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An executive summary for managers and executive readers can be found at the end of this article
Keywords Global marketing, Wireless technology, Telecommunications industry, Business expansion scheme
Abstract This illustrative case discusses and evaluates Vodafone Group and its overseas expansion and diversification in global business. Vodafone is a UK-based company that was established after a spin-off from Racal Electronics Group in 1982. The primary objective of this case is to examine Vodafone's changing focus and international expansion in the world wireless industry. The case intends to look at Vodafone's future expansion, growth and global strategies within the concept of internationalization and competitive advantage issues.
Introduction
This illustrative case discusses Vodafone Group[1] (hereafter called Vodafone) and its overseas acquisitions, market expansion, and global strategies in the wireless and mobile phone industry. In the last six years, Vodafone has transformed itself from virtually an unknown small UK-based company into a multinational enterprise (MNE). In 2002, Vodafone was the largest wireless operator with 93 million subscribers and the company's operations had reached over 29 countries in every continent in the world (see Table I). The main purpose of this case is to examine Vodafone's global expansion in the European, North American, and Asian markets. Vodafone was established after a spin-off from a UK-based company, Racal Electronics Group in 1985 (see Table 1I). The company is composed of five regions, i.e. Northern Europe and MEA, Central Europe, Southern Europe, Americas and Asia Pacific. Vodafone has established itself as the main wireless/mobile phone operator in the world and is highly competitive in its markets. It is also known for its high-profile acquisitions and alliances/joint ventures such as Orange (UK), AirTouch (USA), Verizon (USA), and above all, its hostile takeover of Germany's Mannesmann. Vodafone's wireless technology is one of the fastest growing products worldwide. The company's main products and services include network business, distribution business, retail shops, data services business, SMS (Short Message Service), multi-media portal, third generation (3G) licenses, cellular/PCS operations and satellite services (Vodafone Group, 2000).
Like NTT DoCoMo from Japan (Anwar, 2002), Vodafone offers one of the best technologies in the wireless industry that helps consumers to download data and other information as well[2]. Vodafone's success can be judged from the fact that in 2000, it...