IT in the Next Five Years - Case Study Example

The researcher states that the year 1985 was the debut year for Vodafone, and in the same year, Racal Strategic Radio was renamed Racal Telecommunications Group Limited. In the early nineties, Vodafone began to acquire shares in another company named Talkland and even bought People’s Phone, a chain of stores that sold mobile telephones and other devices, especially since these stores and their customers were patronizing Vodafone’s network anyway. Other acquisitions included Asrec Communications, AirTouch Communications, and Mannesmann.

In the latter part of the 20th century, Vodafone set to work in merging its assets in the United States with that of Verizon Wireless and Bell Atlantic Corp. By the time the 21st century tolled in, the merger between the three parties was accomplished. The same year, Vodafone also decided to take over Eircell, based in Ireland and renamed the brand to be Vodafone Ireland. Vodafone’s ability to acquire and merge several big companies has also contributed to its success today. Further information on the matter shall be presented in the following pages.

Due to the global recession, and the need to cut down on manufacturing and operation costs, there was a need for Vodafone to change its focus. According to Vodafone head, Nick Jeffrey, the global recession has meant that there has been a market separation between their customers in the United States and their customers in Europe. In addition, despite being one of the leaders in the mobile service sector, Vodafone suffered profit losses by 4 percent during this year, 2010, thereby encouraging them to look for other ways to invest their efforts on.

Instead of simply focusing on cutting down costs, the company is currently trying to conduct research on how they can further develop growth. However, by the end of March 2010, Vodafone reported a 107 percent rise in their profits before tax, and they also noted the additional number of their subscribers who signed up. Based on news reports, Vodafone enjoyed an increase of 8.5 million subscribers who patronized and continue to patronize their services.