Vodafone UK Ltd Company Analysis
Contents Page
VODAFONE UK LTD COMPANY ANALYSIS. 1
Vodafone UK Ltd Company Analysis. 2
Vodafone corporate strategy. 3
Swot analysis on Vodafone Ltd. 5
Roles of employees in Vodafone Service Organization. 9
iii) Improvement of its services. 11
Executive Summary
Vodafone is a telecommunication service providing international company, located in UK. The company provides mobile and landline communication services for individuals and different businesses. Vodafone Group’s target is to be a world’s top five brands. In for the company to make this a reality, it has aims of focusing on the global presence through dual branding exercise with the other companies around the globe through which Vodafone holds interests. Vodafone Company has the aim of maintaining the company leadership in the UK. Its marketing strategic plan is to maintain product led products, continually developing new products and services using the latest advances in the technology. Vodafone Company is equipped with the most technologically advanced infrastructural networks around the globe. There are more than 200,000 bases Vodafone stations for the wireless signal transmission and the network transmission globally and the network traffic of 700 billion and over 90 bytes of data per year. Through the training of the employees and employee retention, the company has been able to maintain competitive market position in the market. This is significant in increasing productivity, to the loyal side of the company, increasing the company output.
Introduction
Vodafone Limited Company provides mobile and landline telecommunication services for different individuals and businesses in the United Kingdom (Roy & 2012). The company offers personal and business internet solutions, accessories, business applications such as business intelligence services, customer relationship management and mobile phone services. Furthermore, this company offers data collection services as well as mobile workforce management, fixed data networks and other services such as IP telephony. Besides telecommunication services, Vodafone provide services for logistics, manufacturing, government emergency services for healthcare and public sectors. Vodafone was founded in 1985, and it is based in Newbury, United Kingdom. Vodafone Limited operates, as a subsidiary of Vodafone Group PLC. Vodafone Company is responsible for the first UK mobile call, in January 1985 (Hicks 2012). For the past fifteen years, they have grown to be the largest company in the UK, Europe and in the world. This article gives real time information in company’s marketing strategies, as well as the different strategies for employees’ service improvement. Furthermore, the article also provides recommendations to the company that could be adopted for the success of the company.
Vodafone corporate strategy
Vodafone Group’s target is to be a world’s top five brands. In for the company to make this a reality, it has aims of focusing on the global presence through dual branding exercise with the other companies around the globe through which Vodafone holds interests (Liou 2011). The company uses current business strategy to grow and expand through its geographic rapid expansion, and the acquisition of more customers, as well as retaining the new customers. The company has also improved its innovation and technology services to retain the new customers. This is the most effective strategy for the company, which is indicated through its successes in the UK. Since 1986, Vodafone ranks as the world’s market leader, with currently the largest cellular market share in the UK (Sirkeci 2013).
In addition, the mobile phone market is drastically moving forward with the changes in the development and advancement of the mobile phone designs. In addition, the consumers have increasingly desired for the intensification of better products. To satisfy the consumer demands Vodafone is constantly developing new services beyond average customers’ demands in order to meet the dynamic market demands. As a global telecommunication company with the potential of benefiting from the global telecommunication company, benefiting from other companies.
Marketing strategy
Vodafone Company has the aim of maintaining the company leadership in the UK. Its marketing strategic plan is to maintain product led products, continually developing new products and services using the latest advances in the technology. However, the consumers have become increasingly sophisticated through the development of modern mobile technology, making new demands to fulfil value added products (Webb 2013). The consumers are increasingly becoming demanding, and therefore the suppliers have to listen, therefore Vodafone Company has utilized its strategy to feed these customers into their product strategy.
Vodafone PEST analysis
The major political factors affecting Vodafone company is the EU Roaming Regulations. These regulations have the aim of decreasing charges for mobile phone use close to 70% and increasing the consumer rights within the UK (Roy & Das 2012). Furthermore, being an international company, any of the government interventions and policy reforms through legislations could affect the market of Vodafone services. In addition, the economic factors include the increasing growth of the GDP as well as the inflation rate within the company operational markets. For example, the global economic and financial issues between 2007 and 2010 greatly affected the company (Curwen 2010).
There is a wide range of social factors directly affecting the services offered by Vodafone Company. For example, there is a current trend in the changes of working pattern, which has made most of the people to start working at home. This has led to the increasing demand in communication services and technology. The technological factors affecting Vodafone are due to the nature of the services offered as it belongs to the telecommunication industry. Due to technological advances such as the emergence of online communication has greatly affected the tendency of people to use other forms of telecommunication services (Papadopoulos 2011). Therefore, Vodafone is left with the need to form alliances with the companies to commit a considerable amount of research and development in the effort to introduce new products and services to the market. This will help protect the company from losing customers.
Swot analysis on Vodafone Ltd
The company’s successes
a) Best in class technology
Vodafone has successfully created a lasting brand image to its customers. It has also expanded its services outside the UK to global, with its services ranked seventh most valuable. Vodafone Company is equipped with the most technologically advanced infrastructural networks around the globe. There are more than 200,000 bases Vodafone stations for the wireless signal transmission and the network transmission globally and the network traffic of 700 billion and over 90 bytes of data per year (Herrington & Aldrich 2013). The company had peak download speed of 28.8Mbps. This speed ultimately serves the Vodafone customers with the best services in the market. For example, in offer to improve their customer satisfaction, Vodafone came up with Vodafone 360 service. This is a very good service for any customer wanting global connection. It is also good for the customers who want to be connected everywhere, and those customers wanting latest information available on the internet while keeping their contacts intact.
In addition, Vodafone has enhanced its market through its connections with the latest updates from popular social sites such as MSN, Facebook and Skype; therefore, the Vodafone has the potential of connecting over 360 users, making them stay updated with the latest news. In addition, Vodafone Company benefits, as it was the first telecommunication service provider to provide DRM- free bundles. It also has the largest digital music subscriptions with over 500,000 customers (Herrington & Aldrich 2013).
b) Global presence and diversification of company revenues
Vodafone benefits from direct expansion of its business to other business location such as Europe, Middle East, Asia and United States through the company undertakings investments. Vodafone has operational offices in over 40 countries, in addition to the equity it has with more than 30 countries. In addition, the company has a prominent market share internationally, with its largest geographical market in Germany. This market contributes 18% of the company’s regional revenues (Mitra & Ray 2013). Italy generates the second largest international revenue of approximately13. 5percentage (Herrington & Aldrich 2013). The highest turnout in Vodafone in mobile telecommunications operations.
Company’s weaknesses
i) Mobile phone radiation
There are concerns that the exposure to mobile phone electromagnetic radiations has health hazards. From previous research studies, excessive phone use could lead to the development of cancer. However, the results are not conclusive, as the local health authorities and the world health organization accepting that there are no health concerns (Mitra & Ray 2013). However, the damage had been done, hence the impact falls to the mobile phone manufacturers and service providers. In addition, some governments in other countries have taken precautionary measures through limitation of mobile phone use in school and colleges. This is because children and adolescents are more susceptible to the radiations. Therefore, the concerns significantly reduce the demand quantity since this market segment is omitted.
ii) Legal proceedings
Concerned with the allegations on the cell phone radiation, there is a high likelihood of the allegation affecting the telecommunication revenues. In this response, the mobile phone service operators such as Vodafone and Verizon wireless have filed a lawsuit (Qi et al. 2010). This is because the alleged health risks have no substantial proof, with no assurance of the actual risks. This reduces the likelihood of Vodafone to focus on mobile telecommunication.
Opportunities
Increasing customers and the emerging markets are one of the opportunities presented for Vodafone. There is a 20% growth in the telecommunication industry in the last three years with over 4.7 billion subscribers (Jain 2012). In the emerging market, mobile penetration is expected to deliver faster GDP with little and alternative fixed infrastructure. Mobile money-transfer services have its values added through the addition of existing infrastructure, with the help of other improved financial enterprises. There are several growing business opportunities with the exponential growth of the customer ratio of 5.4 billion by 2015 (Holland & Mandry 2012). In the future, due to the increasing numbers of mobile phone users, mobile transfer systems will be the Vodafone major source of income.
The introduction of the 4G data transmission has significantly improved high-speed data transmission. The availability of the ultra broadband connectivity, improves the mobile phone experience. Vodafone uses its own infrastructures to launch their 4G network. There is an increasing trend in mobile phone advertisers, which subsequently lead to increase in number of global mobile advertising market. This growth is expected to rise to an approximate rate of 40% in the end of 2014 (Ghezzi 2013). This is due to the introduction of new handsets, and compatible with the current internet settings. In 2008, Vodafone conducted several campaigns for the global brands, which yielded 18 operating virgin markets (Holland & Mandry 2012).
Threats
a) High level of competition
The exponential growth in the new customers is attributing to increased competition. The increased competition has led to reduction in mobile phone tariffs, which is expected to decrease further, this leads to the decrease in the revenues (Kumar, 2013). In addition, the increase in competition has led to the increase in subsidies for handsets, further increasing the challenges associated with license competition. There are threats such as the long-term growth of the company such as the global competition, which intensifies with more market saturation in developing countries as well as the emerging telecommunications technology.
Currently the switching costs for almost all the categories of products are increasingly becoming negligible, and therefore, the customer has the notion of not being treated effectively will resort to seeking similar services in other organizations. There is a high level of competition with the level of competition intensifying. There are numerous organizations in similar segment. In this case, if Vodafone has to sustain its competitive market, it needs to have an innovative competition over other competitors. Vodafone is an organization highly oriented towards customer satisfaction across the globe. In this service industry, a customer service is highly regarded, as the clients of the organization are intended to be served at a high level. The telecommunication serves customers of Vodafone have diversified demands which delights them. Therefore, it is the duty of the company’s employees to keep the customers satisfied so that they can maintain them in the competitive market.
b) Adverse macroeconomic conditions
One of the major hallmarks of the Vodafone success is the innovation of new technologies, provided by the vendors. The vendor makes significant contributions to the expenditures setting new infrastructures for improved communications. However, these communications do not provide a guarantee that the common standards of specifications will be approved (Webb 2013). This is because the technologies are produced according to the anticipated schedules performed to the expectations of the vendor. Consequently, poor performances from vendors could result in additional expenditure and reduced profitability. Poor economic conditions may lead to reductions in spending by customers. The customer may purchase lower priced products and services from the competitors. Some of the external forces such as the global economic recession will delay the purchase of the necessary things for the customers. Furthermore, adverse macroeconomic conditions can also affect Vodafone sales and their income.
Roles of employees in Vodafone Service Organization
The current business environment is different from the conventional business environment in its operating terms. In the current business, the consumer is the boss, and therefore does not have the time to wait for the organization to resort to new plans. Vodafone has resorted to pro-active approach to cater and augment the consumer’s needs. The following are some of the approaches:
i) Employee retention
There are several issues affecting employee retention, which are significant in the accomplishment of the organizational goals and objectives. One of the major factors affecting employee retention is job satisfaction, working environment and human resource factors. Employees form part of strategic assets in any company and therefore have to be maintained and managed (Sirkeci 2013). In addition, the retention of high performing employees in Vodafone is vital in relation to the highly talented and brilliant workforce. By retention of the workforce, the company achieves steadiness of its employee workforce, as well as the steadiness in its work force. This progress leads to the improvement in employee services through acts such as promotions and rewards.
ii) Employee satisfaction
It is clear in the minds of Vodafone human resource management on the importance of employee retention. Proper training of the employees is essential in ensuring that the employees meet their targets. Training and development of the employees is considered as the most significant factor in maintaining the employees in a company. The mangers play an important role in providing enough motivation and recreational facilities for the employees (Kemp 2010). The management has also to understand the strength and weaknesses of the workforce in order to give those challenges in maximization of their output.
In addition, the employees need to have an understanding of the company’s vision and mission, in the definition of different level of services. This is because reliability is essential in this type of service industry, in evaluation of performance level indicators. Furthermore, monetary b benefits are not the sole attraction feature for the employees at the current time. The growth and development of the employees is vital in ensuring the growth of the organization. There are several effects for the exit of high performance employees.
iii) Improvement of its services
Furthermore, the company has invested in its technological service to promote the company’s sustainability in the efforts to allow their workers to work independently irrespective of time and place. For example, the company has adopted new ways for working in their Newbury headquarters. For example, the company has set up home working zones with no desks. Most of the employees own a laptop and they are encouraged to use the electronic storage media than the use of the print media (Curwen 2011). Furthermore, the company has adopted the used instant messages and video conferencing to improve worker collaboration and reduce travel costs and time. From this strategy, the employees are free from the farthest locations of work bases, creating positive impacts on costs, infrastructure and the social workplace (Sirkeci 2013).
In addition, through the training of the employees, the workers, the workers achieve their prime concern of the competitive market. This is significant in increasing productivity, to the loyal side of the company, increasing the company output. Furthermore, Vodafone is an employee friendly organization. The training and development program of Vodafone are perceived by the employees to be effective and useful in their job delivery. In this case, the employees are happier and satisfied with the general career development at Vodafone. The organization sticks with the company if the pay increases and the other strategies that provide employee satisfaction (Roy & Das 2012).
Conclusion
Vodafone has also shown commitment to sustainability and progress in their work and in their news report. This has provided an innovation platform and ideas for the company. Vodafone is the largest mobile operator in the UK. In their latest sustainability report, the company presents measures it takes to meet these goals from decoupling the commercial growth from the environmental impacts for the effort to provide their employees with the ability to work independently with the ability to work independently. The company has launched a service known as Just Text Giving, which has made it easier for the big companies and charities to raise the funds. Through relying Vodafone reliable company program which has paid salary expenses for over 1,000 individuals to work for the charity organizations, with over 8000, charities taking up the text messaging services for the fundraiser. The career development constitutes technical training, and constant monitoring of performance interpersonal skills promotion oriented training of multi departments. All the factors are associated with training and development of Vodafone. Most of the employees believe that the training and development programs are employed, and designed to fulfil the development of the company.
Recommendations
- In order to make great experiences, Vodafone UK has to ensure that their consumer service responses are clearly represented.
- It is also important for the company to focus on constantly searching for new markets globally to ease the pressure of competition. The company needs a better understanding of the path the company is taking to ensure that its services to the consumers are in line with the consumer demands.
- The recruitment criteria need to operate in line with the goals of the organization. The company has to hire candidates according to the job specifications, and therefore, the company does not have to hire just for the sake of hiring.
- There is the need for clear communication with new employee so that they can understand the roles and the responsibilities in the organization that is well versed with the organizational culture.
- The induction is vital for new employees to make him feel comfortable within the organization. The flexible working hours have to be given to the employees to make the employees love their job.
- The environment is important for Vodafone, but it takes care for development of the office environments as an employee friendly organization to make the employees comfortable in the organization.
Reference List
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Papadopoulos, 2011, Investment Report-Fundamental Analysis/Ratio Analysis: Comparative Approach between two FTSE 100 corporations Vodafone plc and British Telecom Group. GRIN Verlag.
Qi, Y, Imran, M, & Tafazolli, R 2010 September, On the energy aware deployment strategy in cellular systems. In Personal, Indoor and Mobile Radio Communications Workshops (PIMRC Workshops), 2010 IEEE 21st International Symposium on (pp. 363-367).
Roy, A & Das, DSK 2012, Assessment of impact of advertising campaign of Vodafone on the viewers. Assessment, 2(1).
Sirkeci, I 2013, Transnationalisation and Transnational Marketing Strategy, In Transnational Marketing and Transnational Consumers (pp. 1-23), Springer Berlin Heidelberg.
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