VODAFONE

Vodafone

Vodafone

Introduction

The Vodafone assembly, a international business that was an early entrant into the Hungarian marketplace. Aparticular characteristic of this market entry was the need to set up fast relations with a localized advocating bureau in order to rendezvous a short launch deadline. Next, theoretical and empirical findings about bureaus' use of resource endowments in Hungary are integrated and considered according to the RBV theory of the firm. In deduction, limitations of the study are accepted and specific recommendations for study are formulated. Under the leadership of former CEO, Sir Christopher Gent, The Vodafone Group (hereafter “Vodafone”) saw its market value increase from £7.5 billion in 1997 to £77 billion in 2005 (equivalent to US $137.6 billion). In 2005, Vodafone was the world's biggest mobile teletelephone company, functioning in 29 countries with more than 100 million subscribers (BBC News, 2005). This outstanding record of development by the British business was achieved through acquisitions of wireless phone operators such as the US's AirTouch in 1999 and Germany's Mannesmann in 2000. (Halpern 2006)

In late 1999, Vodafone went into Hungary and accomplished a market launch advised to be the world's fastest in wireless telephony history. Initially, Vodafone opted for a joint project mode of entry. Partners encompassed Vodafone (50.1 percent), the German telecommunications business RWE Telliance (19.9 percent), the Hungarian state-owned broadcasting business Antenna Hungaria (20 percent), and the Hungarian Postal Service, Magyar Posta (10 per hundred) (Budapest enterprise periodical, 1999a, 2000). This operation subsequent became a wholly-owned subsidiary of Vodafone. (Halpern 2006)

In late 1990s, The Vodafone Group's corporate principle allocated foreign subsidiaries a certain amount of command over their trading strategy, producing in decentralized advocating strategies. Vodafone Hungary was thus adept to select its own ad bureau in Hungary. Facing critical deadlines for the primary market launch, assortment of an initial advocating bureau in Hungary became a critical decision. Susan, former Marketing and Sales controller for Vodafone Hungary, recalled the position in these words:

Speed was critical. We were looking for an publicity agency that we thought would be adept to facilitate our launch critical timeline. Additionally, we were looking for an bureau that appreciated our need to break through the clutter of fourth quarter consumer advertising, in a comparable market where we were the third operator. (Halpern 2006)

Vodafone Hungary primarily chosen DDB Budapest connection assembly, the Hungarian subsidiary of DDB International. However, this relationship verified failed, as Susan explained:

We primarily went with DDB as they had a phenomenal throw presentation. They actually appeared to “get it.” regrettably, they dropped far short of expectations. While they came up with a unique tag line - “A te Hangod” meaning “It's your voice,” in the informal voice - they came up with little else. (Halpern 2006)

Two weeks before launch, we didn't have a creative concept. It was at DDB's proposal that we searched the input and services of some local creative “hot shops.” Republic of Art was one of those agencies. They appreciated the short better than any other bureau with who we ...