How should MTV International expand internationally? Should it license its MTV brand to local business people in each area, form a strategic alliance with key foreign business partners, or should it bear the risk itself and completely own and control each MTV station throughout the world?
This cannot be easily answered, as any answer involves a tradeoff of risk vs profit potential. Risk of course involves the risk of graft and corruption when one absorbs locals, or licenses to locals. Emerging economies are fraught with this risk.
My first inclination would be to completely own and control, with outside investors. But if those outside investors started to control (intimication, violence, threats of bodily harm), cut the ties, dust off the shoes, and leave. Life is too short to deal with criminals.
Expanding internationally is a complex strategic decision for any company, and the approach MTV International should take will depend on various factors. Here are three potential options for MTV International to consider:
1. Licensing its MTV brand to local business people: This approach involves granting licenses to local entrepreneurs or businesses, allowing them to use the MTV brand and operate MTV stations in their respective areas. This option could provide an opportunity for local expertise and knowledge to be leveraged, making it easier to navigate cultural and regulatory differences in each market. However, it could also lead to a lack of control over the quality and direction of the brand, as each licensee would have their own business objectives.
2. Forming strategic alliances with foreign business partners: In this approach, MTV International could partner with established local media companies or other relevant businesses in each target country. By forming alliances, MTV could benefit from the local partner's knowledge, resources, and market reach. This can be particularly advantageous in markets with complex regulatory environments or significant cultural differences. However, it is crucial to ensure alignment of values and vision between the partners to maintain brand consistency.
3. Owning and controlling each MTV station: This option involves MTV International bearing the risk itself and establishing wholly-owned subsidiaries or joint ventures in each target country. This approach offers a high level of control over all aspects of the operation, from programming to advertising and branding. It can ensure consistency across markets and enable the parent company to leverage its existing capabilities and expertise. However, it is also the most resource-intensive option, requiring significant financial investment and the ability to navigate diverse local market conditions.
To decide on the best approach, MTV International should conduct a thorough analysis of factors such as market conditions, cultural differences, regulatory complexities, financial resources, brand control objectives, and competitive landscape. This analysis should inform the strategic decision-making process and facilitate the selection of the most appropriate expansion model. Ultimately, the chosen approach should align with MTV International's long-term strategic goals and value proposition in each target market.