...Vodafone India Case Study Katherine A. Gordon MGT 614 Global and Transnational Management Tiffin University June 1, 2014 Vodafone India Case Study Introduction Vodafone Group plc (Vodafone Group) is a British based telecommunications company that has emerged over the years to become the largest revenue earning telecommunications company. In terms of subscribers, it has over 391 million subscribers, second only to China-Mobile. Vodafone Group has been able to grow through a series of strategic decisions that has allowed them to operate their networks in over 30 countries as well as operate partner networks in over 40 countries. In 2007, Vodafone Group entered the Indian market by acquiring 67% of Hutchison Essar, one of India’s largest mobile telecommunications companies, for $11.1 billion. After the time of the acquisition, the company was rebranded which was in accordance with Vodafone Group’s practice. The company was now known as Vodafone Essar. In 2011, Vodafone Group agreed to buy out Essar and purchased their 33% stake in the business for $5.46 billion. This agreement left Vodafone Group owning 75% of the mobile phone business with the remaining shares being held by individual investors. Due to Indian law, a foreign company cannot own more than 74% of a local phone operator therefore; this agreement required Vodafone Group to ensure they were in compliance by either selling 1% of their shares of offering an initial public offering. The company...
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... HUTCHINSON-ESSAR(INDIA) ACQUISITION BY VODAFONE GROUP B Ayan Dutta Avik Mandal Gaurav Saha Nandita Paul Satarupa Pahari PGPIB(03) Globsyn Business School TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 About Hutchinson 1.2 About Vodafone CHAPTER 2: PRESENT SCENARIO OF VODAFONE INDIA CHAPTER 3: VODAFONE-HUTCH ACQUISITION 3.1 Reason Behind Acquiring Hutch 3.2 Was It a Diversifying Strategy 3.3 Why Hutchinson Got Acquired By Vodafone 3.4 Why Target Was Chosen CHAPTER 4: COMPANY PORTFOLIO 4.1 What Is The Business 4.2 Who Are The Customers 4.3 What Are Their Demands 4.4 What Would Be The Possible solution For The Demand 4.5 Who Will Be The Appropriate People To Deliver The Solution . 4.6 Where Do They Get Them CHAPTER 5: ANALYSIS 5.1 Porter s 5 Forces Analysis 5.2 PEST Analysis 5.3 SWOT Analysis 5.4 McKenzie s 7 s Model 5.5 Value Chain CHAPTER 6: FINANCIAL ISSUES CHAPTER 7: HR ISSUES & CHALLENGES FACED 7.1 Work Culture 7.2 Vision 7.3 Past and Present Job Scenarios CHAPTER 8: BIBLIOGRAPHY .. . .. . . .. .. ... .. . .. . .. . .. .. . . ... . . .. .. .. .. ........... . .. Page | 2 CHAPTER 1: INTRODUCTION 1.1 Hutchinson-Essar 1.2 Vodafone Vodafone, based in the UK, was the world's largest mobile communications company by revenue. It operated under the brand name 'Vodafone'. The brand name 'Vodafone' comes from 'Voice data fone', reflecting the company's wish to provide voice and data services on the mobile phones. Vodafone operated in Europe, the Middle East, Africa...
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...Introduction Industry Profile India's telecommunication network is the third largest in the world and the second largest among the emerging economies of Asia on the basis of its customer base and it has one of the lowest tariffs in the world enabled by the hyper-competition in its market. Major sectors of the Indian telecommunication industry are telephony, internet and broadcasting. Today, it is the fastest growing market in the world. The total number of subscribers during July-2012 was recorded to be 679.05 million with an increase from the previous year of 0.25%. The total revenue of the Indian telecom sector grew by 7% to 283,207 crore (US$51.26 billion) for 2010–11 financial year, while revenues from telecom equipment segment stood at 117,039 crore (US$21.18 billion).The telecommunication sector continued to register significant success during the year and has emerged as one of the key sectors responsible for India’s resurgent India’s economic growth. Major sectors of telecommunication industry in India are telephony, internet and broadcasting. The primary regulator of telecommunications in India is the Telecom Regulatory Authority of India (TRAI). The mission of TRAI is to create and nurture an environment which will enable the quick growth of the telecommunication sector in the country. One of the major objective of TRAI is to provide a transparent policy environment. TRAI has regularly issued orders and directions on various subjects like tariff, interconnections...
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...Contents Introduction 1 Role of strategic marketing in an organisation and links between strategic marketing and corporate strategy (1.1 & 1.3) 2 Process of Strategic Marketing and elaborate each stage in the diagram. Give example from your chosen organisation (1.2) 2 Defining Mission 3 Environmental Analysis 3 Formulation of Marketing Objectives 3 Strategy development 3 Evaluation & Implementation 3 Models used in strategic marketing planning and the model used in Vodafone plc (2.1) 4 Strategic Positioning and marketing tactics & the theory practiced in Vodafone group plc (2.2) 5 Merits of relationship marketing and 4P theory in Vodafone with accordance to RM. (2.3) 6 Marketing techniques to ascertain growth opportunities in a market and appropriate strategic marketing objectives for the chosen market (3.1 & 3.3). 7 Porter’s Generic strategy (3.2) 7 Cost Leadership 8 Differentiation 8 Focus 9 Internal analysis (4.1) 9 External environment, SWOT & PESTLE analysis (4.2) 10 SWOT analysis of Vodafone Group plc. 10 PEST analysis of Vodafone group plc 11 Strategic marketing responses to key emerging themes in a marketing strategy (4.3). 12 Conclusion 12 Introduction In this project, the Vodafone Group Plc headquartered at London, UK is considered for analysis. The Vodafone group plc started its journey from the very first call made in UK on 1 Jan, 1985.Now after a long way of 29 successful years; Vodafone group has emerged to be the world’s...
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...entering Japan’s market fit Vodafone’s global strategy? Why did it go to Japan? (35%) The global strategy of a company is its driving force to achieve competitive advantage. As a part of the global strategy, the company should consider its objectives and modes for any entry to foreign markets. The company should find as well which mode is the most suitable to use regarding the circumstance. Talking about Vodafone in particular, innovation and flexibility is company’s main strategies. One of its entry strategies in order to bring new technologies was based on buying licenses to which the company has greatly taken advantage of. To enhance its global strategy Vodafone held acquisitions and strategic alliances that turned the company into a ‘mobile giant’ with a global range. Japan was one more destination on the map of Vodafone’s global expansion. (The Strategic Management Practices of Vodafone and its Significant Impact to their Business Progress, 2009) Japan is considered to be the world’s leading market of mobile phones and services in terms of innovation and size (Emerald, 2004). This advanced level of the market made Japan an attractive option for Vodafone. On the one hand, the effort of expansion in Japanese market could not easily fit Vodafone’s strategy in terms of Japan’s resistance to the power of foreign investors. Vodafone had to take into consideration the background culture and build up trust to the culture of Japanese People. On the other hand, Japan’s market fit Vodafone’s...
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...define their roles 8 2. What resource requirements are needed for the implementation of effective strategy 9 3. Target and timescales required to be monitored and achieved 9 CONCLUSION 10 REFERENCES 10 INTRODUCTION A strategic planning is very important for the success of any organization. It includes vision, mission and creative thinking. In other words, strategic planning provides a positive direction and also draws the measurable goals. In this report we will discuss about the strategic planning process and its role in the success of an organization. After the detailed examination of strategic context, the problematic sections involved in strategic planning are discussed. Finally, the different types of planning techniques in the context of Vodafone have been discussed. (Olsen,2011) TASK 1 PPT attached TASK 2 Vodafone is the world’s second largest telecommunication company which was founded in the year 1991. The company has more than 400 million customers round the globe with its operations extended in around 30 countries. It also provides telecommunications and IT service to its corporate clients in approx 65 countries. The company is committed in delivering useful and inspiring innovations. In an overall view, the Vodafone brands have covered every form of researching and planning, from choosing the best services in the business to providing assistance to its customers in planning their packages. [Source:...
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...Introduction: Strategic analysis of Vodafone Group PLC. The report provides a comprehensive insight into the company, including strategy formulation, strategy planning, and strategy evaluation and selection as well as strategy implementation. This will involve in investigating the organization’s external environment, to identify Opportunities and threats it might face, and its strategic capacity, capabilities to isolate key strengths and weakness. Overview of the Company: A Multi-National Company named Vodafone is one the leading companies in Telecommunication Industry. Vodafone PLC Vodafone is a leading global player in mobile telecommunications. It operates in over 26 countries worldwide. Vodafone has grown rapidly since it was originally formed in 1984. It has responsibilities to its 60,000 staff and 151 million customers and shareholders. Vodafone offers a wide range Products/Services, such as • Voice Services • Social Products • Messaging Services • Vodafone live • Vodafone live! With 3G • USB modems • Vodafone Mobile Connect Data Cards • Roaming Services and Other Business Services Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. Vodafone Business Strategy: Vodafone's current business strategy is to grow through geographic expansion, acquisition of new customers, retention of existing customers and increasing usage...
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...with the topic – “What next for Vodafone? A strategic study of leadership and people performance in a successful organization”, for my report. Here, I will talk about the strategic planning introduced in the Vodafone. A discussion about the company’s mission, vision and goals of the company would be discussed in brief. After that, a SWOT (strength, weaknesses, opportunities and threats) analysis would also be done to have a better understanding of the environment in which the company is working. Then I will highlight the different types of strategies adopted by the company in the long run of its working. A discussion pertaining to the leadership styles being followed in Vodafone organization is discussed after. Vodafone’s strategic position, current strategy, sustainable competitive advantage as compared to the other companies is the next discussion of the topic. (Morden, 2007) Then comes the change management to be discussed about and the types of change management being followed in Vodafone is talked about. How can one find ways to resist those changes is also been thrown light on. Finally, after talking about all these topics, recommendation for the better working of Vodafone is also proposed which can be put into use. I chose this topic with this company because telecommunication is on the booming stage and few important strategies and leadership plays a vital role in the working of any company. VODAFONE Introduction Vodafone is mobile company and runs its business...
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...Introduction This report will explore the strategic analysis of Vodafone Plc which is one of the leading companies in the Telecommunication industry. Besides, the main point of the essay is to illustrate the resources and capabilities of literature and comprehend how Vodafone generates sustainable competitive advantage. Firstly, the theory is important which could support the opinion and develop it. It includes resource-based view and VRIN. Furthermore, using the RBV analyse the resources as core competence helps organization competitive the competitor. Moreover, the VRIN is a way to explain and summary Vodafone how to keep it competitive advantage. Theory Resource-based view (RBV) The resource-based view is a way of viewing the firm approach to strategy formulation. RBV focus on the internal environment rather than the external environment has been viewed as a more secure base for formulating. The RBV emphasizes the internal capability of the organization in formulating strategy to achieve a sustainable competitive advantage in its market and industry. Besides, a bundle of resources and capability may be applied as a core competence to a market opportunity. (Grant and Jordan, 2012) The internal environment also can create a new market for the organization. Valuable, Rare, Inimitable, Non-substitutable (V.R.I.N.) An organization needs a sustainable competitive advantage which cannot be implemented by a competitor and competitor cannot get benefit from it (Wernerfelt...
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...Case #2 – Vodafone AirTouch’s Bid for Mannesmann Mergers and Acquisitions Group 4 Mergers and Acquisitions 1 Executive Summary Mannesmann’s acquisition of Orange page 3 Vodafone’s proposal for the acquisition of Mannesmann page 5 Analysis of the different actors of the deal page 10 May 13th 2013 Mergers and Acquisitions 2 Mannesmann’s acquisition of Orange Companies’ backgrounds • Mannesmann is a German conglomerate created in 1890 and originally specialized steel tubes production. In 1990, it entered the telecommunication industry by creating the first private mobile phone network in Germany. Then, it quickly became one of the European leaders in the sector. • Orange was founded in 1994. At this date, it was the 3rd largest wireless operator in the UK with a 18% market share. It also had interest in Austrian, Swiss and Belgian telecommunication companies. NB : Orange was the last British operator that was not part of an international telecommunication company. Strategic and economic rationale for Mannesmann’s acquisition of Orange? On October 20 1999, Esser (Mannesmann’s CEO) announced Orange’s acquisition. For each Orange share, Mannesmann would pay £6.40 in cash and issue 0.0965 new shares. • Strategic rationale • The best strategy for Mannesmann to enter the UK market was to acquire a company which already had a significant market share. Orange was precisely one of the leader in the UK with the 3rd market share (18%)...
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...Communications. It will provide the background, define the problem, describe end-state goals, identify and analyze an alternative solution based on benchmarking, examine associated risks, provide an optimal solution and implementation plan, and evaluate the results. Situation Background (Step 1) Global Communications (Global), a telecommunications company, is faced with lack of consumer confidence and economic pressure. Senior management has developed an aggressive plan to hit the market with new services and an alliance with a satellite provider. They have also identified cost-cutting measures with hopes of increasing profits. In order for the plan to come to fruition, they will market on an international level with the goal of becoming a truly global resource. Subsequently, this development plan has created several challenges (UniversityElver, 2005). Issue Identification Several challenges or issues have been identified including—but not limited to—globalization and competition, building market share and alliances, reducing and relocating staff, outsourcing technical call centers to Ireland and India, and the lack of communication to Union and stakeholders. The lack of communication to Union and stakeholders regarding this initiative has damaged a strong relationship with Global and the Union. The Union is concerned that many employees will loose their job while Global is concerned with how to tell them. Many of these employees work in technical call centers that...
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...VODAFONE Vodafone is a world leading mobile telecommunications company. Vodafone provides a wide range of communication services, including voice calls, SMS text messaging, MMS picture and video messaging, internet access and other data services. The group has 221 million direct customers including private consumers and corporate customers in diverse markets around the world. Governance Overall responsibility for corporate responsibility (CR)/sustainability lies with Vodafone’s Group Executive Committee (ExCo). The ExCo is chaired by the Chief Executive Officer (CEO) and consists of two CEOs from Vodafone’s operating business units – Europe and Emerging Markets (Asia-Pacific, America, Eastern Europe and Africa), as well as the Group Corporate Affairs Director, CFO, Chief Technology Director, Group Strategy and New Business Director, Group General Counsel and Corporate Secretary, Chief Executive of Global Business Development, Chief Marketing Officer and Group HR Director. CR performance is regularly discussed at ExCo and once a year at Vodafone's main Board. The Group Corporate Affairs Director is the ExCo member with responsibility for CR, and Vodafone’s Group Corporate Responsibility Director reports to the Group Corporate Affairs Director, as well as leading the Group CR team. The Group CR team works with local operating companies and Group operational functions to develop policies on CR issues. Additional Group resources are also dedicated to key issues, such as radio frequency...
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...INTERNATIONAL STRATEGY OF THE VODAFONE GROUP PLC Contents page 1. Introduction 2.Company Background 3.Evaluation of the internal and external environment of the company 4.Analyse the motivation of the company for international expansion 5.Analyze the reasons for operating in a particular region or country 6.Evaluate its market entry strategy in a particularly region or a country 7.Conclusion/recommendation 8.Bibliography 9.Appendix 1. Introduction The aim of this report is to research into the Vodafone group and their entry into the Indian Market. The research was carried out of Vodafone’s history, their existing market strategy, the internal environment of the company and external environment of their home market. Also it has been explained what Vodafone international strategy is and why there is such interest in the emerging market. It is also focused on the reasons that Vodafone chose to enter the India market and why the mode of entry they used was chose a joint venture rather than starting moving to a new country using their existing UK strategy. The following theories and analysis has been used; • Porter five forces • Prahalad and Hamel’s core competencies • SWOT analysis • PEST analysis The sources used to carry out this research include secondary information which is the Vodafone’s annual report, internet resources and also the course Textbook. It then concludes into what kind of problems Vodafone may face, whether they...
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...HOLD VODAFONE UK – Market price at 10/30/2015 closing price: 214.25￡ YAO JIACHEN, LI MINQIAN, PENG XIANGYU & HO YUENMING – 10/30/2015 Activities Vodafone is a British multinational telecommunications company Sector headquartered in London and one of the most valuable telecoms brands in the world. Vodafone owns and operates networks in 21 Wireless communication 52wk range(GBP) 201.25--258.00 Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in over 65 countries. Vodafone has a primary YTD RETURN -3.77% listing on the London Stock Exchange and is a constituent of the FTSE 100 Analyst consensus HOLD countries and has partner networks in over 40 additional countries. Its Index. It also has a secondary listing on NASDAQ. Vodafone was founded in 1984. The evolution of 'Vodafone' started in Accounting and market information 1982 with the establishment of the 'Racal Strategic Radio Ltd' subsidiary of Racal Electronics plc – UK's largest maker of military radio technology, which formed a joint venture with Millicom called 'Racal', which evolved into the present day Vodafone. In 30 years, a small mobile operator in Newbury has grown into a global business and one of the most valuable telecoms brands in the world. It now has mobile operations in 27 countries and partner with mobile networks in 48 more. Today, Vodafone have 434 million mobile customers around the world. ...
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...shares to an acquiring company. Merger is a technique of business growth. It is not treated as a business combination. Merger is done on a permanent basis. Generally, it is done between two companies. However, it can also be done among more than two companies. During merger, an acquiring company and acquired companies come together to decide and execute a merger agreement between them. After merger, acquiring company survives whereas acquired companies do not survive anymore, and they cease (stop) to exist. Merger does not result in the formation of a new company. The management of acquiring company continues to lead (direct) the merger. EXAMPLE OF MERGER In the example, Company 'A' and Company 'B' are operating (existing) in the market. Company 'A' is an acquiring company, and Company 'B'...
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