Traditional revenue sources – mobile voice and texts – have reached maturity in a number of markets. Therefore, to deliver future growth opportunities, we are investing in newer revenue areas such as data. It is estimated that between 2014 and 2018 mobile data revenue will grow by 18%, compared to a 7% decline in voice revenue over the same period. The demand for data will continue to be driven by rising smartphone and tablet penetration and usage, and improvements in mobile network capability. Already 95% of the world’s total traffic on mobile networks is data. The data services most used are video streaming and internet browsing which require high speed networks. Therefore, operators are investing more in 4G in European markets and a combination of 4G and 3G in emerging markets to provide much faster data speeds. Emerging markets have significant potential for customer and revenue growth driven by rising populations, strong economic growth, lower mobile penetration and a lack of alternative fixed line infrastructure. By 2018 it is expected that there will be 1.5 billion new mobile users in emerging markets, taking their share of global users to 79%.

Global StrategyIndustries conduct global strategies to gain competitive advantage. For a company to carry

out a successful global strategy, the managers within the company must understand the

nature of global industries and the dynamics of global competition. (Global Strategic

Management) As part of the participation strategy, the company has to take into account

their objectives for market entry and the different modes for entry to foreign markets. They

must then see which mode is the most suitable approach for them to take in different

circumstances. These modes can be exporting, licensing, strategic alliances or foreign

direct investment (FDI). (Foreign Market Entry Modes) The market entry mode decision is

examined by how each alternative mode falls on the risk and control trade-off. (Arnold,

2003)

Being innovative and agile is part of Vodafone's main strategies. Vodafone was the first

mover to bring new technologies and buy 3G licenses in the UK and has made successful

accurate forecasts to which the company has greatly taken advantage of. (The Strategic

Management Practices of Vodafone and its Significant Impact to their Business Progress,

2009) Vodafone's former CEO, Chris Gent, turned the company from a leading operator in

the UK to a mobile giant leaving a "global footprint" through his expansion strategy. In 1998

Gent turned the company into a global company. As we already mentioned, in 1999 he

bought many telecom companies around the world with the objective to turn it into a global

wireless company and began with the acquisition with AirTouch Communications Inc. After

this merger, Vodafone AirTouch (VA) entered a strategic alliance with Bell Atlantic

Corporation. In the E.U, a regulatory framework was put in place where telecommunication

operators were to be licensed. (Vodafone in Trouble, 2006) As part of their global strategy,

the two entry modes were, at the time, strategic alliance and licensing.

At present, Vodafone's strategy is to seek new markets away from saturated developed

countries which still have untapped potential to provide increasing profits in the telecom

sector. Their strategy is evidential in their plan to take-over Hutchison Essar in India. (The

Vodafone Test- Brownfield vs Greenfield Investment, 2009)

Syed Tariq Anwar suggests that there are three reasons as to why Vodafone have been

successful in its 'massive global acquisitions and expansion in the global markets':

Vodafone took advantage of opportunities regarding the 1990s wireless and the Web.

Vodafone looked for 'niche-oriented markets where a limited number of wireless operators

were willing to invest'

Vodafone concentrated on market growth by making the right business and consumer

products

(Anwar, 2003)

We will now look at case studies where Vodafone entered foreign markets in which one

was a success (Germany) and the other was a failure (Japan). We are going to analyse

and compare the two cases. From this we will give a critique on these regions and come up

with our recommendations and thoughts on these specific regions.

Read more: http://www.ukessays.com/essays/marketing/the-entry-of-vodafone-into-foreign-markets-marketing-essay.php#ixzz3p7CJbfvz

Decision criteria for mode of entry:

- Market size and growth- Risk- Government regulation- Competitive environment- Cultural distance- Local infrastructure-

Joint-venture between Vodafone & Telefonica

http://www.wikinvest.com/stock/Vodafone_Group_(VOD)/Subsidiary_Undertakings

https://www.vodafone.com/content/annualreport/annual_report09/financials/notes_cons_fin_statements/note14.html