Business Environment Of Vodafone Group Plc Marketing Essay

The goal of this report is to analysis the external and inner business environment of Vodafone Group Plc, and identifies possible technique for Vodafone to maintain growth. Vodafone lifestyle in Europe, Middle East, Africa, Asia Pacific and United States; run in form of subsidiary, joint venture, associated, or investment in 21 countries, and controlled in form of spouse market arrangement in 49 countries. See Annex I for details.

To understand a firm, it's best practice to get started from its Perspective and Mission declaration to understand the organization direction.

"Our Vision is to be the world's mobile communication innovator - enriching customers' lives, supporting individuals, businesses and neighborhoods be more linked in a mobile world. "

"Our objective is to lead the industry in responding to general public concerns regarding cell phones, masts and health by demonstrating leading edge practices and pushing others to check out. "

External analysis

PESTEL Examination is tool used to check the exterior macro-environment where the company operates. It express in conditions of Political, Economic, Community, Technological, Environmental, and Legal.


Political factors including politics stability, labor regulation, environmental legislations, trade restrictions, tax coverage, and tariff.

Country which Vodafone operate their business are politics stable, and pleasant for international investment or joint venture with local business. China, Israel, India have duty benefit for foreign investor.

In UK, Ofcom presented the local loop unbundling process required BT to allow other operators to install their own equipment in BT exchange; this insurance policy lowered the admittance barrier for the industry. Also more licenses was given to new operator, competition on the market is becoming hot.


Economic factors including exchange rate, interest rate, inflation rate, and the monetary growth.

The global financial crisis especially in Europe causes the financial growth gradually. Under this situation, customers are more price-driven than quality-driven. The bargaining vitality of bankers become better, get loan from lender are more difficult and have to pay higher interest.


Social factors including inhabitants growth rate, get older distribution, cultural aspects and life-style.

In Vodafone's home country -UK, the populace is increasing scheduled to immigration and labor and birth rate increase. The life span style and way of using mobile phone are changing. The number of fixed line customer is lowering and the amount of mobile phone user is increasing. Cellular phone is no longer using for only making telephone call and text message, nowadays cellular phone is also use for web surfing around, social advertising, and entertainment.


Technological factors including rate of technical change, automation, and technology bonuses.

The way of people using mobile phone change, need of the faster data transmitting rate become necessary. New technology on both hardware and software, such as IP phone and video recording on demand become common technology.


Environmental factors including environmental safety legislation and non-regulated issue related to the industry.

Currently there is absolutely no environmental regulation straight related to the industry.


Legal factors discussing laws and regulations regulating businesses.

EU Roaming Regulation urges operators to lower fee on roaming service.

Internal Analysis

Resources Analysis

Tangible Resources

Vodafone Group Plc has total 139, 576 million of property in 12 months 2012. It includes 14, 000 stores and 238, 000 basic channels worldwide.

Intangible Resources

The brand of Vodafone worthy of US$30 billion and positioned as the number nine brand internationally. It grows its network and centralization of center activities constantly by the advantage from size of technology. Its customers receive ground breaking services at a minimal costs and great value. More services being created to customers from time-to-time and increase in capacity and better.

Value Chain Analysis

Vodafone has invested 304 million in 2012 in research and development to ensure progressive services are being developed continually. In Europe market, 99% of the population can make phone calls across its network.

It still trading about 6 billion in sites and infrastructure provide safe and steady connection to customers.

It has its billing system and producing dual currency capacity to contract customer, in a position to move these customers to prepaid billing method, and the related effects to tariff structures.

Total 14, 000 own branded stores and other retails chains to ensure services being deliver to customers at their most convenience.

It has its own portal for those global employees can learn about the product.

Centrica created a strategic alliance with Vodafone to provide the mobile phone service, as a result of benefit of the endemic network of Vodafone across Uk.

Competitors Analysis

If Vodafone unable to supply the same services or products to the customers as their challengers, it'll become its proper incapability. Vodafone is same as a few of its competitor able to provide broadband, fixed tone, and mobile services; but some other competitor in a position to provide Tv set service. Vodafone provide two services bundle and three services package package deal, but Virgin Multimedia provide four services package package.

BT is buying fibre-base super-fast network to contend with the others. O2 and Orange are investing in LLU to go aggressively in to the fixed words and broadband market.

SWOT Analysis

PESTEL analysis determined the opportunities and hazards to the business in exterior environment. Internal research included resources analysis and value string analysis; and competitor analysis discovered the advantages and weaknesses of the company.

All above information are being put together as an SWOT Examination in Annex II.

TOWS Matrix

Using consolidate information from SWOT analysis, different kind of strategies can be develop for coming five years (2012-2017) and illustrated in Annex III TOWS Matrix.


Develop new market in expanding country - Vodafone is well experienced in develop new market internationally.

Expand coverage in UK market - Expand its coverage and keep maintaining the market talk about in UK by using benefit of LLU.

Develop broadband network - Strong financial record of the business able to support it to develop high speed mobile network (4G) and broadband excellent speed network through LLU.

Develop new product - While using good thing about its brand and vast coverage network might develop new product by forming tactical alliance.

Compete on price - Fortify the cost range by the power from economical of level.


Focus development out of Europe - Develop in country where the impact from economic problems is not serious.

Develop and upgrade hardware - Strong financial support in a position to update equipment as the marketplace needs. Not able to be the technology innovator, but at least turn into a fast follower.

Provide lower roaming tariff - Company operate internationally may benefit it to provide a lower roaming tariff.


Localize on oversea operation - CEO of oversea subsidiary may fine melody company technique to fit with the neighborhood operation.

Lease broadband network from BT - Leasing broadband network from others to beat the condition of does not have its own.

Expand in coverage - Expand in coverage to increase volume of customer to triumph over the high churn rate.


Joint opportunity with other company to use in oversea market - For country which is ideal fit for the business due to politics or legal factors, jv can minimize the chance and defeat the control problem in related different culture.

Market Development

Develop market in producing country is one of the possible strategy for Vodafone, such as China, Russia, and South Africa.


Economic situation in European countries especially in UK was expected to recover more slowly than other countries. Vodafone has got capability in fund; foreign trader is pleasant in developing country, the marketplace development strategy is ideal for Vodafone to working in oversea market at the moment. India is a good example, it is country with greatest variety of Vodafone mobile customer about 150 million users.


Vodafone has 6. 1 billion of free cash flow available for investment, with previous experience in acquisition and jv in oversea. Acquisition is the quickest way of access, for country with investment risk; jv will be a more desirable choice.


This strategy can have the acceptability from shareholders in financial viewpoint. Inside the customer's point of view, foreign investment increases existing infrastructure and bring new technology to the industry.

Product Development

Product development including use of 4G network, strategic alliance with entertainment company to provide entertainment on mobile network and resolved line network.


This strategy is ideal for Vodafone because Smartphone became the style of the market, and its eyesight is to deliver total communication.


Vodafone is financially capable for this strategy. Technology of 4G network is ready, LLU allow it to lease fibre network from BT. Delivery of training video became possible with broadband network.


This strategy can have the acceptability from shareholders in financial viewpoint. Upgrading on hardware will benefit to supplier by generate more business. Customers are looking forward to high speed network.

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