Strategic capabilities are the resources and competencies Vodafone need to survive and prosper. (Johnson, Scholes & Whittington 2006, p.119)
Why do we need to understand Vodafone’s Capabilities....
Vodafone’s capabilities will allow Vodafone to achieve competitive advantage over others because Vodafone has something that a competitor doesn’t have, or has difficulty getting.
| |RESOURCES |COMPETENCES | |THRESHOLD CAPABILITIES |THRESHOLD RESOURCES |THRESHOLD COMPETENCES | | |-TANIGBLE | | | |-INTANGIBLE | | |CAPABILITIES |UNIQUE RESOURCES |CORE COMPETENCES | |FOR |-TANIGBLE | | |COMPETITIVE ADVANTAGE |-INTANGIBLE | |
(Johnson, Scholes & Whittington 2006, p.118)
According to Johnson, Scholes & Whittington (2006 p.119) threshold resources are needed to meet customer’s minimum requirements.
Tangible resources are all means available to an organisation that can physically be observed (touched), such as Vodafone’s HQ in Mount View, Leopardstown, Dublin, it also comprises over 70 Vodafone retail stores and over 30 partner stores in Ireland its phones, its networking and cabling structure (www.vodafone.ie).
Intangible resources on the other hand cannot be touched, but are largely carried within the people in the organisation, such as culture, knowledge and reputation (De Wit & Merger 2005, p.113)
Unique resources underpin competitive advantage and are difficult for competitors to imitate or obtain. (Johnson, Scholes & Whittington, 2006 p.119) Again, they can be tangible or intangible in nature.
• Vodafone offers broad roaming plans to their customers.
• Network coverage. Vodafone network is available to other network users in remote areas
Threshold competences are the activities and processes Vodafone carry out to meet customer’s minimum requirements (Johnson, Scholes & Whittington 2006, p.119).
Core competences are activities that underpin competitive advantage and are difficult for competitors to imitate or obtain (Johnson, Scholes & Whittington 2006, p.119).
We have derived from our analysis, based on the utilization of Vodafone’s resources the following core competences are:
• Vodafone Ireland, as part of the Vodafone Group, aims to maximize the utilization of their resources by committing to helping communities and the environment, through their Corporate Responsibility program. ‘The Green Agenda’ is an environmental strategy combining Vodafone’s internal goals with a leadership position; to on their stakeholders the central role sustainability must play in our lives. Vodafone intended to cut CO2 emissions by 30% by 2011.
• Charity initiatives: Vodafone Ireland Foundation. The aim is to provide assistance in the form of cash donations, sponsorship and staff volunteering for Irish Charities. The partnerships they acquire with various charities allow for effective use of resources such as supporting Irelands elite disability athletes in the run up to and beyond next summer’s London 2012 Paralympics Games.
Ultimately, corporate social responsibility has been handled extremely well; Vodafone is maximising the opportunities of positive Public Relations, and positive brand perceptions...