Market Entry Strategies for Finnish ICT Company in Emerging Markets : Case: LeiaMedia Oy in Tanzania

Abstract

This thesis examines the selection of right distribution channel strategy for Finnish ITC company in emerging markets. The untapped potential of rapidly developing economies in Sub Saharan Africa present new market opportunities for companies in developing countries and LeiaMedia Oy wants to enter the market before it comes too saturated with competition. The research aims at understanding more deeply the prevailing conditions in Tanzania from the point of the case company and identifies the challenges the weak infrastructure and socio-economic conditions present.

The primary research was conducted via email questionnaire to survey the behavioural responses of potential buyers in Iringa region, Tanzania regarding Leia LivePaper. The study attempted to predict consumers’ consumption habits and define if the market potential is sufficient to sustain continuous product manufacturing in China. The findings are contrasted against secondary research observations that discuss the theories of different market entry modes and implications the “bottom of the pyramid” concept has in acceptance of new technologies.

It became evident that any firm from developing countries entering emerging markets must rethink their ways of operating in host environment due to unfulfilled customer needs and rapid evolution of ICT industry. Coming up with new innovative offerings and business practices in order to succeed in the market entry is crucial to make the business venture profitable in the long run.