Product details

Mobile satellite services, an industry which incurred huge initial investment costs and required a critical mass of users to break even, had emerged as a niche market with little evidence for large-scale growth. In 1997, Thuraya Satellite Telecomunications was established with a unique business model - instead of launching many satellites to provide global services, Thuraya, employing a more advanced technology, launched one high-quality satellite to provide regional services as a start to ensure early break-even. In addition, as opposed to competing against fixed-line and cellular services, the company chose to complement with these services. By September 2005, with a solid financial base and an impressive business performance, the company was considering its next growth options: (1) focus on increasing utilization; (2) expand services in Asia and establish an international image; and (3) develop multimedia. This case poses a question of how to further grow the company. Are they ready for a quantum leap? Which option(s) make sense? In which order and how should these options be implemented? And how to fund the growth? This case is designed to provide a thorough discussion of how companies can best drive growth. It explores growth via exploiting geographic competencies, growth by building on core competencies, and growth by product / market diversification. It also provides a vehicle for discussing the challenges of managing global expansion and rapidly changing technology in a non-traditional setting.