1. Operations and Logistics
a. First in Latin American region to provide two-way radio with push-
b. Competencies and Capabilities (S)
i. Multi-national corporation that serves major urban and
suburban centers in Mexico, Brazil, Argentina, Peru, and
Chile
ii. No mention about outsourcing
iii. No mention about purchasing processes
already operates with current iDEN-based network
c. Vulnerabilities and Dependencies (W)
i. Committed long-term to only one supplier of handsets,
Motorola
economy
v. Unsustainable ability to scale upwards its traditionally high
levels of service
platform due to balance sheet limitations
d. Performance relative to competition
America Movil
operations
Telefonica
Major operations in Brazil, Mexico, and Argentina, controlling
largest cellular operator in Brazil
contract
Telecom Italia
hurting sales and revenue growth
Other competitors
Locally owned and able to respond more immediately to
customers’ specific needs
i. Trends
near-to-intermediate future for industry players
b. Competitors increasingly encroaching in NII
ii. High ARPU rates of the past unsustainable for the future
given the recent trends
growing competition
iv. Conclusion: no clear competitive advantage, temporary or
2. Human Resources Management (HRM)
a. Use of local management teams to better understand market
i. Clearly stated in case
b. Working Environment and Trends
customers
iii. Received numerous Best Places to Work For awards, social
to quality of NII Holdings
c. No mention about HRM performance at competitors
processes
3. Information Systems (IS)
I. Analysis of Strategic Factors (SWOT)
A. See SFAS Table
B.
1. The mission states “be a top performing wireless company in Latin
mission.
2. No changes are needed but there is one main problem:
a. Strict Adherence-
competitors to implement it.
ii. Right Customers- As the market expands, they need to further
3. There should be no large effects on the firm as there will be no changes
II. Strategic Alternatives and Recommended Strategy
A. Strategic Alternatives
2. Feasible Alternative Strategies
1. Pros – allow for future expansion capabilities;
ii. Increase number of suppliers beyond Motorola to
collaborate with Apple, RIM, and/or Nokia
1. Pros – More product differentiation for customer in
2. Cons – Costs associated with entering into
iii. Expand into the pre-paid and discount mobile industry
segment
1. Pros – New customer market; Increased sales in
2. Cons – Loss of ARPU, which is attractive for
B. Recommended Strategy
services)
2. Justification of Recommended Strategy
i. Short-term justification (see SFAS table)
1. Other Telecom giants sinking large amounts of
2. Competitors have newer technology – As new
competitors enter new markets, they always build
3. Reliance on Motorola for innovation – As more and
ii. Long-term justification (see SFAS table)
1. Huge Potential Market- 50% of people in their
markets still do not use mobile services. No
2. Movement from Pre-Paid Service to Post-Paid
3. Higher competition=Lower Prices=Larger Market
III. Implementation
A. Programs to Implement
acquisition
i. Research to be performed by R&D with collaboration from
partners without taking total financial risks.
C. Yes – new standard operating procedures will need to be developed
IV. Evaluation and Control
B. Control Measures
i. Currently, no controls in place to ensure conformance with
recommended strategic plan
ii. Strong HRM policies and procedures, although not
project.
Exhibit One
Financial Ratios
1. Liquidity Ratios
Current Ratio:
2. Profitability Ratios
Net Profit Margin
Return on Investment
Return on Equity
2008 2007 2006 2005
20.66% 17.45% 21.87% 21.54%
3. Activity Ratios
Inventory Turnover
4. Leverage Ratios
Debt To Asset Ratio
Debt to Equity Ratio