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Effective Executive Magazine: |
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Description |
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World is changing and we can find that MNCs are now more aggressively pursuing the emerging economy dream. The best case is British telecom giant Vodafone battle for Hutchison Essar Ltd., India's third largest private mobile services operator, which gave the company an enterprise value of about $19.3 bn. The acquisition gave Vodafone, 24 million customers in the world's fastest growing mobile market. Vodafone has globally 200 million subscribers and the Hutch deal was an attack strategy, which Vodafone implemented to catch the 7 million monthly connection markets of mobile services in an emerging economy like India.
To manage the high valuation and develop a collegial market place in India, Vodafone is planning to create a platform for infrastructure sharing. This would help in maximum utilization of resources and creating value. SAIL and TATA Steel which just one year back were regarded as competitors are now sharing the same distribution channel. Building
competitive advantage is the mantra today. Due to globalization,
a company has to create value in all its value chain (primary
and secondary activities of the firm); collaborating with
your competitor also can create the value creation. |
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