MTN South Africa: one group, one vision, one brand

Abstract

Subject area

Marketing.

Study level/applicability

This case can be used in an international marketing course or module, at executive or MBA level, and is particularly suitable as a case on global branding.

Case overview

MTN was launched in 1994 as a leading provider of communication services, offering cellular network access and business solutions. After building up a successful operation in South Africa, achieving a market share of some 38 per cent (second only to Vodacom, the dominant mobile telecommunications provider), the group began its expansion into the rest of Africa in 1998. It was the first South African cell phone network operator to do so. The objective of this expansion was, despite the uncertain political and regulatory environment, to take advantage of the market opportunities in Africa, given its underdeveloped telecommunications infrastructure and the transferability of MTN's skills into other African countries. At the time of the case (June 2005), MTN had established itself in eight different African countries, with a subscriber base of 14.3 million in South Africa and 2.9 million in the rest of Africa, with plans for further growth in the territory and elsewhere. As a result of this international expansion, a major challenge was to ensure consistent branding in the different countries.

Expected learning outcomes

The expected learning outcomes are: to explore the challenges of international expansion into new markets; to understand global brand building strategies, how to create a consistent identity and how to build a services brand; to understand the challenges of implementing a marketing change strategy across different countries with different cultures and with employees with different agendas and to highlight the importance of people in providing a service and in delivering the brand promise.

Supplementary materials

Teaching note.

Citation

Bick, G., Luiz, J. and Townsend, S. (2011), "MTN South Africa: one group, one vision, one brand", , Vol. 1 No. 1. https://doi.org/10.1108/20450621111126765