Vodafone Essay

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Case Study Three Introduction In 2007 the U.K.-based Vodafone Group PLC struck an $11.1 billion deal with a unit of Hong Kong's Hutchison Whampoa Ltd. to enter India. The two formed in a joint venture that benefited both companies. While Vodafone was expanding rapidly, the India venture created chaos for Vodaphone. Vodafone faced the India department of taxation, who was seeking a $2.6 billion tax on the $11.1 billion deal. The government taxation department felt the tax was owed because it has authority due to the fact that the underlying asset was Indian. Vodafone spent time and money to fight the tax and eventually won on the grounds the company was formed on foreign grounds. Vodafone faces financial loss and competition within the Indian markets after the ruling came down from the Supreme Court and sets a precedent for other foreign companies wanting to invest. Identification of company’s strengths and weaknesses Vodafone has one of the strongest global market presences in the telecommunications industry. The company has successfully acquired presence in over 65 countries. Vodafone’s ability to expand globally is partially due to its financial ability to buy into other countries. In the United States Verizon is a well known brand and few people know that it is invested in Vodafone to a large extent. The devices and services available in any Vodafone operating country are also available to Vodafone Global Enterprise customers in the same country. Vodafone is able to offer customer services like no other telecommunications company. On May 19, 2010, the 3G spectrum auction in India ended and Vodafone paid 11617.86 million (the second highest amount in the auctions) for spectrum in 10 circles (Sharma, Beckett Bahree, 2012). According to the Cellular Operators association of India, the total number of Vodafone India Subscribers
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