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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION 1.1 About Hutchinson 1.2 About Vodafone CHAPTER 2: PRESENT SCENARIO OF VODAFONE INDIA CHAPTER 3: VODAFONE-HUTCH ACQUISITION 3.1 Reason Behind Acquiring Hutch 3.2 Was It a Diversifying Strategy 3.3 Why Hutchinson Got Acquired By Vodafone 3.4 Why Target Was Chosen CHAPTER 4: COMPANY PORTFOLIO 4.1 What Is The Business 4.2 Who Are The Customers 4.3 What Are Their Demands 4.4 What Would Be The Possible solution For The Demand 4.5 Who Will Be The Appropriate People To Deliver The Solution . 4.6 Where Do They Get Them CHAPTER 5: ANALYSIS 5.1 Porter s 5 Forces Analysis 5.2 PEST Analysis 5.3 SWOT Analysis 5.4 McKenzie s 7 s Model 5.5 Value Chain CHAPTER 6: FINANCIAL ISSUES CHAPTER 7: HR ISSUES & CHALLENGES FACED 7.1 Work Culture 7.2 Vision 7.3 Past and Present Job Scenarios CHAPTER 8: BIBLIOGRAPHY .. . .. . . .. .. ... .. . .. . .. . .. .. . . ... . . .. .. .. .. ........... . ..
INTRODUCTION
1.1 Hutchinson-Essar
Vodafone
Vodafone, based in the UK, was the world's largest mobile communications company by revenue. It operated under the brand name 'Vodafone'. The brand name 'Vodafone' comes from 'Voice data fone', reflecting the company's wish to provide voice and data services on the mobile phones. Vodafone operated in Europe, the Middle East, Africa, Asia Pacific, and the US.
Vodafone was formed in 1984 as subsidiary of Racal Electronics as a public company. Then known as Racal Telecommunication ltd, 20 % of capital was offered to public in 1988. It became an independent company in 1991. Changed name to Vodafone group. Again merged with Airtouch communication. Changed name to Vodafone Airtouch Plc. Later on revised his name to Vodafone group. Headquarters Area served Newbury, England, UK Worldwide Vittorio Colao, CEO Key people Sir John Bond, Chairman John Buchanan, Deputy Chairman Revenue Operating income Profit Total assets Total equity Employees VISION Vision is to lead the industry in responding to public concern regarding mobile phones, masses & health by demonstrating leading edge practices and encouraging others to follow.
US$ 69.138 billion (2008) US$ 12.867 billion (2008) US$ 6.756 billion (2008) US$ 218.869 billion (2008) US$ 123.499 billion (2008) 79,000 (2009)
VODAFONE-HUTCH ACQUISITION
3.1 Reason Behind Acquiring Hutchinson Essar(India)
The board of Vodafone continues to believe the mobile market in India has great potential and therefore considered the acquisition of a controlling interest in Hutchison Essar. With European markets nearly reaching the saturation point, Vodafone was trying to gain a foothold in the Indian market that was growing at a rate of more than 50 laces new subscribers every month, one of the largest telecom market in the whole market and where most of the region was still virgin to expatiate.
Fourth largest mobile operator in India with 24.41 million subscribers 16.41% of the Indian mobile market Present in 16 of 23 circles. Has license for six others barring Madhya Pradesh ARPUs at Rs 374 ($8.31) against national average of Rs 335.46 ($7.45) Hutch Mumbai ARPU at Rs 609.36 ($13.54), the highest in India, but yet to be integrated Accounted for 41 per cent of Hutchison Telecommunication Internationals revenues Revenues of $908 million (Rs 4,086 crore) in H1 2006 against $1.29 billion (Rs 5,800 crore) in 2005 Operating profits of Rs 1,017 crore, EBITDA margins at 32.7 per cent in H1 2006 Vodafone had to face face many obstructions in clinching the deal - initial opposition for the Indian partner of HTIL, Essar Ltd., aggressive bidding by competitors, as well as regulators who took their time to approve the deal. But in the end, Vodafone bagged the deal outbidding other competitors. Though some critics felt that Vodafone had overpaid for Hutchison Essar, Vodafone contended that the price was worth paying as the deal would help it get a massive footprint in one of the most competitive telecommunication markets in the world.
Vodafone is achieving these objectives by continually updating the range of phones and services offered to keep ahead of its competitors. Vodafone also communicates regularly with its customers to keep them well informed of the benefits of all Vodafone products. So the challenge is to provide added value services and competitive charges to existing customers who are becoming more sophisticated and demanding.
CHAPTER 5: ANALYSIS
5.1 Porter s 5 Forces Analysis for Vodafone
Porter's five forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market.
Indias telecom industry rank 2nd in the world with over 225.7 million telephone subscription by the end of 2008. Porters Analysis consists of those forces that affects its ability to serve customers & make profit.
y Virgin y MTS y IDEA y DOCOMO (Tata) y Unitech These companies are emerging on the national level from its state level existence.
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3) Broadband Threat- competitors, the emerging new players in the domain and the customers change in service taste.
Secondary :
In long run Vodafone is looking forward for sharing of Infrastructure on a large basis, but on the other side its also planning for acquiring a mainframe company for its server support. May also plan for the same for its software solution.