Strategic Planning for Vodafone: Analysis, Issues, and Recommendations

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This report provides an analysis of strategic planning for Vodafone, including a competitors analysis, SWOT analysis, major issues identified, and recommendations for strategic change. It also highlights the importance of focusing on long-term business solutions and exploring new opportunities in the telecommunications industry.

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Strategic Planning
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Strategic planning 1
Contents
Introduction....................................................................................................................2
Porters five force model.................................................................................................2
Competitors analysis......................................................................................................4
Resource based theory....................................................................................................5
SWOT Analysis.............................................................................................................5
Major issues identified...................................................................................................7
Strategic change.............................................................................................................8
Recommendations..........................................................................................................8
Conclusion......................................................................................................................9
References....................................................................................................................10
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Strategic planning 2
Introduction
(Source: Singh, 2014)
Vodafone, one of the largest telecommunications a company, head office is based in
United Kingdom. This telecommunication company helps in providing a wider range of
services to both, the customers and the enterprise consumers. In terms of services, they offer
mobile recharging and Television connections to their ultimate customers. Along with this,
security and carrier services are also being provided to the ultimate customers and enterprise
customers (Singh, 2014).
The company’s main motive is to work in a rapidly changing environment where
innovations and scale are the key aspects. Over time, they have also launched a digital
Vodafone programmes across the group, which enables to deliver a leading customers
experience. Hence, this improvement will benefit the entire society and drive the revenue
growth, along with this, it also allows the company to grow the cash flows, reinvest and
provide attractive returns to the ultimate shareholders (Ang, 2016). Lastly, they also adopts
the sustainable business strategy which aligns with their commercial or business aims with a
clear social purpose in order to create or generate the long term value and meeting the
customers’ needs and ultimately satisfying them (Kresak, Corvington, & Williamson, 2016).
Porters five force model
Threat of new entrants-
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Strategic planning 3
Risk of new applicants in terms of wireless communication helps in bringing various
innovations. Hence, it generates new ways of doing things and pressurize on Vodafone
through lower pricing strategy, reduction in cost, and providing new value proposition to the
ultimate customers. In this sector, threat of new entrants is weak so Vodafone must continue
to diminish its cost, comparative to its competitors. Even the cost of setting up network
infrastructure is high, rapid change in technology also make it difficult for new entrants to
cope in the market. Hence, Vodafone can cope with the maintenance of the high level of
efficiency of its services in comparative to its competitors.
Bargaining power of the suppliers-
In wireless communications, the suppliers are at the strong position. In terms of
Vodafone’s dealers having a high bargaining power since the business functions with the
superior margins as compared to its competitors. Being a leader in the market, the market
share is large which means there is an easy absorption in terms of price from the suppliers
more than its competitors are. Hence, Vodafone can easily maintain its lower prices from its
suppliers and can continue by making more profits generation out of it (Iveroth, et al, 2013).
Bargaining power of the buyers-
Buyers in todays’ scenarios demand a lot. They want to purchase the best offerings
by paying fewer prices as possible. Hence, this highlights the pressure over Vodafone
profitability in a longer run. There is larger and the most powerful the customers base has
generated the higher the bargaining power and through this customers have generated the
ability to seek more discounts and offers. Hence, this ensures that Vodafone will continue its
profits at above normal return as compared to its adjoining competitors (Iveroth, et al, 2013).
Threat of substitute’s products and services-
When a new product or service meets a similar customers needs in various ways,
industries profitability suffers. In this particular aspect, Vodafone faces a considerable
amount of threat of product and services. Substitutes such as google talk, Airtel connections,
Skype and social networking has emerged as substitutes to the mobile services. The risk of
auxiliary merchandises is high is it offers a value propositions that is exceptionally dissimilar
from current contributions of the business.
Rivalry among the existing competitors-

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Strategic planning 4
In this aspect, rivalry among existing players is intense which drives down the prices
and decreases the overall profitability of the industry. Vodafone group operates in a very
competitive environment. This competition does take toll on overall long tern profitability of
the organisation. Other than this, Vodafone situation as cost leader, contestants have their
hard time while rival on basis of values because the contestants face problems in an aspect of
logistics or operations (Majumdar, & Bhattacharya, 2014).
Competitors analysis
Vodafone competitors’ analysis highlights that Airtel is a leader of one of the leading
telecommunication sector. They hold a large market share in comparative to Vodafone.
Although Vodafone is giving a tough competition to Airtel through the adoption of various
changing strategies in order to capture the larger market share.
Companies/ STP Segmentation Targeting Positioning
Airtel Geographical
segmentation major
to cities and
metropolitan cities
People with the age
group of 20 -30 are
using it
Targeting to those
who lives in cities
and small towns
Targeting middle age
group, youngster in
big cities, business
men
Creating brands
through
advertisements and
promotions,
promotions for study
for poor children
Vodafone Geographical
segmentation,
Vodafone
demographic
segment highlights
the middle income
group
Targeting to those
who lives in cities
and small towns
Targeting middle age
group, youngster in
big cities, business
men
Creating brands
through
advertisements and
promotions (Bhanot,
2012)
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Strategic planning 5
Resource based theory
In terms of resource-based philosophy, the planned competences of Vodafone can be
measured by recognizing its current possessions and competences as a fruitful player in
telecommunication network industry.
Tangible resources highlights that the business incomes are majorly classified into
four major groups, which are financial, physical, organizational and technological
possessions. Other than this, intangibles resources are categorized into people- dependent and
people independent capitals. Hence, all resources are mandatory to company strategy, and the
most important is financial, technological and structural. On the other hand, resource like
humans and innovations and reputation and organisational culture all are having higher
importance to Vodafone strategy (Vodafone, 2019).
In regards to these set resources, the company is significantly able to develop the
several other strategies and capabilities that can be analysed with the help of value chain
activities. Those are primary and supportive activities. Other than this, one of the major
substantial strategic competences’ that is need to be established by Vodafone in regards to its
actions is generating telecommunication amenities at low cost with definite superiority. In
terms of technical aspect, the Vodafone Company has to exploit its technological
opportunities’ by enhancing them and making use of them for the successful outcomes.
Moreover, in terms of human resource management, Vodafone need to develop its
capabilities while employing and teaching their workers for high-tech innovation and
inspiring them for more and more of technical innovation in order to attract as many as
customers and making their customers base strong and earns more of profits and success in
lesser time span. Lastly, in respect of infrastructure terms, Vodafone needs to develop
competences like distinguishing and endorsing the aspect of modernization, funding and
scheduling for technical improvement, integrating all the well-designed sections, evaluating
technical innovation and achieving important administration support in order to upkeep and
guards its technical inventions (Ang, 2011).
SWOT Analysis
Strength
Massive market coverage
Marketing through Pug and zoo zoo’s
Weaknesses
Limited success outside the core
businesses
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Strategic planning 6
was known across the globe
It is the second largest
telecommunication network industry
It has 1000000+ employees globally
Having a high brand visibility and
strong brand recall
Higher level of customers satisfaction
Superb performance in the new
marketplace
Extremely trained and experienced
workers through effective training
and learning platforms
Durable free cash flows, provide
possessions in hand of the business to
enlarge into new missions (Sammut
Bonnici, & Galea, 2015)
Not highly successful at integrating
firms with the dissimilar work culture
The advertising of the merchandises
need to be revolutionized
The company currently is unable to
tackle challenges of the new entrants
High attrition in workforce
Financial planning is not done
properly and efficiently
Opportunities
Lower inflation rate
Newer trends in customers can open
up a new market for Vodafone
A new taxation policy can also open
up a new market for Vodafone
The marketplace growth can leads to
weakening of competitors’ advantage
and hence increases its
competitiveness
New environmental policies generates
newer opportunities in terms of
technology and can grab market share
in new market product category
Threat
New environmental regulations could
be a major threat
As Vodafone is working in many
nations can be exposed to money
vacillations
No regular supply of innovative
products
Intense competition in between Airtel
and Vodafone
Change in customers’ behaviour and
taste, preferences or services (Bhasin,
2018).

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Strategic planning 7
Major issues identified
(Source: Local circles, 2019)
When implementing the changes or making innovation, initially company faces major
issues likewise, network or IT system failure in which through malicious attacks over IT
system and network has resulted in services interruption and consequential customers and
revenue loss.
Due to the innovation and the change in the IT, system also leads to the failure of
protection to the customers’ information. While working over the quantities without working
over quality leads to the failure in protection data adequately, affects the company reputation,
and leads to the legal actions.
Intensifying competition is one of the major issues as every telecommunication company is
looking to secure their share by protecting the potential customers’ base and hence this leads
to lower future revenues and profitability (Local circles, 2019).
Health risks are also one of the major concerns that have been expressed that
electromagnetic signals emitted by mobile and base stations may pose to health risks. With
such forming strategies and innovation, mobile devices and base stations are operated without
guidelines limits and that has major or adverse health effects.
Lastly, through innovation, regulations that observe with an widespread range of
supervisory necessities which includes licencing, structure and procedure of systems and
facilities that leads to opposing impression over industry. Other than this, with the innovation,
employees’ ability and skills are also affected and hence, overall productivity is affected
(Mihăilă, 2012).
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Strategic planning 8
Strategic change
In terms of strategic change, Vodafone firstly need to focus on a definite niche in the
marketplace and should offer specialised goods for that place. Other than this, Vodafone
should focus on diversification likewise; they need to enter into electronic equipment market.
Although it’s a risky strategy but change is necessary for growth and success. Tapping the
upcoming opportunities is must to future growth and success, acquiring new markets,
innovation done according to changing needs of the market and the ultimate customers in
order to attain the set and desired results (West, Ford, & Ibrahim, 2015).
Secondly, more and more of training and teaching session are to be giving to
employees so that according to the market changes they should also help the company for
developing the strategies in order to win over the changes made and generate success in
lesser period. Other than this, most of the workers welcome the alteration and reflect that it is
a learning chance; some workers do not want to donate time and vitality required for
modification unless alteration is for the advantage of the workforces (West, Ford, & Ibrahim,
2015).
Moreover, variations in situation also caused the society to change such as political
impact, legal complications, and accessibility of possessions. Vodafone also wants variations
in some facilities because legal situation may limit in some circumstances.
Lastly, adoption of new policies, new need of clienteles, the facilities provided by
contestant, applying new knowledge for providing new amenities, and change in arrangement
for providing new amenities, making new subdivisions etc. Vodafone frequently changes the
knowledge and implement the alteration for providing new services (Ghezzi, 2013).
Recommendations
According to the analysis, Vodafone must explore to the various opportunities in
order to carry out different services for the customers and majorly satisfying their needs by
adopting various promotional strategies and can earn reputation and success.
They should also try to focus on long term business solutions. Other than this,
Vodafone should also focus on developing the new products by the adoption of new
innovative technology, devices and services through integrating, outsourcing and exploding
economics of scale.
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Strategic planning 9
Vodafone should also faces the intense competition by working over the customers
wants and needs and making them retain for the longer period through their innovations,
discounts strategies and schemes. They should also apply the differentiated strategy in order
to enhance both customers’ values and revenue generation.
Lastly, venture in untapped markets likewise, source of expansion for upcoming
market by building more of strategic alliances and penetrating in those areas where the
customers were remained untapped an though this, growth in number and generation of
revenue is increased.
Conclusion
From the above report, we can conclude that, Vodafone is one of the second largest
telecommunication networks, which also faces the fear or threat of the competitors, from
their substitutes, suppliers, buyers and existing competitors. For the same, Vodafone should
also try out the various strategic changes through analysis of change management and should
apply those strategies for the successful return. Moreover, certain issues likewise, innovation,
technology changes are the major hindrance over the success for Vodafone. Lastly, certain
strategic changes and recommendation are made for the further revenue generations are made
for overall improving productivity of the company as well as success of set goals.

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Strategic planning 10
References
Ang, R. (2011). Vodafone Global Telecommunications: Optimizing Operations.
Ang, R. (2016). Vodafone Global Telecommunications: Optimizing Operations. IUP Journal
of Operations Management, 15(4), 46
Bhanot, S. (2012). Use of social media by companies to reach their customers. SIES Journal
of Management, 8(1)
Bhasin, H.(2018). SWOT Analysis of Vodafone –Vodafone SWOT ANALYSIS. Retrieved
from: https://www.marketing91.com/swot-analysis-vodafone/
Ghezzi, A. (2013). Revisiting business strategy under discontinuity. Management
Decision, 51(7), 1326-1358
Iveroth, E., Westelius, A., Petri, C. J., Olve, N. G., Cöster, M., & Nilsson, F. (2013). How to
differentiate by price: Proposal for a five-dimensional model. European Management
Journal, 31(2), 109-123
Kresak, M., Corvington, L., & Williamson, P. (2016). Vodafone answers call to
transformation. Business Transformation Essentials: Case Studies and Articles, 127
Local circles. (2019). Telecom Quality Issues: Citizens facing network issue with Vodafone,
Airtel, Idea, & Reliance Jio in India
Majumdar, S., & Bhattacharya, P. P. (2014). Porter Five Forces Analysis of the Leading
Mobile Cellular Telephony Service Provider in India
Mihăilă, C. N. (2012). VODAFONE'S POSITION ON THE UK MARKET. Bulletin of
the'Carol I'National Defence University/Buletinul Universitatii Nationale de Aparare'Carol
I', (2)
SammutBonnici, T., & Galea, D. (2015). SWOT analysis. Wiley Encyclopedia of
Management, 1-8.
Singh, P. N. (2014). Verizon acquired Vodafone: Analysis of market
reaction. Industrija, 42(3), 163-182
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Strategic planning 11
Vodafone. (2019) Vodafone success story retrieved from
https://successstory.com/companies/vodafone
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive
advantage. Oxford University Press, USA
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