Written Report on Foreign Market Servicing Strategy for the Deutsche Telekom for an expansion in China

Roland Urban

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Seminar paper from the year 2005 in the subject Economics - International Economic Relations, grade: 1,7 (A), Leeds Metropolitan ...

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Seminar paper from the year 2005 in the subject Economics - International Economic Relations, grade: 1,7 (A), Leeds Metropolitan University, language: English, abstract: In times of globalisation it is so important for our MNE Deutsche Telekom to find early new markets in order to detect or expand the position in the hard global competitiveness. We are good positioned in West Europe and in the growing markets in Eastern Europe and with our division T-Mobile also very successful in the USA, but the potential growth rates are much higher in Asia. The growth motor in Asia is China with the biggest population worldwide. Nearly 80 % of the top 500 companies have invested in China and it is the fast-growing telecommunication market in the entire world1. This shows how important China for our MNE is. The continuous high growth in this telecommunication industry leads to the question how our mobile division T-Mobile belonging to the concern Deutsche Telekom should invest in the coming most powerful market China after the USA. First of all, I am going to present the concern Deutsche Telekom and will then focus in detail on the division T-Mobile. Additionally, I am going to give an overview about the mobile industry itself and how the distribution of their products proceeds. Before I am going to recommend a market servicing strategy for our MNE, I would like to analyse the environment in China in which we want to invest and weigh up the advantages and disadvantages for an investment abroad2. After this analysis has been presented a proposal for the best type of international business strategy in China will follow and finally a summary finishes this assignment. 1 The People's Bank of China (2004) 2 Daniels, J., Radebaugh L., Sullivan, D. (2004)