The current target of Vodaphone is to be one of the world top five brands in the telecommunication industry. However, to achieve this target, the company has aggressively been expanding its global presence via dual branding process with some other companies all over the world by which the Vodaphone Group maintains interests. Vodaphone is a leading telecommunications company (Kim, Lee and Kim 2009). The company considered the manner in which it would follow its twin strategy of global expansion as well as offering the mobile only services with an aim of achieving enormous economies of scale (Grant 2013). Despite the aggressive move toward the strategies, the company strategy failed in some of the most significant markets (the US and Japan) where it adopted local technology aimed to suit the market demands. This caused Vodaphone to remain isolated while all other telecommunication companies were still offering combined packages of mobile and fixed telephony, television and broadband services (Kim, Lee and Kim 2009).

This paper will explore Vodaphone global expansion strategies; pitfalls while recommending the viability toward long run.

Didactic Objectives

  • To take critical analysis of Vodaphone globalization strategies vis-a-vis the localization strategy (Grant 2013).
  • To address potential loopholes in the company ‘bigger is better” strategy and the pitfalls of the economies of scale
  • To explore the feasibility of the company “mobile-only” strategy while many of the operators who focused on bundled offer
  • To have an understanding of the change in the dynamic of the mobile market as well as the technology related to it (Kim, Lee and Kim 2009).

Strategic Issues and Problem

According to analysis, it has been revealed that Vodaphone used the acquisition as the growth strategy. Mainly, the company use shares for the acquisitions and this was the cause of telecom crisis (Grant 2013). However, Vodaphone has been able to record a successful takeovers as well as victorious integration strategy that have achieved the operational capabilities that would aid in development of new services, applications and technologies (Kim, Lee and Kim 2009). According to research, it has been revealed that, there is high level of competition that is available within the European market. Some of the major brands in the industry such as T-Mobile and O2 have been the major competitors of Vodaphone with capacity of building robust and sturdy corporate image within the market (Kim, Lee and Kim 2009). As well, there is increased competition level of indirect competition related with the internet based services. Such issues together with the European regulation measures have predictable aspect of further limiting the provision of services related to the network providers who impose price cuts, having possibilities of harming the profitability of the company (Al-Kaabi, Demirbag and Tatoglu 2010).

It is factual that, Vodaphone possess quality skills essential for acquisition of companies and capacity to integrate them to the operations (Grant 2013). Vodaphone has been allowing for self-governance aspect to the strategic partners and make sure that they have been able to work under the matrix structure and possess capacity of competing with the locals (Al-Kaabi, Demirbag and Tatoglu 2010). However, Vodaphone Group has been able to establish a global presence with a unique and differentiate corporate image whereby it has targeted promotion of Vodaphone lifestyle while stilly enjoying the differentiation advantages and capacity to lead the competition (Grant 2013). Generally, Vodaphone has invested large amount of capital within the cellular data networks that do allow the customers to use data (internet on the phone). However, the company has been facing problems within the aspect of handset that have Wi-Fi capacity allowing the users to go to the web using the wireless LAN hotspots hence exposing the investments within the current business model be valueless electronic wisp (Al-Kaabi, Demirbag and Tatoglu 2010).

Recommendations that have been are such as:

  • Consider cost reduction process with increased revenue for the developed markets
  • Develop new products (goods and services in general)
  • Expand to the developing markets
  • Sell businesses that are making losses

Analysis and Evaluation

Vodaphone is a leading telecommunication company. It has remarkable presence in Europe, Middle East, the United States and Asia Pacific. The company takes its presence through company subordinates, strategic partnerships, investment and allied undertakings (Grant 2013). The fact is that, the company mobile subsidiaries have been operating under the brand name of “Vodaphone” (Al-Kaabi, Demirbag and Tatoglu 2010).  Basically, in the United States, the company has been connected with undertakings to operate as VERIZON Wireless. Within the last few years, the company set agreements with network operators in the states where it does not have any equity stakes (Kim, Lee and Kim 2009). Having such Partner Market Agreements has facilitated the Group as well as the partners to collaboratively participate in development and marketing of the global products and services with diverging level of brand image practice. The company has focus of various strategic goals such as ultimate customer satisfaction, efficient ways of managing the company debts to equity ratios, efficient global team management and process to expand to the emerging markets (Al-Kaabi, Demirbag and Tatoglu 2010).

As a company that aim to be the global leader, it as aggressively been revolving around strategic alliance process since there has been no enough resource worth to meet the prosperity. Vodaphone has been involved in various mergers and acquisition with an aim of leading various national markets (Grant 2013). The company has been using the process of mergers and acquisition as part of its growth strategy. Mainly, the company has used share for the acquisitions which has caused Vodaphone to surface from the telecom crisis (Al-Kaabi, Demirbag and Tatoglu 2010). To achieve competitive positioning process within the ever changing merger and acquisition, there is the need to be ingrained with corporate strategies. In general, the company merger and acquisition strategy used to follow similar pattern all time they considered entering a new market (Kim, Lee and Kim 2009). Firstly, the company had to identify the major players within the market with analysis of whether the players were compatible to be able to challenge the service providers within distinct local markets or not. The other step, was giving of mission to the merged company and be a “challenger company” within each national market. In general, the strategic partners were capable of cooperating with united goals of competing as a challenger (Al-Kaabi, Demirbag and Tatoglu 2010).

Through such process, Vodaphone Company was capable of differentiating itself from other conventional telecommunication company. Furthermore, capacity to sustain common goal and overcoming obstacles that are connected to cultural alignment where the company allowed self-governance to the strategic partners and ensured that they worked on matrix structure and compete with the locals (Kim, Lee and Kim 2009). According to commentator argument, they set about tat, to acquire a company one must make sure that the merged firms are partially or fully integrated with the structure and process of acquiring firm (Al-Kaabi, Demirbag and Tatoglu 2010). As well, they commented that to understand and assess the partner cultural values, process of sourcing and capabilities are to be equally important while integrating with the acquired company. However, Vodaphone used to support the strategic partners in relation to the cultural alignment as well as operations whereby the company had to pursue diversified strategies related to branding and crafting process of identity (Kim, Lee and Kim 2009). Actually, the branding decision used to depend upon various factors such as influential powers associated with the local brand, culture and most significantly the compatibility process of the operating structure for the acquired company. Vodaphone used to add its name with the company being acquired (Al-Kaabi, Demirbag and Tatoglu 2010).

Under the process of operational capabilities, Vodaphone used to support the products and services within the service innovation strategy. The process comprises the following key areas:

  • Market penetration plan: this relates to selection of the apt market segments as well as development of the relevant products suitable for the market
  • Market segment management: this relates with the selection of the target clients with an aim of maximizing the rate of returns as well as enhancement of profitability levels (Al-Kaabi, Demirbag and Tatoglu 2010).
  • System development plan: development of system that has capacity of facilitating effective and efficient process that would leverage development of investments
  • Product development plan: relates with the product development life cycle ranging from the concept to services incorporating people, technology and processes (Grant 2013).
  • Alliance management plan: relates to way in which organization facilities may be structured with requirements of utilizing the physical and the intellectual assets of the other players to achieve multiple gains (Grant 2013).

Generally, the company capacity inhabit management for successful accomplishment of the acquisition while still considering maintenance of effective, low cost, organization structure and capacity of research and development toward facilitation of pioneer technologies (Al-Kaabi, Demirbag and Tatoglu 2010). Vodaphone has capacity of maintaining hi-tech leadership within the mobile telephony systems. Such capacity need as well  to be considered as the firm core competency since such capacity offer the firm source of competitive advantages over the rivals. The acquisition and merging capacity has allowed Vodaphone to grow the customer base within the international realm (Kim, Lee and Kim 2009). Capacity of being empowered in the research and development, 3G platform for the mobile telephone for data and voice allowed the company to maintain competitive advantages. In general, Vodaphone has maintained precious, costly and exceptional capabilities making it potential capable of developing newer services, applications and technologies (Al-Kaabi, Demirbag and Tatoglu 2010).

Generally, the PEST factors have been placing major impacts to the Vodaphone Group operation and process of making decisions. Political factors are such as tax policy, labor laws, trade restrictions, tariffs, political stability and environment laws (Kim, Lee and Kim 2009). Vodaphone do value the client relationship hence with the will of shifting the approach from aspect of unit pricing and the unit based tariffs to other preposition that would deliver value to the customers in return of the loyalty. Under the economic aspect, factors are such as economic growth, interest rates, inflation rates and exchange rates (Kim, Lee and Kim 2009). Vodaphone has been able set justified prices to the customers that allows customer to have capacity of purchasing the products with broader sense (Grant 2013). Actually, Vodaphone Group posses global network coverage that do support large customer base that would offer the customers aspect of global harmonization as well as flawless wireless access that would allow travelling to globe for special rates within the same networks (Tariq Anwar 2003).

Social factors within the business environment relates with demographic and psychological aspect such as the health awareness, age group, wellbeing, prominence and population growth (Grant 2013). The company provides handsets that may be used as fine gadget for every age group. On the other hand, the rapid expansion as well as the growth in mobile industry together with the increased number of internet users has guaranteed potential in the future global market merge innovations and technologies (Tariq Anwar 2003). This would cause extensive demand in wireless data services. Actually, the users search for higher performance wireless internet access.

According to perception of the users, data rates are part of leisure and connection set up do take long and well complicated. As well, the service is considered to be too expensive hence exceeding the amount that is affordable to the ordinary customer (Kim, Lee and Kim 2009). Vodaphone tends to be inclined toward provision of network coverage to the customers with justified price range. As well, the company takes careful and considered approach for the location of the base locations to ensure there is provision of enhanced coverage as well as quality services mainly in the high usage areas (Kim, Lee and Kim 2009).

Vodaphone has to cover the fixed costs. Hence, when the company gets to the services from the government, it must pay for the costs where large parts of the expenses are not fixed but sunk costs. However, more customers means leas cost and more profits. Alternative, cost of additional customers who use the service tends to be low (Grant 2013). Hence, to apply the costs to the customer, the company must take into account the available rivals an aspect that would build the force of the company and maintenance of the market price as well as quality of the services (Tariq Anwar 2003). According to the commentators, competition tends to be crucial toward profitability if it drops mainly on the price since competition on aspect of price tends to transfer the profits to the service provider and to the customers. For the competitors, process of cutting down the price tends to easy with an aim of seeing and matching the competitors (Kim, Lee and Kim 2009).


The main goal of taking optimal expansion strategy is to ensure there is creation of sustainable values for the shareholders with consideration of the opportunities for benefits as well as threats for success (Kim, Lee and Kim 2009). The following key criteria’s are recommendable to Vodaphone Company:

  • Venturing of the untapped emerging markets: this would be a crucial source of expansion for the company which could be undertaken in up and the upcoming markets whereby it would consider building strategic alliances. These markets tend to be less penetrated and customer growth would emerge as the main source of revenue (Tariq Anwar 2003).
  • Develop new products and services: the company new to apply new technologies, devices as well as services. There are expectation that Vodafone would be able to provide various new services such as the high speed internet access and innovative technologies such as the integrated mobiles and personal computers (Kim, Lee and Kim 2009).
  • Cost reduction: for the company to maintain level of competitiveness, Vodaphone must consider reduction of expenses via process of integration, outsourcing and exploitation of the economies of scale. In addition, it is worth to consider integration in the Vodaphone Group operational units (Kim, Lee and Kim 2009).
  • Increase revenue level: Vodaphone has been facing increased competition but the manner in which it could deal with the competition for group markets would have a continuous shift from the aspect of customer acquisition to aspect of customer retention. This is because the market of the mobile telecommunications has been widely penetrated. This indicates that, Vodaphone efforts need to be aimed toward stimulation of additional voice usages with substitution of fixed line of usage for the mobile in manner that would enhance the customer values and revenue base (Kim, Lee and Kim 2009).
  • Sell the unprofitable businesses: actually, the foremost aim of the company is to achieve higher returns for the shareholders, the company needs to make investments in transactions that would yield return that is above the cost of capital and creation of substantial values for the shareholders. As well, Vodaphone needs to sell all businesses that are making losses since they fail to meet the performance requirements (Kim, Lee and Kim 2009).
  • For Vodaphone to remain highly competitive in the market, Vodaphone Group needs to take forecast of the market economics mainly in which it operates and must be prepared to change the regulations (Tariq Anwar 2003).


Vodaphone intention of integration process has been constrained by issues that relates with national markets such as difference in consumer preferences and different levels of technological developments. Such problem connected with the strong competitive and the regulatory forces within the mature markets have increased major reconfiguration of Vodaphone international portfolio mainly for the growing emphasis of emerging markets in connection to divestment in other mature markets.



Al-Kaabi, M., Demirbag, M. and Tatoglu, E., 2010. International market entry strategies of emerging market MNEs: A case study of Qatar telecom. Journal of East-West Business, 16(2), pp.146-170.

Grant, GM, 2013. Case 18: Vodaphone in 2012: Rethinking International Strategy: Contemporary Strategy Analysis: Text And Cases. Pp 676-692.

Kim, W.S., Lee, M. and Kim, K.D., 2009. Strategic Differentiation of Internationalization in the Mobile Telecommunications Industry: Case Studies. ETRI Journal, 31(1), pp.51-61.

Tariq Anwar, S., 2003. CASES Vodafone and the wireless industry: a case in market expansion and global strategy. Journal of Business & Industrial Marketing, 18(3), pp.270-288.







Essay Tutors
Calculate your paper price
Pages (550 words)
Approximate price: -

Why You Should Choose Us

Affordable Prices

Since we know that we are dealing with students, either part time or full time, many might be having financial constraints, but still want to pursue academic life. This has made us ensure we have very affordable prices, and wonderful discounts, yet give high quality products.

Professional Writers

Our reputation has been built because of the dedicated and highly qualified writers in our team. The writers give clients high quality products which guarantees return clients and referrals.


Our team is dedicated to giving clients the best quality products. However, if a paper does not meet the requirements stated by the client, our team will provide free revisions to the satisfaction of the client.

Moneyback guarantee policy

We believe that clients should get value for their money. If the client finds that the product has not met the requirements stated, we will refund the amount paid.

Original papers

We understand how plagiarism can ruin clients’ careers and reputation. We thus strive to provide original papers to our clients. We use several tools to check plagiarism. This ensures that clients get products that meet their institutions’ standards.

24/7 Customer Support

You can reach our support team via, live chat, email or phone. All your issues will be dealt with asap as the team works round the clock.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You have other errands to run? No need to worry. Place your order with us, carry out your errands while we do your paper and deliver on time.

Blog Writing

Give us a topic you want your blog based on, and let our team handle the rest. You will get the best article to be published in any forum you want. We have able team to do all the work for you.


Many students are given assignments by their tutors. However, students find it challenging to just even come up with a topic. This should no longer be a problem to you. Just visit our site, contact the support team that will help you place your order, and find the best writer to handle the assignment.

Dissertation Services

Dissertation has proven to be challenging to most students. For this reason, we have specialized writers who handles only these kind of papers. You will be in constant touch with the writer and the support team once you place a dissertation order to make sure nothing goes wrong.

Editing and Proofreading

Some students have good points and writing prowess. However, they make minor mistakes that deny them good grades. To avoid such cases, you can give us your already written paper so that our team can edit it to the correct formatting style, language, proper flow and the correct academic language. This gives you an upper hand to get the best grade than a person whose job has not been edited.