Read the African Mobile/Cell Phone Services Market? case study. You will find the case in the course page. You can find more information the bottom of this bri

ACTIVITY BRIEF FOR ASSESSMENT 1

ACADEMIC YEAR 2022 – 2023 – TERM III

Course MBA302 – International Marketing (3CH/4ECTS)

Instructor Dr. Petros Bouchoris

Participation in all assessment activities stated in this document is required. An overall course total of 70

points is required to pass the course. Due dates and times are always in Geneva time.

Assessment Choose an assessment category

Description Due date and time

Weight of course total

Task 1.1: International Marketing Concepts

Assessment type: Quiz

Description: Quiz on International Marketing concepts

For further details of this assessment task, please consult the activity description on the relevant week of the course site.

31 Mar. 23

17:00

5%

Task 1.2: Social and Cultural Considerations

Assessment type: Discussion forum

Description: Discuss the challenges in building a brand interna- tionally on an ethical stance, and provide advice to Fairtrade to build and international brand

For further details of this assessment task, please consult the activity description on the relevant week of the course site.

21 Apr. 23

17:00

5%

Main task

Task 1.3: African Mobile/Cell Phone Services Market Case Study

Assessment type: Written assignment

Description: Case study analysis on the African Mobile Phone market

See sections below for further details.

05 May. 23

17:00

30%

INSTRUCTIONS

Main task (1.3)

Read the “African Mobile/Cell Phone Services Market” case study. You will find the case in the course page.

You can find more information the bottom of this brief.

FORMAT

Your submission must meet the following formatting requirements:

• Submit one file(s) only.

• Required file format for main submission: Word document (.docx).

• Additional file format for additional deliverables: Not applicable.

• Additional file requirements: None

Other details:

• Font size 12

• Double-spaced

• Number of words: 1500

All refencing and citations require Harvard referencing style.

LEARNING OUTCOMES

• analyze the role of marketing in world markets in the complex global competitive environment

landscape

• contrast and examine the complex business environment from political, cultural, legal, technological

and economical angles and industry perspectives;

ASSESSMENT CRITERIA

Rubric for Discussion

Criteria Accomplishe d (A)

Proficient (B) Partially proficient (C)

Borderline (D)

Fail (F) Weig ht on task

grade

Content knowledge

Discussion promotes sophisticated use of content. Posts demonstrate participants’ mastery of content knowledge. This is evidenced by extensive use of concepts and terminology across most or all posts/threads. Examples depict understanding of concepts and are clear and accurate. Posts engage concepts critically.

Discussion promotes basic use of content. Posts demonstrate participants’ adequate understanding of content knowledge. This is evidenced by use of concepts and terminology across some posts/threads. Examples depict understanding of concepts and are clear and accurate.

Discussion promotes uncertain or misguided use of concepts. Posts demonstrate participants have not fully grasped content knowledge. This is evidenced with only some use of concepts and terminology across posts/threads. Examples are correct with some details.

Discussion promotes use of content that lacks coherence. Posts demonstrate limited understanding of content knowledge. This is evidenced with little or no use of concepts and terminology across posts/threads. Examples are correct with few details

Discussion does not promote basic use of content. Posts do not demonstrate participants’ adequate understanding of content knowledge. Examples do not depict understanding of concepts and are unclear and inaccurate.

25%

Connectio n

Posts connect to the assignment/previo us posts by addressing most or all its components and linking them to course material or topics learned. Posts draw insightful links between course content and professional practice, with a detailed explanation of participants’ own professional practice.

Posts connect to the assignment/previo us posts by addressing some of its components. Relevant course topics are mentioned with connections to course material or topics learned with some details/elaboration . Posts draw links between course content and participants’ own professional practice, with some elaboration still needed.

Posts do not connect to the assignment/previo us posts and address few components of the assignment/previo us post. Relevant course topics are mentioned with very few connections to course material or topics learned, or with no details or elaboration. The participants rarely or never mention their own professional practice.

Posts make only minimal reference to the assignment/previo us posts and address hardly any components of the assignment/previo us post. Relevant course topics are mentioned with very limited connections to course material or topics learned, or with minimal details or elaboration. Participants’ professional practice is not mentioned.

Posts do not connect to the assignment/previo us posts by not addressing of its components. Relevant course topics are not mentioned with connections to course material or topics learned with some details/elaboration . Posts do not draw links between course content and participants’ own professional practice, with no elaboration.

25%

Timeliness Participants show a lot of initiative by posting replies or comments within days. Participants invite peer responses and engage in meaningful interaction in the discussions. Discussion ends by a deadline (e.g. end of that module).

Participants show some initiative by posting replies or comments within one week. Participants invite responses from classmates. Discussion ends by a deadline.

Participants show little initiative by posting replies or comments after more than one week. Participants suggest few ideas that encourage responses. Discussion among participants begins late or not at all (e.g. instructor must prompt them when the module is over).

Participants show no initiative by posting replies or comments after more than one week. Participants suggest no ideas that encourage responses. Discussion among participants is very limited.

Participants do not show any initiative by not posting replies or comments within one week. Participants do not invite responses from classmates. Discussion does not end by a deadline.

25%

Conventio ns

Overall, participants follow online conventions, extend courtesy towards fellow participants by being respectful, polite and adopting a positive tone in posts. Participants compliment and provide constructive feedback to previous posts.

Overall, participants follow online conventions, extend courtesy towards fellow participants by being respectful, polite and adopting a positive tone in posts.

Overall, participants do not always follow online conventions and occasionally do not extend courtesy towards fellow participants, make curt responses or use a slightly critical tone in posts. Participants sometimes do not acknowledge previous posts.

Overall, participants sometimes follow online conventions and at times lack courtesy towards fellow participants, make curt responses or use an overly critical tone in posts. Participants often do not acknowledge previous posts.

Overall, participants do not follow online conventions, lack courtesy towards fellow participants by being disrespectful, impolite and adopt a negative tone in posts. Participants fail to acknowledge previous posts.

25%

Rubric for written assignment

Criteria Accomplished (A)

Proficient (B) Partially proficient (C)

Borderline (D) Fail (F) Weight on

grade

Problem identification

The business issue has been correctly identified, with a competent and comprehensive explanation of key driving forces and considerations. Impact on company operations has been correctly identified. Thorough analysis of the issue is presented.

The student correctly identified the issue(s), taking into account a variety of environmental and contextual drivers. Key case information has been identified and analyzed.

The student correctly identified the case (issues), considering obvious environmental/conte xtual drivers. There is evidence of analysis, but it lacks depth.

The student correctly identified the issue(s) but analysis was weak. An absence of context – the work is basically descriptive with little analysis.

The student failed to correctly identify the issue(s); analysis was incorrect or too superficial to be of use; information was misinterpreted.

30%

Information gathering

The student showed skill in gathering information and analyzing it for the purposes of filling the information gaps identified. Comprehensive and relevant.

Relevant information gaps were identified and additional relevant information was found to fill them. At least two different types of sources were used. The student demonstrates coherent criteria for selecting information but needs greater depth.

The student correctly identified at least one information gap and found relevant information, but which was limited in scope. Some evidence of sound criteria for selecting information but not consistent throughout. Needs expansion.

An information gap was identified and the student found additional information to fill it. However, this was limited in scope. Weak criteria for the selection of necessary information.

Information was taken at face value with no questioning of its relevance or value. Gaps in the information were not identified or were incorrect.

20%

Conclusions The student evaluated, analyzed, synthesized all information provided to create a perceptive set of conclusions to

The student evaluated, analyzed and synthesized to create a conclusion(s) which

The student reached conclusions, but they were limited and provided minimal direction for

The conclusion was reasonable but lacked depth and would not be a basis for suitable

The student formed a conclusion, but it was not reasonable. It was either unjustified,

25%

support the decisions and solutions.

support decisions and solutions.

decision-making and solutions.

strategy development.

incorrect or unrelated to the case in hand.

Solutions The student used problem solving techniques to make thoughtful, justified decisions about difficult and conflicting issues. A realistic solution was chosen which would provide maximum benefit to the company. Alternative solutions were explored and ruled out.

The student used problem solving techniques to make appropriate decisions about complex issues. Relevant questions were asked and answered. A realistic solution was chosen. Alternatives were identified, explored and ruled out.

The student used problem-solving techniques to make appropriate decisions about simpler issues. The solution has limited benefit but does show understanding of implications of the decision. Alternatives were mentioned but not explored.

The student used problem solving techniques to make decisions about simpler issues but disregarded more complex issues. Implications of the decision were not considered. Alternatives were not offered.

The student formed a conclusion, but it was not reasonable. It was either unjustified, incorrect or unrelated to the case in hand.

25%

ADDITIONAL INFORMATION

Read carefully the “African mobile phone market” case study. You will find the case in the course page.

Based on the information on the case, and additional information you may find through additional credible

sources prepare a report addressing the following questions:

1. Analyze and evaluate the major environmental influences that will impact on the growth of the

mobile/cell phone services market.

2. Building on the results of your analysis from Question 1, and with reference to a company of your

choice, draw up a market profile analysis for the area.

3. Propose and justify an effective segmentation strategy of the African market that will form the basis on

which a company of your choice can build a regional marketing strategy. This should form the basis

on which the company you have chosen can enter and develop the market.

4. For the company referred to in Question 2, show how the company should develop some of the

segments identified. What are the challenges and problems they will face and how they should

respond to these challenges?

All questions are of the same weight.

AFRICAN MOBILE/CELL PHONE SERVICES MARKET Introduction The mobile/cell phone services’ market in Africa, especially southern Africa, can be defined as a latent market with huge growth potential. However, there are huge challenges in terms of lack of infrastructure and the ability of many in the market to pay, which mean it is a highly challenging market. Anyone entering the market needs to develop a thorough understanding of the complexities of the African marketing environment in which they are competing and decide how to segment the market, which segment to target and how to develop a positioning strategy to achieve competitive leverage. Market information Penetration across the continent will reach 50 % of subscribers by 2020 from 2 % in the late 2000s. Africa is in the grip of a mobile/cell phone revolution. In the past 15 years, subscribers in sub-Saharan Africa have risen from 72,000 to 329 million (GSMA 2014). While many rural villagers huddle around paraffin lamps as dark- ness falls, neon lights come to life as they illuminate the mobile/cell phone masts proliferating across the African landscape. According to Mobile Africa, the number of mobile/cell phone subscriptions far exceeds fixed- line subscriptions. The International Telecommunication Union reckons that more Africans have begun using phones since the late 2000s than in the whole of the previous century! Use of mobile/cell phones is increasing at an annual rate of 7 %, more than twice the global average. Thanks to rising living standards, the middle class in Africa has tripled since the late 1980s, and the continent’s working-age population will double from 500 million today to 1.1 billion in 2040. Africa’s annual output is growing by approximately 5 % (adjusted for purchasing power parity), twice as fast as in the period from the mid-2000s and faster than the global average. Foreign direct investment to the region increased from US$10 billion to US$88 billion – more than India (US$42 billion) and, even more remarkably, catching up with China (US$108 billion). The Boston Consulting Group notes that the revenues of Africa’s 500 largest companies (excluding banks) have grown at an average of 8.3 % a year since the late 2000s. Consumer goods companies ranging from western giants such as Procter & Gamble to emerging market car companies such as China’s Great Wall and India’s Tata Motors are pouring into Africa. Foreign firms are start- ing to use Africa as a base for manufacturing as well, as labour costs in India and China rise. The mobile/cell phone market has been an integral part of this growth. In Africa, average penetration of mobile/cell phones stands at nearly half the population, and in North Africa it is almost two-thirds. Gabon, the Seychelles and South Africa now boast almost 100 % penetration. Only five African countries – Burundi, Djibouti, Eritrea, Ethio- pia and Somalia – still have a penetration rate of less than 25 per 100 inhabitants. Uganda, the first African country to have more mobiles/ cells than fixed telephones, is cited as an example of cul- tural and economic transformation. Penetration has risen from 0.2 % in the late 2000s to 30 % now, with operators making huge investments in infrastruc- ture, particularly in rural areas. Given their low incomes, only about a quarter of Ugandans have a

mobile/cell sub- scription, but street vendors offer mobile/cell access on a per-call basis. They also invite those without access to electricity to charge their phones using car batteries. Popular mobile services include money transfers, allowing people without bank accounts to send money by text message. Many farmers use mobiles/cells to trade and check market prices. Internet technologies Mobile Internet technologies play a very important role in making Internet services available to many in Africa. Africans are using them for more than calling their friends and family. Many are using them to do their banking. About half a million South Africans now use their mobile/cell phones as a bank. For these new banking customers both the mobile/cell phone and the whole system of banking are new to them. Traditional banks offer mobile banking as an added service to existing customers, most of whom are quite well off. Wizzit, and to some extent First National Bank (FNB) and MTN Banking, are chasing another market: the 16 million South Africans, over half of the adult population, with no bank account. Significantly, 30% of these people do have mobile/cell phones. Previously ignored as the bottom of the pyramid and of little commercial importance to the large corporations, such customers are now being courted. Wizzit hired and trained over 2000 unemployed people, known as Wizzkids, to drum up business. It worked: eight out of ten Wizzit customers previously had no bank account and had never used an ATM. A simplified kind of account called Mzansi has been launched to reach the non-banking customers, and portable banks and ATMs have been rolled out in townships and in the countryside. In most of Africa, only a fraction of people have bank accounts – but there is huge demand for cheap and convenient ways to send money and buy prepaid services such as airtime. In Kenya, a pilot scheme called M-Pesa is being used to disburse and pay micro-loans by phone. Meanwhile Celpay is offering platforms for banks and phone companies in Zambia and Congo. By clicking a few keys on a mobile/cell phone, money can be zapped from one part of Kenya to another in seconds. For urban migrants sending money home to their villages, and for people used to queuing at banks for hours to pay bills or school fees, the M-Pesa money- transfer service, operated by Safaricom, Kenya’s largest mobile/cell operator, is a godsend. It is used by 17 million people, or over half the population, and transfers the equivalent of almost 50 % of Kenya’s GDP each year. The most ambitious is Africa’s biggest operator, MTN, which is rolling out mobile-money schemes in several African countries. Together with five other providers, it has opened up the Ugandan market where users of the service have increased from 10,000 in the late 2000s to 19 million now. Market challenges There are many difficulties on the way. Not all potential consumers are ready to make the leap. Many think banking is too expensive and complicated, and helping new custom- ers become financially literate takes time. The technology remains a problem in some cases, with downloads requir- ing dozens of text messages. Several rival platforms are still in the fight. But so far those that emphasize simplicity and ease-of-use over state-of-the-art technology

and security have made the greatest strides. A lot also hangs on putting the right laws and regulations in place. They need to be tight enough to protect vulnerable users and discourage money laundering, but open enough to allow innovative mobile banking to grow. However, the main barrier to further expansion remains the cumbersome regulatory frameworks. Countries with similar economic circumstances but with a liberalized market generally show higher penetration rates. Taxes can also act as a barrier, particularly import duties on handsets or special mobile communications surcharges. The mobile industry has been seen as a cash cow by governments in some countries who have used its popularity to generate tax revenues but have not invested in the infrastructure for its growth. To expand coverage into rural and remote areas, government support will be required. Rural areas in some countries are also often economically unattractive for operators to invest in. This is usually not due to a lack of demand but rather to a lack of basic infrastructure. The cost of making calls and sending texts in Africa is also relatively high and many of its countries are poor. In South Africa and Kenya, running a mobile/cell phone costs the average user 5 % of a monthly income. Yet in countries such as Malawi and Central African Repub- lic, average monthly mobile/cell costs are as much as 50 % of average monthly earnings. Big chunks of some markets remain unreachable because of this. A ‘digital divide’ also persists in terms of Internet access, but this is changing too as Internet penetration has passed 20 % in Africa. Because of the lack of availability of fixed lines, mobile broadband accounts for 90% of Internet subscriptions and so Internet access in Africa is much more dependent on the penetration of smartphones. The task

1. Analyze and evaluate the major environmental influences that will impact on the growth of the mobile/cell phone services market.

2. Building on the results of your analysis from Question 1, and with reference to a company of your choice, draw up a market profile analysis for the area.

3. Propose and justify an effective segmentation strategy of the African market that will form the basis on which a company of your choice can build a regional marketing strategy. This should form the basis on which the company you have chosen can enter and develop the market.

4. For the company referred to in Question 2, show how the company should develop some of the segments identified. What are the challenges and problems they will face and how they should respond to these challenges.