Vodafone Exits Japan
Case Code: BSTR286 Case Length: 15 Pages Period: 1999-2006 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.300 Organization: Vodfaone Industry: Telecom and Broadband Countries: Japan Themes: International Business, Globalization Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Vodafone in Japan
Through the acquisition of the US-based Airtouch in 1999, Vodafone acquired a 26 percent stake in J-Phone. Vodafone subsequently increased its stake in J-Phone to 98.2 percent (Refer to Exhibit II for the details of Vodafone's acquisition of J-Phone)...
What Went Wrong
According to analysts, Vodafone decided to exit the Japanese market as its efforts to turn around the business in Japan did not yield the desired results. Robin Hearn, principal analyst at London-based technology research group Ovum , explained, "Vodafone has been struggling with its Japanese unit for some time and attempts to turn it around have so far met with limited, if any, success. This has frustrated Vodafone's management and investors alike."...
Conclusion
Analysts were of the view that the deal was profitable for all the parties involved - Vodafone received a tidy sum for its Japanese business and exited a market where its profitability had been falling and SoftBank was able to add cellular services to its existing portfolio of Internet, broadband, and fixed line services...
Exhibits
Exhibit I: Vodafone Partner Networks in 2007
Exhibit II: Vodafone's Acquisition of J-Phone
Exhibit III: Mobile Phones in Japan
Exhibit IV: Vodafone J-Phone Logo
Exhibit V: Major Mobile Carriers - Number of Subscribers (January 2004 - December 2004)
Exhibit VI: Major Mobile Carriers - Number of Subscribers (January 2005 - December 2005)
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