Vodafone Exits Japan


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
Vodafone Exits Japan
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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