The paper "Vodafone Group Strategic Issues and Problems" is a good example of a business case study. Vodafone Group is the leading mobile network provider in the world with its main offices in Newbury, England. It has a global network covering Europe, Asia, Pacific, Middle East and The United States with its goal and mission to be the leading communication company in an increasingly connected world. Apart from the provision of the basic telecommunication services it also offers other services such as Vodafone at home and Vodafone office integration, Vodafone passport enabling which allows the customers to enjoy their home tariff abroad, Vodafone 3G and Vodafone live! .
In the recent past, the company has experienced obscene challenges and issues while its expansion and global reach either in terms of acquisitions, takeovers and regulation is concerned. This report will mainly concentrate on analysis and the strategies the company is undertaking with regard to the global network that will, in turn, determine the operational capabilities. Some of the findings reveal that the Vodafone group public limited company uses acquisition as a point of its growth strategy focusing mainly on using shares for its acquisitions.
‘ This has resulted in emergence from the telecom crisis that it had suffered’ Browning, Jonathan (2012). The company has recorded successful takeovers and triumphantly succeeded in integration thus enhancing its operational capabilities which will help in the creation of new services, technologies and applications. The report also highlights high competition in the European market with major brands like T-mobile and O2 that have built an expansive and strong corporate image in the market. With the indirect competition through internet-based services coupled with European regulatory framework tends to limit the levy for the telecommunication company thus leading to downward price reviews which could directly cut the profit margins of the company. Identification of Strategic Issues and Problems Vodafone acquisition and integration strategy Most companies are aiming to lead globally are constantly revolving strategic alliances so as to pool the scarce resources and enter the market as a block thus eliminating cut-throat competitions.
The company has been involved in major mergers and acquisition so as to conquer in international markets. The strategy involves the use of shares in its acquisitions which has yielded results so far since Vodafone came out of telecom crisis.
To increase the competitive position in a dynamic market merger and acquisition every firm has to focus mainly on corporate strategies. Vodafone merger and acquisition strategy has always embraced a similar pattern each time it entered a new market. During the initial stages, the major players are identified then analyzed on the basis of compatibility in order to be able to take up the service providers in the market. Secondly, the merged company is given a mission to be the challenger company in every market thus the strategic partners operated with a common goal to compete as a challenger.
Through this strategy, Vodafone created a niche of its own that differentiated itself from the immediate telephone company. However, to keep up with the common goal and go through challenges related to cultural alignment the company allows each partner to govern itself and ensure that they work out a structure to compete the existing local companies. According to Zollo and Singh, the acquiring company has to ensure that the merged company must be partially or fully integrated into the structure and the process of the acquiring firm.
On the other hand, Guan argued that comprehending and assessing the partner’ s cultures and sourcing the positive values is far much advantageous to the acquiring firm during integration. ‘ In as much as Vodafone supported their partners’ cultural alignment and operations, it adopted a different strategy of coming up with a whole new identity through branding which totally changed the image of the former firm’ (Guan, Lilia.
Browning, Jonathan (2012). "Vodafone Gets Approval for C&W Bid as Orbis Drops Opposition". Bloomberg L.P. Retrieved 11 December 2012.
Peston, Robert (2013). "Vodafone sells Verizon stake for $130bn". BBC News. Retrieved 2013-09-03
Ray, Bill (2011). "Vodafone turns its back on '360". The Register. Retrieved 28 September 2012
Sonne, Paul (2010). "Vodafone to Sell Back Softbank Interests for $5 Billion". Wall Street Journal. Retrieved 4 August 2013
Kate Holton and Robert Hetz (2014). "Vodafone bids for Spanish cable operator Ono". Reuters.
Guan, Lilia. (2008) Vodafone buys Crazy John's. Itnews.com.au. Retrieved 8 July 2011.
“Vodafone,” Lex column, Financial Times , May 19, 2009
D. Pittman. (2010.) “Vodafone streamlines group structure ,”Mobile News , 9 September
Zollo, M., and Singh, H. (2004), Deliberate learning in corporate acquisitions: Post-acquisition strategies and integration capability.