances from their buyers Telefonica faces many dangers from competitors in this “new market”. There exists a chance that they may not survive in this marketplace if they do not provide better service and technology. installment payments on your How would you characterize the corporate strategy followed by Telefonica? 3. Minority investors in Telefonica’s To the south American subsidiaries are miserable with the parent or guardian corporation. Suppose you are a senior administrator at the mother or father corporation.

Just how would you manage the problem together with the minority shareholders? What will you recommend for the CEO must be done about the minority traders? 4. The Latin American telecommunications market is growing much faster (12. six percent in 2007) than that of Italy or European countries, both of which in turn grew in a 4. 9 percent rate in 2007. Should certainly Telefonica include continued to focus on the Latin American marketplace, rather than acquire O2 and Cseky?

How about its purchase of a fraction position in China Netcom?