5. Business operations/practices, challenges that they have faced over time
Business operations/practices
Naspers is a multinational global platform operator. It has three principal operations namely internet services (which focus on e-commerce), print media and pay-tv. The company is spread globally across Africa, Middle East, Eastern and Central Europe, Russia, South East Asia and China. It has minority interests in two integrated and listed social network platforms i.e. Mail.ru from Russia and Tencent from China.
1. Internet
Their internet service is focused primarily on e-commerce but they also offer a full range of internet based services including communication, social networking, mobile value added services and entertainment. Since e-commerce is expected to grow to become the largest segment of the …show more content…
It is trying to figure out how to beat Netflix by using its Show max service launched in the month of august 2015. While Netflix is planning on moving into 200 countries Naspers has to develop a strategy to compete with them. ShowMax is predicted to be unprofitable until at least 2017. Also growth of video on demand is limited in Africa due to their fixed line infrastructure where wireless data streaming is too expensive for streaming data. So providing data cheaply is also a challenge for them.
Naspers investment in Tencent might be damaging its image. Naspers appears as a company which is an example of media freedom. On the other hand Tencent is co-operative to the Chinese government’s censorship and propaganda strategy. People are afraid that given the importance of Tencent to Naspers it is not long before it gives information of its people to the Chinese. Since it has been a company which has flourished in its relationship with governments like under Apartheid Naspers faces the challenge that a negative image is not attached to it.
Business operations/practices
Naspers is a multinational global platform operator. It has three principal operations namely internet services (which focus on e-commerce), print media and pay-tv. The company is spread globally across Africa, Middle East, Eastern and Central Europe, Russia, South East Asia and China. It has minority interests in two integrated and listed social network platforms i.e. Mail.ru from Russia and Tencent from China.
1. Internet
Their internet service is focused primarily on e-commerce but they also offer a full range of internet based services including communication, social networking, mobile value added services and entertainment. Since e-commerce is expected to grow to become the largest segment of the …show more content…
It is trying to figure out how to beat Netflix by using its Show max service launched in the month of august 2015. While Netflix is planning on moving into 200 countries Naspers has to develop a strategy to compete with them. ShowMax is predicted to be unprofitable until at least 2017. Also growth of video on demand is limited in Africa due to their fixed line infrastructure where wireless data streaming is too expensive for streaming data. So providing data cheaply is also a challenge for them.
Naspers investment in Tencent might be damaging its image. Naspers appears as a company which is an example of media freedom. On the other hand Tencent is co-operative to the Chinese government’s censorship and propaganda strategy. People are afraid that given the importance of Tencent to Naspers it is not long before it gives information of its people to the Chinese. Since it has been a company which has flourished in its relationship with governments like under Apartheid Naspers faces the challenge that a negative image is not attached to it.