Microsoft'S Joint Venture Brings Popular Internet Culture To Latin America

Copyright (c) 2009 Christian Fea Have you found a comfortable niche in your industry and region? Are you looking for a way to expand your operations without the necessary capital buildup and potential debt structure required for most business expansion projects? Why not look for a business with a similar industry to yours that is doing well in another regional niche? By combining forces, including technology, customers, subscribers, name branding, and other strengths, you could form a joint venture to capitalize on new markets. Microsoft's Desire to Enter into Latin America Microsoft is the undisputed king of PC and Internet software. What would happen if the software king partnered with the leading telecommunications company in Mexico to bring popular Internet and MSN technology to Central America? The result was T1MSN, a joint venture created by Microsoft and TelMex. As we crossed into the 21st century, Microsoft was looking for a way to expand their online software and Internet presence, known as MSN, into further reaches beyond the United States. Though Microsoft was already known worldwide, they looked at a potential partnership with Telmex, the leading telecommunications company in Mexico. TelMex controlled 10.8 million phone lines and over 5 million wireless customers through the largest fiber optics digital network in three countries. Their services included wireless communication, video broadcasting, data transfer, and Internet access. With such a tremendous communications presence already in Central America, Microsoft had a perfect partner in which to launch a joint venture into Spanish-speaking countries. Microsoft's JV Marketing Proposal Microsoft knew that TelMex had a leading Internet stake already planted in Central America. Rather than trying to build their own Central American presence and delivery system from scratch, Microsoft approached TelMex with a joint venture proposal. The proposal would combine existing TelMex customers and internet delivery systems with quality and popular MSN programming and services in a new company, T1MSN. T1MSN began delivering services in Mexico, offering rich, popular MSN content in Spanish, such as the MSN Internet portal, MSN Messenger, MSN web communities, Hotmail, and other web-based email services. The new company also began creating new web programming and bundled software for its Spanish-speaking subscribers. Part of Microsoft's strategy in forming the joint venture with TelMex is to continue forming partnerships with other Internet providers to over 29 countries in the America's and Europe. Microsoft faced stiff competition in North America from Internet provider rival AOL. In order to continue to compete in the Internet arena, Microsoft needed a strategy to build and provide popular Internet content. They decided the best route to growing their Internet brand was through joint venture partnerships with established communications and Internet companies in other countries. Even Microsoft can't take over the world without a little help. By joining forces with strong companies in other regions Microsoft grew their Internet market presence. If you're ready to begin your business expansion, consider joint ventures. It could be the best strategy for your company to become a national, or even a worldwide, presence in your industry.