Strategic Planning for Vodafone: Analysis, Issues, and Recommendations

Marketing
Strategic Planning
Student’s name

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

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-

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-