November 28, 2010
Professor Brad Bridges
Vodafone Group is a global telecommunications company headquartered in Newbury, United Kingdom. It is the world’s largest mobile telecommunications company measured by revenues. Vodafone has more than 150 million proportionate subscribers operating networks in 16 countries and has partners in over 10 additional countries. Vodafone boasted a market capitalization of $166 billion making it the eleventh most valuable company in the world. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States. The name Vodafone comes from voice data phone, chosen by the company to reflect the provision of voice and data services over mobile phones.
Key Performance Indicators for Judging Strategic Performance
To evaluate Vodafone’s performance and determine the effectiveness and success of its strategy the following balanced scorecard elements must be measured and tracked. The tracking of these elements will serve as financial and strategic controls so when performance is found to be lacking corrective action can be taken to secure a sustainable competitive advantage. *
Net subscriber gain/loss (total # of subscribers)
Blended Customer Churn Rate
Average Monthly Revenue per User
Non-Voice Services as a % of Service Revenue
Voice Usage Volumes
Net Acquisition Costs
Net Retention Costs
Market conditions are challenging in the mobile telecommunication industry in particularly in the mature domestic market of the UK and the Euro zone. However, expansion possibilities exist in developing economies and should be explored. To capitalize on existing market dominance and share, Vodafone should cut costs and focus on customer retention.
Vodafone has competitive advantage because it focuses its strategy to take full advantage of its resources and core competencies. Establishing strategic objectives must be established by analyzing both external and internal environment conditions. Below are Vodafone’s the core competencies: *
Value added services
Market Share and Brand Recognition
Cost Advantage (Economies of Scale)
To sustain its competitive advantage, Vodafone must keep the organization focused on its vision, on their customers, and on their employees. (Vodafone, 2006) Vision
* To be the world's mobile communications leader – enriching customers' lives, helping individuals, businesses and communities to be more connected in a mobile world. * To help customers use mobile communications to make their lives richer, more fulfilled, more connected. They will choose Vodafone because it is the best experience they can find. * Through their leadership, scale, scope and partnerships, Vodafone will bring online mobile services to the world.
* Vodafone will lead in making the mobile the primary means of personal communications for every individual around the world.
Focusing on Vodafone Customers
* Vodafone customers have chosen to trust the group.
* In return, Vodafone must strive to anticipate and understand their needs and delight them with the services provided.
* Vodafone must value customers above everything else and aspire to make their lives richer, more fulfilled and more connected.
* Vodafone must always listen and respond to each of its customers. * Vodafone will strive to delight customers, anticipating their needs and delivering greater quality and more value, faster than anyone else.
Focusing on Vodafone Employees
* Outstanding people working together make Vodafone exceptionally successful. * Vodafone seeks to attract, develop, reward and...
References: Hitt, M., Hoskisson, R., & Ireland, D. (2009). Strategic management: Competitiveness and
Globalization. Mason: South Western
South University: “Online Lectures” 2010.Strategic Management. Accessed November 28, 2010 from http://myeclassonline.com/re/DotNextLaunch.asp?courseid=4620444
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