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Growth Strategies Case Study
Case Title:
Vodafone – Rethinking Global Strategy
Publication Year : 2006
Authors: Supriyo Bose, Kumar Satyaki Ray
Industry: Wireless network operators
Region: US
Case Code: GRS0222K
Teaching Note: Not Available
Structured Assignment: Not Available
OR
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-à-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.
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)
Contents :
Introduction
Vodafone: A Brief Profile
Twin Pillars Of Vodafone’s Strategy
Pitfalls Of The Strategy
Rethinking On The Strategy
