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Vodafone's Business Environment in Japan - Case Study Example

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The paper "Vodafone's Business Environment in Japan" highlights that Vodafone is committed to Japan and they have the resources to back them up. Investors like Eric Moore are confident that they will keep investing in Japan. Competition is fierce and further aggravated with three new entrants…
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Download file to see previous pages The Tokyo based company offers a wide range of sophisticated mobile voice and data services including Vodafone live! which provides mail and internet to its customers. Vodafone KK’s 3G service offers roaming in 130 countries and regions on 182 networks.
Japan was one of the first countries to launch third-generation mobile services in 2001 and in 2002 Japan’s mobile subscribers outnumbered its fixed-line subscribers. Like many other industrialized countries, Japan is facing a number of challenges like environmental concerns, an ageing population, falling birth rates and expanded urban development.
Japan’s broadband network is emerging as the worlds fastest and most economical. Tremendous market growth can be foreseen in Japan as a result of a ubiquitous network society. Japan’s mobile phone and mobile internet industry started growing from the second half of the 1990s. Subscribers are now upgrading from 2G to 3G terminals. The ten-fold increase in communication speed offered by 3G should enhance business activities. The best approach for new entrants in the Japanese market would be to go in for partnership with a Japanese firm of a foreign firm already in Japan (Jetro).
Vodafone has been unstable for several years. Although initially, it did take off well, subsequent developments differed from what analysts predicted. While it has made a strategic change in its handset policy the decision has come too late. Vodafone is not the only operator in Japan to be apprehensive about its position (Mark Newman). In November 2005, Japan’s Ministry of Communications has awarded three new 3G licenses. Two of the successful bidders are the eMobile consortium, led by Japanese ISP eAccess, and BB Mobile, says, Newman. The largest shareholder in BB Mobile is Softbank, which controls Japan Telecom. Both eMobile and BB Mobile are expected to become national operators competing with the existing three incumbents. ...Download file to see next pagesRead More
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