MTV Networks: The Arabian Challenge
Details
BSTR294
14
2008
YES
400
Viacom Media Networks (MTV)
Leisure & Entertainment
Middle East; US
Global Strategy,Market Entry
Abstract
MTV Networks (MTVN) had over the years developed a reputation for its ability to provide localized content without diluting what MTV stood for. However, the company faced the most challenging test in late 2007 with its launch of MTV Arabia in the Middle East, which some experts considered as the biggest launch in the channel's history. While the market in the Middle East offered MTVN with huge opportunities due to its huge youth populace, MTV's controversial content that was known for angering religious, political, and conservative communities could easily backfire in the conservative environment prevalent in the region. On the other hand, too much localization to suit the tastes of the region could dilute MTV's global brand. The case discusses in detail the strategy adopted by MTVN to enter and expand in the Middle East and also the challenges faced by the channel.
Learning Objectives
The case is structured to achieve the following Learning Objectives:
- Understand the issues and challenges in entering and expanding operations in new markets which were culturally different from the organizations home/traditional/existing markets.
- Understand the pros and cons of entering a new market with a standardized/adapted product to suit local preferences.
- Analyze MTVN's strategy in the Middle East, identify challenges and explore strategies that the channel could adopt in the future.
Keywords
Entry strategy, Expansion strategy, Localization strategy, Emerging markets, Environment, Social, Culture, Regulatory, Competition, MTV, MTV Arabia, Middle East