América Móvil: Building a Wireless Leader in Latin América (B)

Published 01 Sep 2005
Reference 5308
Topic Strategy
Region South America
Length 11 page(s)
Summary

This case study analyzes the changes in the phase of consolidation after the privatization and deregulation of the telecommunications industry in Latin America. It focuses on the success story of the Mexican company América Móvil. In only two years, the company expanded in its natural market and built a wireless leader in Latin América, competing head to head with the Spanish giant Telefónica. What started as a Joint Venture, Telecom Américas, formed by Bell Canada International, Mexico's América Móvil and SBC evolved into a local winner América Móvil, better equiped to survive in times of crisis.

Teaching objectives

The teaching objectives are - The viability of a Joint Venture as an entry strategy in Latin America. - The response of local companies in face of globalization. - Competitive challenges faced by the principal telecom players in Latin America. - Challenges faced by emerging multinationals. - The role of natural markets. - Challenges of succession in family business.

Keywords
  • CO-OPETITION
  • STANDARDS COMPETITION
  • NETWORK EXTERNALITIES
  • STRATEGIC ALLIANCES
  • COMPLEMENTORS
  • CRITICAL MASS ADOPTION
  • VALUE CHAIN