How External Forces are influencing the Ebusiness strategy of MTN-Nigeria

Abstract: The Internet and e-business has had enormous impact on many companies in Nigeria and there has been much research on how e-business influences the environment, but little can be found on how the environment of a developing country like Nigeria influences e-business. In e-business, technology tells the business what can be done in smarter ways. Technology not only can make business more efficient but also can make business more effective in targeting and reaching markets, however technology cannot enhance business in isolation as there are other vital factors that equally impact business. This thesis presents an adapted version of the PESTEL (Political, Economic, Socio cultural, Technology, Environment, and Legal) framework so called e-business PESTEL framework, as a method for structural analysis of macro environment forces in the future. In addition to this PESTEL framework, the Porter’s five forces model was employed to analyse the industrial forces that also influence MTNN e-business strategy. The main goal of this research is to give an overview of industry and macro-environment forces influencing the e-business strategy MTN-Nigeria and the impact of future developments. The research methodology was explorative and descriptive. A further method for future analysis of the macro-environments influences and a suggestion on how to incorporate it in this research work is given. The e-business strategy of MTNN consists of four areas: E-procurement, E-collaboration (CRM), Supply chain management and E-commerce. The influences found on macro-environments level are political and sociocultural forces and in the industry levels are bargaining power of customers and suppliers of its products and services .The most recommendations are that MTN-Nigeria should add e-business PESTEL framework described in this thesis to its e-business strategy check. Furthermore MTNN should include environment analysis more extensively in their e-business strategy approach as the factors in this research work shape the environment in which it carries out its business.