International business strategy report Vodafone Essay

International business strategy report Vodafone - Essay Example Vodafone is a British multinational telecommunication company headquartered in London. The company was formed 1984 named as Recal telecommunication Company which was a subsidiary of Rach Electronics Plc. In 1991 the company was fully demerged from Recal and named as Vodafone Group. According company’s disclosed data in 2009; it has a direct market presence in 52 countries with over 302 million of mobile customers. It is the world’s largest telecommunication company in terms of revenue and second largest in terms of customers behind China Mobile. Identification of strategic issues through analysis To analyse the current strategies that the company has been following, there need to analyse the different area of its business like external environment, internal resources and internality operations of the company. There are some important tools which need to be analysed with respect to the company’s business for analysis of market base values of the company’s external business environment. Past key successful factor of the company was its global networks. Since the early 1990s, after the demerge form the Recal, Vodafone started international expansion in the European countries. In 1995, it earned 20 % of its total turnover of billion from its international business only. The company’s expansion strategy was opportunistic and aggressive and it started acquisition of the leading foreign companies or some stake of those to start operation in different countries including Germany, Spain, Italy, France etc. The current key successful factors of the company are highlight by the company’s CEO Vittorio Colao’s on his interview to Financial Times on November, 2008. The company has emphasised on its shift from expansions growth to consolidation in the existing market. Due to the increased competition in the domestic market of UK, it has taken strategy to buy the rival companies in UK to stay in leading position. The most tangible element of the companyâ€⠄¢s current strategies is improving its bottom line performance i.e. is the local autonomy through effective regional coverage in the existing market. It also has concentrated on the packaged services i.e. fixed and wireless services for individuals as well as for the business customers. It has started development of its stores by collaboration with Softbank. Five forces analysis is the most important tool to analyse the company’s external environments. Capital intensiveness of the new companies, new advanced wireless technology and new regulations of the different government in foreign markets have been acting as moderate threat of new entrants for the company. Vodafone has emphasised on the internet services for mobile users which is facing a strong threat of its substitute, Wi-Fi services. The company has been facing moderate bargaining power of its supplier due to the influence of distinctive mobile phone producers like Apple and Samsung. Google has also integrated its su pply chain which also has an