South African cellular wars in Nigeria

Abstract

Purpose

The aim of the case study is to highlight the potential and achievements of emerging market countries and companies.

Design/methodology/approach

The current market and its participants were analyzed using official country statistics and independent reports. The objectives were achieved by analyzing information published by market participants and by taking into account the opinions expressed by relevant parties through the use of secondary reports.

Findings

Emerging markets are challenging environments in which to do business and that large sums of money and capital do not guarantee success. Emerging markets do have the ability to purchase products and services on a scale that is profitable for multinational corporations. First mover advantage in emerging markets is significant. Due diligence is imperative, alone it is not sufficient and follow up work needs to be done in order to confirm the results.

Practical implications

The paper shows that due diligence is imperative and its value cannot be stressed enough. Increased corporate governance requirements need to be applied when dealing in emerging markets. However, corporate governance needs to take the local conditions into account and be adjusted accordingly.

Originality/value

This case study highlights the growing importance of mobile telephony in sub‐Saharan Africa with its strategic implications for firms and development opportunities for African society.

Citation

Hoff, D. (2006), "South African cellular wars in Nigeria", International Journal of Emerging Markets, Vol. 1 No. 1, pp. 84-95. https://doi.org/10.1108/17468800610645022