askivy_assessment_center_case_study

Note: we have used the structure that we recommended in this guide into parenthesis so it is
easy to follow and you can see which points apply or not to this case study.
Introduction: (1 slide)
• Vodafone is already present in Turkey, where it has a #2 position
• Despite the difficult economics conditions, Vodafone increased its market share in
Turkey and Vodafone Turkey service revenue increased by 28.9% (page 20 and 34)
• In this presentation, we would like to analyse an investment opportunity in Avea, the #3
player in Turkey
• We will first provide a brief overview of the target, then proceeds to a analysis of the
pros and cons of the investment, analyse M&A considerations and provide Vodafone
Plc with our recommendation.
Point 1: Overview of Avea (1 or 2 slides depending on info)
(Description of the business: what is the company doing?)
• Avea is the #3 mobile phone operator in Turkey. It was founded in 2004 and reached a
nationwide customer base of 12.5m by the end of the 3 rd quarter of 2011
• Avea is 81% owned by Turk Telekom (which is itself partly owned by the Turkish
government), and 19% by IsBank, a large Turkish Bank
(Positioning in its market)
• Graph with market shares: Turkcell (57%), Vodafone Turkey (25%), and Avea (18%)
(Key financials)
• Insert financials tables or charts
Point 2: Acquisition rationale (2 slides for pros, 2 slides for cons)
PROS:
• (Economies of scale): yes, as Vodafone is already present in Turkey they are
opportunities for savings in combining marketing, selling mobile phones contracts in
stores, and other things like IT and customer support.
• (Economies of scope): doesn’t apply as they are selling the same products
• (Other synergies): There are probably other synergies, although you don’t need to be
an industry expert for this. You can guess from the annual report that mobile phone
companies need to buy licences to operate, and need to invest money in the network
infrastructure to they have signals in rural areas for example. Combining the two
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