Vodafone in Egypt: National crises and their implications for multinational corporations (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION:

The formation of Vodafone goes back to early 1980s; it was initially launched to develop military communications equipment for British forces. The company later won the rights of communication network service provider in the country. Since then it has grown exceptionally and has expanded into many countries in the world including the Egypt. The consumer strength of the company is second highest in the world.

The major services of the company are text messaging, voice messaging, mobile cellular and internet data and land lines. Egypt was a promising and peaceful region for the business at the time when the company entered the region but later the company found itself at the cross-roads of anarchy.

DILEMMA:

Vodafone entered the Egyptian market in the year 1998; it initially launched itself in the Egyptian market by buying minority shares of the local telecom network service provider Misrfone. The Egyptian market was a peaceful and prosperous market back then. It was a developing country and the market was showing good growth rates over the years. This attracted the company to enter the market.

The organization later bought out the stakes of Air Touchand rebranded the Click GSM to Vodafone Egypt. The company progressed in the Egyptian market splendidly and launched itself internationally from the platform of Egypt. It was one of three communications and cellular network service provider in the Egypt.

The political and social environment of the country has evolved over the time and many such challenges have risen in the environment that is out of the authority and control of the government. The president of the country is Hosni Mubarak; he has remained in power for merely a decade. The president rose to power due to the emergency imposed almost three decades ago and has since remained there. He was liked by the west and other countries due to his allegiance with them on various geo-political issues, but due to his harsh rule and poor human rights record he is disliked by the population of the country.

It is due to his cruel and harsh rule over the time that he has become unpopular among the citizens and population of the country. The youth and population of the country have decided to revolt and protest against him. The most fundamental platform of coordination among the people to stage protests against the government has been the internet and social networking websites. It has become a nerve and command center for the protests.

The government realizes this and it is under immense pressure as millions of people have joined these groups and social communities who will be staging the protests against the government.

In order to counter these upcoming protests and rallies, which aim to remove the current setup out of power the government has decided to break this nerve center of the protests. The ministry has issued directions to the Vodafone and all the other mobile data service providers to block the internet services and spread pro-government messages through its central servers to its customers in some specific areas and locations.

This direction of the Egyptian government has put the management of the Vodafone Egypt under immense pressure as the company is bound to follow the law of the country in which it operates in and on the other hand it is the freedom of expression that the company owes to its customers.......................

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