MANAGEMENT

Verizon and the Insights for Vodafone

Verizon and the Insights for Vodafone

Introduction

The company that I have selected for comparison against Vodafone is Verizon. Vodafone is a telecommunications company that provides a range of services like voice, messaging, fixed broadband and data to the customers all over the world. Vodafone operates in the Northern and Central Europe, Southern Europe and Africa, Middle East and Asia Pacific in the US through its 45% stake in Verizon Wireless. Verizon Corporation is a telecommunication company based in U.S. During its long history, it has been, at times the largest telephone company in the world. It provides the audio, video, data and internet services to customers, businesses and government agencies.

Discussion

Vodafone

Vodafone is a provider of communication services to over 404 million customers in more than 30 countries worldwide. The main operations of Vodafone include the supply of calls, text messaging, data and other communication services over the Vodafone's network. Vodafone offers these services in two ways, either customers are offered contracts or through selling of airtime in advance. The products and services of Vodafone primarily include: persona solutions, business solutions, branded phone and devices and, Vodafone global enterprise. The financial stability of Vodafone is visible through its revenues of £46,417 million for the FY2012 with an increase of 1.2% over FY2011 (Market Line 2013, pp. 1-20).

Core Strengths

Vodafone is among the few telecommunication companies having a broad geographic footprint. Vodafone is passionate about exceeding the expectations of its customers. This is reflected by its relentless working for understanding of the customer and taking of personal accountability for the customer experience (Baker et al, 2010, p.76). The management at Vodafone is continuously looking for going one step forward for doing things in a better way. It is focused towards taking of risks and pushing to achieve the maximum potential benefits for the company. Vodafone continuously evaluate its performance and on basis of that evaluation it takes measures for improving further to deliver best in the industry (MarketLine 2013, pp. 22-24).

Vodafone is maintaining its leading market position through achieving the best outcome for customers, employees and shareholders. Its business is highly cash generative and in the last 4 years, it has returned over 30% of its market capitalisation to shareholders in the form of dividends. The leading performance of Vodafone in the market is based on 3 core strengths:

Source: Vodafone Annual Report 2012

Vodafone delivers value and efficiency from scale through securing considerable unit costs savings in different ways including standardization of processes, purchasing, and outsourcing of non-core activities to third parties and sharing of common resources with other operators (Baker et al, 2010, p.76). Vodafone enjoys strong market position which is reflected from the high market shares it enjoys and through the strong brand it owns. Vodafone has outperformed its competitors by increasing its market share in most of the key destinations in the last year. The market share in terms of revenue of Vodafone in Germany is 35%, Italy 37%, UK 26%, Spain 31%, South Africa Vodacom 60% and ...