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Problem & Solution

The impact of the Arab Spring has shown Political, Social and Economic conflict in Egypt & by extension the telecoms sector

We ask : what implementation Vodafone corporation should take and what their corporate responsibilities should be in such situations ?

Solution:

• Alert by Provide sufficient warning to customers
• Argue its own case - and responsibility to customers

Brief History

• In 1998: Vodafone Egypt was established under the name of Click GSM
• In 2002: the company was re-branded and became Vodafone Egypt
• Telecom Egypt owns “45%” of the company
• Vodafone Europe owns “35%” of the company
• Vodafone International Holdings owns “20%” of the company
• In 2007: the company acquired Raya Telecom and
• In 2008: the company acquired Sarmady

Business Key Points

• In 2010: Vodafone Egypt became the leader in the telecommunication market with 30.7 million subscribers

• In 2010: The company employed 6,500 employees

• It operated its own network in Egypt however; it was profoundly dependent on the Egyptian government for running certain critical elements in the infrastructure.

• It was active in terms of corporate social responsibility

• Its mission statement “to be admired as a diverse ethical company operating responsibly and providing products and services that enable a more sustainable society for our customer and our community by being the leading telecommunications company”

Key Challenge

• The uprising of Egyptians during January 2011

• Nonviolent protests to terminate the Emergency Law and reduce Hosni Mubarak’s term

• Using social media platforms by protestors specifically Twitter and Facebook

• Mubarak’s government viewed social media as a threat

• Vodafone Egypt, Mobinil, and Etisalat Misr were ordered to shutdown the mobile network in certain areas of Egypt, and send propaganda SMS messages

• The Egyptian government had the power to disconnect the entire system

Industry Analysis

Industry Analysis

Figure 1: shows Egypt’s population and the number of telecommunication market subscribers for the years 2008-2011

Industry Analysis

Figure 2: illustrates the three telecommunication market leaders between the years 2008-2011, which are: Vodafone, Mobinil, and Etisalat

Financial Performance

Company Analysis

Company Analysis: SWOT Analysis

Alternatives

Key Issues

• Suspend services and send propaganda SMS messages.

• The consequence of disobeying the authority & Emergency law in Egypt

• Threats to both employees and investments.

Alternatives : Option 1

Alternatives : Option 2

Alternatives : Option 3

Key Issues & Related Solutions

Key Issues

• Suspend services and send propaganda SMS messages.

• The consequence of disobeying the authority & Emergency law in Egypt

• Threats to both employees and investments.

Recommendation

• Option 3: Collaboration with other firms

Implementation

Implementation steps for Option 3: Collaboration with other firms

Implementation

Option 3: Collaboration with other firms

Challenges that would prevent from successfully execute the plan

Why this Option ?

Best Example

Thank you