Ten years ago, the market for mobile telephones was in overdrive. Vodafone New Zealand Ltd., a subsidiary of the United Kingdom-based global telecommunications company, was a small player in a market dominated by the state-owned telephone company. With better service levels and rising cell phone penetration, Vodafone New Zealand wasted no time overtaking its competitor. By 2004, Vodafone had achieved a 50% market share and uncontested leadership in New Zealand. As the mobile telecom industry reached maturity, however, Vodafone's customer base plateau at 2.2 million consumers, with 54% of the national market. Then conditions changed: The Company’s competitors began to rally, the government increased regulation of the market and average revenue per user lagged. Recognizing that the game was different, Vodafone began reconsidering its strategy. Vodafone’s status as New Zealand’s mobile market leader is largely due to the company’s intimate knowledge of customers’ calling and messaging behaviour. Providing this insight is of course the role of a data warehouse; however by late 2005, Vodafone’s existing warehouse was reaching its use-by date. Prepay activity and on-account activity were difficult to compare, the data required to meet new compliance rules was hard to extract, and data mining was limited Objective
Vodafone executives recognized that tougher market conditions warranted faster decision making based on real-time knowledge of current conditions. Instead of the gut-level choices made on the fly during the company's growth years, Vodafone needed to make a wholesale shift to analytical marketing, using business intelligence (BI) that could rapidly provide fact-based decision support. The goal: to help the company deliver the right message to the appropriate customers when they wanted it, using the preferred channel. Assumptions
(a) Do we assume the future will be volatile?
The future will be volatile. The existing strategies of the incumbent telecommunication providers was about to change. No longer could they compete with low eﬃciency and inadequate cost, so these companies had to focus on cost reduction. Concentration seemed to be a way for these incumbents to solidify their position through alliance and acquisition with their competitors.
(b) Are we operating under a status quo?
The telecommunications industry was in an upheaval. The European monopolies were being privatized, restrictions on national markets were being lessened and new technologies for the transmission of voice and data were making a great impact on the industry. (c) What assumptions do our competitors hold about the industry and themselves? Competitors recognized that alliances and acquisitions must be put in to place to grow their Network. All competitors recognized the lack of diﬀerentiation within the industry and sought to change that. Some strategies were to build roaming agreements, making the network oﬀer more attractive to the customer. Another diﬀerentiation focus was providing content, a radically diﬀerent market that traditional telecommunications network services. Analysis
1) What were the challenges for Vodafone New Zealand?
Whenever any market matures and the enterprise cannot rely on the new pool of customers. So a different strategy and technology needs to be adopted to run the competitive business. There are many challenges that Vodafone faced to achieve the new growth. They are as follows * Stagnated market share about 50%
* No new additions of the customers i.e. Customer retention * Building the new strategy to retain and increase the revenue from the exiting customers * Dissatisfaction amongst the customers in terms of the services and technologies been provided * Competitive Intelligence to outsmart the competitors so as to compete in the market * Providing the real time knowledge for taking better decisions * Vodafone had...