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Megahertz Communications
A strategic commitment is "a decision that has a long-term impact and is difficult to reverse, such as entering a foreign market on a large scale." (p. 399) Megahertz's strategic commitment was motivated by the long-term growth potential for media and broadcasting in the Middle East, Africa, and Eastern Europe. Their export strategy aimed to provide a turnkey solution to emerging broadcast and media entities, offering to custom design, manufacture, install, and test broadcasting systems. Megahertz also hoped to take advantage of the areas not being well served by other companies, and all three regions lacking adequate supply of local broadcast engineers.
Using location economies Megahertz hoped to enable them to have a differentiated product offering from their competitors, thus giving them sustainable competitive advantage in a global marketplace. Location economies are "cost advantages from performing a value creation activity at the optimal location for that activity." (p. 363) Megahertz International hoped to create a value chain by hiring salespeople with significant experience in these regions and opening a foreign sales office in Italy. Megahertz also had exhibitions at a number of conferences that focused on the targeted regions, as well as sending mailings and e-mail messages to local broadcasters.
Due to the marketplaces that Megahertz has been successful in, such as: Namibia, Oman, Romania, Russia, Nigeria, Poland, South Africa, Iceland, and Ethiopia, developing countries are likely to be a major market opportunity for Megahertz. In developing countries media plays a huge role. Education is the on ...