SWOT Analysis of Vodafone: Impact on Marketing and HRM

This report provides a SWOT analysis of Vodafone and examines the impact of key drivers on the marketing and HRM functions. It discusses the strengths, weaknesses, opportunities, and threats of Vodafone and explores how changes in perception of HR and technology affect the company's performance.

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Table of Contents
INTRODUCTION......................................................................................................................2
SWOT analysis of Vodafone.................................................................................................2
Drivers that affect functional areas........................................................................................4
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
The current study is based upon Vodafone which is the top company who deals in
telecommunication sector. The report will provide SWOT analysis and determine the ways in
which these key drivers creates impact upon Marketing and HRM
SWOT analysis of Vodafone
In order to determine the internal environment of the company, SWOT analysis is
used which is a strategic management tool, that helps to determine the strength, weakness and
opportunities of the company.
Strength:
Weakness
Threat
Opportunity
Strength
SWOT
analysis

 Huge market coverage: in the telecommunication sector, Vodafone is ranked as a
395th among the top world brand. Thus, it is known for its wide distribution and
network cover and it also operates in more than 25 countries at international level.
 Marketing: It uses a best marketing strategy and also Vodafone pug is one of the
known across the globe. In the same way, the Vodafone zoozoo’s was a brilliant and
best campaign which also attract range of customer towards them
 Subscriber base and brand image: Another strength of the company is such that it
sustain the brand image of the company. Also, the brand valuation of the Vodafone of
28 billion dollars in last year (SWOT analysis of Vodafone, 2019). As having a brand
image which means that company’s subscriber base are also retain in effective manner
such that currently the company have more than 400 million people.
Weakness:
 Poor performance in rural areas: As company operates in more than 30 countries
but this is not operating in rural areas because its high prices and brand image that
affect the overall brand image as well (Phadermrod, Crowder and Wills, 2019).
 Huge debt: low mobile tariff of the competitor has forced Vodafone to drop the
prices of the mobile plan. Therefore, it is consider as a huge dent in the company’s
revenue and profit.
Opportunity:
 Emerging market: Company did not only expand its business in rural areas but it has
to serve its services to the developing countries because it generate the best
opportunities for the Vodafone to grow. For instance, Africa has seen the fastest
growth rate and having a large number of internet users (Engelbrecht, Lindeman and
Hoermann, 2019). Thus, investing in this country will help a business to grow and
increase its revenue as well.
 Growing mobile and internet users: company should start providing best internet
services to their regular customers. Also, firm can invest in the affordable
smartphones and mobile data plan that also help to meet the define aim and
objectives. This in turn assist to increase the customer base and profit as well.
Threat:

 High competition: One of the biggest threat that company currently faces from
Airtel, Reliance, Jio and China Mobile. As Reliance provide low tariff in their internet
which divert most of the customers towards it. As a result, company faces biggest
issue from the rival firm (David, Creek and David, 2019).
Drivers that affect functional areas
Changes in the perception of Human resources is consider the biggest driver that
affect the overall business functional area i.e. Human resource. As HR of the company are
consider as an administrative function and it also evolved into a strategic process as well
(Nankervis and et.al., 2019). Therefore, when the company is operating at global level, then
perception of the HR are also changes and that is why, it affect the overall performance of the
company as well.
In addition to this, at this time, human resource management of Vodafone also make
sure that they use effective communication strategy which in turn assist to let all employee
understand about the new rules and regulation which company adopted (Stewart and Brown,
2019). This driver also have a positive impact upon the functional area such that changes in
the mindset of HR develop new innovative ideas, as a result, it will assist to improve the
performance of the company and this in turn help to sustain the brand image of the firm as
well.
Technology is another factor that affect the marketing strategy of Vodafone. Such
that the entire industry and world is completely depend upon the technologies. As per the
SWOT analysis, it is also realized that company has a strong advertisement strategy and that
is why, company uses effective marketing strategy by complying the technological factor.
Such that currently, company also uses effective marketing strategy but it did not uses strong
technique which In turn affect the brand image of the company (Grönroos, 2020). Also, it is
clearly analyzed that technology plays an important role in the success of the company and it
also assist to boost the sales which directly affect the financial performance of the company.
But on the other hand, it is also analyzed that if company’s marketing department did
not uses the best technology into its marketing strategy then it affect the overall business
growth. It is so because when company start using social media marketing tool as an advance
technological factor which affect the business and its business performance. Like, most of the
customer also uses social media and post new offers and plan to the page in order to grab
attention of many customers towards them. But in the case of Vodafone, company did nit use

this method and it affect the overall business performance and consider as a weakness as
well.
CONCLUSION
By summing up above report it has been concluded that as per SWOT analysis,
company has a brand image and also have good subscribers that assist to maintain the profit
and revenue of the firm. Further, it is also concluded from the report that changes in the
human resource perception creates direct impact upon the HR of the firm, while on the other
side, technological factor is another driver that also affect the marketing department of the
company in negative manner. Therefore, company has to make a strategy in order to cope up
with these issues.

REFERENCES
Books and Journals
David, F.R., Creek, S.A. and David, F.R., 2019. What Is the Key to Effective SWOT
Analysis, Including AQCD Factors. SAM Advanced Management Journal. 84(1). p.25.
Engelbrecht, H., Lindeman, R.W. and Hoermann, S., 2019. A SWOT Analysis of the Field of
Virtual Reality for Firefighter Training. Front. Robot. AI 6: 101. doi: 10.3389/frobt.
Grönroos, C., 2020. service marketing research priorities: service and marketing. Journal of
Services Marketing.
Nankervis, A. and et.al., 2019. Human resource management. Cengage AU.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis
based SWOT analysis. International Journal of Information Management. 44. pp.194-
203.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Online
SWOT analysis of Vodafone. 2019. [Online]. Available through:
<https://www.marketing91.com/swot-analysis-vodafone/>.