An Analysis of the Latin American Wireless Telecommunications Market Portfolios of Telefonica and America Movil

Abstract

In response to slowing growth, intensifying competition in their traditional wireless voice, text markets with an eye toward increasing revenues from offering a bundle of mobile and fixed-line voice, data, text, and video services to subscribers, management at Telefonica and America Movil have restructured their companies and reconsidered their internationalization strategies. This paper focuses on the two companies’ Latin American wireless market portfolios, providing background on why these reorganizational and strategic actions were taken. In particular, the paper compares the portfolios with respect to their market attractiveness and competitive positions in 2008 relative to 2002 on both an overall average and degree of variance basis across the markets in the portfolios. The portfolio analysis technique employed in the paper may have wider applicability for formulating corporate strategy.