Business Case Studies, Going Global & Managing Global Businesses Case Study, Vodafone, Global Strategy

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Case Title:

Vodafone – Rethinking Global Strategy

Publication Year : 2006

Authors: Supriyo Bose, Kumar Satyaki Ray

Industry: Telecommunications

Region:US

Case Code: GGL0052K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Vodafone Group Plc. (Vodafone), the leading mobile telecommunications company, followed a twin strategy of global expansion and offering mobile-only service, to achieve huge economies of scale. However, its strategy failed in two of its important markets – the US and Japan, where it had to adopt the local technology to suit the market demands. Vodafone was left isolated when almost all the telecom operators offered a combined package of fixed & mobile telephony, broadband and television services.

The case, while highlighting Vodafone’s global strategies, discusses their pitfalls and questions their viability in the long run

Pedagogical Objectives:

  • To critically analyse Vodafone’s globalisation strategy vis-ŕ-vis localisation strategy
  • To discuss the potential loopholes in ‘bigger is better’ strategy and the drawbacks of economies of scale
  • To discuss the viability of Vodafone’s ‘mobile-only’ strategy, when majority of the other operators were focusing on bundled offering
  • To understand the changing dynamics of the mobile market and the technology associated with it.

Contents:

  • Introduction
  • Vodafone: a brief profile
  • Twin pillars of Vodafone's strategy
  • Pitfalls of the strategy
  • Rethinking on the strategy

Keywords : Vodafone; Growth Strategies Case Study; Economies of scale; Partner network strategy; One Vodafone; Bigger is better; Arun Sarin; Mobile-only; Verizon wireless; CDMA (code division multiple access); GSM (Global System for Mobile Communications); 3G (third generation); Average revenue per user; O2; W-CDMA (wireless CDMA)

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