Vodafone, a UK-based mobile telecommunication company, entered the Japanese cellular market after it acquired a 26 percent stake in J-Phone, through the acquisition of Air touch


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International Business

CASE STUDY (20 Marks)
Vodafone, a UK-based mobile telecommunication company, entered the Japanese cellular market after it acquired a 26 percent stake in J-Phone, through the acquisition of Air touch. J-Phone was the third largest player in the Japanese cellular market. Vodafone went on to acquire a controlling stake in J-Phone in 2003. The Vodafone faced lot of problems in the country due to competition from local players like NTT DoCoMo and KDD, who provided better services and a superior range of handsets, and due to a delay in its rolling out 3G services. This resulted in Vodafone's poor performance in the Japanese market. Finally, Vodafone’s agreement with Softbank under which it can continue to have access to one of the most developed cellular markets in the world, proved to be fruitful.

Answer the following question.
1.  Analyze the reasons for Vodafone's failure in Japan.
2. Discuss Vodafone's operations in Japan.

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