Abstract
To know if investing in the global market telecommunication, or to be more precise in Vodafone PLC, is a good idea or not, I think it's a good point to make a rapid overview of its environment. Indeed, to understand Vodafone's result and to know if they are supposed to become better or worse, it is important to know what the firm has to face, or what can benefit to Vodafone Plc. To achieve this analysis, we will study Vodafone's environment thanks to a SWOT analysis. A SWOT Analysis is a way of identifying its strengths and weaknesses, and examining the opportunities and threats a firm has to face.
Advantages of joint ventures: Having a lot of joint ventures can be a good thing for Vodafone. Indeed, there is a diminution of risks. First, it reduced financial risks and costs because they are theoretically shared between partners. And second it reduced commercial risk because the company can benefit from market experience (culture, regulations, contacts) and management skills of its local partner. The exporter learns and adapts accordingly more easily to the conditions and needs of the foreign market.
Weakness:
i. No Network in Rural Areas- If Vodafone are present in city, we can notice a lack of store in small city or in rural area.
ii. Problem caused by a lot of joint venture
As we have seen, they are a lot of advantages caused by a joint venture. They are also very important disadvantages to underline. First of all, potential benefits are lower because they must be shared. Secondly, decisions are not only made by Vodafone but also by their partner, they are in a certain point of view dependant of another brand.
