Mergers, Acquisitions, Alliances and Synergies Case Study

Case Title:

Vodafone's Global Strategy : Paying Price for 'Going for Growth at any Price'?

Abstract:
Vodafone became one of the largest telecommunications operators in the industry by adopting its global strategy. Under the global strategy the company relentlessly acquired stakes in businesses spanning across 27 countries. The strategy bore fruit during the telecom boom in the late 1990s, which witnessed increased consolidation across the world. But the acquisitions made later were questioned as the already acquired stakes across the world proved difficult to manage. Although the new CEO Arun Sarin made acquisitions in emerging markets to offset market saturation in existing markets, a write-off of £28 billion of its overseas assets in February 2006 raised questions regarding the global strategy of the company. The company was expected to make acquisitions diligently to avoid such write-offs in future and also focus on ways to counter the effects of emerging technologies on the revenues of the company.

Pedagogical Objectives:

• To discuss the impact of changing telecommunications landscape on telecom operators
• To discuss the strategy adopted by Vodafone to remain competitive in the telecom industry
• To discuss the effects of those strategies on the revenues of the company
• To discuss the reasons behind the alteration of the company's strategy to remain a formidable player in the telecom industry.

Keywords : Mergers,Acquisitions,Alliances Case Study;Vodafone; Global strategy; Christopher Gent; Arun Sarin; 'Bigger is Better' strategy; 'Mobile-only' strategy; 3G technology; Asset write-offs; Verizon; Softbank; One Vodafone; Mannesmann