Category Archives: Global Marketing

Africa’s Mobile Commerce Segments

M-Pesa Kiosk An article posted earlier this week acknowledges Africa as the global leader in the adoption of mobile commerce (m-commerce). Published on 9 November 2011 “Africa Leads World in Mobile Commerce” highlights the rapid diffusion and adoption of m-commerce, in general, and mobile payments systems, in particular, within the continent.

This article reinforces something that my colleagues and I have known for a while. Africa is using mobile technology to leapfrog the older, more capital intensive, communications infrastructures in use in developed countries. In a recent publication, Dr. Godwin Ariguzo (@ariguzo) and I develop segments for the diffusion of mobile commerce in Africa. With data obtained from the International Telecommunications Union (ITU)  and the 2011 CIA World Fact Book,  we use model-based cluster analysis to identify groupings of countries who are similar given three variables related to m-commerce: Internet Users per 100 People (IUP100 from ITU), Mobile Cellphones per 100 People (MCP100 from ITU) and Gross Domestic Product per Capita (GDPC from CIA World Fact Book).

The first two variables serve as surrogate indicators for the adoption of new(er) communications technologies within a country and the potential for accessing the Internet via mobile phones. The third variable, gross domestic product per capita (GDPC), is used as a surrogate indicator for the standard of living within the country. Not without its critics (and rightfully so, in our opinion), GDPC remains one of the most widely used indicators of the level of development an economy has achieved. Complete 2009 year-end data (data for all three variables investigated) is available for African 53 countries.

The results of the model-based cluster analysis suggest that three distinct m-commerce segments exist within Africa. The number of countries within each segments ranges from 15 to 21 (15, 17 and 21). Countries included in the three segments, along with the average segment scores for each variable investigated, are presented below.

African Mobile Commerce Segements and Segment Means

Based on the results, we propose that the 15 countries in the third segment offer the best opportunity for the roll-out of m-commerce within the African continent. Interestingly, the four North African countries (Algeria, Egypt, Libya and Tunisia) at the center of the political revolution in the Middle East and North Africa are contained within this cluster. The impact of mobile phones and mobile phone technologies in fostering and fueling these revolutions is well established.

The graph below presents the segments in three-dimensional space. Clearly, the three segments are distinct with little overlap. Just as interesting, the graphical presentation allows one to view the impact that each variable has in determining segment membership.

African Mobile Commerce Segements in Three Dimensional Space

In summary, those seeking to launch m-commerce endeavors in Africa should consider implementing them in the third segment (15 countries) first, followed by the first segment (17 countries) and then segment two (21 countries). The full article is available for download from the Social Science Research Network (SSRN).

Africa is a leader in the adoption and implementation of m-commerce. How long will it take for the rest of the world to catch up?

Citation:

Ariguzo, Godwin C. and D. Steven White (2011), “Africa’s Mobile Commerce Segments: A Model-Based Cluster Analysis”, Review of Business Research, Vol. 11, No. 4, pp. 38-44.

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The Top 175 Global Economic Entities, 2010

GlobalEconomicFinancialLinkagesRecently, Fortune Magazine published its list of the Global 500. Based on the popularity of last year’s blog post, I’ve decided to update the Top 175 Global Economic Entities annually. Using 2010 data, the list below includes the world’s largest economic entities as measured by Gross Domestic Product (Source: World Bank, 1 July 2011) and Total Revenue (Source: Fortune Magazine, 25 July 2011).

Rank Entity $US Millions
1 United States $14,582,400
2 Eurozone $12,174,523
3 China $5,878,629
4 Japan $5,497,813
5 Germany $3,309,669
6 France $2,560,002
7 United Kingdom $2,246,079
8 Brazil $2,087,890
9 Italy $2,051,412
10 India $1,729,010
11 Canada $1,574,052
12 Russia $1,479,819
13 Spain $1,407,405
14 Mexico $1,039,662
15 South Korea $1,014,483
16 Australia $924,843
17 Netherlands $783,413
18 Turkey $735,264
19 Indonesia $706,558
20 Switzerland $523,772
21 Poland $468,585
22 Belgium $467,472
23 Sweden $458,004
24 Wal-Mart Stores $421,849
25 Norway $414,462
26 Venezuela $387,852
27 Royal Dutch Shell $378,152
28 Austria $376,162
29 Saudi Arabia $375,766
30 Argentina $368,712
31 South Africa $363,704
32 Exxon Mobile $354,674
33 Iran $331,015
34 Thailand $318,847
35 Denmark $310,405
36 British Petroleum $308,928
37 Greece $304,865
38 Columbia $288,189
39 Sinopec Group $273,422
40 China National Petroleum $240,192
41 Finland $238,801
42 Malaysia $237,804
43 United Arab Emirates $230,252
44 Portugal $228,538
45 State Grid $226,294
46 Hong Kong $224,458
47 Singapore $222,699
48 Toyota Motor $221,760
49 Egypt $218,912
50 Israel $217,334
51 Japan Post Holdings $203,958
52 Ireland $203,892
53 Chile $203,443
54 Philippines $199,589
55 Chevron $196,337
56 Nigeria $193,669
57 Czech Republic $192,152
58 Total $186,055
59 ConocoPhillips $184,966
60 Pakistan $174,799
61 Volkswagen $168,041
62 AXA $162,236
63 Romania $161,624
64 Algeria $159,426
65 Peru $153,845
66 Fannie Mae $153,825
67 General Electric $151,628
68 Kuwait $148,024
69 ING Group $147,052
70 Glencore International $144,978
71 Kazakhstan $142,987
72 Ukraine $137,929
73 Berkshire Hathaway $136,185
74 General Motors $135,185
75 Bank of America Corporation $134,194
76 Samsung Electronics $133,781
77 ENI $131,756
78 Hungary $130,419
79 Daimler $129,481
80 Ford Motor $128,954
81 BNP Paribus $128,726
82 Allianz $127,379
83 New Zealand $126,679
84 Hewlett-Packard $126,033
85 E.ON $125,064
86 AT&T $124,629
87 Nippon Telegraph & Telephone $120,316
88 Carrefour $120,297
89 Assicurazioni Generali $120,234
90 Petrobrás $120,052
91 Gazprom $118,657
92 J.P. Morgan Chase & Co. $115,475
93 McKesson $112,084
94 GDF Suez $111,888
95 Citigroup $111,055
96 Hitachi $108,766
97 Verizon Communications $106,565
98 Nestlé $105,267
99 Crédit Agricole $105,003
100 American International Group $104,417
101 Honda Motor $104,342
102 Vietnam $103,572
103 HSBC Holdings $102,680
104 Siemens $102,657
105 Nissan Motor $102,430
106 Pemex $101,506
107 Panasonic $101,491
108 Banco Santander $100,350
109 Bangladesh $100,076
110 International Business Machine $99,870
111 Cardinal Health $98,602
112 Freddie Mac $98,368
113 Qatar $98,313
114 Hyundai Motor $97,408
115 Enel $97,185
116 CVS Caremark $96,413
117 JX Holdings $95,964
118 Lloyds Banking Group $95,682
119 Hon Hai Precision Industry $95,191
120 Tesco $94,185
121 UnitedHealth Group $94,155
122 Wells Fargo $93,249
123 Morocco $91,196
124 Aviva $90,211
126 Metro $89,081
125 Slovakia $89,034
127 PDVSA $88,361
128 Statoil $87,646
129 Électricité de France $86,309
130 Lukoil $86,078
131 Valero Energy $86,034
132 BASF $84,597
133 Angola $84,391
134 Société Générale $84,350
135 Sony $83,845
136 ArcelorMittal $83,443
137 Deutsche Telekom $82,674
138 Kroger $82,189
139 Iraq $82,150
140 Telefónica $80,444
141 BMW $80,099
142 Procter & Gamble $79,689
143 Nippon Life Insurance $78,571
144 SK Holdings $78,435
145 EXOR Group $78,123
146 AmerisourceBergen $77,954
147 Costco Wholesale $77,946
148 Petronas $76,876
149 China Mobile Communications $76,673
150 Munich Re Group $76,220
151 Toshiba $74,706
152 Peugeot $74,251
153 Prudential $73,598
154 Vodafone $71,344
155 Deutsche Post $71,121
156 Repsol YPF $70,456
157 China Railway Group $69,973
158 Dexia Group $69,491
159 Groupe BPCE $69,297
160 Indian Oil $68,837
161 Marathon Oil $68,413
162 Royal Bank of Scotland $68,088
163 Home Depot $67,997
164 Zurich Financial Services $67,850
165 Pfizer $67,809
166 Walgreen $67,420
167 China Railway Construction $67,414
168 Target $67,390
169 RWE $67,179
170 China Construction Bank $67,081
171 U.S. Postal Service $67,052
172 Medico Health Solutions $65,968
173 Apple $65,225
174 Aegon $65,136
175 China Life Insurance $64,635

Eight of the top 50 economic entities are multinational corporations (16 percent). In the second tier of 50, 36 are corporations (72 percent) and in the third tier of 50, 86 percent are corporations (43). In total 64 percent (112) of the top 175 economic entities are corporations. Not listed are 130+ countries with levels of gross domestic product (GDP) lower than Iraq’s. The total revenue of Wal-Mart (24th on the list) is 1.94 times larger than the GDP of Israel (50th on the list) and 5.135 times larger than the GDP of Iraq (139th on the list). Noticeably, there are more corporations and fewer countries on the list this year. How will it change over the next twelve months?

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New England in Fortune’s 100 Best Companies to Work For

CapeCod by laura padgettThe recent edition of Fortune Magazine (07 February) identifies the 100 Best Companies to Work For. Living in New England, it was easy to assume that the majority of firms identified were going to be local firms. For without question, we’re the best at innovation, entrepreneurship, creativity, information technology and marketing – just ask us!

The reality of the situation paints a less than optimistic picture for our region. Of the 100 Best Companies to Work For, only eight are located in New England.

New England in the Fortune Top 100 Best Comanpies to Work ForThree are in the top 50 (Boston Consulting Group, Stew Leonard’s and Bingham McCutchen). Congratulations to the Boston Consulting Group for being ranked second nationally. You really are our cash cow. Stew Leonard’s climbed the most over its 2010 ranking and Bingham McCutchen dropped the most. Four are from Massachusetts, two from Rhode Island and two from Connecticut. Missing are companies from New Hampshire, Vermont and Maine.

The eight New England companies identified employ a total of 26,488 people and have a total annual growth rate of -1 percent. Certainly we can do better. Check that – our long term sustainable economic viability requires that we do better. Make your company fun, rewarding and exciting to work for today. The next list comes out in 11 months. The time has come (to borrow an extreme sports cliche) to go big or go home.

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