SWOT Analysis of Vodafone Group Plc

This report provides a SWOT analysis of Vodafone Group Plc, identifying its internal and external drivers. It also discusses the operational impact on the finance and marketing functions of the company.

Global Business
Environment
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Executive Summary
This report has been prepared with an aim to conduct SWOT analysis of a company
based on its PESTLE analysis done earlier. Vodafone Group Plc is chosen as company to
identify the drivers of its internal and external environment for the sake of this report.
Operational impact analysis of factors identified in SWOT analysis have been discussed in the
later part of report on finance and marketing function of the company.
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Main Body.......................................................................................................................................4
Portfolio Paper 2: SWOT Analysis........................................................................................4
Portfolio Paper 3: Operational Impact Analysis.....................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
Appendix..........................................................................................................................................8
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Introduction
Below mentioned report is aimed at identifying internal and external drivers of the
Vodafone Group Plc on the basis of its PESTLE analysis done earlier. Operational impact
analysis of identified drivers on the finance and marketing function of the company is also
discussed below.
Main Body
Portfolio Paper 2: SWOT Analysis
To identify internal and external factors that drives the operations of the Vodafone Group
Plc, SWOT analysis of the company is mentioned below:
Strengths – It refers to all those factors which are internally present within the company
and proves to be a competitive advantage for it (Cross and Miller, 2020). Company is a
multinational service provider and therefore, has a large subscriber base which makes it
operations globally strong .One of the biggest strengths of its strong and diversified market
presence. It uses innovative marketing strategies to improve brand awareness. Also, it has
diversified its products and services portfolio which has helped it increase its revenue sources
and reduce risk factors. Company offers differentiated services and therefore, charges premium
pricing which has strengthened company to maintain positive margins above its rivals.
Weaknesses - It refers to all those factors which are internally present within the
company and creates obstacles in the path of operational excellence. Large subscriber base of
company is strength of any company however, Vodafone is experiencing drop in subscribers
base and brand valuation in many countries across globe. Company also has huge debt over it,
much more than secured limit over it earnings. Repaying principal and its finance cost has
reduced profits of the company. Although company has diversified its products portfolio, it has
achieved limited success in products other than its core service of telecommunication which is
also a weakness of the company.
Opportunities - It refers to all those factors which are present in the external
environment of the company and creates or develops chances for its success, growth and
expansion (Huang, 2020). Company has strong resources and can improve its network coverage.
Improved network services and internet speed services like 5G and 6G will inspire more
customers to switch form their present service provider. Company still have many more markets
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to penetrate by improving its operations in the areas where it already operates or new regions
where it was not present earlier. Biggest opportunity for the company is brought by the
increasing numbers of mobile users across the globe. Internet users especially social media users
and business users are rapidly increasing, which company can target digitally to increase its
subscribers base.
Threats – It refers to all those factors which are present in the external environment of
the company and creates hurdles in its success, growth and expansion aided by its weaknesses
(Moran, 2020). Policy confusions due to Brexit and uncertain economic conditions in the market
has led to drop in brand valuation of the company which could also the reason of dropping
subscriber base. It could be owed to high competition and sluggish economic growth, both of
which have proved to be a big threat for company's subscribers base, revenues and profits.
Portfolio Paper 3: Operational Impact Analysis
Finance Department
This function of the company is concerned with recording, maintaining and managing all
the money related resources and matters. It is impacted by both internal and external factors
influencing finance and funds flow in the business.
It was observed in SWOT that company has a diversified product portfolio which reduces
the risk of losses and increase revenue sources. However, drop in customer base has reduced its
revenues which has made it necessary for finance team to adjust all its plan and distributions of
resources so that no business operation is halted. Company charges premium pricing and with
large customer base has stable inflows but huge debt in it Balance Sheet has forced its finance
department to think twice before analysing any new business proposal. Company has huge
chances of expanding its operations which will improve its revenue sources and more revenues
means better finances for the company. However, in a sluggish business market, finance team
needs to evaluate all the cost and expenses of initiating operations before projecting revenue
flows. Company has opportunities to increase its revenue by exploiting the increased demand of
internet and related network services during Covid-19 pandemic and its subsequent periods.
Marketing department
This function of the company is concerned with improving business sales in the market as
well as managing and improving brand image in the market (Nabijonovna, 2020). It is highly
impacted by external factors but is also influenced by internal factors.
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Company is facing with a phase of stagnant customer base, high competition and
uncertain business environment which has made functions of marketing team all the more
important. Marketing department of the company is famous for innovative promotional
campaigns like ZooZoo and it needs to develop more such campaigns that can attract more
customers. It is responsible for bringing back the lost subscribers base and with digital media
usage and smartphone usage on the rise, it can design marketing campaigns using improved
technologies to attract more tech-savvy customers. Marketing department of the company cannot
work in isolation. It needs to develop marketing strategies in accordance with the operations
team, finance team, research and development team, etc. so that not only external factors of the
business environment are considered but also internal factors of the company are considered
(Ratten, 2020). It was observed that company is operating well in its core process i.e.
telecommunication however, lagging behind in other services. Marketing team should design
such policies that are able to improve the sales of those products as well so that company can
expand its operations further. It should design innovative promotional strategies so that it is able
to attract diverse customers across diverse segments and positioning in which company places its
products and from which it targets its customers.
Conclusion
Above report concludes that Vodafone is a global company with large subscribers base
and strong brand memory. It can use its strengths to reduce its weakness so that it can exploit all
the opportunities that its business markets presents it. It was also concluded that both internal and
external factors of a company impacts its operational processes and drives its growth in a more
collaborative manner.
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References
Books and Journal
Cross, F.B. and Miller, R.L., 2020. The legal environment of business: Text and cases. Cengage
Learning.
Huang, J., 2020. Seeking Added Value in the Digital Business World. In Sino-German
Intercultural Management (pp. 1-7). Springer, Cham.
Moran, R.E., 2020. Examining switching power: Mark Zuckerberg as a novel networked media
mogul. Information, Communication & Society. 23(4). pp.491-506.
Nabijonovna, B.F., 2020. Business activity and its economic indicators. ACADEMICIA: An
International Multidisciplinary Research Journal. 10(3). pp.151-161.
Ratten, V., 2020. Coronavirus (covid-19) and entrepreneurship: changing life and work
landscape. Journal of Small Business & Entrepreneurship. 32(5). pp.503-516.
Online
Where we operate, 2020. [Online]. Available through:<https://www.vodafone.com/about>
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Appendix
Company Overview
Vodafone Group Plc is a British multinational company. It was founded in 1991 and has
its global headquarters at London. It offers telecommunication services in multiple countries
across the world. It manages business across 25 countries and has divided its business into two
geographical segments – Europe and rest of the world (Where we operate, 2020). It is a listed
London Stock Exchange company and is also a constituent of FTSE 100 Index.
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