Rethinking Growth - Why Telecoms Are Turning to Emerging Markets

This thesis explores how emerging markets are actively reshaping the global strategies of major telecommunications companies. It focuses on two key players, Vodafone and Orange, and examines how these firms respond to the unique challenges and growth opportunities presented by markets such as India, Kenya, Egypt, and Côte d'Ivoire. The study looks specifically at two strategic mechanisms: consumer-driven and competition-driven adaptations. By analyzing strategic reports and applying qualitative content analysis, the thesis investigates how localized pressures in emerging regions are driving transformation in the global telecom landscape.

Context
The context of this research lies in the shifting dynamics of the global telecommunications industry. While traditional markets in Western Europe and North America are stagnating due to market saturation and slowing subscriber growth, emerging markets (EMs) in Africa, Asia, and Latin America are witnessing a surge in digital connectivity and mobile adoption. These regions are becoming increasingly important for telecom companies, not only for their growth potential but also as laboratories for innovation, such as mobile banking and digital-first infrastructure.

Vodafone and Orange, two of the world’s leading telecom firms, have each made significant strategic investments in EMs. Yet these markets come with complex regulatory frameworks, price-sensitive consumer bases, and strong local competition. The resulting need for adaptive strategies makes EMs both high-potential and high-risk environments that demand careful strategic calibration.

Goal
The primary goal of this thesis is to examine how and why emerging markets influence global strategic decision-making among telecom operators. Specifically, the study addresses the question:

Have emerging markets reshaped the global strategies of leading telecom companies, and if so, how?

To answer this, the thesis sets out the following tasks:

• Identify the most prominent strategic challenges in EMs, including infrastructure gaps, regulatory barriers, and pricing constraints.
• Investigate how Vodafone and Orange respond to these conditions through either consumer-driven or competition-driven strategies.
• Compare strategic behavior across four specific EMs: India, Kenya, Egypt, and Côte d'Ivoire.
• Interpret whether these adaptations represent isolated tactical responses or broader shifts in global strategy.

Methods
The research employs a qualitative content analysis (QCA) of 85 public strategic documents released by Vodafone and Orange between 2020 and 2024. These include annual reports, sustainability disclosures, investor presentations, and ESG statements. The documents were coded and analyzed using MAXQDA software.

Two main coding categories guided the analysis:

• Consumer-driven strategy changes: Actions focused on responding to local consumer needs e.g., mobile banking, rural connectivity, micro-payment systems.
• Competition-driven strategy changes: Responses to pricing pressure, local market entrants, regulatory shifts, and consolidation moves.

This dual coding structure allowed for a systematic comparison of strategic adaptations across regions and companies, grounded in the theoretical frameworks of Porter’s Five Forces, the Integration-Responsiveness (IR) Framework, and Bottom of the Pyramid (BoP) Theory.

Results
The analysis revealed distinct strategic patterns between Vodafone and Orange. Vodafone’s actions were largely competition-driven, especially in India, where intense price wars and aggressive moves by Reliance Jio prompted defensive mergers and infrastructure collaborations. In contrast, Vodafone’s operations in Kenya and Egypt reflected a more consumer-oriented approach, building on its M-Pesa platform to drive digital financial inclusion.

Orange, by comparison, followed a consistently consumer-first strategy across all emerging markets examined. The company focused heavily on rural access, financial inclusion, and local service customization, most notably through the expansion of Orange Money across West Africa. Rather than reacting to competitive threats, Orange emphasized long-term user engagement and community-level trust-building.

Overall, the results suggest that emerging markets do not merely require minor adjustments from global telecoms, they demand entirely new strategic frameworks. The contrast between Vodafone’s market-defense tactics and Orange’s localized innovation reflects broader industry trends where success increasingly hinges on the ability to adapt, co-create, and embed within local digital ecosystems.