Vodafone

Developing a total communications

strategy in the UK market

Student: Yerzhan Beisengaliyev and Aidos

Bespayev
Professor: Jean Christophe Vautrin
Name

The name Vodafone comes from

voice data fone,

chosen by the company to "reflect the
provision of voice and data services over
mobile phones
Table of Contents:

General Info about Vodafone

PESTEL Analysis

5 Forces Analysis

SWOT Analysis

Value Chain

Recommendations

Bibliography
General Info about Vodafone

Vodafone Group is a British multinational telecommunications

company headquartered in London

Vodafone' brand started in 1982 with the establishment of

Racal Electronics plc UK's largest maker of military radio
technology.

It is the world's 3rd-largest mobile telecommunications

company measured by both subscribers and revenues

It is a globally operating company, since Vodafone owns and

operates networks in 21 countries and has partner networks
in over 40 additional countries.

They have 92,812 employees worldwide

General Info about Vodafone

MISSION

We will be the communications leader in an increasingly

connected world

VISION

Our vision is to lead the industry in responding to public

concerns regarding mobile phones, masts and health by
demonstrating leading edge practices and encouraging
others to follow.
General Info about Vodafone

Corporate Strategy: Growth objectives

Drive operational performance through value

enhancement (maximize value of existing customers) and
cost reduction.

Total communications expansion in mobile data services,

enterprise customers, high value consumers as priority

Expanding into newly emerging markets

Strengthening capital discipline generating 5-6 billion

pounds in free cash flow annually to support investments
for the future growth
 Economic

PESTEL Analysis
Economic stability after crisis
High labor cost in UK
High cost of building and maintaining network
Competitive industry

Social
Political Health awareness

Government policies Growing older population in UK

More social media users
Privatization of British telecom
Increasing access to internet and internet users
Phone licensing
Tax policies

Technological
Technological advancements
Additional Services
Licensing, patents, 3G
Legal
Current market legislation
convenient and stimulates
competition
Changing environmental regulations
Use of phone while driving
Environment
Dispose handsets
Social Responsibility
Recycling programs
 PORTERs 5 Forces
Porter five forces analysis is a framework to analyze level of
competition within an industry and business strategy
development.
 PORTERs 5 Forces

Bargaining power of Consumers: HIGH

Lack of differentiation among service providers

High competition
Low switching costs
Lack of brand loyalty

Bargaining power of Suppliers: MEDIUM

A few major suppliers

Lack of substitutes
Outsourcing network abroad
Common platform across the groups
High switching costs
Nokia, Apple, Samsung etc.
 PORTERs 5 Forces
Threat of substitutes: MEDIUM-HIGH

Landline users are declining

Videoconferencing
VOIP Skype, Yahoo Messenger, Gtalk
E-mail & Social network websites
Very few companies providing 3G card or DSL services in UK

Threat of new entrants: LOW

Huge license fees to be paid upfront

High initial capital required
Complex regulatory issues
Infrastructure cost very high
Rapidly changing technology

Industry rivalry: HIGH

Virgin media, 02, Orange, SKY, Talk Talk, BT

Less or no brand loyalty for specific product
Little discrimination other than cost/price
Open market for competition legislations favor competition
SWOT Analysis
STRENGTHS

Globally renowned brand name

Great geographical exposure
Gained economies of scale due to its size
Highly innovative company
Integration of subsidiaries under Vodafone umbrella
High level of network infrastructure
Leading mobile company in the UK
WEAKNESSES

Mainly concentrated in Europe and Asia

Lost the 2nd position in UK to Orange & 02 partnership
Weak in fixed network area
Lack of rural network wireless access
SWOT Analysis
OPPORTUNITIES

Increase the 3G coverage

Tao into emerging markets
Reduce costs through efficiency offer better prices
Diversification into new areas
Invest in R&D and innovate new offerings
Expand towards non-mobile services

THREATS

Market saturation in UK and Europe

Uncertainty of regulatory climate
Increasing usage of Skype, Teleconferences, Whatsup,
iMessage
Increasing competition
 Value Chain

A value chain is a chain of activities that Vodafone performs in

order to deliver a valuable product or service for the market.
Value Chain
 Recommendations

Partnering with BT in order in order to gain access to a network

with less capital investment than building or acquiring its own

Tapping into the rural markets

Concentrate more in value added services target high end

consumers such as businesses

Diversifying in Broadband services, DTH, Voice over internet

protocol (VOIP)

Increase presence in emerging markets such as India, Brazil etc

Remain innovative, improve 3G speed and prepare for lunching

4G ahead of other competitiors
Factsheet
Factsheet
 Bibliography

Case study: Provided

http://vodafoneintegratedreport.html5magazine.nl/2012_2013_en/
value_chain

http://www.vodafone.com/content/annualreport/annual_report08/d
ownloads/vodafone_ar_business.pdf

http://www.vodafone.com/content/index/about/about-us/suppliers/
discover_supply_chain.html

http://www.vodafone.com/content/dam/vodafone/investors/factshe
et/
group_factsheet.pdf