Orange is in direct competition with for the 13.7 million mobile users in Romania.Orange Exceeded Vodafone (then Connex) in the number of customers in September . Orange introduced in early the EDGE technology in four Romanian cities ( , , and ), a transition to 3G technology. Orange Romania is the Romanian subsidiary of the global mobile operator , the mobile telecommunications arm of . Orange Romania is 96.8% owned by France Telecom
By , Orange has invested about 1.4 billion euros, from entering the Romanian market. Main competitors in the mobile market in Romania are: , , ( ) and the newer .
Orange Romania also controls 4.33% of the current operator (former Voxtel).In , Orange had 101 shops, 1,100 partner stores and approximately 35,000 points of sale of prepaid cards, with the largest distribution network of a mobile telecommunications operator in Romania.
2. Mission, values, vision, objectives.
2.1 Mission
Orange believes in the future. Orange makes a difference in people's lives by creating simple and innovative services that help people communicate and interact better.
2.2 Values
The values promoted by Orange through products, services, promotions are creativity, courage, dynamism, attention to detail, consistency and courage.
2.3 Vision
A clear future, without connecting cables. (A Wirefree and bright future.) This vision is based on the simple premise that people communicate with people and not places. In the future, people will not be tied to landlines and will be able to communicate anywhere and anytime. When launched in the UK, in April 1994, Orange was new and different, eliminating the confusion that exists on the mobile market and transforming the process of buying a cell phone in one simple and clear.
“In the future, people will think it strange that voices ever travelled down wires.”) – This was the launching advertise in the ul,april1994
Orange Romania will launch a new brand vision
Orange Romania will launch a communication campaign of the new brand vision, part of Orange's largest integrated global campaigns.
"Since the global launch in 1994, Orange has evolved and become more than a mobile telecommunications company in the contemporary context of the new digital world. “Together we can do more" is the new slogan that expresses our confidence in the power of people to accomplish more together” said Richard Moat, CEO Orange Romania. The new vision is according with the Orange brand values: simple, open, surprisingly, dynamic and honest. The consistency and continuity in communication are assured also by the graphic brand identity that remains unchanged.
Since taking the leading position of the telecommunications market in Romania in December 2004 and until now, Orange has doubled the number of customers and the annual value of proceeds.
These achievements are due to customer orientation, the massive investments in network development services, the expansion of distribution network and thanks to launch innovative products and services. „Our goal is to maintain the high quality of our services and to diversify the range of innovative communication solutions Orange, "said Richard Moat. The new brand campaign, created by Publicis, will start in Romania with executions on TV, in newspapers, online, outdoor and Orange stores.
Objectives
As medium term objectives Orange aims:
→ EDGE = 70% coverage of the Orange coverage;
→ Attracting new customers;
→ To continue the acquisition of new customers;
→ Improving the network quality and improve the quality of Customer Service;
→ Maintaining and developing the notion of a “strong brand”;
→ Developing new services;
3. Swot analysis
4. Pest analysis of Orange
The PEST framework provides a comprehensive list of influences on the possible success or failure of particular strategies.
4.1 Political
Concerning the political context, the governamental and legal issues affects how the company operates by:
→Regulations
→Infrastructure
The euro instability rate also affects Orange Romania because the higher the euro rate in Romania, the more Orange earns.
4.2 Economical
For the economical aspect, the shares owned by the State in France Telecom (Orange’s subsidiary) represent 27.4%. So the state can be really considered as a great economic support.
We have also to point out the presence in Europe of new telecommunication thanks to the freedom of circulation. In other words, it is the emergence of new countries: Eastern countries start to develop on this market.
4.3 Social
Concerning the social aspect, we know that now more and more people consume new technology products. Internet has become a real working tool; people use Internet at home, at work.
We have also to underline the frequent use of telecommunication in the professional and private sphere. Moreover, the firms are searching for secure and reliable information systems. This increasing need can be explained by the fact that these companies want to be more profitable to face fierce competition. Finally, not only do the professionals but also private individuals need to communicate quickly
4.4 Technological
To explain the technological aspect, we have to point out the fact that consumers face now more and more technologies and frequent innovations. As a matter o fact, after launching the 3G innovation, groups as Orange launched the EDGE revolution. Indeed, the 3G is characterized by a technology’s standard of mobile phone that is accessible to consumers since 2002.
Thus, the EDGE revolution permits to complete the 3G innovation in 2005. The debit can reach 384 Kbit/s: this innovation has a real impact on the strategy of Orange and other companies who want to use new technologies to obtain new market shares.
5. The five forces model
5.1 The threat of entry
Identifying new competitors it s often difficult, that is not the case in the mobile phone industry. Because the mobile phone operators must compete for spectrum licenses, they can easily identify their competitors in the individual markets. he threat of new entrants bringing additional production capacity should be downplayed in this industry, because technology should assumed to be similar and thus new entrants do not necessarily bring additional production capacity, nor does their entry hold consumer cost down. he fixed-line operators do however present a risk to mobile phone operators, because they will certainly provide extra production capacity and lower the consumer costs as a result of this competition.
5.2 Bargaining Power of Suppliers
Mobile phone manufacturers are the primary supplier to the mobile phone operator market. These manufacturers were dominated by Ericsson, Nokia, and Motorola with 61 percent of the market. Because the mobile phone manufacturing brands were more important to consumers than the mobile phone operators themselves, bargaining power of suppliers was high.Industry firms are not a significant customer for the supplier group because the suppliers operate in far more international locations and markets than the mobile phone operators. Suppliers’ goods are critical to buyers' marketplace success. Mobile phone manufacturers could integrate forward into the industry. These suppliers were credible, having substantial resource and provide a highly diferentiated product.
5.3 Bargaining Power of Buyers
There was very little differentiation among mobile phone operators, and the switching costs are low. Accordingly, the industry firms battle for higher quality, greater levels of service, and lower prices than their competitors, and the consumers benefit.
Mobile phone customers purchase the entire portion of the mobile phone operator's industry output. The sales of the mobile phone service account for the entire amount of the seller's annual revenues.The mobile phone customers could switch to another mobile phone operator at little, if any, cost. he mobile phone industry's products are undifferentiated and standardized. The buyers do not pose a credible threat of backward integration because of the high capital requirements.
5.4 Threat of Substitute Products
Substitute products for the mobile phone industry could be considered fixed-line phone products if convergence is not considered to exist. This substitute product’s price is not lower, and its quality and performance capabilities are negligible compared to mobile phone products. Switching costs are low but the advantage goes to the mobile phone industry because there is a greater chance of switching to mobile phones from fixed-line phones than the other way around.
5.5 Intensity of Rivalry among Competitors
a) Numerous or Equally Balanced Competitors
There are many equally balanced competitors in the mobile phone industry, and industries with these characteristics tend to have strong rivalries.
b) Slow Industry Growth
Because the mobile phone market is undoubtedly growing, there is little pressure to take customers from competitors.
c)High Fixed Costs or High Storage Costs - High
Mobile phone operators have high fixed costs due to spectrum licensing and the establishment of wireless network points of access. As a result, these mobile phone companies try to maximize their productive capacity, which leads to excess capacity and intense rivalry
If we had to do a summary of this industry we can say that is an industry who has low entry barriers, the competitive threats from product substitutes are strong ,strong bargaining positions of the suppliers and buyers and intense rivalry among competitors.
The mobile telephone industry has high entry barriers and a low threat of product substitutes but overall it s an unattractive industry.
Finances and management
6. Finances and Management
6.1 Management team
This is the management team of Orange:
Chief Executive Officer
Executive Vice President
Deputy Chief Executive Officer
Deputy Chief Executive Officer
Executive Vice President
6.2 Finances
7. Internal Environment
Orange’s strongest resources were their intangibles such as human resources, innovation, and knowledge which put them a step ahead of their competitors. By definition these resources are more costly and hard to imitate. These resources are rooted deep in the company’s history by staying focused in mobile markets and not diversifying into other technology categories that would loose the company’s primary focus and drive through its core competencies. Being the largest in the Romanian mobile telephone industry , they remained focused on the leading edge of mobile technology.
7.1 Tangible Resources
Due to his profit (net profit) who was gained year by year, Orange allowed for plenty of acquisitions and money to be spent on research and development. Orange had the expertise to reorganize these assets to earn above average returns. Each year, investors were willing to lend more credit or equity.
a) Organizational Resources
Orange 's formal reporting structure and formal planning, controlling, and coordinating systems are strong, as evidenced by their low cost base, high innovation, and numerous successful acquisitions and mergers.
b) Technological Resources
Orange developed a next generation wireless standard, UMTS, that allows for voice and data on the same wireless network.
7.2 Intangible Resources
a) Human Resources
Managerial goals seemed to be aligned with company goals. Managerial experience is great and led to numerous successful acquisitions and mergers. Detailed and experienced knowledge of the market and technology that is involved in the mobile markets. Orange has applied this knowledge to the many markets it has entered and has proven successful.
b)Innovation Resources
Orange has focused exclusively on mobile telephony and has strengthened their role in the market by ofering a next generation network, UMTS, which they developed themselves.
c) Reputational Resources
Orange, like all other mobile telephony operators, sufers from low diferentiation. This leads to an imperceptible diference in product quality, durability, and reliability.
8. Orange Innovation
8.1 Crystal clear calling as Orange revolutionises Uk mobile phone calls with the launch of High Definition voice
Orange becomes the first operator to launch mobile HD Voice in the UK, signalling the dawn of a new era in mobile communications for customers HD Voice reduces background noise and decreases perceived distance between callers by providing crystal clear calls HD Voice is available from september 2010 nationwide at no extra cost for all Orange customers with an HD voice enabled handset
Orange announced on september 2010 the first major advancement in UK mobile voice calling for 20 years with the launch of mobile High Definition (HD) Voice. Providing crystal clear sound quality for calls, mobile users will see the service set a new consumer benchmark, with today’s move testament to Orange’s continuing focus on innovation. offers a proven improvement in the sound quality of traditional mobile voice calls. The service eliminates the distance between friends, relatives and colleagues to make callers voices sound like they do when communicating face to face.
Reducing the background noise, hisses and crackles of normal mobile calls, HD Voice also excels in noisy environments, so whether you’re at a football match or concert, on a building site or next to heavy traffic - HD Voice gives louder, clearer, sharper mobile calls. This will come as a relief for a third (32%) of Brits who blame background noise including road works or noisy chatty friends as the biggest disturbance in conversations.
Orange HD Voice is available at no extra cost to all Orange mobile customers who take a HD Voice enabled handset. From launch, new variants of the Nokia 5230, Nokia X6, Nokia E5 and Samsung Omnia Pro will be HD Voice enabled with further manufactures expected to offer HD handsets in the coming months. All HD Voice enabled handsets will be labelled with the Orange HD Voice logo, helping customers to easily recognise those devices that support the new .
HD Voice demonstration units will also be available in Orange shops.Tom Alexander, Chief Executive of Everything Everywhere, the company which runs Orange UK, said: “Although what we use our mobile handsets for has evolved significantly in the past few years - the way we make mobile calls hasn’t changed a great deal since the 1990s. So we’re proud to be the first telecommunications brand in the UK to change this and offer customers a revolutionary new calling experience. With mobile HD Voice - hearing really is believing”.
HD Voice also opens up new opportunities for better ways of working in business. The arrival of HD Voice is hotly anticipated by the broadcasting industry, which believes that the service could reduce its reliance on expensive ISDN lines and the need to ferry guests to studios for interviews. Other industries that will benefit significantly from HD Voice include those with significant background noise like the construction and manufacturing industries.
8.2 Orange Romania future projects
SC Orange Romania SA, by end June 2011, will implement a project totaling over 70,000 Euros (3.050 million lei), on increasing the competence of 450 its employees, and 65 percent of the money, namely 1.830 million lei, is paid from non-repayable EU funds. The project's general goal is to increase the competence level of the top specialists working in the Company, and who have a high potential for more complex roles, in the future.
The Orange Romania Project includes authorized improvement courses to train human resources, process improvement, project and innovation managers, as well as to assess the competences the employees encompassed in the project are developing, through theoretical and practical tests, as well as their certification. The project's impact in the long run is aimed at the professional development of top specialists with Orange Romania and at ensuring their contribution to the development of Romania's competitive sectors, in Europe's economic context.
As for the Company, in the end of the project, its employees will gain better abilities in management, innovation and process improvement. At the same time, the project will contribute to the enhancement of the employees' abilities for more complex roles and posts, focused on the process improvement, and on changing the manner they carry out their activity, both within the Company and in their future careers in other companies or public institutions.
'We believe that the development of the top specialists' potential is a necessary investment for both the Company and Romania, because these specialists belong to the country's economic elite and are generators of economic growth,' said Orange Romania Project Manger Andrea Patrascu.
Orange Romania mobile telephony operator's total revenues amounted to 246 million Euros in Q3, 2010, by 8.7 percent lower than during the same time span, last year, scoring an 83.3 euro annual revenue per user, France Telecom data say. Orange Romania numbered 10,398,884 clients on Sept 30, 2010, by 2.8 percent less compared to Q3, 2009.The Company is part in the Orange France Telecom, one of the biggest communications companies, worldwide, with more than 182 million clients, in five continents.
9. Corporate social Responsibility
Orange believe’s in the responsible development of the company, in a strategy for sustainable development, respect the environment, the community where we operate, the employees, the partners, and shareholders. Orange belive that they can have a significant positive impact on community development and this is why they have taken this responsibility very seriously.
Orange Group has a global corporate responsibility strategy aimed at providing a responsible business management in all markets.
9.1 Orange in the community
Orange Romania supports initiatives and projects that relate to communication and dialogue. They want to bring added value to the communities where we operate and, in this respect, they believe they need to contribute with more than financial resources. Orange’s Corporate Responsibility projects help us play a more active role in community' s life and promote dynamism and innovation.
People with communication disabilities
Since 2004 Orange support a project of Light into Europe association, dedicated to children with hearing and sight impairments. The project is aimed at reducing the risk of social exclusion for these young people, encouraging responsible decisions by moving the children' s energy in a positive direction that can offer them better opportunities for integrating in society.
Education
For Orange, the most important investment is made in people, because according to their vision, only this approach can ensure long-term success. Orange believe they have an important role to play in professional development of young people, and for that reason they have developed over the years a series of programmes for students: School of Sales, School of Marketing,etc.
Environment conservation
Orange concluded a partnership with the ADEPT Transylvania foundation to support an innovative project dedicated to the conservation of landscape biodiversity and the development of rural communities. The project is aimed at a 100,000 hectare area in the Saxon Villages region of South-Eastern Transylvania.
This is an important region from ecological and cultural points of view, where a remarkable biodiversity of flora and fauna can still be found, including many species threatened with extinction at international level.
10. References
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