Vodafone: Losing Connectivity in Japan?
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Code : COM0069
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Region : Japan
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Vodafone's Entry in Japan In December 2000, Vodafone acquired a 15% stake in Japan Telecom Co., a fixed line telecommunication provider. Vodafone was interested in the Japanese market as Japan's early transition to 3G services made it an excellent testing ground for the feasibility of such services elsewhere in the world. Moreover, Japan had advanced 2.5G technologies that helped to have an easier shift to 3G... Business Blues in Japan Vodafone caused a stir in Japan when it introduced the 'shamail' services in 2002, the only picture and video messaging service available in the Japanese market at that point of time. The fashion conscious Japanese consumers were quick to adopt the new product and Vodafone saw a healthy revenue growth. However, with a continuous decline in the subscriber base from the summer of 2003, the company's market share started declining rapidly... Competitive Plans for the Future In order to regain its position in the industry, Vodafone decided to restructure its management in Japan to rope in a person who had experience about the Japanese market. Shiro Tsuda (Tsuda), the president of Vodafone K.K., was replaced by Bill Morrow (Morrow), the CEO of Vodafone's British operations. Morrow had in-depth knowledge of the Japanesemarket, as he was previously the chief executive of Japan Telecom. Although Tsuda was made the executive chairman of Vodafone K.K., the operational control was left with Morrow... |
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