Summary of the regional global environment
The majority of African nations comprise rich natural resources such as water, landscapes, geology, habitats, and diversity in soil types. With effective management paradigms, the African continent can lead a better future with better ecosystems and improved human health and well-being. Tanzania observes its economic growth through its management of the available numerous natural resources for future generations. African countries experience challenges of competition of the natural capital among the nations, insufficient resource management measures, climatic changes, and pollutions. Africa experiences challenges in the formulation of reliable and effective policies. The continent has a vast opportunity to expand by using the younger populations, which are more significant than the elderly, to drive the continent towards economic growth. Starting an international business in Africa requires conducting background check of the selected countries to identify a nation that has high demand for streaming services. For example, Tanzania has more opportunity for the streaming services than other developing nations like Nigeria.
Global industry analysis and background
Like the developed nations, Tanzania will emphasize on the security and privacy of the content provided by the potential subscribers for the global industry. To successfully penetrate in Tanzania, an international business must protect the customers' privacy from public viewing. Any other global company in Tanzania must protect every citizen's rights to prevent violating Tanzanian citizens’ credentials globally. More so, a global industry must conform to the payment of taxes in the respective countries. Both national and international laws on tax payment need to be observed to regulate the kinds of services or products generated to the vast society by multinational firms. Taxes help protect the global industry in a particular country, and the business generates some funds portion to promote the country's revenue. Any online content companies need to observe morals and ethical considerations for every respective nation. Some African nations prohibit films that violate Christian doctrines. An international company that violates such rules experiences rejection.
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Moreover, the online industry requires to prevent erotic movies, which contributes to societal brutality. Moreover, the global industry needs to identify other local businesses or industries that provide similar or almost a similar service to its population. To allow effective management, the global industry needs to partner with local firms, such as news stations, to provide films that benefit both sides. Moreover, an international business requires to boost local businesses by agreeing on time, which allows smooth business running and profits accumulation before accessing the country's markets.
What is the state of the industry (size, growth rate, competition level….)
The global industry of live streaming services has expanded to several regions. By 2020, many African nations such as Kenya, Nigeria, and South Tanzania recorded increased streaming services, especially music streaming 1 . The global industry of streaming services is among the vast recognized industries globally, including several African nations. Currently, many African countries use the global streaming industry to provide content to the worldwide society 2 . The growth rate of the global streaming industry has expanded to over half of the African society. Online streaming services experience competitions with YouTube, Netflix, Tik Tok, Showmax, and Facebook as the leading online streaming service providers.
Analysis of the business model of the MNE (which products/services does it sell.
The global industry of streaming services deals with short and long film clips and music clips. Customers create their profile accounts where they pay or get paid according to their choice of using the streaming services.
How does it organize its international operations?
The industry organizes the online services by securing contents of every region safely for the respective customers. Each region or country comprises of particular unique codes not found in others. Focusing on every region to deliver the desired content deals helps control complaints from its respective customers. Additionally, the industry organizes content according to the highly understood language in particular regions. For instance, not all subscribers understand English, the industry achieves international operations by hiring local employees to translate the content for better understanding by the local subscribers. The global streaming industry focuses on satisfying a particular region's market by offering all services presented by users before proceeding to the other region for effective monitoring and expansions.
Which approach it takes (Ethnocentric…. Geocentric)?
The global industry uses the geocentric approach to run its operations successfully. The geocentric approach involves hiring the most suitable person for a particular job position regardless of the region. For instance, the global industry in streaming employs respective employees from their respective regions to provide quality services in their regions 3 . The geocentric approach controls cultural conflicts, which affect global operations.
Why should it expand globally? (pull and push factors) Is brand image important?
There is a need to expand business operations from a local to a global level. The expansion of business to international markets results in increasing the consumers’ population. Many local functions experience challenges, especially competitions, which results in making losses. Several regions usually trust particular industries such as local news and entertainment channels to access online streaming services. Focusing on such single market results in the business making losses. America comprises many online streaming service industries that result in competition among companies. Expanding to global markets results in stabilizing profits due to many customers preventing making losses experienced by local industries.
What is the source of its competitive advantage? Etc.). (Use various tools here 5 forces, VRIO….)
High competition among companies results in a potential threat towards companies’ profits and product prices. Higher competition results from the availability of several companies or businesses in the same region. High competition pressure leads to effects on a company’s operations margin to customers. High competition pressure results from other players of almost the same size and with nearly similar strategies. Besides, competitions are highly experienced in markets that have low market growth rates. Customers’ increased sensitivity to products’ prices that shift towards cheaper products affects the competition margin.
The primary source of competitive advantage involves partnering with suppliers to have reliable supplies. The global business can take advantage of the competition by improving its relationship and dependency for the targeted region. For example, a global streaming service firm can support locals in preparing video content to sell more to the locals. For customers, the competitive advantage occurs by increasing customer loyalty by offering promotions and good services. Customers can increase by increasing the value of the products and reduced the use of many intermediaries that results in higher prices. A competitive advantage occurs by reducing the threat of substitutes by taking legal actions against substitute products. Also, conduct a detailed survey of customer’s consumption preferences to generate a highly likable product than the intermediaries. The business can reduce new entrants by engaging in retaliation tactics against the new entrants. Also, tying up with many suppliers and distributors to prevent the new entrants from competitive advantage. The business can become competitively successful through engaging in rivalry approaches to prevent other firms from dominating the existing markets.
The first step of countries filtering of macro factors
The first step includes eliminating any African country which comprises high inflation. The chosen country is Tanzania, which consists of a 3.49% inflation rate by 2019, lower than other African countries. Moreover, eliminating a country that has higher levels of unemployment. The unemployment rate favored Tanzania, which has 1.98% that is lower than other countries such as Ethiopia with 2.08%, Followed by Kenya at 2.65%, Ghana at 4.51%, Angola at 6.77% and Nigeria at 27% 4 . Additionally, remove any country that does not fall under the top 20 performing African nations' rank. For example, Nigeria is the current leading country in Tanzania by $446,543 billion, making it the best country to conduct business in due to financial security 5 .
Bibliography
Anuforo, Emeka. "African Economic Outlook 2020: Africa’s Economy Forecast to Grow Despite External Shocks." African Development Bank - Building Today, a Better Africa Tomorrow. Last modified February 3, 2020. https://www.afdb.org/en/news-and-events/press-releases/african-economic-outlook-2020-africas-economy-forecast-grow-despite-external-shocks-33839 .
Panfilova, Tatiana. "Corporate Culture as a Means of Achieving Synergy in International Business Development: On the Example of French Companies, Operating in Russia." In GRADUATE STUDENT RESEARCH CONFERENCE IN BUSINESS AND ECONOMICS (GRADCONF) . 2017.
Singh, Rubee, and Sangeeta Rani. International Business Environment . Educreation Publishing, 2019.
Varrella, Simona. "Africa: GDP, by Country 2019." Statista. Last modified May 28, 2020. https://www.statista.com/statistics/1120999/gdp-of-african-countries-by-country/ .
Zimmer, Franziska, and Katrin Scheibe. "What drives streamers? Users’ characteristics and motivations on social live streaming services." In Proceedings of the 52nd Hawaii International Conference on System Sciences . 2019.
1 Zimmer, Franziska, and Katrin Scheibe. "What drives streamers? Users’ characteristics and motivations on social live streaming services." In Proceedings of the 52nd Hawaii International Conference on System Sciences . 2019.
2 Singh, Rubee, and Sangeeta Rani. International Business Environment . Educreation Publishing, 2019.
3 Panfilova, Tatiana. "Corporate Culture as a Means of Achieving Synergy in International Business Development: On the Example of French Companies, Operating in Russia." In GRADUATE STUDENT RESEARCH CONFERENCE IN BUSINESS AND ECONOMICS (GRADCONF) . 2017.
4 Anuforo, Emeka. "African Economic Outlook 2020: Africa’s Economy Forecast to Grow Despite External Shocks." African Development Bank - Building Today, a Better Africa Tomorrow. Last modified February 3, 2020. https://www.afdb.org/en/news-and-events/press-releases/african-economic-outlook-2020-africas-economy-forecast-grow-despite-external-shocks-33839 .
5 Varrella, Simona. "Africa: GDP, by Country 2019." Statista. Last modified May 28, 2020. https://www.statista.com/statistics/1120999/gdp-of-african-countries-by-country/ .
