Mobile telecommunication companies have also been providing Wireless fidelity or Wi-Fi communication. The service oriented industries in particular are the one's reaping maximum benefit out of this technique. Therefore, there's lot of scope for the telecom companies to diversify in different markets, different customer segments, different technologies etc.
During the study we intend to analyse the diversification strategies being adopted by different British companies in different markets/ segments. Mobile telephony is still appears to be in the evolutionary stage; with rapid advancements in technology more dimensions are being added. For example live TV broadcasts are the latest additions. With stiff competition and shrinking margins in the domestic market, companies are looking eastward to mark their presence in vast markets like China and India. Therefore, this is the most appropriate subject for study at the moment.
Liberalization and globalization has opened newer vistas of trade and business all around the globe. Opening up of economies has now tilted the balance in favor of market forces. Globalisation of production and investment in recent years has led to a situation where long-term capital inflows from advanced economies to developing economies is taking place at a rapid pace. While taking a decision of diversification into a new area, market or segment, instead of the traditional approach of 'maximizing' the profits, organizations go ahead with multiple objectives, monetary as well as non-monetary. There are short-term objectives as well as long-term ones. Strategists are supposed to prioritize all such objectives, so that there is clarity and ease of decision making in situations where there is an apparent clash of objectives. The mobile telecom field in itself is a technology intensive area; with newer trends in technology making the older one's outdated at a faster pace. Therefore, it is a challenging task for the companies to remain relevant in the market, outdo the competitor and continue to profitably cater to the needs of the existing customer. Companies devise strategies accordingly. Diversification is an important element of such strategies. While including vertical integration in diversification, Cantwell et al (2004) define diversification as an extension of company's portfolio of products or businesses into new product or business areas. As far as mobile telecom field is concerned, British telecom scene is dotted with the formidable presence of companies like, British Telcom (BT), Orange, Vodafone, and Hutchison etc. Orange has mobile operations in 13 countries while Vodafone operates in 27 countries (Datamonitor, 2007). Though BT has divested its mobile phone business by divesting its mobile business in 2001, but mobile telecom field doesn't just involve mobile phones only, it includes a range of mobile computing solutions. For example, recently BT launched the 'BT Managed Mobility' simplify the management of corporate mobile assets, including mobile phones, BlackBerry devices, PDAs, pagers, aircards and other wireless assets in addition to cutting costs1. Similarly Vodafone has big plans for Turkey and India, where the company sees lot of scope. Quoting a recent study by Mobile Entertainment