Telefónica Internalization

UNIVERSIDAD PONTIFICIA COMILLAS | INTERNATIONALIZATION OF TELEFÓNICA: SOUTH AMERICA |

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Page(s)

1.- Company overview 3-8
1.1.- Brief description of the company 3-6
1.2.- Main figures (P&L, Share Price, Market Cap) 7-8
2.- Description of the globalization process 9-24
2.1.- Brief introduction 9-10
2.1.- Goals 10-13
2.2.- Strategydefinition 13-15
2.3.- Description of the process 16-24
3.- Analysis of the globalization process: strategy implementation 25-31
4.- Analysis of the results 32-45
4.1.- Financial and managements results: numbers and figures 32-39
4.2.- Pros & Cons 40-46
5.- Conclusions 47-50
5.1.- Objective conclusions 47-49
5.2.- Personal opinion 50
6.- Bibliography. 51
1.- COMPANYOVERVIEW.

1.1.- BRIEF DESCRIPTION OF THE COMPANY

History
Telefónica, S.A. is a Spanish broadband and telecommunications provider. Operating worldwide, it is the fifth largest telecommunications provider in the world.
The company was founded in Madrid, Spain in 1924 under the name of CTNE (Compañía Telefónica Nacional de España). Only five months after the setting up, the company performedan agreement with the Spanish government in order to take control of all the telecommunications installed in the country, acquiring the monopoly of the telephone service, and providing it as a public service.
After years of expansion throughout the world and modernizing the country’s telecom infrastructure, in 1997 the Spanish government finally decided to liberalize the telecommunicationmarket by privatizing the company. Even though, Telefónica (as it is known nowadays) has still a dominant position in the Spanish telecommunication sector. The company employs more than 250000 employees and its total revenues amounted in 2010 to 10.17 million €. His present CEO is César Alierta.
As a result of privatization, the company boosted significantly its internationalization processincreasing its global presence up to over 25 countries from Europe, Africa and Latin America. This report will attempt to discover the keys behind Telefónica’s internationalization process.

Activity
Telefónica offers a wide range of services in the telecommunications sector throughought different brands of its property. While its most remarkable service is mobile and fixed telephony, it also offersmany other services as important as these.
The company offers multimedia services throughout Imagenio, which consists on digital and interactive television using ADSL access. This brand has suffered an enormous expansion during the last years, given that its television service is available in many other countries such as Chile and Argentina.
Furthermore, one of its most important servicesconsists on providing internet access using ADSL. This service constitutes probably one of the most important assets of the company, having expanded throughout many countries as well.
Terra is the commercial brand that provides interactive services and Internet contents for Spain and Latin America. It operates as a web portal and/or as an internet access provider in the U.S., Spain, and 16 countriesin Latin American.

Business model
Telefónica, approved in early 2009 a new brand model for the entire group. This model, which had its first reflection in Spain in May 2010, has beed implemented over the next two years in all countries where the Telefónica Group is present, and is one of the cornerstones of future growth plans.. one of the cornerstones of future growth.
The neworganizational structure hinges on empowerment of the General Directorate of Coordination, Business and Synergies Development, under the supervision of Julio Linares, and division of regional integrated business, guaranteeing the customer approach.
At present, the different markets in which Telefónica operates have their own growth rhythms and competitiveness levels. Therefore, after the reincorporation of...