Spain

Case Discussion Question #1

What changes in the political and economic environment allowed Telefonica to start expanding globally?

The Changes in the political and economic environment that allowed Telefonica to start expanding globally were deregulation and privatization. Since the Spanish government privatized and deregulated the Spanish telecommunication sector, Telefonica reduce their staff, found new technology and focus on increasing their profits.

Case Discussion Question #2

Why did Telefonica initially focus on Latin America? Why was it slower to expand in Europe, even though Spain is a member of the European Union?

Telefonica initially focus on Latin America because they were looking for growth. In Latin America, there was a lot of changes dealing with deregulation and privatization through the region. Telefonica concentrated on Latin America similarities in the growth of their market, language and their principles and beliefs. Telefonica was slower to expand in Europe, even though Spain is a member of the European Union because there was a contract between the national telecommunications businesses that they would not interfere each other markets. When France Telecom merged in Spain, this contract wasn’t valid anymore because of a third-party.

Case Discussion Question #3

Telefonica has used acquisitions rather than Greenfield ventures as its entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?

Telefonica has used acquisitions as its entry strategy because acquisitions has more benefits and it reduces complexity than Greenfield ventures. If Greenfield ventures was to be used the cost would be high and it would take longer to build a company. The potential risks associated with this entry strategy may be a difference in culture and there would be problems with the management and operation side.

Case Discussion Question #4

What is the value that Telefonica brings to...