PAKISTAN TELECOMMUNICATION INDUSTRY

Pakistan Telecommunication Industry

TABLE OF CONTENTS

Introduction4

Literature review4

Firm-specific variables6

The firm's objectives6

Control6

Risk6

Policy risks7

Operational risks7

Competitive risks8

Flexibility8

Familiarity with international markets8

Organizational size8

Environmental variables9

Economic environment9

Market growth9

Intensity of competition9

Market infrastructure9

Production location10

Production and homeland risk10

Government policies and regulations10

METHODOLOGY12

RESEARCH APROACH13

RESEARCH STRATEGY14

LITERATURE SEARCH16

DATA COLLECTION METHODS17

Data assemblage techniques20

DATA ANALYSIS21

QUALITY OF RESEARCH23

SUMMARY OF METHODOLOGY24

RESEARCH MODEL26

References27

Appendix30

Pakistan Telecommunication Industry

Introduction

Pakistan Telecommunication business restricted (PTCL) is the largest telecommunication company in Pakistan. The Government of Pakistan traded 26% shares and control of the business to Etisalat in 2006. From the modest beginnings of mails & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a foremost player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan (www.pta.gov.pk).

Literature review

This section explores the options that a MNC has when concluding to go in a foreign market. The flow of this theoretical part starts by elaborating the foremost application modes with their subdivisions, continues with a structure that comprises the major factors influencing the application mode and how they leverage the decision. The application modes have to be analyzed from various dimensions like interior and external factors, desired mode characteristics, transaction specific factors. Host country`s institutions have a foremost result on application mode of MNCs. Cultural differences between host homeland and MNC´s dwelling homeland have also a significant result on performance. The distinct market application modes could be summarized in the next foremost groups:

Indirect Exporting - piggybacking, dealing companies, trade items administration companies, domestic purchasing. _ Direct Exporting - distributors, agents, direct trading, franchising, and administration contracts. _ Cooperation strategies - junction ventures, strategic alliances. _ Direct Investment - own subsidiary, acquisition, assembly

Based on this premise, we require to comprehend what are the variables that leverage the entrymode choice: and what are the specific factors engaged in the variables that can influence on the MNC´s mode of application choice. Though there are numerous variables that can influence the MNC´s mode of application alternative, but I will only focus on the foremost ones, namely, “environmental variables” and “firm specific variables”. Moreover, though several factors in these variables can be directed to leverage variables and consequently application mode alternative, I will discuss the most apparent and applicable ones to work out my research problem.

 

Firm-specific variables

The firm's objectives

The target can be looked as strategic motivation and goals. If a firm has established clear objectives before any oversea project, it will supply main heading for the MNC´s effort in terms of assessing international opportunities and resource share obligation (own sales subsidiary, the alternative of market entry-mode).   

 

Control

Control in this context means the MNC´s administration over operational and strategic decisionmaking. For instance, it enables the MNC to command the merchandise value and to acclimatize its products to rendezvous localized needs, etc. The higher the command a firm pursers, the more resources it should contribute.  The MNC´s resource refers to the economic, physical and human resources that it commits to its overseas ...