FDI Strategy Assignment Example | Topics and Well Written Essays - 1500 words

FDI Strategy - assigning ExampleAdditionally, faithfuls should take into account the economic and political instability of foreign country that they want to invest. This is base on the fact that any instability either political or economic might shed adverse effects on the performance and profitability of the entity. This paper analyses the strategies that AT&T, an American based firm would emulate in its endeavor to enter Morocco market. AT&T Company AT&T is a telecommunication friendship based in US. With Its headquarters in Whitacre Tower, Texas, United States, the company is the largest provider of unconquerable telephony as well as mobile services. Additionally, the company provides IP-based communication services to US companies qualification it to enjoy high up revenue. To ensure that businesses across the US emulate effective communication among themselves and with their customers, AT&T under the leadership of Randall Stephenson the CEO, provides a 4G network that cov ers more than 280 million people across major cities. superstar of the major factors that have make the company to attain a competitive advantage over its competitors in the US telecommunication industry is the extensive use of the technology. For example, the company has initiated AT&T U-verse a high technology TV that has wide range of features and capabilities making it a dream product for US residents and separate foreign customers. With an operating income of more than US$ 16.309billion and total assets worth US$ 270.344billion, AT&T Company has the ability to enter Morocco market. Although it is new company in the market, it foreign interior(prenominal) investment strategies leave alone play a significant role in facing off challenges that might occur in the new market. Challenges and advantages of AT&T entry of Morocco market One of the major challenges that the company will nerve in the new market is lack of adequate customers. It is worth to none that most of the Moro cco citizens are already loyal towards Maroc Telecom, the major telecommunication company in Morocco. This implies that AT&T will necessity to undertake extensive marketing to attract the attention of customers. Being a new company from a foreign country, majority of the telephone users may hesitate to switch to new operator since they are not aware of its benefits or intention. Another challenge that the company will face is stiff competition. notwithstanding though AT&T is well established in US, Maroc Telecom is equally recognized as a valuable company in Morocco. In this way, Maroc has acquired a wide market that has made it to acquire a competitive edge in the country (Timmons, 1994). An additional challenge is the political factors. Even though its entry in the new market has a long term impact on the Morocco economy in terms of creating employment and reducing poverty, the government may hesitate to support its carrying out in its effort to protect domestic companies. Des pite the various challenges that AT&T will face in the new market, the company is financially strong. This implies that it has adequate resources at its disposal to enter the new market. For example, the company can employ skilled employees from its competitors by giving them high salaries and more benefits. In the same way, AT&T can lower its prices to a level that customers will start moving away from the domestic companies to adopt AT&T services. Based on its product diversification and large sales in the US market, lowering of the initial prices will not have a significant impact