Why should Orange not give up on selling in Ethiopia?*
Urania Coumis
This summary report presents a preliminary analysis of the relative attractiveness of the
Ethiopian telecoms industry from the perspective of France Telecom/Orange (FT) as a
potential entrant from 2013 onwards, using relevant strategic frameworks.
Firstly, a PESTLE Analysis reveals that the most sigificant external pressure raising
barriers to entry for FT is the Ehtiopian government with which supplier contracts have to
be negotiated in a way of questionable transparency. This may present a threat to FT
entering the market.
Consequently, Industry Structure and Competitors’ Analysis reveals that FT can obtain
bargaining power either as a competing supplier or as a complement strengthening
coalitions with other contracted suppliers to cover market demand, to lessen political
pressures and facilitate the roadmap to liberalisation of Ethiopian telecoms market.
Additionally, a preliminary analysis of Ethiopian telecom’s market shows that it is an
untapped, young market at the introduction/growth stage, where demand for telecom
services is higher than supply, and is constituted by a young, growing base of dissatisfied
consumers. So, early entry is advised for FT in order to reap early entrant’s profitability
and competitive advantage versus international competitors.
Then, it is shown that FT may benefit from globalisation drivers, mainly deregulation and
lowering barriers of trade, to better position itself against competitors and raise negotiating
power with the Ethiopian government.
Additionally, it is described how underlying pressures such as industry dynamics, shifting
from a monopoly to a liberalised telecom industry in the next 10 years, favourable
