Matav Case Study
Autor: Mikki • March 5, 2018 • 1,146 Words (5 Pages) • 477 Views
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POTENTIAL TARGET COMPANIES IN BALKANS
Name of Company
Country
Mobitel
Bulgaria
Mobtel
Serbia
Orange
Romania
BTC
Bulgaria
Tel Srbja
Serbia
EBITDA % of Potential Targets
[pic 1][pic 2][pic 3][pic 4]
70.0%
60.0%
58.0%
54.0%
50.0%
47.0%
47.0%
46.0%
44.0%
41.0%
40.0%
38.0%
30.0%
30.0%
20.0%
10.0%
0.0%
[pic 5][pic 6]
Mobitel
Mobtel
Orange
BTC
Tel Srbja
Maktel
Matav
Matav
DT
(BG)
(SER)
(RO)
(BG)
(SER)
(MAC)
Mobile
Overall
(GER)
(HU)
(HU)
From which we can know that Bulgaria and Serbia markets are also really attractive apart from Macedonia. This provide theoretical basis of international expansion. However, international expansion is also a little bit risky for two reasons. First of all, matav will be burdened with high expenditure because it has to spend a large sum of money to develop infrastructure and train personnel. Moreover, it my face the trouble with government run enterprises.
On the other hand, what’s the advantages and disadvantages of product development. Most importantly, Hungary’s current broadband penetration is extremely low-----only 2% of the population. That means Matav should be able to attract new customers if it develop Broadband and ADSL. But it was a double-edged sword as well. A rise in product prices could be forecast due to improvements. What’s more? Matav will face strong competition once it rely on organic growth continuously because Hungary is a highly saturated market. Last but not least, not many Hungarians can afford a personal computer even if Matav can widely provide broadband. This is a fatal disadvantage for profits can hardly be seen in a short time if Matav choose to promote Internet because of unaffordable computers.
To sum up. International expansion is a comparatively beneficial option. In short term, Matav can acquire Montenegro Telecom and rebalance prices to make affordable and competitive plans with the experience of the penetration of Macedonia market. In the long term, Matav can look to expand in Bulgaria and Serbia.
(Question1:paragraph 1-2
Question2:paragraph 3-5
Question3:paragraph 6-7
Question4:paragraph 8-11)
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