Case Study: Failure of Vodafone in Japan

Vodafone Group plc is a British multinational mobile network operator, its main headquarter is in Newbury, England. It is the world’s largest mobile telecommunication network company, based on revenue, its market value on the UK stock exchange is about £80.2 billion as of August 2010, making it Britain’s third largest company. It is currently operating in 31 countries and has partner networks in a further 40 countries. In 2001 Vodafone announced to get into Japanese market with acquiring AT&T’s 10% economic interest in Japan Telecom Co., Ltd. (“Japan Telecom”) for a cash consideration of US$1.35 billion ( £0.93 billion). Japan Telecom was one of Japan’s leading telecommunications companies and parent of the fast growing mobile network, J-Phone Communications Co., Ltd., and its regional wireless operating companies (collectively known as “the J-Phone Group”). After this deal, Vodafone held 25% of Japan Telecom’s equity. The reason for Vodafone going into Japanese market Continue reading

Case Study: Delta Airlines Successful Business Turnaround Strategy

In 1924 Collet Everman Woolman and an associate started the Huff Daland Dusters crop dusting operation, this was the first agricultural airplane made for the purpose of crop dusting for getting rid of boll weevils and insects. The dusting speed was 80-85 mph and the advantage it had was low speed flying, heavy payload capacity and low maintenance cost. This creation was the roots of Delta Air Lines. In 1928 the crop dusting operation broke away from the parent company and became Delta Air Service. The company began getting contracts in delivering airmail and then in 1929 Delta began transporting passengers flying them to Dallas, Jackson and Mississippi. Later other routes were added to Atlanta and Charleston. Delta’s success was growing and began getting popular when the U.S. government awarded it an airmail contract in 1930. It remained in business during a temporary but costly suspension in the airmail contract Continue reading

Case Study of Starbucks: Creating a New Coffee Culture

Is it possible to convince ordinary Americans who routinely open 3-pound value cans of coffee, shovel the grounds into a paper filter, push a button, and go about their business to suddenly change their ways? Will they be willing to spend $2 or more per day on the same item? Will this eventually evolve into a $1400 per year habit of a latte and a scan each day? The answer to these questions, according to Starbucks, is “absolutely!” Starbucks began as a coffee importing firm. Howard Schultz, an employee in the organization, toured Italy in the early 1980s and watched as crowds of city dwellers began each morning with a stop at a coffee bar. Schultz tried to convince the owners of Starbucks to do something similar in the United States and was roundly rejected. Quitting the firm and launching out on his own quickly turned into a lucrative decision Continue reading