In 2010, France Telecom saw fierce competition with other major European telecommunications companies as well as by French Telecom. The industry was rapidly changing and France Telecom found itself in competition with content providers, Internet giants and device manufacturers’ companies have moved in telecom, creating a “pressure cooker” for telecommunications. In response, France Telecom has been offering content such as movies and games, as well as the development of new areas such as eHealth and online advertising … Read more »

In 2010, France Telecom saw fierce competition with other major European telecommunications companies as well as by French Telecom. The industry was rapidly changing and France Telecom found itself in competition with content providers, Internet giants and device manufacturers’ companies have moved in telecom, creating a “pressure cooker” for telecommunications. In response, France Telecom has been offering content such as movies and games, as well as the development of new areas such as eHealth and online advertising. France Telecom wanted to with its European rivals, who grows both organically and through mergers, acquisitions and joint ventures were to hold. However, France Telecom had, carefully, as it is almost gone bankrupt seven or eight years earlier. Because of the debt from international acquisitions in Europe in 1999 and 2000 Still, it was widely used in Europe to feel that consolidation among telecommunications companies was necessary, and France Telecom entered joint ventures in the UK and Switzerland to expand its presence. France Telecom has also been expanding in emerging markets, particularly in Africa, brought to the higher gross margin but also saw occasional political instability. France Telecom had an additional challenge that a large majority of France Telecom employees and officials could not be dismissed or made redundant therefore. Moreover, the environment for the employees was increasingly stressful and competitive, and people were often used repeatedly to find suitable jobs for them within the company. In fact, France Telecom faced a crisis: Between early 2008 and early 2010, more than 40 France Telecom employees took their own lives. The case also a transition from CEO Didier Lombard (2005-2010) to Stephane Richard.
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from
Robert A. Burgelman,
Debra Schifrin
Source: Stanford Graduate School of Business
41 pages.
Release date: 01 June 2010. Prod #: SM186-PDF-ENG
France Telecom in 2010 HBR case solution

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