A corporate strategy article by Thunderbird students Edyette Key, Kara Nguyen, Cole Augustine, Ilan Fehler, Giff Bloom and F. Trevor Rogers
Economies and industries go through periods of consolidation; from the bust of the .coms, recent restructuring of the banks and even the funneling of the beer industry. In some cases these consolidations aren’t because the biggest player in the market is gobbling up all the little ones, but rather the lean and agile end up with more capital and are able to buy into a controlling position of a much bigger and strapped for cash giant. One such example is the acquisition of miller brewing company by the South African Brewery that has propelled SAB to be one of the top three breweries in the world. The communications industry is no different and many companies seek to enter new markets through acquisition. This article dissects the motivations of Vodafone’s further acquisition of Verizon and its potential to weaken Vodafone’s current global growth momentum.