Cellullar Phone Services in India

Paper Summary:

The paper discusses how companies enter the markets in developing countries because of the major growth potentials and these countries' efforts in reducing or eliminating the barriers to entry. The paper focuses on the approach used by Mr Don Price that consists of making his cellphone services cheap enough to be affordable by the rural poor, yet, expensive enough to be profitable for the organization. The paper then looks at the impediments facing new entrepreneurs entering the Indian cellphone market and provides recommendations for a company's entry into developing countries as well as for any other industry or country.

Outline:
Pursuing Developing Countries
Mr. Price's Strategy
Challenges in India
Recommendations Upon Entering Developing Countries
Recommendations for Other Industry or Country

From the Paper:

"Targeting developing countries is simply a marketing strategy aimed at attracting more customers. Generally, the markets in developed countries are mature or next to reaching maturity, meaning that the companies activating in this area must constantly strive to improve the quality of their products and services in order to maintain a competitive position. Consequently, this then means that the market potential for attracting new customers is limited, basically because all customers have been addressed so far. On the other hand, in developing countries, the market is rather new, absorbing and encouraging numerous businesses to enter. And even if in the respective countries, providers do exist, they have been unable to properly address all market segments."

Sample of Sources Used:

• Bellman, E., Networking: In India, Rural Poor Are Key to Cellular Firm's Expansion, The Wall Street Journal, September 24, 2007
• Kotler, P., Keller, K.L., Marketing Management, 12th Edition, Prentice Hall, 2006
• Country Profile - India, BBC News, February 6, 2008, http://news.bbc.co.uk/1/hi/world/south_asia/country_profiles/1154019.stm last accessed on March 25, 2008
• India - Internet Usage Stats and Telecommunications Market Report, Internet World Statistics, 2000-2007, http://www.internetworldstats.com/asia/in.htm last accessed on March 25, 2008
• The World Factbook - India, Central Intelligence Agency, 2008, https://www.cia.gov/library/publications/the-world-factbook/geos/in.html last accessed on March 25, 2008

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