Advantages And Disadvantages Of Vodafone

Improved Essays
To match the pace of a rapidly modernising and globalising world, corporations have sought a

wide array of adaptations designed to optimize production efficiency, transnational mobility,

and, ultimately, the bottomline. Chief among these adaptations is the multinational corporation

(MNC), an economic, political, environmental, and cultural force that impacts the lives of

billions of people every day – often in complex and imperceptible ways (Roach 2005). Driven by

powerful technologies in electronics, telecommunications, and transport developed over the last

two decades, MNCs operate as catalysts for change, moving resources around the globe as the

leading outsourcers, the key sources of productive capital, and the top developers of cutting-edge

technologies in
…show more content…
It has

expanded to markets all over the world, including Germany, Italy, and South Africa, likewise

with a considerable number of subsidiaries and joint ventures (Vodafone 2015). The Vodafone

brand itself is valued at $30 billion, and is one of the most valuable telecoms brand in the world

(Vodafone 2015).

Acknowledging India as a promising market, Vodafone in November 18, 2005 acquired an initial

5.61% direct interest in Bharti Tele-Ventures from Warb Pincus LLC, and in December 22,

2005, acquired a further 4.39% effective shareholding, bringing a total of 10% direct interest in

Bharti (Vodafone 2006). A year later, in May 2007, the company likewise acquired a 67%

majority stake in Hutchison Essar, one of the leading mobile phone operators in India at the time

(Vodafone 2015). At that time, it was the biggest transaction in the Indian telecom market, and

resulted in the transformation of the “Hutch” brand into “Vodafone”. In 2011, Vodafone Group

also bought out Essar for its 33% share in Vodafone India, and – ultimately – it acquired 100%

stake in Vodafone India in 2014 (PTI

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