O2 Marketing Case Study

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O2 Case Study
Individual Report
You will be expected to enlarge on the group presentation findings and demonstrate a clear understanding of your organisation and its position in the market. You should explain the use of environmental analysis. In addition you should attach an example of the marketing literature used by your organisation and briefly explain who you think the target market is and why that particular piece of marketing material leads you to that conclusion. You should also explain your conclusions and recommendations in a clear and analytical way. – You have 1500 words You will be assessed on your understanding of the use of environmental analysis and its application to your organisation and your understanding of target markets and visual marketing material. You will also be assessed on the clarity of your written work, your ability to present a logical argument and your adherence to academic conventions such as referencing Introduction

This report will consider O2 and its position in the telecommunications industry. Decisions concerning pricing, product choice, place and promotion (where and how to market the product), are all based on careful evaluations of external and internal factors affecting the firm.

For this business review of O2, a PESTLE analysis will be able to encompass the most important of these external factors which may affect the strategic planning and operations of the company. Additionally, a SWOT analysis will summarise internal strengths and weaknesses and will also look at some recommendations concerning future opportunities and threats that the firm should be aware of.

This could be extremely useful when seeking the most suitable direction for the company to take. By combining PESTLE and SWOT this environmental analysis becomes especially valuable as we will be able to understand not only the broader conditions of the marketplace, but also more specific features that relate to O2 on a short and long term basis. Overview of O2

O2 was formed in 2001 as a privately owned subsidiary of Telefonica following a demerger from British Telecom. Under Telefonica, O2 operates in five European nations and twenty six countries worldwide, with over fifty million customers. Revenues have been growing considerably, for 2010 O2 UK took 5.32 billion Euros by September. The United Kingdom is the leading service brand, and here alone O2 employs around 13,000 people and has 490 retail outlets. The UK and Germany are currently the company’s fastest growing business sectors and reported revenues for 2009 increased 13.7% on the previous year.

Not only is O2 a huge player in the telecommunications industry but it is clearly one of the overall leading businesses in the UK and was ranked sixth place by the ‘Best Companies to Work for 2008 List’, as well as being awarded a three-star accreditation denoting an ‘extraordinary’ company.

In essence, the company focuses on being a high quality provider of mobile and broadband services, however O2 does offer a wider range of products and services. O2 prides itself on being the ‘leader in non-voice services, including text, media messaging, games, music and video, as well as data connections via GPRS, HSDPA, 3G and WLAN’. Broadly speaking these are the new modes of communication and mobile entertainment.

Many companies define their goals with a mission statement and this may give us clues as to what customers they target, which sectors they focus on, and how they go about marketing their ideas. The O2 ‘vision statement’ is as follows:

“To enable our customers to make the most of their world and its possibilities through the services we offer”
Initially this may seem quite vague. If you can understand the true implications of this statement however, it is apparent that not only are the ‘possibilities’ for their customers endless, but so too is O2’s horizon. They want to continually develop new ideas that will ensure their...
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