Vodafone Business Strategies: A Comprehensive Analysis

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UNIT 32 BUSINESS STRATEGY
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Contents
INTRODUCTION...........................................................................................................................................4
LO1..............................................................................................................................................................5
P1 & M1...................................................................................................................................................5
LO2............................................................................................................................................................11
P2 & M2.................................................................................................................................................11
LO3............................................................................................................................................................18
P3...........................................................................................................................................................18
M3.............................................................................................................................................................19
LO4............................................................................................................................................................22
P4...........................................................................................................................................................22
M4.............................................................................................................................................................24
CONCLUSION.............................................................................................................................................28
REFERENCES..............................................................................................................................................29
Figure 1 SYMBOL OF VODAFONE.........................................................................................................4
FIGURE 2 MARKETING MIX OF VODAFONE......................................................................................6
FIGURE 3: PESTEL ANALYSIS.............................................................................................................10
Figure 4: SWOT ANALYSIS....................................................................................................................13
FIGURE 5: MCKINSEY’S 7S FRAMEWORK........................................................................................15
FIGURE 6: VRIO FRAMEWORK...........................................................................................................17
FIGURE 7: PORTER FIVE FORCES MODEL........................................................................................21
FIGURE 8 PORTER'S GENERIC STRATEGIES....................................................................................23
FIGURE 9 BOWMAN’S STRATEGIC CLOCK MODEL.......................................................................25
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INTRODUCTION
There have been many types of strategies being applied over the business in order to achieve the
desired goal. As the strategic planning manager, there are various factors which are considered in
analyzing the marketing environment in terms of high-profit generation. The Vodafone is the
multinational telecommunication company of British. It is headquartered in Newbury, London,
and Berkshire (Tomczak, 2018). It serves many different countries situated all over the world
such as Asia, Europe, Africa, and Oceania. This company has been operating in over 25
countries. With the rapidly changing world, Vodafone has been serving in the field of its sector
in over 150 countries. Under the list of London Stock Exchange, the Vodafone has been defined
as the 8th largest company with €52.5 billion. The achievement of the success and growth in the
business has been made possible only by the effective and the successful implementation of the
business strategies according to the demand and the need of the techniques required by the
company. As a result of which the Vodafone has been ranked 4th in the mobile customer's sector
till the year 2018. It has been also developing a new set of strategies and the techniques in order
to achieve sustainable growth and development in the business environment (Drucker, 2014).
FIGURE 1 SYMBOL OF VODAFONE
Figure 1: [Source: Gamble and Thompson, 2014]
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LO1
P1 & M1
Vodafone is recognized as the telecommunication company within the UK, which provides the
set of services to its customers in such a way that the demands of the customers are fulfilled and
the needs of the customers are satisfied in an effective way. Vodafone delivers the marketing
strategy in such a way that it demonstrates the combination of the services which includes
mobile communication and the network services along with the services dealing with the
enterprise. With the aim to effectively determine the factors it includes the social, geographical
and demographic factors (Ward, 2016). Vodafone mainly focuses on the aim to spread its
communication over the maximum number of societies providing the best set of services and the
offers in terms of the telecommunication sector, to achieve this target the type of strategy used
by Vodafone is selective targeting, which enables the effective implementation of the strategies
made by the managers of the company in order to enhance the development and growth of the
company.
MISSION OF VODAFONE:
It defines the clear mission of generating the success within the company with the motive to take
the company at the higher level, by developing the majority of opportunities in terms of the real-
life situations which focuses mainly towards the issues related with the sector of
telecommunication (Weiss, 2016).
VISION OF VODAFONE
Its main aim is to generate improvement in the lives of the people, by ensuring that the best set of
qualities and services are provided to its customers, which help the customers to overcome the
demands of the changing world. It has defined innovation by introducing the new set of services
such as M-Pesa, etc. It provides the target to develop more services in the field of technology
innovation.
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FIGURE 2 MARKETING MIX OF VODAFONE
[Source: Jayaram, 2014]
With the aim to maintain the accurate growth in the field of telecommunication, there has been
continuous evaluation in terms of the existing set of the services which are being used by the
customers, to provide the latest set of technology to its customers. In order to attract a large
number of customers towards the company, Vodafone introduces the virtual cartoons named
ZooZoo, which has been attracting a large number of customers. Another motive of the company
is to provide a good quality of services to its customers by reducing the price, so as to generate a
huge set of customers. It has also introduced the ringtones, Live Games, Voice SMS, Phone
backups, etc.( Morelli, 2018).
There have been many changes made with respect to achieving the development of the company
in terms of increasing the profit and the growth of the company, to achieve this task there are
various different strategies which are being applied upon the existing business environment to
define the accurate set of procedures and tasks. The impact of the external environment over the
Vodafone can be defined by performing the PESTEL Analysis, which helps in performing the
effective set of procedures (Whitehead, 2015).
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PESTLE Analysis of Vodafone-
POLITICAL ECONOMICAL SOCIAL
 There have been
some limitations set
up by the government
of different countries
in terms of using the
frequencies and the
use of spectrums.
 The economic factors
within the Vodafone
deal with the issues
related to the
investment made in the
business with the aim
of high-profit
generation. There has
been a decrease in the
economic sector in
terms of profit, due to
the rise of competition
among rivals (Goetsch,
2014).
 With the aim to
generate the services
dealing with the
demands of customers,
it is necessary to
analyze the cultural
environment of the
customers, to provide
the best suitable set of
services and facilities.
• There is a limited set of
accessibility provided to the
company in terms of the Base
Transmitter Stations.
 The set of new laws
must be implemented
along with the existing
set of rules in order to
establish the business
within the other
country.
 On establishing the
business over the
various different
countries, the issues
related to the gender
basis needs to be
known in detailed
form.
 The set of limitations
has been opposed by
the government in
terms of tariffs and
technology.
 The rate of interest and
the inflation rate is
purely dependent on
the usage of services
by the customers.
 The customers have
been shifted from the
telephones to the
internet facilities,
increasing the demand
for facilities over the
internet (Morelli,
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2018).
 To increase its
popularity, the
Vodafone brought the
concept of ZooZoo,
which needs to be
legally authorized by
the government of
different countries.
 The country is selected
for the enhancement of
the business must have
sufficient availability
of the required
resources.
 There has been the
difference in the
thinking power of the
people in terms of their
ages, which needs to
be considered as the
major basis for the
development of the
new set f technologies
which satisfies the
needs of the customers
belonging to the
different age groups
(Favaro, 2015).
TECHNOLOGICAL LEGAL ENVIRONMENTAL
 With the increase in
the demand for
change, as the
telecommunication
company, it needs to
introduce the new set
of technologies and
laws in terms of the
change in technology.
 In order to deal with
the demands of the
people without facing
any issues related to
the legal matters, the
legal team has been
developed within the
Vodafone, which
ensures that the work
of the company has
been done under the
government laws.
 As the company deals
with the
telecommunication
sector, the motive of
the company is to
generate the services
resulting in a decrease
in the emission of the
harmful radiations.
 In order to analyze
the change in terms of
technology, the value-
 For the successful
development of the
company, it is
 Vodafone has brought
up the concept of
recycling older phones
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chain analyses serve
as the best solution
for determining the
changing
technologies effect.
necessary to interlink
the economic factors
of the company with
the legal factors, to
generate an accurate
amount of profit by
maintaining the
goodwill of the
company.
in order to make the
new modern phones,
which resolves the
problem of loss to soil
fertility and animals
(Paul, 2014).
 The future operations
of the Vodafone are
going to be affected
by the introduction of
the new generations
of internet speed such
as 4g, 5g, etc.
 This factor also
includes the collection
of various different
laws, which needs to
be followed by the
company such as
equality act,
discrimination on
gender basis act, etc.
 The regular
organization of the
seminars based on the
environment related
topics have been
conducted within the
company, to generate
awareness among the
employees regarding
the environment
related issues and opt
for the best possible
solution.
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FIGURE 3: PESTEL ANALYSIS
[Source: Paul, 2014]
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LO2
P2 & M2
With the aim to implement and develop the most suitable set of services within the business
environment, it serves important to analyze and study the capabilities of the company in terms of
its internal environment, to deploy the best set of services over the business environment of the
company.
To analyze the internal factors of Vodafone, the SWOT Analysis serves as the best option has it
provides the detailed information related to the strength, weakness, opportunities followed by the
threats which are upon the company (Drucker, 2014).
SWOT Analysis of Vodafone
The organization, the SWOT analysis can be performed:
Strengths Weakness Opportunities Threats
The popularity of the
Vodafone in the
market of
telecommunication
serves as its main
strength.
As there are many
companies in the field
of telecommunication,
leading to the rise of
competitions.
The expansion of the
overall empire of the
company all over the
world provides
employment within
the countries,
increasing the
economic growth of
the country (Drucker,
2014).
Since there are many
competitors being
introduced in the field
of telecommunication,
the company offering
a low rate of tariffs as
compared to that of
Vodafone can lead to
a huge loss.
It has been presently
dealing in over 150
countries in terms of
its related factors.
The setup of the
communication
infrastructure results
in affecting the health
of the people.
The motive of the
company to serves the
best set of services to
the customers at the
low costs increases
the chances of gaining
The facilities provided
by the other
companies to import
the number into
another company can
decrease the profit of
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the popularity of the
company in the whole
world
the Vodafone.
By the introduction of
the cartoon named
ZooZoo in the
advertising field, it
has attracted a large
number of customers.
In many countries, the
government limits the
establishment of the
new tower within the
country, leading to
poor communication
facilities.
With the changing
world, there has been
increasing in the
demands for the
telecommunication
facilities in the
maximum parts of the
world, providing the
chance for the
company to establish
its empire.
Saturation point
within the
telecommunication
can make the
customers biased
towards the selection
of the best company
(Favaro, 2015).
The success of the
new set of services
developed by the
Vodafone such as
Vodacom and M-Pesa
opens the doors of
success.
Another cause of
worry for the
company is the
decrease in the base
known as the
subscriber base.
The company can
search for the new
areas of interest where
the communication
does not serve as an
important part of
development.
In order to maintain
the image of the
company within the
market, it is necessary
to enhance the
existing technologies
with the upcoming
advanced
technologies.
As it has been dealing
with the enhanced set
of the financial
services
There have been
many sets of issues
faced by the company
in terms of the legal
authorities of the
countries.
The investments being
done by the company
results in achieving
high revenue growth.
If the economic
conditions within the
company are not
maintained then it can
decrease the customer
faith (Ward, 2016).
In order to develop an
efficient system, there
In the past few years
the performance of
The introduction of
the 5G within the
Improper way of
dealing with the
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are a set of techniques
being used to keep the
data and information
of the customer safe
and secure
the Vodafone within
the market of Europe
has been decreased.
market can serve
helpful in achieving
the growth and
increasing the
connectivity with the
different countries.
customer issues and
problems can generate
dissatisfaction among
the customers.
Figure 4: SWOT ANALYSIS
[Source: Ward, 2016]
Despite the SWOT Analysis, there are many different frameworks which help in knowing the
weakness and the strengths of the company like Vodafone. One of the most common and
popularly used frameworks is MCKINSEY FRAMEWORK, which deals with the strengths and
weakness of the company in order to contribute towards the successful and effective
implantation of the issues defined within the organization, with the motive to enhance the
development capability of the organization (Mitchell, 2015). Such type of framework includes
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