.

Monday, May 6, 2019

Vodafone international strategic development Essay

Vodaf unitary international strategic development - see ExampleThe initial acquisition activate of the community was a merger with AirTouch Communications Inc. of the United States in a $61 million kettle of fish. The company briefly renamed itself as Vodafone AirTouch in a gradual move towards aligning AirTouch to its global schema (Johannes and Ashok, 2009, P.263). The companys conglutination American branch was integrated into a new entity branded Verizon Wireless together with Bell Atlantics mobile business with the company retaining 45% stake in the new venture. Verizon wireless was the largest mobile phone operator in the North American market with 36 million customers and 24% market share in 2003. The targeting of large firms is in nisus with literature that suggests that large crustal plate acquisitions provide potential scale economies and are expected to travel by small scale acquisitions (Risberg, 1999, P.76). The targeting of large firms is also observed in the a cquisition of Mannesmann in a deal that helped it own D2 mobile phone business, which was the private market leader in Germany. This deal made Vodafone one of the 10 largest companies in the world helping it achieve scale and scope economies (Johannes and Ashok, 2009, P.264). ... was a good strategy as mobile companies shared some similarities with Vodafone in capabilities and were likely to exhibit some level of homogeneousness with its structure. Such acquisitions also helped Vodafone secure a platform for acquiring the existing business position (Risberg, 1999, P.82). distant its competitors, the company used shares for its acquisitions. This strategy helped the company emerge from the telecom crisis relatively early so that it could tighten on growth while virtually all of its competitors were preoccupied with debt reduction (Johannes and Ashok, 2009, P.264). The company had acquired other businesses on with the mobile phone business as was the case of Japan Telecom and Mann esmann where it owned fixed depict operations. Vodafone had an explicit desire to concentrate on its core business of mobile telecommunications, and this made it look for slipway to dispose of the other non-core businesses. Vodafone insisted that it was mobile focused and intended to stick to that strategy in all of its acquisitions and subsidiaries. The dialect on only retaining those operations in the acquired firm that were core to its expansion strategy is in line with literature that suggests that strategic fit is important in creating shareholder value (Risberg, 1999, P.81). Vodafones strategy was to affix revenue growth and margin improvement by providing enhanced services to its customer base. This principle had threesome tenets. The company would increase voice and data revenues through increased marketing focus on its effected high-quality customer base. It intended to extend its operational leadership of the mobile industry through maximizing the benefits of scale an d scope by using partner network agreements, increasing equity investments in firms where

No comments:

Post a Comment