Strategic Management


Strategic Management


With the exceptional growth of cellular communications since the late 20th century, the trickle down impact on other sectors, society and economy at large is enormous. Dynamics of communications have strengthened the development of the entire information technology industry, enhanced economic growth and allowing better social interaction over expansive zones.

Currently, there are about 3 billion users of cell phones globally. Most of these users are found in western world. Nevertheless, 70% of the projected growth is predicted to take place in new markets, especially India, China, Asia and Africa. The challenges and opportunities faced by telecommunication companies in emerging markets are totally distinct from those in established markets like Europe.

The company in which this term paper is going to focus on is Vodafone Group. It is operating the biggest telecommunication network in the world with its presence in both mature and emerging markets. The main aim of this paper is to identify corporate strategy used by Vodafone Group and detailed analysis of this strategy using the existing analysis tools. At the end of this document, such tools as SWOT, PESTLE and Five forces will have been used.

The name Vodafone is coined from Voice data fone and it was selected by the company to portray the provision of both data and voice services using mobile phones.  The company’s goal is to become the communication leader in an ever rising connected world. For it to achieve this mammoth goal, Vodafone has expanded its product portfolio beyond conventional basic services of SMS and calls by incorporating the following services:

Vodafone Office and Vodafone At Home (an integration of both fixed and mobile communications services).This product is geared towards meeting the customers’ needs.

Other products are Vodafone Passport, Vodafone Live! Vodafone 3G and Vodafone Mobile Connect data cards.Vodafone’s operation is organized in two distinct geographical regions. These are Europe and EMAPA. EMAPA covers Eastern Europe, Middle East, Asia, Africa Pacific and Affiliates.

The Europe region was once known to be the main root of Vodafone growth giving an approximate of 79% of income to the whole corporation. However, due to a 100% penetration in this geographical region, this market is currently considered as saturated and showing lesser growth. As growth decline in the Europe region, substantial growth is now evident in EMAPA where a 30% growth rate is being witnessed. Venturing in to new market frontiers has yielded greater diversity to the company’s conventional market portfolio.

Vodafone is a key player in international mobile telecommunications. It market share is evident in more than twenty six countries across the world. This case study attempts to look at how Vodafone Group handles its corporate strategy in a move to secure substantial market share. It explains how corporate strategy in application enhances the company’s growth. Vodafone UK which is going to form a subject of this study is part of Vodafone Group. It offers mobile telecommunications products and other related services. It market is segmented in to three major divisions. These are large organizations, small businesses and private individuals.

Corporate Strategy

The current target of Vodafone Group is to be in the top five brands of the world. In a bid to achieving this, it is exploring new markets through venture in to new markets. The most commonly used strategy in this move is through the famous dual branding with more than 30 companies all over the world. These are organizations whose interests and involvements are of interest to Vodafone group.

This process of expanding global presence entails the use of locally recognized brands and Vodafone name. A good illustration of this strategy is Libertel Vodafone which is operating in The Netherlands i.e. Libertel is a mobile network found in The Netherlands. This partnership is maintained until Vodafone name is broadly recognized. After attaining wide recognition, Vodafone transforms in to an independent brand. This strategy forms part of a long term program aimed at establishing a single global brand (Andersen, T J 2006).

The current strategy is to attain geographical expansion, win new clients and maintain the current customers. Additionally it desires to embrace dynamisms surrounding technological evolution and innovativeness. This is a strategy with big prospects. The viability of this approach has been assured by the achievements attained in the recent past. To illustrate this, the Vodafone network in the UK carries over 200 million calls per week. The coming of third generation phones and WAP enabled cell phones is a major milestone in market share expansion. Likewise, products and services portfolio is on the rise. An average of every two in three mobile phones is WAP enabled. This feature is further enhanced by increased processing power. The glamour of Vodafone Group is in the business base accruing from technological advancements. Most of such mobile users are in a position of accessing online related services such as finding out cinema program schedules, ticketing and internet access (Higgins, J M & Vincze J, 2009).

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The mobile telecommunication industry is in continuous growth. The rate of growth is accelerating than ever before. The desire by customers to have better products is an intangible asset at the disposal of Vodafone Group.

In order to expand its market share, Vodafone is moving in tandem with changing technology through the development of new services. The innovative services being developed by Vodafone surpasses customers’ imaginations. That is why the company has continued to appeal to many consumers for a long time.

Vodafone UK is poised to benefit from such technological developments. Being an international telecommunication company, Vodafone benefits ...

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