Explain a global business and how they expanded into a count

Explain a global business and how they expanded into a country.

Explain why they achieved success or why they failed.

Explain the framework that was used, political systems, legal systems and economic systems that were utilized at a minimum.

This is an in-depth research, so it is recommended that you find a company that can be easily researched and that you can find several sources explaining this specific venture of the company that you decided to research.

Formatting requirements

Paper should be written to conform to APA guidelines.

Paper should be 3-4 pages in length not including the cover page and reference page.

You must include facts such as statistics or numbers to support your paper.

A minimum of 3 reference sources less than 5 years old are required and must be included on the reference page and properly cited in the body of the text.

Solution

Expansion of Vodafone in India

MR

Chegg

Abstract

Vodafone is one of the world’s leading telecommunications company. Its headquarters are in Newbury, England. Its operations stretches across multiple continents viz. Asia, Africa, Europe, Oceania. In terms of number of connections, it ranks second in the world after China mobile, as per data fetched in 2016. It has a widespread global reach with networks in 26 countries and partner networks in over 50 other countries. India proved to be a fertile ground for expanding its business, owing to the huge population and the opening of the economy due to the 1991 reforms. It gained entry in the Indian market through acquisition of Hutch in 2007. Through rebranding, escalating network coverage and distribution channels, it became a huge success in India.

Keywords: global, telecommunications, Hutch, network coverage, rebranding, distribution channels

Expansion strategy of Vodafone in India

Its high growth strategy was based on bringing very low-cost handsets and wireless connectivity in the vast expanse of India. As of 2016, Vodafone India has a market share of 18.42% with nearly 200 million subscribers. It achieved this milestone primarily by increasing the network coverage and distribution channels.

Framework that was leveraged

Market Size

Its revenue being directly related to the subscriber base, with a positive population and GDP growth, India provided great potential.

Economy

As of 2018, India is one of the top 5 reformers in terms of the ease of doing business.

When it made an entry, the economic environment was opening owing to the 1991 reforms. FDI was encouraged in many sectors including the telecom, and foreign exchange rules had been relaxed. This reduced the barriers to the entry

TRAI

Some of the goals of the regulatory authority TRAI that were conducive to the growth of a foreign telecom company were:

Legal System

The well developed written legal system in India, made it easy for foreign entrants such as Vodafone to comprehend the legal aspects.

Entry through acquisition of Hutch

In February 2007 Vodafone acquired 67% stakes in Hutchison Essar, thus becoming one of the leading telecom operators in India.

There were many strong players like Airtel, Reliance, BSNL in the Indian market. Acquisition of Hutch made Vodafone a strong player.

Improvements to the existing infrastructure

Vodafone’s zoo zoo ads became immensely popular. Its investments in rebranding worked.

It made huge investments to increase the number of retail outlets and exclusive shops, resulting in huge boost of the supply chain network.

In order to lower the rates and increase the network coverage, it shared a significant percentage of its infrastructure with other players viz. Airtel.

24x7 customer care services improved its efficiency.