Strategic Management: Vodafone Group
9th January, 2011
With the exceptional growth of cellular communications since the late 20th century, the trickle down impact on other sectors, society and economy at large is enormous. Dynamics of communications have strengthened the development of the entire information technology industry, enhanced economic growth and allowing better social interaction over expansive zones.
Currently, there are about 3 billion users of cell phones globally. Most of these users are found in western world. Nevertheless, 70% of the projected growth is predicted to take place in new markets, especially India, China, Asia and Africa. The challenges and opportunities faced by telecommunication companies in emerging markets are totally distinct from those in established markets like Europe.
The company in which this work is going to focus on is Vodafone Group. It is operating the biggest telecommunication network in the world with its presence in both mature and emerging markets. The main aim of this paper is to identify corporate strategy used by Vodafone Group and detailed analysis of this strategy using the existing analysis tools. At the end of this document, such tools as SWOT, PESTLE and Five forces will have been used.
The name Vodafone is coined from Voice data fone and it was selected by the company to portray the provision of both data and voice services using mobile phones. The company’s goal is to become the communication leader in an ever rising connected world. For it to achieve this mammoth goal, Vodafone has expanded its product portfolio beyond conventional basic services of SMS and calls by incorporating the following services:
Vodafone Office and Vodafone At Home (an integration of both fixed and mobile communications services).This product is geared towards meeting the customers’ needs.
Other products are Vodafone Passport, Vodafone Live! Vodafone 3G and Vodafone Mobile Connect data cards.Vodafone’s operation is organized in two distinct geographical regions. These are Europe and EMAPA. EMAPA covers Eastern Europe, Middle East, Asia, Africa Pacific and Affiliates.
The Europe region was once known to be the main root of Vodafone growth giving an approximate of 79% of income to the whole corporation. However, due to a 100% penetration in this geographical region, this market is currently considered as saturated and showing lesser growth. As growth decline in the Europe region, substantial growth is now evident in EMAPA where a 30% growth rate is being witnessed. Venturing in to new market frontiers has yielded greater diversity to the company’s conventional market portfolio.
Vodafone is a key player in international mobile telecommunications. It market share is evident in more than twenty six countries across the world. This case study attempts to look at how Vodafone Group handles its corporate strategy in a move to secure substantial market share. It explains how corporate strategy in application enhances the company’s growth. Vodafone UK which is going to form a subject of this study is part of Vodafone Group. It offers mobile telecommunications products and other related services. It market is segmented in to three major divisions. These are large organizations, small businesses and private individuals.
The current target of Vodafone Group is to be in the top five brands of the world. In a bid to achieving this, it is exploring new markets through venture in to new markets. The most commonly used strategy in this move is through the famous dual branding with more than 30 companies all over the world. These are organizations whose interests and involvements are of interest to Vodafone group.
This process of expanding global presence entails the use of locally...
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