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Case Study on Vodafone Assignment

   

Added on  2021-05-31

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INTRODUCTIONVodafone is one of the biggest mobile phone network providers in United Kingdom, aleading network telecommunication brand worldwide (see appendix A for the success ofVodafone). The company has employed more than 7000 people across with over 19 millioncustomers (Vodafone, 2011). The corporation has operated its business in 26 different countriesworldwide. The company is a public limited company with stock listing in both London and NewYork Stock Exchange. With their brand slogan “Make the most of now”, Vodafone has built its image as atrusted and reliable mobile network provider in UK.Marketing strategy plays an important role in promoting and bringing products closer tocustomers. This role is especially significant important in service sector as the process of sellingand using product happened at the same time. The purpose of this assignment is to investigate and analysis Vodafone’s marketingstrategy, using contemporary marketing tools (PESTLE, Porter’s five force 1980, SWOTanalysis and USP) to identify its own strength and weakness. Based on these findings, theassignment would propose some recommendations for the marketing strategy. I. Investigation and Analysis1.1. PEST analysisPEST analysis (see appendix B) includes “broad environmental factors that have an effectto a greater or lesser extent on almost all organizations” (Finlay, 2000, p.54). It is, therefore, auseful tool to explore the environment and evaluate its effect on any strategic decision.a. Economic & PoliticsDuring 2007-2009, the world economic witnessed a financial turmoil that take it toll inall business sector of the economy. As the result of economic downturn, the sales of servicesector, especially mobile network providers, fall sharply as consumer seek for alternate substitutefor mobile phone such as land line, internet phone, etc.
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United Kingdom is not aside from this downward trend as the economy has shown nopositive signal of recovery from the financial crisis. Furthermore, the European debt crisis whichspread over almost over Euro zone economy has begun to affect British economy. In overall, the economy show no sign of positive signal of recovery and in short term,Vodafone in particular and mobile network provider in general still face with difficulties inretaining their existing customer while manage to keep a stable revenue (HY Markets ResearchTeam, 2012). However, the potential of investing in highly technological innovation segmentcould be a solution for the company. Additionally, economic downturn means shorter budget thatspend for entertainment and other service.b. Socio-demographic United Kingdom is an aging country with 17% (UK National Statistic) of its population isover 65, according to UK National Statistics. One important notice is that the number of peopleover 85 has doubled over the period to 1.4 million (UK National Statistic) while the percentageof young people at the age less than 16 decrease from 21 to 19%. In young population, there is a trend among young people family as an increasingminority of lone and couple family without children. The decline and delay of marriage, theincrease of divorce are also a significant tendency in British modern family.UK is among the highest GDP per capita country with this figures in 2011 was $ 39.604(rank 20th over the world) (International Monetary Fund, 2011).In overall, United Kingdom is an aging economy with high personal total earning in theworld. This could be an opportunity but also a threat to the mobile network service as olderpeople requires different kind of service in comparison with young people. c. TechnologyOnly over a decade, the mobile phone and mobile network provider witness a tremendousinnovation and changes in technology. 3G network (third generation mobile generation) replacesGPS as the standard telecommunication for mobile phone. Furthermore, wireless has now
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