Mtn Analysis

Executive Summary

The purpose of this report is to provide a resource-based analysis of MTN, a mobile telecommunications provider, and to comment on the implications of this for the future strategy of the organisation.

Introduction

Launched in 1994, the MTN Group Limited (MTN) is a leading provider of communication services, offering cellular network access and business solutions and is listed in South Africa on the JSE. MTN operates in 21 countries in Africa and the Middle East and as at the end of December 2009, recorded more than 116 million subscribers across its operations.

By undertaking a resource-based analysis of MTN, the organisation’s resources and capabilities can be identified and evaluated based on their contribution to the competitive advantage of the organisation. A resource audit, based on the work of Grant (2002, p. 139), will classify the main contributing resources in terms of tangible, intangible and human resources and will evaluate their relative importance and contribution to the organisational strategy, which is ‘to be the leader in telecommunications in emerging markets’ (Nhleko, 2010).

The resource-based analysis is based on the information made public by MTN at www.mtn.com.

Resource-based Analysis

Tangible Resources

Infrastructure:

A vast integrated infrastructure is a valuable resource for the organisation. MTN continues to execute major infrastructure roll outs to enhance the quality of their network, which leads to an increase in subscriber numbers. In 2008, R28.3 billion was invested across their operations, including submarine cables, in order to ensure the quality of the network and secure cost savings.

Infrastructure sharing is a key theme of MTN whereby almost all their operations share infrastructure. This helps MTN to achieve economies of scale which provide it with the ability to enter new emergent markets with more confidence and a competitive advantage, which is complimentary to the organisation’s strategy....