Vodafone UK Business Challenges and Strategies: A Report

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Business and Academic Skills
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Table of Contents
Introduction................................................................................................................................3
Company Overview...................................................................................................................4
Identify some of the current challenges facing businesses in the UK........................................5
Analyse one UK-based business and evaluate how the business has responded to these
challenges...................................................................................................................................7
Conclusion................................................................................................................................10
Reference List..........................................................................................................................11
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Introduction
The increased competition in the market and the constant changing of market trends and
customer preferences has put businesses under challenges. These challenges involve
changing the strategies of the company frequently in order to adapt to customer demands.
This is important because the company needs to align their products and services to the
demands of customers in order to increase sales and attract new customers (Vidgen et al.,
2017).
This report will focus on explaining some of the key challenges faced by modern businesses,
especially in the UK. A specific company will be chosen in order to explain various solutions
and changes that other companies can do to negate many of these challenges. The chosen
competition for his report is Vodafone UK, one of the biggest network providers in the UK
and the world. Key strategies and changes that the company has applied in order to overcome
these changes are detailed in this report.
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Company Overview
The chosen company for this report is Vodafone UK. The company is the second largest
network service providers in the UK and globally. In the year 1991, the Racal telephone
group separated from Racal Electronics and became Vodafone. The name came from the
brand name Vodapage, which was the pager service, provided by Racal Electronics to the
people of the UK in the 1980’s. By the start of the 21st century, Vodafone had 5 million
subscribers in the UK, becoming the market leader in satellite telecommunication networks.
Vodafone operates in the retail sector of the UK. It currently has 480 stores located across the
UK that provides landline cellular connections, internet services and broadband connections,
and mobile cellular connections in the form of SIM cards. The main vision of the company is
to provide technological services that will help the people in achieving a better and more
secure future in telecommunications (Vodafone.co.uk, 2019). Since its inception, the brand
has expanded worldwide, to other nations. Constant focus on quality and range of services in
otherwise unreachable areas has made Vodafone the second largest cellular network provider
in the world, and the largest in the UK.
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Identify some of the current challenges facing businesses in the UK
Vodafone belongs to the retail and telecommunications industry. The major limitations that
the company faces are mainly due to the United Kingdom’s political conditions and the
economic condition of the country. Other companies in the UK face these issues, as they have
a spreading effect on the UK industries. The key issues that the company faces are described
below.
Brexit
Brexit is the main cause of concern for Vodafone and almost every other industry operating
in the UK that conduct business internationally. The effect of Brexit on the businesses of the
UK is far reaching as it s an international phenomenon. The businesses that will be affected
the most by the issue of Brexit are the companies that make imports and exports with other
European countries and conduct their business in those countries. This is because the
relationship of UK with other European nations in the European Union is strained because of
the decision of the UK to leave the Union (Dhingra et al., 2016).
It was noted that the companies in the United Kingdom faced several issues due to Brexit.
The companies have to consider certain facts that would help them to understand the
functioning of their business in the right manner. They have to focus on the relationship of
United Kingdom with the countries of the European Union. As a result, it becomes difficult
to focus on the development of their business. Vodafone UK faced similar issues and it
became difficult for them to understand their business requirements and operate in a flawless
manner.
Consumer Demands
It is important for companies to understand that they are being able to meet with the demands
of the customers and ensure that they are meeting with their basic requirements. In a recent
study, it was observed that companies in UK were not being able to understand the consumer
demands. As a result, it had a negative impact on the overall growth and development of their
business and it hindered their progress in the market (Iyer et al., 2018). Besides this, most of
the challenges developed due to the improper prices of their services and products. Due to
this, the companies were losing their potential customers and it hampered their business
operations.
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In recent times, it is observed that Vodafone is unable to provide quality services to their
customers. As a result, it provides opportunities for the customers to launch a complaint
against the network. It was seen that young users of Vodafone are being exposed to unusual
internet content and as a result, it has a negative impact on their personal and professional
development (Kerr and Moloney, 2018). This developed as a major issue for the organisation
and it became important to eradicate the same in terms of successful operation of their
business.
Lack of technologies
This is another important challenge that is faced by the UK companies in terms of executing
their ideas needed for business development. It was noted that companies were unable to
make use of advanced technologies in their workplace. As a result, they were not being able
to enhance the quality of the services and products for the customers. This had a major
negative impact on their business development, as they were unable to retain their potential
customers (Vidgen et al., 2017). This imposed a serious threat in terms of hampering the
productivity and profitability of the organisation. There are times, when Vodafone is unable
to provide quality network to their consumers. As a result, it creates hindrance in their
process of business and reduces their organisational productivity.
Regulation and Compliance
The UK businesses are faced with the proposition of making rules and regulations, with the
shift in the various scales of technologies. This is one of the issues, as the employees should
be able to work in one accord for the fulfilment of the roles and responsibilities required by
the business. This brings in the use of the best of the systems that have an impact on the
functioning of an individual (Amin and Goddard, 2018). However, there are some of the vital
issues, which are faced down by the people and bring about new and absolute changes i the
business systems and regulations. This sets in the right duties and capabilities, which are
required of a company. It is important to judge and understand the basic growth levels which
are important for the functioning of the company
Competencies and right recruitment
The UK business might be faced with some of the major challenges, which might affect the
peace and the employee productivity of the company in a better manner. Recruitment is an
effective process of the company in a better manner (Jøranli, 2018). This is imperative for the
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company to be able to list out the important areas of talent management, which can affect the
company to breed good and better profits. It can also initiate the company to get in the right
deals and discounts, which can be useful for the business. Therefore, the individuals were
recruited in a better manner and able to bring in the growth of the company. This brought in
the comprehension of the best business units, which were important for the growth of the
business.
Some recent issues faced by Vodafone
The CEO of Vodafone, Nick Read outlined some of the important growth strategy that could
be used by the company to mitigate the challenges that they are facing while conducting their
business in the UK market. In study conducted on Vodafone, it was noted that there was an
overall decrease in the generation of revenue. The revenue dropped to €21.8 billion and it
resulted in a loss of about €7.8 billion in the calendar year 2018-2019 (telecomlead.com,
2018). Apart from this, the main motive of the organisation is to become one of top five
companies across the world. They are unable to achieve the feat because they have seen a
noticeable decrease in their sales. It aims to become the best service providers and to reach to
that level the company should focus on developing their brand image in the market. It was
observed that the company did not have a proper logo for gaining the attention of the
customers (businesscasestudies.co.uk, 2019). This implicated their lack of competencies in
terms of using technologies in the workplace. As a result, organisation is unable to perform in
a customer-centric manner.
Analyse one UK-based business and evaluate how the business has responded to these
challenges.
The company Vodafone has been taken into account, which has influenced the businesses, to
work in a better manner. The company also faces some if these challenges, which compels
them to work for the betterment of the organisation. It is important to evaluate the challenges
that make it impossible for the telecommunication company to survive in a better manner. It
is important to realise the significance of the challenges, which were imperative for
understanding and comprehending the elements that are important for the growth and
productivity of the business. Vodafone was faced by extreme challenges, which affected the
company sales and profits (Ott, 2018).
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In order to deal with the challenges, it is important for Vodafone to develop important
strategies that will help them to counter the issues and increase their profitability. The
company decided to launch their 4G campaign that will help them to provide quality services
to the customers and enhance their level of customer experience. Besides this, the
development of their personalised app allowed them to reach out to the customers easily and
cater their requirements without much difficulty. This in turn allows them to increase their
customer base and generate more revenue in terms of their business (techradar.com, 2018).
Besides this, they focused on the development of their brand logo for attracting the customers
in the market. In order to drive growth for their business, Vodafone looks to implement the
internet of things (IoT) and cloud services for their customers. This helps to enhance their
experience and provides the organisation with enough opportunities to expand their business
to become one of the top five companies in the world.
The business responded to these challenges, by being able to point out the important factors
that are important for the individuals. It is imperative for the company to realise its potential
and be able to deliver best results. With the revelation, in the new research, there is a great
shock of sale bullying, which affects the growth of the business. The company and its issues
were handled in a better, manner, through the introduction of better management systems.
The challenges of opening up to the new market were met with ease and profit, which was
useful for the understanding of the business (Goyal and Dhamija, 2018).
This helped them to comprehend the nature of the society the market. Therefore, Vodafone
combated the issue, with the various materials, which were important for the growth and the
understanding of the business. Vodafone UK is looking forward to use rebranding strategy
and using new 5G strategy to improve the market of the company. On the other hand, the
company has introduced people centric technologies with the introduction of AI keeping
contemporary customer demands in mind. This affected the company and gave rise to profits,
which were very important for the company to function in a better manner. It gave rise to the
different aspects of the business, which were regarded to be very important for the company.
It further unveiled an understanding of the areas, which are regarded o be important for the
company and is business venture (Buddhapriya, 2018).
Therefore, the company Vodafone is vary of the various business propositions, which affect
its survival. It is important to elucidate an understanding on these current issues and make
regulations and policies concerning these. This can prevent the company from faced any
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governmental charges. It is effective and important for the company to acquire a list of
changes and identity, which affect the profit of the market. Vodafone should be able to
evaluate the challenges, which affects the functioning of the business and has an effective
understanding for growth of the business. This is imperative for the functioning of the profits,
which are important for the business.
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Conclusion
The study has analysed the significance of the issues and challenges, which are faced by the
organisation. It is important to keep a track and account of all major challenges, which can
badly affect the business. The telecommunication company Vodafone, has been identified
here. There has been set of changes, which have affected the dynamics of the industry. It has
given an account of the issues, which are viable for the smooth and effective working
functioning of the company and the business. This is an important criterion, to keep in mind
for the understanding of the major issues, which can badly affect a business. Therefore, the
study has given a critical approach and understanding to the significant areas, which can aid
the growth of the business and the company in a better manner. This is useful, as it brings
about honesty and integrity in the wellness of the company.
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Reference List
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development. Routledge.
Buddhapriya, S., 2018. People Issues in Telecom Industry &HR Preparedness: A Study of
Indian Companies. Indian Journal of Industrial Relations, 53(4).
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Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of
Brexit for UK trade and living standards.
Goyal, S. and Dhamija, S., 2018. Corporate governance failure at Ricoh India: rebuilding lost
trust. Emerald Emerging Markets Case Studies, 8(4), pp.1-20.
Iyer, G.M., Bhansali, S., Bhatt, T., Chhatwani, M. and Deshpande, A., 2018. Role of Payment
Banks in India: Opportunities and Challenges. IJAME.
Jøranli, I., 2018. Managing organisational knowledge through recruitment: Searching and
selecting embodied competencies. Journal of knowledge management, 22(1), pp.183-200.
Kerr, W.R. and Moloney, E., 2018. Vodafone: Managing Advanced Technologies and
Artificial Intelligence.
Ott, D.L. and Michailova, S., 2018. Talent Management Challenges and Possible Solutions
for New Zealand Businesses. New Zealand Journal of Human Resources Management, 18(2).
techradar.com, 2018. Vodafone Business rebrand highlights strategic focus in 5G era.
[online] TechRadar. Available at: https://www.techradar.com/news/vodafone-business-
rebrand-highlights-strategic-focus-in-5g-era [Accessed 12 Jul. 2019].
telecomlead.com, 2018. Vodafone CEO Nick Read outlines growth strategies | TelecomLead.
[online] TelecomLead. Available at:
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https://www.telecomlead.com/telecom-services/vodafone-ceo-nick-read-outlines-growth-
strategies-87425 [Accessed 12 Jul. 2019].
Vidgen, R., Shaw, S. and Grant, D.B., 2017. Management challenges in creating value from
business analytics. European Journal of Operational Research, 261(2), pp.626-639.
Vodafone.co.uk. (2019). Vodafone - Voted UK’s Best Mobile Network | Now With 5G.
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