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VODAFONE CASE STUDY

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Vodafone is acknowledged as a British telecommunication company. It is performing with multiple countries or it has a global presence. The headquarter of Vodafone is situated in the Newbury, Berkshire in England. The company mainly operates in Africa, Asia, Oceania and Europe. During the year of 2020, the company declared that it has owned operating networks of 22 different countries. They are planning to build a partnership with other 48 countries. The global enterprise of Vodafone provides services related to telecommunications and Information and technologies. Researchers have mentioned that the company contains a partnership with clients of more than 150 countries covering the entire world.

The very name of the organisation is comprised of three different words including VOice, DAta, and FONE. The capitalised letters constitute the very name of the organisation. Researchers have mentioned that, during the year of 1991, the company Racal Electronics was demerged and appeared as Vodafone Group. Gerry Whent was the chief executive officer of the organisation. During the year of 1996, the company acquired almost two-third of the entire talkland. The company made a defensive approach during the year of 1996 where people purchase Vodafone for almost £77. The company is also possessing more than 181-store chain by utilizing the Vodafone network. The following section will mention an organized SWOT and PESTLE analysis of the organization to understand the organizational performance.

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Vodafone SWOT Analysis

Strengths

Weaknesses

  • The company contains a strong brand recognition.
  • They provide a diverse set of offerings to the consumers.
  • The company performs with an omnipresence or the world-wide presence.
  • The company contains a huge subscriber base.
  • It invests a huge amount on the procedure of advertising.
  • The company possess limited presence in the rural areas.
  • The company contains limited success outside the core business.
  • The company is victimising a sudden drop in their procedure of brand valuation.
  • The company is also associated with a kind of huge debt over more than 25 times.

Opportunities

Threats

  • The organisation needs to focus on the rural areas to increase availability.
  • The company can also focus on the emerging markets of South Africa to promote their names.
  • The company need to use the grow model for the internet users.
  • The company need to use the better network coverage.
  • Only potential threat for the organisation is the existing amount of competition within the marketplace.
  • The existing brands are providing probable cheap and exciting offers to the consumers.

Strengths

Most of the matrix contains the strengths of the organisation. Firstly, Vodafone contains a strong brand recognition as well as brand awareness. The company is dominating over the telecommunication industry covering the entire world. Being a British company, the company itself providing the services to majority number of countries covering the entire world for more than 28 years. It is the biggest achievement for the company itself. The Tophomeworkhelper.com is providing case study help at best price. The chief executive officer of the organisation does not believe in serving the eggs in same plate or a single plate. The company is also serving m-health related services from the year of 2009. The company is always trying something new for their consumers.

Third important point is maintaining a world-wide presence. Considering the year of 2020, the company is optimising their presence in more than 30 to 40 countries. It includes the countries including Europe, Central Europe and Africa. As a result, the company contains a huge consumer or subscriber base. The company is also investing a huge amount of their revenue in maintaining the advertising.

Weaknesses

One of its potential weaknesses include the absence in the rural areas. The company is present in more than 30 countries. However, it has failed to mitigate the connectivity or telecommunication related services in the rural areas. Along with this, the company contains a limited access outside the core business. Researchers have mentioned that the company is observed with dropping brand valuation from the past few years. On the other hand, Airtel and Reliance Jio is providing a tough competition to the organisation. Along with this, the company is associated with a huge debt in considering their service with Idea.

Opportunities

The company can stress on special investment on the procedure of Market Penetrability. It is also acknowledged as one of the weaknesses of the organisation. The potential companies including Airtel as well as Reliance Jio is providing services to the rural areas. The company also need to focus on the aspect of cellular networks. Consumers now a days are completely relied on their smartphones and creating their dependency over the cellular networking. It can be good news for all the consumers covering entire world. Along with this, Vodafone needs to strengthen their 4G networking. Reliance Jio is the most effective competitor to provide 4G spectrum to the consumers covering the entire India. They are also providing free plans that can be a matter of tension for the organisation. Hence, they need to improve their network coverage to improve the consumer experience and consumer satisfaction.

Threats

As shown in the matrix, Vodafone is observed with huge competitors including Airtel and Reliance Jio. The company needs to improve their network coverage to reduce the impact of their rivals on a greater extent. The company is also performing with a low margin that can be a greater threat for the organisation. Thirdly, the mobile number portability is also considered as a potential threat for the organisation by different scholars. Finally, researchers have mentioned that the industry of telecommunication is becoming saturated. It can be a greater problem for this organisation.

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Vodafone PESTLE Analysis

 

Factors

Analysis

Political

Vodafone is facing different challenges throughout the entire tenure. The Especially, Spain and Italy are the two places where the company is facing troubles. They are also facing troubles in South Africa also. Despite these problems, in Qatar, Vodafone was sold to the Qatar Foundation for a joint venture. The company also earned a good amount in the countries like United States and Germany.

Economic

Considering the economic factor, the company has earned a good amount of revenue during the initial section of its emergence within the marketplace. The secondary aim of the organisation is to change their cost or pricing strategy to take the advantage of the online or digital communication program. Considering the financial year of 2020, the company has decided to decrease their expenditure in the European countries and saved almost 1.2 billion euros covering the entire year of 2021. Considering this aspect, it can be said that, from the financial ground the external factors of the operating countries provide much opportunities to the organisation.

Social

Social factors refer to the relationship with the consumers with the organisation. The company maintain a change within the lifestyle. They also include different preferences of the consumers. However, researchers have mentioned that 4G is getting backdated and countries are introduced with the procedure of 5G. On the other hand, there are multiple countries which are declining the use of 5G in their countries. It is completely going against the notion of environmental sustainability. Hence, Vodafone is also facing the dilemma to strengthen their network coverage by providing the latest technology. In this regard, it is worth to mention that Australia is a country which has declined the use of 5G in their country.  

Technological

Technology is the key aspect of the telecommunication industry. Vodafone is observed with huge transformation from the day of its emergence. The company is performing greatly by developing their mobile application. The MyVodafone application contain every facility from checking the best package for the self. It also includes understanding which package providing most data for the consumers. Along with this, the application also contains the facility to online recharge own mobile number. It is also providing different credit points to the consumers to carry forward to the next month.

Legal

Legal factor includes abiding all the legalities of the host country. It includes following the employment policies, the confidentiality policies, the consumer and employee protection policies, safety and health policies especially for the employees and the anti-discrimination act. In this regard, researchers have mentioned the example of the Hutchinson case acquired by the company. Almost $2.5 billion through the Indian Income Tax department was charged from the company. This transformation created many challenges for the organisation. Taxation is a serious issue that is associated with the external factors of an organisation in every context.

Environmental

 

Environmental factor is the most important concerns for all the business industries covering the entire world. However, Vodafone believes in collaborative work and promoting sustainability throughout the entire globe. Researchers have mentioned this particular telecommunication organisation is connecting more than 650 million of people covering the entire world. They are also connection different organisations covering the entire world. The company mentioned by the end of 2025, they will be reducing the environmental threats up to 50%. Along with this, they have pledged to promote and support the digital communication among the people covering the entire world to create a completely digital world.

 

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