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Marketing Strategy - Assignment

   

Added on  2021-05-31

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1.3 SWOT analysisSWOT analysis (see appendix D) which stands for the main strength, weakness of the company as well as the opportunities and threats in the market is the heart of any marketing strategy. This will give a good understanding of company performance in the view of competition, customer and supplier as well as the business environment. By doing that, SWOT provides the strategic framework for further development of company, how to capitalise its strengths, minimise weaknesses, exploit any opportunity,and avoid any threat facing it.a. StrengthsVodafone is the cost leadership mobile network provider in United Kingdom which provide a variety of service to customer (both personal and corporate). According to Sekiguchi (2010), it has extremely gained “economies of scale and scope to maximise cost efficiency and effectiveness”. Group Technology which is driven by Vodafone Group with the purpose of “leading the implementation of standardised architecture for business process, information technology and network systems” has helped the organisation achieve time-to-market and maintain cost efficiency (Hitt, Ireland and Hoskisson, 2008, p. 345).Being ranked at 10th position in BrandZ’s top 100 most valuable global brand ranking, Vodafone can capitalise on its recognizable global telecommunications brand to enter into new markets (Sekiguchi, 2010). Distribution system is also a major advantage of Vodafone as their brands appear in almost part across the country.Vodafone is an established network provider with a strong infrastructure base and system. This is also another main advantage of company.b. WeaknessesDespite being a market leader, Vodafone has gradually lost its position to O2 in UK market. Afterthe merger between Orange and T-mobile, Vodafone now falls into the third position in the UK market. The second weakness of Vodafone is that they are lack of diversification but rather focus on costreducing leadership strategy. For example, the charge for an international call in Vodafone is high in comparison with its rivals. With the fact of nearly one million international students coming to the UK for higher education, that may drive the customers to shift to other network provider. .c. OpportunitiesAs the cost leading operator in the market, Vodafone can utilize their strength to further diversify their service in the market in order to maximize the profit while maintaining lower cost.

Also, the new wave of mobile and network technology emerge and play an important role in thecurrent and future market. If Vodafone could utilize this trend and apply latest technology into their service, this will help the company to increase revenue greatly.Vodafone may concentrate on age-groups with different demands. For example, according to Larsson (2007), every 3 in 5 teenagers in the UK use mobile. Vodafone, therefore, may provide flexible services to that group such as email and internet access in order to support more sustainable growth.d. ThreatsThe European debt crisis and negative economic outlook could be the major obstacles that prevent Vodafone to maintain their revenue and profitability. It market growth was only about 1.0% and1.3% in 2010 and 2011 respectively (Larsson, 2007). As the economy shows no sign of recovery, the potential threat of sale decline and poor performance should be taken into notice.The mobile network provider market has reached its full potential capacity and at the maturity phase. Therefore, the competition among players such as Orange and O2 in the market is really tight andany action from the participants can have a severe effect on others and the market. Price and promotional campaign are two keys to compete in the market.1.4. Vodafone unique selling position (USP)Having a USP will significantly improve the positioning and marketability of the company and products that demonstrates an advantage over competing brands (Interactive marketing, no date). In the highly competitive world, Vodafone has to be more unique, more valuable, and more visible to be successful in the marketplace.Base of the previous analysis of Vodafone marketing position in the market as well as company’sown capacity, the centre of company profitability and competitive advantage in the market comes from a concentrating strategy that applied a value-added service to meet customer’s meet. With a cost leadership in the market, the company continues to diversify their products and services in order to meet further requirement from clients.Some of the service that company applies to clients:Vodafone email plus: provides users with instant access to 5 different email accountsVodafone PC backup: provides online backup and restore service for vodafonebroadband usersVodafone 360 store: brings phone, email, chat and social network contacts together formobile, PC and MacMusic Download: allows Vodafone customers to discover and download music from thenetwork's catalogue

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