Bharti Airtel's Approach To Internationalization

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Case Study: Bharti Airtel acquires resources and companies 1. Compare Bharti Airtel’s Approach to Internationalization with that of European MNEs. [1]. Bharti Airtel’s approach to internationalization: As the biggest mobile network operator in India, Bharti Airtel has their special approach to internationalization. Acquisition is the most popular way to approach to internationalization, it’s also a great way when Bharti Airtel wants to expand their business to other countries. Zain, one of Africa's biggest telecom company has already been acquired by Bharti Airtel which worth 10.7 billion. This acquisition helps Bharti Airtel expand business in 15 African countries including Nigeria, Kenya and Tanzania. As an Indian company, Bharti Airtel…show more content…
They applied FDI (foreign direct investment) strategies to overcome the difficulties in exports resulted from tariffs. Due to European have EU (European Union). In some part of internalization such as market and policies have more opportunities than other MNEs. They also have good chance to use technology to break the barriers of time and distance making it simple and possible for multinationals to deal with emerging economies. Expand their businesses and become globally competitive players, European multinational enterprises have expanded their business to the emerging economies because this market having plenty of lower labor costs and capital. Joint ventures, mergers and acquisitions in European multinational enterprises also popular as this strategy in Bharti…show more content…
As emerging market multinationals, they have great positioned for global expansion and have favorable figures behind them. MNEs now account for about 25% of foreign investment in the world, are a prolific source of innovation and make almost 1-in-3 cross border acquisitions globally (Williamson, 2013). Innovation capabilities of MNEs also a part when we look at the implications of globalization. Bharti Airtel has created a new business model which is at low-cost to access high growth. They know the way of consolidating competitive advantages is continuing higher value chain of their companies. They are good at accessing different resources and strengths by locating different activities in different area. For example, cross-border M&A is a way to help MNEs to access more benefit. They can be complementary resources by M&A with other companies and can be integrated with their existing build competitive advantage. Due to transportation become easier in globalization, outsourcing in MNEs are more frequent in recent years. They are headquartered in one country, move some process of their jobs or production to lower-wage countries, this usually could help companies reduce costs. Bharti are outsourcing their IT system to western multinationals. It is one of the reason that Bharti Airtel is growing
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