International Expansion
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International Expansion
Connect people with their world everywhere they live and work, and do it better than anyone else. That is the vision of AT&T Mobility, a fortune 500 cell phone company with over 75 million subscribers, and increasing their customer base every day. The business of AT&T is not constrained to providing just cellular phone service; this internationally recognized corporation also delivers other services such as wired landline telephone service, DSL and cable high speed internet, as well as cable television.
For the year 2010 AT&Ts revenues were reported at over $124 billion which was up 4% from the year before. (AT&T Enterprise, 2011) One reason for AT&Ts exceptional success can be attributed to the fact that they are an organization that can meet consumers needs no matter it be business or personal , their social status, financial back ground, ethnicity or cultural background. AT&Ts service impartially duplicates its diverse customer base. Not only does AT&T present products and services relevant to its customers, but also presents and supports those services in a way that is suitable and respectful to their customers cultures.
As it is now if one desires cell phone service in Spain they have to roam with their current cellular phone service provider or rent a cellular device from one of the various cell phone rental establishments in the region. While feasible solutions, they prove to be expensive so, subsequently only individuals that has a real necessity for cellular service, or those who have deep pockets are willing or able to tolerate the expense (Cellular Coverage and Service in Spain, 2008). The cell phone market for the natives of Spain is pre-paid cellular service; there are no postpaid phone providers. Like here in the U.S. prepaid sim cards in Spain come with an initial amount of call credit, that, when expires, can easily be reloaded. The reloadable vouchers are available in different denominations. Think of it as filling up at the gas station. One can put $10, $20 or more and the gas they obtain will give them a certain amount of miles depending on how they drive. Recharge vouchers gives a certain amount of time depending on where and or when you call (Cellular Coverage and Service in Spain, 2008).
AT&T once claimed to be the all over network, while this may be true for the United States AT&T has yet to expand its own network to other regions of the world. Although they have roaming agreements with international carriers there are no AT&T owned towers outside of the U.S. To increase revenue AT&T should grow their service to Europe starting in Spain. It would be logical for the company to introduce themselves in Spain first since they already employ bi-lingual Spanish speaking sales representatives, customer care representatives and operate a Spanish web site; in addition to this they have the ability to provide most of their collateral in Spanish such as the bills.
Conversely, prior to entering a new market there are a number of factors that need to be considered, such as demand, competition , the economy, regulatory laws of that market, the social and cultural background, as well as the technological aspects of that particular country.
In the past there was not an abundant demand for cellular service in Spain but recently that demand has grown due to more travelers traveling to Spain needing cell phone service and whether it be for business or personal reasons the necessity of staying in contact is increasing. In addition, the natives are becoming more interested in the convenience of this technology. Under these circumstances this is an ideal market for AT&T to step in to be the provider of choice.
If AT&T were to enter this market this would be a win-win situation. The company would benefit as well as its customers. People from the United States traveling to Spain would be able to continue to use their current cell phone and service with only a small increase for the customer but more revenue for the company. Not only will they be able to cater to current U.S. customers but they would be branching