Business Environment and Internationalization

Questions: 1. Bharti airtels approach to internationalization differs from that of European MNEs in various aspects which include. 2. Bharti Airtels Model Uniqueness to Emerging MNEs. 3. Implications of Emerging Economy of MNEs for Globalization. Answers: 1. Bharti Airtel aquires both companies and resources across the globe. In the company's desire to expand globally, it acquired Zain Africa, one of the biggest telecommunication firms in Africa. This shows that the corporation values entrepreneurship in the sense that it identified a potential unexploited market in Africa (Dunning, 2000). Further, Bharti Aitel acquired Bangladesh Warid Telecom International in the Abu Dhabi. However, the European MNEs had heard of these companies and did not make an innovative step of venturing into the markets. Despite Bharti being Indias biggest telecom operator, its acquisition of resources and enterprises have made it command a large customer base in the world. The innovation and internationalization process of Bharti Airtel remain to be dynamic. The rate of innovation for Bharti Airtel has been determined by industrial, institutional, and firm level factors within the Indian telecom sector. In the European MNEs, the rate of US foreign RD is relatively small compared to Bharti Airtel. Bharti focuses most on the promotion of innovation activities by MNEs in the Indian market (Meiyer, 2008). The EU uses innovative systems to form a basis under which policy options and focus on new member states are analyzed, contrastingly, Bharti Airtel uses innovation and internationalization in the analysis of foreign direct investment and spillovers of the countries where it has diversified its activities. Bharti Airtels growth, development, and sustainability in the global market is widely remarkable. While the company outsources its operations to the Western multinationals, the European MNEs keep waiting for the diversification of activities by Bharti to their countries telecom sector (United Nations, 2008). Bharti has grown as the major player in the global telecom market, an aspect that creates an opportunity for Indian MNEs to expand globally faster than the European MNEs. Unlike the European MNEs, Bharti outsources part of its value chain some of them being IT to IBM and for Nokia, network equipment. Internationalization in the European MNEs creates an open business environment for businesses to operate. However, in India, where Bharti Airtel operates, there are various roadblocks when it comes to the investment climate. The rate of investment has been so refreshing in the EU region, unlike the downturns that face Bharti in its desire to expand operations in different countries (Grosse, 2005). This implies that there is weak domestic investment environment for Indian an aspect which affects the firm's decisions which cut across all its subsidiaries in the overseas. 2. Bharti Airtel operates uniquely in various aspects which differentiate it to other emerging MNEs in the world market. First and foremost, the company enjoys a significant international presence on its board, and this has been in effect since the year 1997. Economically, Bharti Airtel is stable and is rarely affected by the market variations. The management of all departments of the company have aspired to transform all the negatives to business opportunities, and this leaves the company operating in a unique nature (Dunning, 1993). In socio-economic terms, the firm uses standard rules of the game internationally. Bharti Airtel outsources its operations to Western multinationals. The outsourcing of activities to the European MNEs, the company has developed its business models and created new low cost models of doing telecom business. The company has a broad domain of knowledge and thus attracts more human capital (Forsgren, 2008). Bharti's ability to diversify and expand its activities globally enables the company to enjoy substantial economies of scale in the market. Further, due to the establishment of excellent norms when addressing customer needs, Bharti has gained a positive reputation from the customers both locally and internationally. Not only the proper establishment of business rules and the enjoyment of international reputation, but Bharti also uses simplified innovative models to facilitate its entire market expansion and growth (Grosse, 2005). The use of sophisticated technologies promotes innovation of new methods of business and thus diversifying market opportunities for the Bharti. Bharti has a comparative ownership advantage regarding value creation, institutional facilitation, active learning, and industrial factor endowment. This model gives the company a unique nature that enables the managers to integrate various operations in a realistic manner, and this results in profitability (Meiyer, 2008). The comparative advantage allows the firm meet the demands of the market. 3. Globalization establishes potential market opportunities and challenges for local enterprises in the emerging market economies to innovate and improve their competitiveness in the market. Rise in market opportunities With the emergence of economy MNEs, there are increased possibilities in the market for both the business and for people to grow exponentially too. The diversification of activities to the foreign multinationals creates opportunities for people to move abroad since employment opportunities are established (Meyer, 2004). People grow both economically and socially due to the growth in immigration level. Meeting the market demands Different customers have different tastes and preferences. While some people would prefer using Safaricom, other people would always prefer subscribing to the use of Airtel. For example, the decision of Bharti Airtel to expand its telecom venture activities in the African market has served a huge benefit in addressing consumer tastes and preferences (Meyer, 2004). The ability to make people subscribe to the mobile network of their choice enables the MNEs to meet higher market standards. Growth in the use of sophisticated technology and know how The rise of emerging economies such as Bharti Airtel creates new technological cultures in the telecom sector. Through technology, innovations in the industry are steered made the industry grow (Lebedev, 2015). Nowadays, there is a better understanding of the demands in the sector, and this leads to growth in globalization. The knowledge base of people has also grown to higher levels and thus affecting the industry positively Increase in competition levels The emergence of MNEs such as Bharti affects globalization in that it results in increased competition. The global competitiveness of the company is affected by the rise in new MNEs; this requires the management of the enterprise to employ viable strategies so as to maintain the competitive advantage of Airtel in the market. The services cost, target market, and technological adaptation bring about the source of competition (Ahmad, 2014). References Ahmad, S. Z. (2014). Partnering toward internationalization at four Arabian mobile telecom firms.Global Business and Organizational Excellence,33(6), 51-68. Dunning, J. (1993). Multinational Enterprises and the Global Economy. Reading, MA: Addison-Wesley. Dunning, J. (2000). The electric paradigm as an envelope for economic and business theories of MNE activities. A summary of the OLI paradigm, 141-171. 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