VODEAFONE CASE STUDY

Vodafone case study

Vodafone case study

Background:

The Vodafone group is a mobile network operator headquartered in Newbury, England. They made their first phone call just minutes after midnight on the 1st of January in 1985. In 1987 it was already recognized as the largest mobile network in the world. Today it is the biggest telecommunications network provider in the world by turnover and has a market value of about one hundred billion pounds. It is a FTSE 100 company and is ranked 3rd overall just behind 'Royal Dutch Shell' and the 'BP' group.  Vodafone currently has equity interests in twenty-five countries and has other partner networks with assets in another forty one countries. It is the second largest mobile telecom group in the world behind China Mobile and has more than ten million customers in the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States.

Introduction:

As part of my report for the Vodafone group I will analyse first of all their current strategic position and how these strategies will reflect their business opportunities in future. In order to this I have identified their strategies in terms of marketing objectives and also their core competencies and resources strategies. Apart from that I also conduct an internal and external analysis which will include a SWOT analysis, PESTLE analysis and Porters 5 forces model. Finally I will conclude on this and give recommendations to Vodafone's future strategies.

 

 

Current Strategy:

Vodafone strategy is to remain a market leader consist of various points and targets and involves different stakeholders. Their commitment willing to improve their services through 'Value enhancement' and their goal to strike and enter into new emerging markets is continuing to flow with their current values as well. Vodafone is focusing on 4 main aspects on their business as we can see from the following diagram:

(http://www.vodafone.com/start/investor_relations/strategy0.html)

Drive operational performance: 

Vodafone is always trying to give the customer more value for their money through 'Value enhancement' which includes reducing the cost of production without losing out on quality.

 

Pursue growth opportunities in total communications: 

They want to focus more on their current products in their portfolio and want to enhance their services. They already had a breakthrough in Europe with their mobile data service which earned them revenue of £2.8 billion.

 

Execute in merging markets:

Vodafone wants to use the opportunity to enter new markets which have significant growth levels especially in countries like India, Turkey and countries in Africa. They want to maximize the opportunity to utilize mobile data solution in countries where it is possible.

Strengthen capital:

As the company continues to grow they want to make sure that shareholder get the most return on their investments in order to keep up with their investor's relation. This also encourages potential investors to come in and join the group as a stakeholder.

 

PESTLE Analysis : 

Political Factors:

·        Regulations - mobile phones licenses are tightly controlled and are very expensive. In some cases tight measures are implemented by the government in order to decrease mobile phone use ...