Vodafone SWOT Analysis: Business Strategy and Market Position

This report presents a SWOT analysis of Vodafone, a leading British multinational telecommunication company operating in over 20 countries. The analysis identifies Vodafone's strengths, including its extensive market coverage, significant revenue production, and effective marketing strategies like the zoozoos and pug ads, which have contributed to a perception of higher quality among consumers. Weaknesses include a reducing subscriber base and brand valuation, coupled with poor performance in Europe due to Brexit. Opportunities lie in penetrating rural markets and leveraging the 4G continuum. Threats include intense competition from companies like AT&T, Verizon Wireless, Reliance Jio, and Airtel, as well as the risk of subscriber churn due to cellular phone number portability.

Vodafone SWOT analysis
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Table of Content
About the Company...................................................................................................................3
SWOT Analysis.........................................................................................................................3
References..................................................................................................................................5
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About the Company
Vodafone is one of the leading telecommunication companies. It is a British multinational
telecommunication company. The company operates in more than 20 countries. The SWOT
analysis is mainly utilised in order to find out the strength, weakness, opportunities and
threats of the internal environment of the company.
SWOT Analysis
STENGTH Huge market coverage – The company is ranked
395th among the top 2000 brands in the
telecommunication sector. The company operates
in more than 20 countries in the world.
Revenue production – As per the latest figures,
Vodafone has earned billions of dollars per year.
In the year 2016, the company generated around
87.3 billion dollars.
Marketing – the company makes a lot of effort
in marketing. It has introduced several
advertising ideas such as the zoozoos and the pug
ads. Both the concepts were immensely
successful (Sammut‐Bonnici and Galea, 2014).
Quality cost – Vodafone always attempts to
differentiate from the rest of the market.
Outstanding its communications and marketing,
consumers by now believe that Vodafone is an
indentation over the rest of the companies in the
market and they are conceited to be a consumer
of Vodafone.
WEAKNESS Reducing subscriber base – It has been seen
that the subscriber pedestal of Vodafone is
reducing in the past 4 years. The company
requires underpinning its mainstay values and
putting into practice the plans to increase more
consumers.
Reducing brand valuation – The most frequent
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reason behind the reduction in the brand
assessment is the reducing brand assessment of
the company.
Poor performance – The performance of the
company in Europe has been poor due to brexit.
If the revenues are considered around 40% of the
income was not generate from UK but some other
country.
OPPORTUNITIES Rural market – The company is seen operating
in mainly the urban areas. However, the company
can also penetrate into the rural nations as well.
Therefore, in addition the rural markets, the
company Vodafone must also contemplate on the
budding markets crossways the globe.
4G - The 4G continuum has shaped disturbance,
however, at one fell swoop has completed the
look of the people make a glance at the telecom
operators on one occasion another time to
observe which one they will surface with
(Chathuranga, 2015).
THREATS Competition – A key threat for Vodafone is the
rivalry it faces all over the place it sets off.
Therefore, if it sets off to the US, it will surely
face competition from AT&T and Verizon
Wireless. Similarly in case of India Reliance Jio
and Airtel has their own market space.
Cellular phone number portability – The
Cellular phone number portability is a key threat
to Vodafone for the reason that whenever a
competitor brings in an inexpensive plan the
consumers do not think once before considering
other operators.
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References
Sammut‐Bonnici, T. and Galea, D., 2014. SWOT Analysis. Wiley Encyclopedia of
Management.
Chathuranga, D., 2015. Analysis of the impacts of Merger and Acquisition on business
development in Telecommunication industry in India: Case study of Vodafone & Hutch
(Acquisition) and Indus & Bharti Airtel (Merger). GRIN Verlag.
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