Is China a Neo-Mercantilist Nation?

In: Business and Management

Submitted By amulugeta
Words 784
Pages 4
Case 7

Megahertz Communications

Established in 1982, U.K.-based Megahertz Communications quickly became one of Great Britain’s leading independent broadcasting system builders. The company’s core skill is in the design, manufacture, and installation of TV and radio broadcast systems, including broadcast and news-gathering vehicles with satellite links. In 1998, Megahertz’s managing director, Ashley Coles, set up a subsidiary company, Megahertz International, to sell products to the Middle East, Africa, and Eastern Europe. While the EU market for media and broadcasting is both mature and well served by large established companies, the Middle East, Africa, and Eastern Europe are growth markets with significant long-term potential for media and broadcasting. At the time, they were not well served by other companies, and all three regions lacked an adequate supply of local broadcast engineers. Megahertz International’s export strategy was simple. The company aimed to provide a turnkey solution to emerging broadcast and media entities in Africa, the Middle East, and Eastern Europe, offering to custom design, manufacture, install, and test broadcasting systems. to gain access to customers, Megahertz hired salespeople with significant experience in these regions and opened a foreign sales office in Italy. Megahertz also exhibited at a number of exhibitions that focused on the targeted regions, sent mailings and e-mail messages to local broadcasters, and set up a Web page, which drew a number of international inquiries. The response was swift. By early 2000, Megahertz had already been involved in projects in Namibia, Oman, Romania, Russia, Nigeria, Poland, South Africa, Iceland, and Ethiopia. The international operations had expanded to a staff of 75 and were generating £10 million annually. The average order size was about £25,000,and the largest…...

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