Arrival of Telecommunication Giant Telefónica Onto Slovakian Market

1. Introduction

In this work we focused on arrival of telecommunication giant Telefónica onto Slovakian market.As this company obtained a license for providing its services only in August of this year, it will begin its operations at first in the first quarter in 2007.

We tried to have a closer look at situation of Telefónica and to analyse steps Telefónica has to take so internationalization to Slovak market is successful. However, it is not possible without better knowledge of Slovak market, without knowledge of its specifications. It is also essential to get to know previously used strategies of already existing operators who competed for customers by now.

2. PEST characteristics of Slovakia

Politically is Slovakia democratic and stable country with all freedoms guaranteed as it is in each other west European democracies. Furthermore, country warmly welcomes every new incoming company.

Most of the laws, regulations and tariffs are being ajusted to EU standards. Recently, the attempts to regulate price policies of telecommunication companies have been announced by European commission.

Economically, Slovakia is typical emerging market such as all neighbouring countries of former Soviet bloc. Its GDP is growing rapidly, mainly after important reforms have been done in previous four years. Purchasing power of people is raising, also new and new companies are coming each month. Number of potential customers is therefore raising gradually.

Society in Slovakia is kean on using cell phones. This was caused by uncomparably higher prices of public phones. Therefore customers left using it and skipped to mobile communication companies immediately after their emerging. Even though the prices of public phone services have dropped in recent years, preference of cell phones has remained high.

3. Present situation on Slovak market

Number of operators in the country

Regarding to a number of a mobile companies operating on the market,...