Case Study
Analyze the Verizon Vodafone sale from Vodafone’s
perspective. Specifically analyze how this transaction
fits Vodafone’s Global Strategy. Address how this
transaction is judged via the CAGE perspective. Does
it fit the Better-Off and Best Alternative tests? How
should have consideration of the AAA Strategies
(Aggregation, Adaptation and Arbitrage) affected the
thinking of Vodafone executives while pondering this
sale? How does sizeism factor in this sale?
Demonstrate if and how the disposition of Verizon
Wireless fits into Vodafone’s strategic plan. Finally, in
your judgment was this a good deal for Vodafone-why or why not and will Vodafone regret this sale? Vodafone
In two decades, Vodafone became the telecommunications leader
in Global Systems for Mobile networks
(www.associatedcontent.com). Vodafone provides innovative and cutting edge telecommunications services on the largest wireless
network on earth. In this article, I will discuss how Vodafone was
started and the growth of one of the world’s largest company.
Vodafone was formed in 1983 as a joint venture between Rascal
Electronics (a UK electronic firm) and Millicom (a US telecom
company), and was granted one of two mobile phone licenses in
the UK (www.associatedcontent.com). That became the UK’s first
mobile license. The name Vodafone came from the firm’s goal to
establish a voice and data services over cellular
telecommunication networks. In which, the VO is represents voice
and the DA symbolizes data, hence Vodafone
(www.associatedcontent.com). In 1985, Vodafone launched its
service but as a Rascal subsidiary (www.vodafone.com).
October of 1987, Vodafone launched Vodapage. Which, is a
paging network covering over 80% of the country
(www.vodafone.com). In 1988, Rascal offered 20% of Vodafone to
the public and would become Vodafone Group
(www.associatedcontent.com). The beginning of the 1990s,
Vodafone moves beyond the UK. In 1990, Vodafone customer
base reaches 500,000 (www.vodafone.com). In October of 1992,
Vodafone begins Commercial services. Vodafone was the first
Portuguese company to offer a Customer Care Service available
twenty-four hours a day and seven days a week
(www.vodafone.com). Also, in 1992 Vodafone was named
Company of the Year at Business Enterprise Awards
(www.vodafone.com).
By 1993, Vodafone’s international reach extends, with licenses
and partnerships in Germany, South Africa, Fiji, Australia, and
Greece (www.vodafone.com). Vodafone started networks for
mobile phones in these other countries. Their strategy was to
acquire competitors in order to knock out competition and
become more competitive than its rivals
(www.associatedcontent.com). March of 1994, Vodafone joins up
with the Globalstar consortium to develop and launch low orbit
satellite capability to supplement land-network coverage
(www.vodafone.com). Also, in November of the same year
Vodafone launches digital data fax and SMS (Short text
messaging) service (www.vodafone.com). In 1995, Vodafone kept expanding in the Netherlands, Uganda,
Hong Kong, and France (www.vodafone.com). November 1997,
Vodafone launch of their digital Pay As You Talk’ pre-paid service
for their frequent users (www.vodafone.com). In 1998, Vodafone
is the first Portuguese mobile operator offering and introducing
mobile phone in the market offering both bounds, 900 MHz and
1800 MHz (www.vodafone.com). Vodafone reaches service
revenues of 0.5 EUR billion (www.vodafone.com). In 1999, Vodafone becomes both Internet Service Provider (ISP)
and a content provider in Portugal (www.vodafone.com).
Vodafone made two of the most landmark acquisitions that were
those of D2 (Mannesmann; Germany) and Airtouch (US)
(www.associatedcontent.com). D2 was one of the leading
telecommunications providers in Germany. The Mannesmann
takeover was hostile, and the first of its kind in Europe; this was
the largest "unwanted" acquisition of its time
(www.associatedcontents.com). The transaction was valued at
$180 billion dollars (www.associatedcontent.com). The second
acquisition was that of Airtouch communications in the United
States (www.associatedcontent.com). Which now is called
Vodafone Group Plc; this gave Vodafone its entry into US market
and the ability to consolidate minority interest in European
carriers (www.associatedcontent.com). The transaction was worth $60 billion dollars (www.associatedcontent.com).
In May 2000, Vodafone launches Verizon Wireless
(www.vodafone.com). Vodafone and Bell Atlantic combined their
US wireless assets to make up Verizon Wireless
(www.vodafone.com). Vodafone launches YORN (Young Original
Network), first global and integrated communications network, a
brand new concept of content initiatives, events and offerings for
the younger generation (www.vodafone.com).
To further their strategy in 2001, Vodafone completed a deal to
acquire Ericell in Ireland, which is now Vodafone Ireland
(www.associatedcontent.com). Then, Vodafone signed a strategic
alliance agreement with China Mobile based out of Hong Kong
(www.vodafone.com). Vodafone unleashed the first global
communication campaign in August of 2001. The campaign
features TV, cinema, print, online and outdoor media
(www.vodafone.com).
In 2002, Vodafone gave trial of their global mobile payment
system in the UK, Italy, and Germany. The trial enables customers
to purchase physical and digital goods using their mobile phone
(www.associatedcontent.com). In October 2002, Vodafone
announced the launch of "Vodafone live!" a fully innovative
concept in the integration of services and content in mobile
communications (www.vodafone.com). It would provide a new
consumer proposition, Mobile Office, and a new business
proposition (www.vodafone.com). Also, in November 2002,
launches a Vodafone Remote Access, which is a part of the
mobile office. This service would give business customers an easy
way to connect to their corporate LAN to access e-mail, calendar
and other business specific applications while on the move
(www.vodafone.com).
Vodafone in 2003 allows football fans to watch, for the first time
in Portugal, an entire football match as it happens on the small
screens of mobile phones through "Vodafone live!"
(www.vodafone.com). In the first six months of the launch of
"Vodafone live!" it attracts one million customers
(www.vodafone.com). Also, at the GSM (Global Systems for
Mobile Networks) Association Awards Ceremony in Cannes,
France, Vodafone won the mobile industries most prestigious
awards I two categories, best consumer wireless application or
service and best television or broadcast commercial for its global
consumer service, "Vodafone live!" (www.associatedcontent.com). In 2004, Vodafone Portugal Foundation and the Ministry of
Education unveil an innovative system, which provides access by
the blind and visually impaired to computers with the Microsoft
Windows environment, using a high quality text-to-speech reader
in European Portuguese (www.vodafone.com). Vodafone also
releases a new phase in the roll out of the 3rd generation mobile
services with the launch of "Vodafone live!" with 3G technology
(www.vodafone.com). 3G technology provides the ability to
transfer simultaneously both voice data (a telephone call) and
non-voice data like download information, exchanging e-mails, or
instant messaging (www.wikipedia.com). The news, possibility to
watch live television broadcasts, and better and faster access to
new multimedia content such as video clips and true tones. In 2005, Vodafone acquired MobiFon S.A. in Romania and Oskar
Mobile a.c. in Czech Republic (www.vodafone.com). In 2006,
Vodafone acquired Telsim Mobil Telekomunikasyon Hizmetleri in
Turkey and launches a new global marketing campaign "Make the
most of now" (www.vodafone.com). "Vodafone live!" reached ten
million customers with the use of 3G technology. Also, in 2006
Vodafone launches mobile TV capability and Vodafone Radio DJ,
which offers a personalized, interactive radio service streamed to
3G phones and PCs (www.vodafone.com).
Vodafone in 2007 has reached a base of 200 million customers
(www.vodafone.com). Vodafone is currently working on expanding
its 3G live, the newest version of their GSM network, to all their
current markets (www.associatedcontent.com). Their goal is to go
global in the next few years. Vodafone has grown primarily
through all their acquisitions (www.vodafone.com). Their strategic
alliances that Vodafone has participated in with innovation and
cooperation to complement their aggressive strategy of
competitor acquisition (www.associatedconten.com).
Vodafone Group Plc sale of Verizon Wireless leaves the wireless
carrier about half the size it was, as Chief Executive Officer
Vittorio Colao embarks on a new expansion strategy. After the
disposal of its 45 percent stake in Verizon Wireless, the biggest
U.S. mobile-phone Company, Vodafone will paid out $82.5 billion
to shareholders and consolidate its shares, cutting its market value to about 60 billion pounds ($100 billion). Its value was 116
billion pounds, based January 2014’s 12-year high of 240 pence.
Analyze the Verizon Vodafone sale from Vodafone’s
perspective. Specifically analyze how this transaction
fits Vodafone’s Global Strategy. Address how this
transaction is judged via the CAGE perspective. Does
it fit the Better-Off and Best Alternative tests? How
should have consideration of the AAA Strategies
(Aggregation, Adaptation and Arbitrage) affected the
thinking of Vodafone executives while pondering this
sale? How does sizeism factor in this sale?
Demonstrate if and how the disposition of Verizon
Wireless fits into Vodafone’s strategic plan. Finally, in
your judgment was this a good deal for Vodafone-why or why not and will Vodafone regret this sale? Vodafone
In two decades, Vodafone became the telecommunications leader
in Global Systems for Mobile networks
(www.associatedcontent.com). Vodafone provides innovative and cutting edge telecommunications services on the largest wireless
network on earth. In this article, I will discuss how Vodafone was
started and the growth of one of the world’s largest company.
Vodafone was formed in 1983 as a joint venture between Rascal
Electronics (a UK electronic firm) and Millicom (a US telecom
company), and was granted one of two mobile phone licenses in
the UK (www.associatedcontent.com). That became the UK’s first
mobile license. The name Vodafone came from the firm’s goal to
establish a voice and data services over cellular
telecommunication networks. In which, the VO is represents voice
and the DA symbolizes data, hence Vodafone
(www.associatedcontent.com). In 1985, Vodafone launched its
service but as a Rascal subsidiary (www.vodafone.com).
October of 1987, Vodafone launched Vodapage. Which, is a
paging network covering over 80% of the country
(www.vodafone.com). In 1988, Rascal offered 20% of Vodafone to
the public and would become Vodafone Group
(www.associatedcontent.com). The beginning of the 1990s,
Vodafone moves beyond the UK. In 1990, Vodafone customer
base reaches 500,000 (www.vodafone.com). In October of 1992,
Vodafone begins Commercial services. Vodafone was the first
Portuguese company to offer a Customer Care Service available
twenty-four hours a day and seven days a week
(www.vodafone.com). Also, in 1992 Vodafone was named
Company of the Year at Business Enterprise Awards
(www.vodafone.com).
By 1993, Vodafone’s international reach extends, with licenses
and partnerships in Germany, South Africa, Fiji, Australia, and
Greece (www.vodafone.com). Vodafone started networks for
mobile phones in these other countries. Their strategy was to
acquire competitors in order to knock out competition and
become more competitive than its rivals
(www.associatedcontent.com). March of 1994, Vodafone joins up
with the Globalstar consortium to develop and launch low orbit
satellite capability to supplement land-network coverage
(www.vodafone.com). Also, in November of the same year
Vodafone launches digital data fax and SMS (Short text
messaging) service (www.vodafone.com). In 1995, Vodafone kept expanding in the Netherlands, Uganda,
Hong Kong, and France (www.vodafone.com). November 1997,
Vodafone launch of their digital Pay As You Talk’ pre-paid service
for their frequent users (www.vodafone.com). In 1998, Vodafone
is the first Portuguese mobile operator offering and introducing
mobile phone in the market offering both bounds, 900 MHz and
1800 MHz (www.vodafone.com). Vodafone reaches service
revenues of 0.5 EUR billion (www.vodafone.com). In 1999, Vodafone becomes both Internet Service Provider (ISP)
and a content provider in Portugal (www.vodafone.com).
Vodafone made two of the most landmark acquisitions that were
those of D2 (Mannesmann; Germany) and Airtouch (US)
(www.associatedcontent.com). D2 was one of the leading
telecommunications providers in Germany. The Mannesmann
takeover was hostile, and the first of its kind in Europe; this was
the largest "unwanted" acquisition of its time
(www.associatedcontents.com). The transaction was valued at
$180 billion dollars (www.associatedcontent.com). The second
acquisition was that of Airtouch communications in the United
States (www.associatedcontent.com). Which now is called
Vodafone Group Plc; this gave Vodafone its entry into US market
and the ability to consolidate minority interest in European
carriers (www.associatedcontent.com). The transaction was worth $60 billion dollars (www.associatedcontent.com).
In May 2000, Vodafone launches Verizon Wireless
(www.vodafone.com). Vodafone and Bell Atlantic combined their
US wireless assets to make up Verizon Wireless
(www.vodafone.com). Vodafone launches YORN (Young Original
Network), first global and integrated communications network, a
brand new concept of content initiatives, events and offerings for
the younger generation (www.vodafone.com).
To further their strategy in 2001, Vodafone completed a deal to
acquire Ericell in Ireland, which is now Vodafone Ireland
(www.associatedcontent.com). Then, Vodafone signed a strategic
alliance agreement with China Mobile based out of Hong Kong
(www.vodafone.com). Vodafone unleashed the first global
communication campaign in August of 2001. The campaign
features TV, cinema, print, online and outdoor media
(www.vodafone.com).
In 2002, Vodafone gave trial of their global mobile payment
system in the UK, Italy, and Germany. The trial enables customers
to purchase physical and digital goods using their mobile phone
(www.associatedcontent.com). In October 2002, Vodafone
announced the launch of "Vodafone live!" a fully innovative
concept in the integration of services and content in mobile
communications (www.vodafone.com). It would provide a new
consumer proposition, Mobile Office, and a new business
proposition (www.vodafone.com). Also, in November 2002,
launches a Vodafone Remote Access, which is a part of the
mobile office. This service would give business customers an easy
way to connect to their corporate LAN to access e-mail, calendar
and other business specific applications while on the move
(www.vodafone.com).
Vodafone in 2003 allows football fans to watch, for the first time
in Portugal, an entire football match as it happens on the small
screens of mobile phones through "Vodafone live!"
(www.vodafone.com). In the first six months of the launch of
"Vodafone live!" it attracts one million customers
(www.vodafone.com). Also, at the GSM (Global Systems for
Mobile Networks) Association Awards Ceremony in Cannes,
France, Vodafone won the mobile industries most prestigious
awards I two categories, best consumer wireless application or
service and best television or broadcast commercial for its global
consumer service, "Vodafone live!" (www.associatedcontent.com). In 2004, Vodafone Portugal Foundation and the Ministry of
Education unveil an innovative system, which provides access by
the blind and visually impaired to computers with the Microsoft
Windows environment, using a high quality text-to-speech reader
in European Portuguese (www.vodafone.com). Vodafone also
releases a new phase in the roll out of the 3rd generation mobile
services with the launch of "Vodafone live!" with 3G technology
(www.vodafone.com). 3G technology provides the ability to
transfer simultaneously both voice data (a telephone call) and
non-voice data like download information, exchanging e-mails, or
instant messaging (www.wikipedia.com). The news, possibility to
watch live television broadcasts, and better and faster access to
new multimedia content such as video clips and true tones. In 2005, Vodafone acquired MobiFon S.A. in Romania and Oskar
Mobile a.c. in Czech Republic (www.vodafone.com). In 2006,
Vodafone acquired Telsim Mobil Telekomunikasyon Hizmetleri in
Turkey and launches a new global marketing campaign "Make the
most of now" (www.vodafone.com). "Vodafone live!" reached ten
million customers with the use of 3G technology. Also, in 2006
Vodafone launches mobile TV capability and Vodafone Radio DJ,
which offers a personalized, interactive radio service streamed to
3G phones and PCs (www.vodafone.com).
Vodafone in 2007 has reached a base of 200 million customers
(www.vodafone.com). Vodafone is currently working on expanding
its 3G live, the newest version of their GSM network, to all their
current markets (www.associatedcontent.com). Their goal is to go
global in the next few years. Vodafone has grown primarily
through all their acquisitions (www.vodafone.com). Their strategic
alliances that Vodafone has participated in with innovation and
cooperation to complement their aggressive strategy of
competitor acquisition (www.associatedconten.com).
Vodafone Group Plc sale of Verizon Wireless leaves the wireless
carrier about half the size it was, as Chief Executive Officer
Vittorio Colao embarks on a new expansion strategy. After the
disposal of its 45 percent stake in Verizon Wireless, the biggest
U.S. mobile-phone Company, Vodafone will paid out $82.5 billion
to shareholders and consolidate its shares, cutting its market value to about 60 billion pounds ($100 billion). Its value was 116
billion pounds, based January 2014’s 12-year high of 240 pence.
Analyze the Verizon Vodafone sale from Vodafone’s perspective. -Specifically analyze how this transaction fits Vodafone’s Global Strategy. -Address how this transaction is judged via the CAGE perspective. -Does it fit the Better-Off and Best Alternative tests? -How should have consideration of the AAA Strategies (Aggregation, Adaptation and Arbitrage) affected the thinking of Vodafone executives while pondering this sale? -How does sizeism factor in this sale? -Demonstrate if and how the disposition of Verizon Wireless fits into Vodafone’s strategic plan. -Finally, in your judgment was this a good deal for Vodafone-why or why not and will Vodafone regret this sale?
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