VODAPHONE

Vodaphone

Vodaphone

Executive Summary

In terms of revenue, Vodaphone was the largest mobile telephone operator in the UK. However, ne competitors were entering the market due to which the challenges for Vodaphone increased. Therefore, Vodaphone was expected to formulate a strategy that was known as “total communications”. The main issues in the case include competition, technology and Demand, regulatory changes in UK and financial crisis.

To meet this Vodaphone formulated strategies to drive operational performance, pursue growth opportunities in total communications, delivery of mobile services was planned to expand in new markets and capital discipline was expected to strengthen.

Initially, the profits rose but later onwards they declined and the company also had to face some other challenges in 2009. It is therefore recommended that Vodaphone must adopt the ANSOFF matrix and the Success Criteria Evaluation should be used as a means for bringing improvements.

Table of Contents

Introduction4

Definition of Issues4

Competition4

Technology and Demand4

Regulatory changes in UK4

Services5

Financial Crisis5

Fixed-line Telephone5

Analysis of Case Data and Critical Evaluation6

Competitor strategies6

PESTEL Framework7

Strategic capabilities of Vodaphone8

Strategic purpose of the company9

Organizational culture10

Analysis of the organization's strategic direction10

Market Penetration10

Product development11

Market development11

Conglomerate diversification11

Critical evaluation of the organization's strategy12

Suitability12

Feasibility12

Acceptability12

Sustainability12

Conclusions and Recommendation13

New Strategic Directions13

References15

Appendix16

Mobile Telephone16

Television Market Share and Trends16

Broadband16

Introduction

In terms of revenue, Vodaphone was the largest mobile telephone operator in the UK. However, ne competitors were entering the market due to which the challenges for Vodaphone increased. Therefore, Vodaphone was expected to formulate a strategy that was known as “total communications” (Strang 2011, pp. 1).

Definition of Issues

Competition

Since the market was also growing, more competitors had entered the market which included Virgin Media and Sky Broadcasting. Besides this, there were many other companies such as Carphone Warehouse that were investing heavily in digital content. Moreover, Google and Andriod had also made investments in the field of communication.

Technology and Demand

Besides the competition, the company also had to improve its technology because there had been rapid changes in technology. This was because of the growth of IP and the emergence of Wi-MAX technology. UK was also switching towards digital television which was very much demanded by the viewers (Rowe 2005, pp. 85).

Regulatory changes in UK

The communication industry in the UK faced significant changes in terms of regulations. One of the very significant changes was the privatization of the national telephone company which was known as BT. Moreover, it also forced it to provide network services at competitive rates. Licenses were also issued to the other mobile operators. The UK regulator was “Ofcom” that ensured competition and delivery of basic services from which consumers benefitted greatly. This is because the cost fell by 34% between 2003 and 2008.

Services

Therefore many organizations were formulating strategies to provide multiple services to customers. These diverse services included fixed line telephone, mobile telephony, television and broadband Internet. By 2009, most of the companies were offering these services to customers. However, Vodaphone was unique among all the competitors because it was focusing mainly on mobile services. This was a concern for the shareholders as well as for the management who were considering if Vodaphone must offer other services too ...