Vodafone Strategic Analysis: Growth and Competitive Advantage

This report provides a comprehensive strategic analysis of Vodafone, examining its external environment through PESTLE analysis and its competitive position using Porter's Five Forces. It delves into Vodafone's internal resources and capabilities via value chain analysis and VRIO framework, identifying key strengths and weaknesses. The report then evaluates Vodafone's strategic options using a TWOS matrix and discusses the application of SAFe for strategic evaluation. It highlights Vodafone's growth opportunities, emerging threats, and competitive advantages within the telecommunications industry. The analysis covers various aspects of Vodafone's operations, including human resources, technological resources, financial resources, and marketing strategies, to provide a holistic view of the company's strategic approach to business development.

Strategy in Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Strategic positioning of growth opportunities and Analysing external emerging threats:..........3
Increasing competition and industry attractiveness....................................................................5
TASK 2............................................................................................................................................6
Internal analysis of utilizing resources in organisation...............................................................6
Value chain analysis...................................................................................................................7
TASK 3............................................................................................................................................9
Evaluation of Vodafone.............................................................................................................9
TWOS matrix..............................................................................................................................9
Application of SAFe basis for evaluation of various strategic options ..........................11
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14
(Books and Journal)..................................................................................................................14

INTRODUCTION
Modern communications today amongst people, offices, homes, corporate meetings etc.
are being made possible by the telecommunication sector. By ways of mobile phones, internet,
cables or airwaves, wires or Wi-Fi has allowed many telecom big telecom companies such as
Vodafone create a better infrastructure allowing useful data information to be sent on a global
scale through audio, videos or voice mediums.
Mobile industry has one of the largest share in telecommunications market because of its
wide range of regional and national operators. Also in context with Vodafone , there have been a
huge downfall spotted in mobile services replaced by growing internet services and demand of
users simultaneously.

TASK1
Strategic positioning of growth opportunities and Analysing external emerging threats:
The selected organisation therefore observed various external factors through PESTLE analysis
and took strategic decisions accordingly discussed in below mentioned points:
Political factors: For long term profitability of chosen organisation, political stability is
very important these days. These factors majorly include proper implementation of government
policies, phone licensing and tax policies (Caron, 2020) . Vodafone being third largest mobile
industry globally has privatisation of British telecom following all procedures and policies as per
British standards.
With such broader reach growth opportunities in telecom sector has been rising.
Economic factors: Modification in cost base and budgets is one step chosen entity has
taken for driving better returns on capital employed. The company goals also consisted of
deleveraging balance sheet of Vodafone in a way aiming at lower end targets (Estrade, 2017) .
Also with company's 'Digital Vodafone' programme, they have started focusing on introducing
cap-ex and op-ex synergies.
Social factors: Sales and profitability profoundly affects sociocultural factors of any
organisation at particular regions. Changing lifestyle of consumers may bring about a change in
their preferences impacting financial health of organisation directly. Vodafone here observed
growing internet service demand as an emerging threat in mobile sector . But the fast growing
consumerism of fast internet services has also proved to be beneficial for selected company
entering into entertainment and work organisations rapidly.
Technological factors: Innovation and up gradation is an important aspect of all telecom
companies today. Dynamic changes in market is due to rise in consumer awareness about brands
relating to growing opportunities in technological advancements . Therefore, Vodafone now
have been focusing majorly on investment on emerging technological innovations strengthening
their brand and customer loyalty (Marić, 2020) .
Legal factors: With news updates of merger of Idea and Vodafone come up with issues
regarding rising dues demand. This being part of legal scrutiny raised disputes for Indian
company for taxation purposes. Many other legal factors such as tax on overseas transactions
were also incorporated.

Environmental factors: There are a lot of emerging threats related to environment faced
by corporations and society both. With rise of digital era ,opportunities will grow but may
impact the environmental factors too. Vodafone has adopted some measures to control pollution
and environmental damage (Miethlich, 2019) . These are disposing off of handsets, completing
social responsibility, organize various recycling programs by more use of renewable goods etc.
Increasing competition and industry attractiveness
Proper analysis of industry trends for productivity and success of given organisation is
based on the strategy adopted by firm. Vodafone is well known for its wireless communications
in the telecom sector on a global level (Mondal, 2017) . Group managers of chosen entity use a
strategic management framework of porters five forces model to influence organisation's
profitability and gain a competitive advantage over other corporations mentioned in below
points:
Threats of new entrants( low): Telecom industry itself is a broad market attracting large
no. o new entrants willing to start over with new innovations and technology (Murcia, 2020) .
Vodafone from these newbies may face challenges like low price strategies, cost reduction,
providing customers with new value propositions etc. For safeguarding firms competitive edge,
Vodafone has to build effective plans and barriers such as introduction of new innovations,
lowering fixed cost of assets, investing in R&D Dept. etc.
Bargaining power of Suppliers (Medium) : Technology sector has numerous suppliers
that may use their negotiating power to bargain & bring a fall in overall profitability of wireless
communication companies. Here Vodafone may take actions to tackle these problems such as
building a strong supply chain of multiple suppliers, use different raw materials for innovative
product designs, and finally establish strong relationships with committed suppliers.
Bargaining power of buyers (High): Maintaining a large amount of customer base and
always building up to their expectations is a challenging yet important task. Vodafone therefore
mainly focuses on its small powerful customer base through best offered discounts and minimum
price schemes to valuable consumers (Slack, 2018) . In case of any deficiency in existing
customer base, new product innovations may help build a larger one in future. Rapid changes
according to dynamic competition is what will bring chosen enterprise an edge over increasing
competition and a whole lot of industry attractiveness.

Threat of substitute goods and services( medium-high) : Industrial profit gets low when
substitute services from similar products have started coming into use by consumers in market.
Vodafone may utilize some ways of resenting it by being more service oriented to its value
customers than being product-oriented, rising switching costs for consumers and know what they
actually are preferring to buy in current demand.
Existing competitors rivalry (high): Wireless communication industry has huge existing
players leading selected company lower its prices and profitability. Such intense rivalry can be
fought by constructing differentiated sustainability in market, building a scale for better
competence and go on for profitable collaborations than just small market competition (Wang,
2020) .
TASK 2
Internal analysis of utilizing resources in organisation
For monitoring available resources and knowing its competencies from other resources ,
internal analysis is important and essential. In relevance to Vodafone, many resources are shown
mentioned in following points:
Human resources: Human capital is a very important resource of an organisation as they
are the brains of all activities carried on in the company. Productivity and profitability of
Vodafone mainly depends on its services organized consistently by its employees. Effective
computer software's of company are operated by engineers making digital marketing easy
resulting in more sales leads and profits (Zhiyong, 2017) .
Technological resources: Vodafone has been successfully growing and expanding its
business at a wide level, by adoption of various new technologies in recent years. In context with
Vodafone, many e-commerce strategies for fast wireless communications and internet facility
have been adopted for attracting more buyers (Irfan, 2019) . Moreover, the company has its own
use-friendly site to access anytime providing ease of placing orders to its customers. Meeting up
customer needs in telecom industry also requires examination of current trends present at
marketplace.
Financial resources: These sources are the profit and sales margin indicators of
organisation necessary for long term survival in industry. In case of Vodafone, has sufficient
resources giving good profit funds to company with its brand and subsidiaries. Furthermore, the

company builds predefined goal plans for effective coordination of subsidiaries and company
adding on to more competitive advantage (Marić, 2020) .
Intangible and tangible resources: Intangible resources mean, creativity,potential , growth
and creativity of employees in an organisation resulting in brand loyalty and goodwill generation
among society. Capable professionals associated with Vodafone, are highly efficient in
designing new software and technology innovations creating brand value attracting maximum
customers. On other hand are the tangible resources that are the external parties dealing with
chosen organisation for attracting more leads. Vodafone has worldwide and regional stores to
help out its end users ensuring long term survival of company.
Organisational resources: Company utilizing internal sources of organisation for
functioning of internal operations are known as organisational resources. Effective analysis on
Vodafone signifies that the company has many differentiated product innovations that may help
in future plans and implementations. Efficacy in planing, organising, controlling and distribution
departments help meet timely customer requirements. Besides all , social media marketing and
promotional offers have resulted as an effective tool for Vodafone users and corporation with
advertisement offers on new plans and data.
From above mentioned resources discussed, it is observed that there is a huge
competition in telecom industry and having a small customer base is not sufficient. Therefore,
accomplishment of predefined goals and objectives is important (Miethlich, 2019) .
Value chain analysis
Production of end products provided to customers within specific time period
consists of value chain analysis. Selected organisation has aimed in undertaking certain activities
related to delivery of valuable products to consumers.
Vodafone supply chain journey has continued with its six major areas of focus that were people
having good organisation skills with good career development, consumer centric KPI'S,
increasing partnerships in different geographies on a global level. The selected company has its
own excellent operational efficiency that not only focusses on best customer experience but also
end-to end performance & demand management (Murcia, 2020) . The company also has majorly
focussed on management of strong supplier relationships by ways of joint governance, unlocking
joint values and transparency in its plans and activities.

Operations: Majority functions of the chosen company are performed in European
countries with it wireless communications and affordable mobile service plans.
Sales and marketing:There are variety of marketing as well as promotional techniques
used by Vodafone to spread awareness about their plans among target segment. Digital
platforms, magazines are used by organisation to advertise their products at a broader level
(Miethlich, 2019) .
Post sales services: Here, managers stay connected with customers after sales by
providing them greeting notes and reminders of events on various occasions. Also Vodafone
provide consumers with several discounts on plans that plays a major role in attracting more
number of buyers (Noble, 2019) .
Therefore, organisation uses above stated value chain in order to provide better
experience to buyers so that they stay with Vodafone in longer run.
VRIO framework
Resources/
capabilities
Valuable Rare Inimitable Organised
POSITIVE
MARKET
REPUTATION
Yes Yes yes Yes
Leadership Yes Yes No Yes
Awareness of
brand
Yes Yes No Yes
High customer
rating
Yes Yes Yes Yes
Quality Yes Yes Yes Yes
Core competencies: Out of many other cases, Vodafone is one that help in
implementation of an effective system of booking. The process of appointment becomes more
efficient when end result comes from booking system. This is done by the organisation to
provide quantity of time to customers by Vodafone employees having good client interaction.

The one of Many one Case analysis of value chain Vodafone has made agents time consumption
much less. The step was taken on the basis on travel partners feedback having their reservation
experience with chosen company. There are a lot of benefits the company got consisting of
increase in sales and marketing synergies (Ramírez, 2019) .
Contemporary method of reservation by Vodafone has helped consumers save their
personal time and has made business available for prior bookings. Also quick payments has
increased the efficiency of more consumers visiting Vodafone experience. The sustainable
supply chain continues to be environmental and ethical with its procurement of resources. Also
making investment in the research and development department helped managers innovate new
offerings . These special offerings made space to non-mobile services too that is expansion into
other sectors of market economy.
TASK 3
Evaluation of Vodafone
TWOS matrix
TOWS Opportunities
The organisation provides a wide
range of services to their consumers
and has invested huge capital in
improving their technology.
Emerging markets are an opportunity
for the organisation to increase net
profit and achieve objectives.
Threats
Cut throat competition from local
telecom corporation has reduced
the firm's margins by huge
amount (Lonsdale and Kane,
2019) .
Weak performance in European
markets due to Brexit and harsh
economic conditions.
Strength
High brand equity
Efficient marketing
strategies
Strong market
presence in Asian
SO
The organisation has the ability to
effectively expand their number of
consumers by using effective digital
marketing techniques to attract
consumers from economically
ST
The high brand recognition of
Vodafone coupled with effective
digital marketing plans will
allow the organisation to attract
new consumers from developing

markets
High innovation
developing agrarian areas in Asian
countries due to their established
brand image in that area (Baylis,
Wirtz and Gray 2018) .
The company is capable in enhancing
their technology to provide 5G
services to their consumers before
other corporations and gain
competitive edge (Tidström and
Rajala, 2016) .
countries and increase their
sources of revenue (Betts,
2019) .
With the help of huge range of
services and enhanced
technological factors the
organisation is able to regain
European consumers during
rough economic conditions.
Weakness
Rise in price wars in
the industry.
Low network
coverage
Enormous debt under
the company
WO
The organisation needs to effectively
utilise their technological
competencies in order to give their
consumers better network in urban as
well as agrarian areas in order to
increase consumer retention in
European and Asian markets and gain
customers from economically
developing locations such as small
towns and villages (Milner and
Cosme, 2017) .
As the more than 59 percent of the
globe has internet access and 4.66
billion consumers purchase internet
services as of 2020, it is crucial for
the company to enhance their internet
plans according to the tastes and
preferences of the consumers. Along
with this using their technological
competencies in order to provide fifth
WT
the organisation lacks loyal
consumer base as their users shift
towards local telecom providers
as soon as they offer cheaper
telecom services with additional
offers. Due to their low network
coverage and lack of innovative
rewards and benefits which
compel the consumers to select
Vodafone as their telecom
service provider, the firm is
losing huge profits due to
saturation of telecom industry.
The organisation has enormous
debt which is 25 times their total
income before any tax
deduction , this along with their
action to reduce tariffs due to
pressure from cheap alternatives
has reduced their profit by huge

generation mobile technology
services to the public helps the
company increase their profit, market
share and reduce debt
amount (Whittington, 2017) . In
order to battle this situation the
company needs to provide
unique and advanced services to
generate more profit than their
debt.
Strategic options for Vodafone: Various creative strategies are utilised by Vodafone to survive
in the highly competitive business environment and attain their goals. The organisation uses
effective marketing strategy such for building brand image which draws the attention of the
consumer to the various practices conducted at the company (Milner and Cosme, 2017) . Along
with this various CSR initiative conducted by the company to improve education and healthcare
services to underprivileged communities around the globe such as giving free education to
children in Africa have positively impacted their brand equity. One option for the organisation is
to solve network related issues in their services and improve them to include remote agrarian
locations under their network coverage (Betts, 2019) . This strategy will allow the organisation
to target consumer from economically progressing localities such as villages and small cities.
The implementation of this strategy aims to increase the consumer base of the organisation in
order to give tough competition to their local rivals in Asia and Europe along with securing
profits for the company to reduce their debt. As the telecom industry is saturated business space,
enhancing their technology to provide 5G services to their consumers increase their market share
and give them unique attribute to capture market space in this combative industry which will
give the company longer lifespan. Lastly, the firm can expand their business in new market and
provide the consumers effective and affordable options for internet services as usage of internet
is increasing everyday, this tactic gives the organisation capability to increase their consumer
base and further enhance their brand awareness by entering developing economies (Lonsdale and
Kane, 2019) .
Application of SAFe basis for evaluation of various strategic options
SAFe criteria is a significant method for evaluation of various plans that are proposed to
give advantage to the business. The three basic concepts which are used in this approach are also

described in the name of this basis which are Suitability, Acceptability and Feasibility. The
evaluation of various strategies for multinational telecom service provider Vodafone through
SAFe criteria is given below:
Suitability:
This element of the criteria involves identification of ways in which the strategy fits the
capabilities of the organisation and exploit the strengths of the company to give them
competitive advantage over their rivals. In context of Vodafone, the first option which involves
exploiting the technological abilities of the company by eliminating network related problems in
both urban and agrarian locations, along with this utilising innovative marketing strategies of the
company, brand equity in order to attract consumers from underdeveloped locations is most
suitable strategy from the company among all proposed plans for their development (Tidström
and Rajala, 2016) . This strategy not only utilises strengths which are already present in the firm
but also aims to solve one of the most primary weaknesses of the company which helps them
improve their net profits by increasing their consumer base. The implementation of this plan not
only helps the organisation gain new consumers but also improves their reputation by
eliminating one of the most significant flaws of the company which is network problems and
stops current customers of the company from leaving the telecom enterprise for cheaper local
alternatives. One other reason which makes this strategy suitable for the firm is that this plan
revolves around including consumers from agrarian communities with India having highest rural
population in the world, this is beneficial for the company as 40% of their global revenue is
generated from India and this plan will help the country increase consumer base from this
country (Whittington, 2017) .
Acceptability:
This factor of the model is associated with accurately calculating risk, return and
response of major stakeholders to a strategy. Finding possibility of non achievement, and
identification of economical as well as non economical benefits to the stakeholders comes under
this element. The financial outcome provided by effective execution of the first strategy is
hugely beneficial for Vodafone as it gives the company ability to give large number of people
effective telecom services which were inaccessible to them before. The implementation of this
strategy will give the organisation swift result as the company has huge brand recognition and

this strategy utilises this strength by marketing the technological improvement introduced by the
respective organisation to mainly middle class members of underdeveloped agrarian areas where
consumer retention is highly dependent on brand value of the organisation (Baylis, Wirtz and
Gray 2018) . This strategy is hugely beneficial for the stakeholders of the organisation as
increase in consumer base reduces the huge amount of debt on the organisation and gives the m
the financial resources required to invest in expansion of the company in enhancing their product
portfolio and maintain stable flow of profit for a long amount of time. The risk related to the
chosen strategy is low as the strategy is also considered with improvement of organisation's
infrastructure which is advantageous for the organisation in long run and also reduces the costs
related to compensating unsatisfied consumers with offers in order to keep them with the
company.
Feasibility:
This aspect of the approach involves effective allocation of monetary funds and other
organisational resources within the organisation for effective execution of the strategy. This
element is related with finding strategy which matches the resources possessed by the company
and effective prediction related to financial resources required by the strategy for effective
implementation. The first strategy is the most feasible strategy for the organisation when
compared with other proposed plans. One of the reasons for this is this strategy involves main
investment in R&D division of the company and implementation of effective marketing
strategies in order to gain consumers from agrarian as well as urban areas of the world (Noble,
2019) . As the organisation is already capable in formulating effective marketing policies, the
main investment is for development of network coverage. As this strategy gives results swiftly in
contrast to strategies which involve expansion of the organisation when it is in huge debt, this
strategy is one of the most affordable ways in which the firm can utilize their strength in order to
gain competitive advantage while minimising flaws, establishing a platform to increase stable
growth of the company and giving the company required boost to recover from their economic
losses (Ramírez, 2019) . So improving the network of their services to include remote and
agrarian areas is feasible strategy for the company.

CONCLUSION
The chosen organisation has increased its network coverage over recent years in emerging
market competition. Diversification into new markets of telecom industry has allowed the firm
to reduce costs and bring out better offers to its customers. Also the company with the help of
pestle model, porters five force competencies and value chain analysis has been able to know
threats to the company .
These included increasing market saturation in UK and European telecom sector,
uncertain climate conditions etc. also more use of internet today has made people use
applications like Skype, Watsapp, iMessage etc. increasing more competition into the market.
The renowned brand name here I what has made the organisation get a great geographic
exposure with gained economies of scale according to market size. The company at last has good
innovation opportunities in technology as it has a high level network infrastructure leading it to
be one of the largest mobile companies in UK. Also there has been important integration of
subsidiaries under the umbrella programme of selected enterprise.

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