1 Q*Mobile A Different Kind of Mobile Company Mission Statement: Q*Mobile is determined to give our customers more value, more services, and more fun through an excep- tional customer experience...

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Clearly indicate which one out of the the5modes (franchising, management contact, joint venture, virtual network provider and wholly-owned subsidiaries) is your choice and explain why it is better than the remaining4.Your company's ranking and prior international experiences should be taken into consideration here and these information can be found on the case. Please look at the attach file to complete the assignment


1 Q*Mobile A Different Kind of Mobile Company Mission Statement: Q*Mobile is determined to give our customers more value, more services, and more fun through an excep- tional customer experience associated with the Q* brand. Goals: There are four key areas that best illustrate their goals or business philosophy: 1. At Q*Mobile, as well as in our marketplace, we focus on people, not just numbers. We have a singular company cul- ture, fuelled by excite- ment and passionate commitment. 2. The Q* brand gives us a prominent profile in a crowded marketplace. It is well-known, fash- ionable, exciting, and imaginative. 3. Q* products are innova- tive and industry- defining. 4. Q*Mobile backs every- thing up with market- leading, award-winning customer service. Q*Mobile’s latest option for international expansion is within Europe and with two recent members of the Euro- pean Union — Latvia and Slo- venia. Latvia Pres- ently, four opera- tors provide wireless service in Latvia — Latvijas Mobilais Telefons, Tele2, Bite Latvija, and Tri- atel. As of December 2005, the country has 1.5 million subscribers or 67% of the available market. Latvijas Mobilais Telefons has 56% of the market, and the remain- ing three companies equally share the remaining 44% of the market. Slovenia Three operators currently serve 1.2 million subscribers or 62% of the available mar- ket. Mobilel has 45% of the market while SI Mobil and Vega each have 27% of the market. Major Deliverables: 1. Country Selec- tion 2. International Strategy 3. Entry Mode Selection 4. Launch Strate- gy Q*Mobile Key Facts & Figures  Headquarters: St. Louis, Missouri  2005 Worldwide Sales: $925.7 mil- lion.  Worldwide Custom- ers: 4 million  Worldwide Employ- ees: 1,527  Worldwide Opera- tions: 4 countries  U.S.  U.K.  Australia  South Africa Inside the Wireless Markets of Slovenia and Latvia 2 While an actual investigation for interna- tional expansion would require your firm to check with the host government to deter- mine what entry mode options are permit- ted by law, in this project you are to as- sume that the following options are availa- ble to your firm: franchising, management contracts, joint ventures, and wholly-owned subsidiaries. To help you better understand how certain entry modes may apply to the wireless in- dustry, the following information is of- fered. However, please consult chapter 13 of your text for a complete description of the advantages and disadvantages of these entry modes. Franchising – your firm provides the rights to your brand in the host market to a firm who is either building a new network or is looking to re-brand their existing network. In return, your firm receives a flat fee and ongoing royalty fees. Management Contract – your firm operates the network of a local firm using their brand. In return, your firm receives quar- terly fees based upon sales revenue. Virtual Network Provider - your firm contracts with a local mobile company to use a portion of their network to serve your customers. Your firm pays quarter- ly fees based upon sales revenue. Using this method, your firm is dependent on the partner firm for product quality and development. Joint Ventures – your firm creates a new company in conjunction with another firm (or firms) to provide service in the host country. For purposes of this pro- ject, three joint venture options are available – minority, 50/50, and majori- ty, and each refer to the amount of controlling interest your firm has in the joint venture. With a minority joint venture your firm does not have control over daily or strategic decisions where- as with a majority joint venture your firm does. In a 50/50 joint venture, your firm shares all decisions equally with your partner(s). With joint ven- tures, your firm receives x% of the profits from the venture where ‘x’ re- fers to the percent ownership your firm holds in the joint venture. Wholly-Owned Subsidiaries – your firm builds a new network in the host country. Your firm has complete con- trol of the new subsidiary and conse- quently your firm retains all profits. What your classmates are doing  There are 9 teams in the class each with a different firm and country combination.  Firms: (1) SynerG, (2) Westel, and (3) Q*Mobile  Country Pairs: (1) Argentina-Chile, (2) Latvia-Slovenia, and (3) Malaysia- Thailand Wireless Industry Entry Modes Examined Rank Company Head- quarters Subscribers (in millions) Sales (in US$ millions) Employees Foreign Operations 1 China Mobile China 234.88 23,844 88,127 0 2 Vodafone U.K. 170.99 60,637 59,620 26 3 SynerG U.S.A. 155.00 64,470 57,378 25 4 China Unicom China 124.15 5,235 --- 0 5 América Móvil Mexico 85.08 12,783 --- 10 6 T-Mobile Germany 83.09 23,820 44,226 8 7 Westel U.S.A. 75.00 20,000 23,117 11 8 Singapore Telecom Singapore 74.05 12,617 19,000 6 9 Orange France 66.74 17,941 30,000 15 10 Telefónica Móviles Spain 66.08 11,828 --- 14 11 Cingular U.S.A. 52.30 19,436 70,300 0 12 Telenor Norway 32.06 9,156 21,750 10 13 TeliaSonera Sweden 17.79 10,700 29,082 12 --- --- --- --- --- --- --- 20 Q*Mobile U.S.A. 4.00 926 1,527 3 Top Wireless Firms Ranked by Subscribers
Answered Same DayAug 18, 2021

Answer To: 1 Q*Mobile A Different Kind of Mobile Company Mission Statement: Q*Mobile is determined to give our...

Ayushi answered on Aug 18 2021
106 Votes
1
Modes of Entry for Q*Mobile
Contents
Selection of mode of entry:    3
References:    4
Selection of
mode of entry:
The mode of entry that would be perfect is Joint Venture. In the wireless industry joint venture is now-a-days becoming an important mode. Using this mode, several business projects and various other activities related to business can be done easily and with much more perfection. There are many reasons due to which we would consider joint venture as the best mode of entry for Q*Mobile ("Negotiating and Structuring a Joint Venture in the Communications and Technology Industry - Media, Telecoms, IT, Entertainment - UK", 2021). These reasons are multifold, firstly joint venture gives two different firms an opportunity to combine together and work together...
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