Value Chain Management... for O2

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Executive summary
O2 which is officially known as telefonica was initially formed in 1985 as Cellnet and then in 2002, BT Cellnet was then rebranded as o2. O2 is a ‘leading provider of mobile services, offering communications solutions to customers and corporate in the UK, Germany and Ireland.’ They deal with mobile phones, broadband and SIMS. O2 offers a wide range of products and services to their customers. Other than the voice services that are provided e.g. making phone calls, the company leads in non voice services such as text, games, media messaging, video and music. In addition to that, data connections by means of GPRS, 3G, WLAN and HSDPA. As of December 2007, O2 had over 40 million customers across Europe with 18.4 million being UK customers. O2 is also the sponsor of the o2 Arena in North Greenwich which is an entertainment venue. O2 customers are able to get priority tickets 48 hours before the general public have access to it. In late 2007, o2 signed a deal with Apple stating that the iPhone would be sold exclusively to o2 till 2012. However, this ended in October 2009 and Orange and T-Mobile started selling the iPhone in their UK stores.

This report explains the practical aspects of value chain management at o2. It portrays the communication and integration of customer value with o2’s operational capabilities. There are three major parts of this report which are pro-forma A, pro-forma B and pro-forma C. Pro-forma A: overall information about the value of o2’s products and services will be described here. A primary research was also carried out. The type of research used was the quantitative research which was carried out by handing out questionnaires and it was compared to secondary data that was already carried out. It goes on to explain the purpose of the research, why this method was used and what could have been done differently. The conclusions drawn from the research explains the results of the research. Where the customers satisfied at the services and products they go from o2? What customer value were they lacking? Pro-forma A concludes with a list of customer values provided by o2 and how the company prioritises its customers’ values.

Performa A

Understanding the Value of the product/service for 02 customer

Name of company| 02 |
Name/description of Product/Service| Products and services * O2 offers online top up services. In order to use this service, an online registration has to be completed. After this registration is completed, this online top up service allows customers to buy a maximum value of £30 credit for their Pay and Go mobile SIMs. Top up accounts can be managed through their website * Customers at o2 can subscribe to LOVEFILM. LOVFILM is a British DVD rental company which provides online video rental and resale. This is a service that is available to customers who are over 18. New subscribers and given a free trial period and would not be billed for this service. However the free trial is only available to one member of a household. Upon subscription, the terms and conditions state that the subscriber must treat the borrowed DVDs and their packaging with utmost care at all times. Subscribers would be given an advance notice before LoveFilms debit their account in the case of any damages to the DVDs. Subscribers can end their subscription at any given time and termination will take immediate effect if they do not have any DVDs in their care. * O2 BlueBook is a service that provides customers with access to “web and WAP page hosting and sharing services”. A customer’s website is referred to as their BlueBook. With this service, they are capable of posting information to a WAP page and web via the internet and a mobile phone. This service is free although users may be charged for the internet service by their internet provider. Registration and downloading texts and pictures from BlueBook are also free...
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