International business strategy - Case Study Example

UK-based multinational telecommunications company with headquarters in London, is the world’s second largest mobile telecommunication organization in terms of subscribers and recent revenues. It owns and operates networks in over 20 countries as well as has operations through partner networks in over 40 countries. As part of its international strategy, Vodafone expanded its resources through mergers, acquisitions, and joint ventures. When viewed from contrary perspective, Vodafone started building its resources, particularly its physical and technological resources in the form of network infrastructure, through the above-mentioned three modes and thereby strengthened its international strategy further.

“By 2013, it had established a significant presence in Europe, the Middle East, Asia Pacific and the USA through mergers and acquisitions, international joint ventures, and other forms of foreign direct investment” (Case Study). As Vodafone mainly targeted successful or potential local players for acquisition, mergers, and JVs, during their foreign entries, they are able to garner optimal resources. For example, during its entry into India, Vodafone acquired Hutchinson Essar for a sizable sum and that led to the garnering of strong existing physical and technological resources, which it further optimized.

The other key technological resource gained by Vodafone as part of its international strategy is wireless spectrums through auctions, which has increased its competitive advantage further. Normally, governments of various countries would auction 2G, 3G, and even 4G spectrums to telecommunication companies through a competitive bidding process thereby earning good revenue. In that direction, Vodafone has won many auctions in many countries and has got hold of sizable spectrums. After Vodafone has gained these spectrum allocations, they are able to introduce or provide more features to its customers in its foreign operations and that will naturally lead to its