Vodafone
Transcript: Introduction... Financial instability; More growth increase long term debt Focus on UK & Europe markets Late enterance in total communication No network in countryside areas Low market power in Europe Highly competitive market Introducing LLU by Ofcom Price competition Regulatory pressure to reduce price EU & UK regulation for quality of HW & cope with local regulation Economic slowdown Merger of Orange and T-Mobile BT had forced to allow access to its newtwork at competitive rates MVNO's: Lower the barriers Other competitors in different markets Reduction in cost by regulators: 34% Rapid growth in number of compatitors Range & quality of hardware and services Wide range of choice among different competitors Handset sales declined in 2009 Apple iPhone sales increased by 26%. Apple was first supplier to negotiate a share of the operators' ongoing revenue... Development of new technologies was bluring the boundries, forcing reconsideration of what was required for "Total Communication" Lost leadership in UK market in 2009 to O2 Became 3rd in market after merger of Orange & T-Mobile Due to highly competitive market, what other services if any, should be provided? Partnership Built or Acquisition Cost of 3G Vodafone Group Plc is a British multinational telecommunications company in London since 1985. Low... VoIP Moderate... Revenue: £45.9 bn Subscriber: 370.9 m Porter's Five Forces Economic... Relied on slower growth & saturated Europian market due to extremely higher mobile subscriber penetration rate (120%-150%) in some countries Cost of calls and cammunication services (decreasing) Strength Social... Political & Legal Vodafone owns and operates networks in over 30 countries and has partner networks in over 40 countries. MVNO's Youth Rates Issue of new license Privatize BT Worldwide recession Demographic & cultural aspect of the environment influencing customer needs and market size Health issue: Society is concerned about under 18s being at risk; Parent concern... Adult content Factors affecting purchasing power of customer: High... Value added products & services Reshape its competitive environment; Focus on existing & new customers Cost reduction; improving return Increase in mobile & TV usage% Increase in mobile broadband subscribers R&D in new mobile technologies Fixed-mobile convergance data services Emerging market growth Infrastructure... Regulations... Strategic Challanges for the company (Mobile Virtual Network Operators) A trend towards major sports leagues in EU regulator Figures show the distribution of the age groups (75% of participants belong to the 18-25 age group range) Supporting competition in television and internet services Comprehensive tariff and promotion monitoring A hosted, secure platform Vodafone mobile phone licenses are tightly controlled Vodafone is willing to shift their approach away from unit pricing and unit based tariffs Regulatory changes in the UK communication industry Threats So High... Aggressive strategy growth through acquisition Brand recognition Network infrastructure Performance enhancement by cost reduction Focus on service Presence in emerging & development markets Largest share of 3G subscribers & leader in marketing 3G cards for laptops Weakness Vodafone New strategy... Advanced technologies on products & services 3G GPRS/WAP SMS/MMS Cloud Computing UMTS IP Wi-MAX Digital TV Upgrading of speed over fixed & mobile networks Online advertizing Wireless (mobile) broadband demand PESTEL Analysis Leading mobile telecommunication operations It is the world’s second largest mobile telecommunications company measured by revenues as well as subscribers. High... Focus on key areas of growth potential Mobile data, emerging markets, enterprise, total communications and new services Deliver value and efficiency from scale Using size and scale to drive cost efficiencies and operational effectiveness Key Suppliers: Handset manufacturers; Apple, BB, Nokia, Samsung,... Network equipment manufacturers; Ericsson, Alcatel-Lucent, NSN,... Mobile phone theft Blue jacking Technological... We will be the communication leader in an increasingly connected world... Recommendation... Europe, ME, Asia Pacific, East Africa, USA BT to offer other operators wholesale services Provide network voice & internet LLU: BT required to allow other operators to install their own equipment in BT local exchange; voice, broadband internet Listed on UK Stock Exchange & NASDAQ Vodafone connects customers across the globe with roaming agreements worldwide... Formulating and implementing Vodafone strategies in accordance with each country specific legal, regulatory and tax environments Economic factors includes economic growth, interest rate, exchange rate and the inflation rate