The strengths of Vodafone looks at the key aspects of its business which gives it competitive advantage in the market. Which Country Has The Comparative Advantage In The Production Of Gadgets? Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. Together with Vodacom's VodaPay super-app and the M-Pesa payments platform, we are the leading provider of digital financial services, as well as business and merchant services in Africa. Malysia opens up to Vodafone. The companies are not associated with MBA Skool in any way.Edit the brand or add a new one to SWOT Analysis section : Contribute. (Cellular-News, 2008) In conclusion it must be said that despite all of Vodafones concerted efforts to tap into the advantages that come with setting up oprations in other countries it has not necessarily been smooth sailing. Starting from the earl 1990s the UK Company embarked on a worldwide acquisition spree, buying stakes in other mobile telephone companies. cookie policy. The theory states that trade can benefit all countries/companies/individuals so long as they produce goods with relative costs. Vodafone Australia is one of the most used network service providers in Australia. We use cookies to give you the best experience possible. The company has less than 50 employees at that time. Figure 4 illustrates a VRIO Analysis. Vodafone is one of the most popular cellular service provider across the world 2. fee. Government regulation such as the recent one Vodafone and Hutch deal which was penalised by the Indian government for tax evasion case. Available from http://findarticles. Explore how the human body functions as one unit in 6. Vodafones operating slogan bigger is better, saw the company go for one acquisition after another, pouring billions upon billions to this end allowing them make inroads into far-flung markets. Therefore it uses selective and differentiated targeting strategy. Highly efficient website ensures easy online payments, recharges, service activitations, 10. Available from http://www. ecem (accessed on April 23, 2008) WTO, (2008). London, pp.54-87, pp.694-707, Dodourova, Mariana. Vodafone is one of the most popular cellular service provider across the world 2. SWOT analysis Here is the SWOT analysis of Vodafone. The brand names and other brand information used in the SWOT Analysis section are properties of their respective companies. Marketing opportunities to ensure that risk is assumed by company is not wasted, and create good . Vodafone can create inmitability by innovating on the . 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Its Vodafone Global Enterprise division gives media communications and IT administrations to corporate customers in 150 nations. Porter's Competitive Advantage28 Vodafone Ansoff Matrix29 CHAPTER # 3: METHODOLOGY31 Research design31 Case Study Methodology31 Sample31 . The article below lists the Vodafone SWOT, competitors and includes its target market, segmentation, positioning & USP. Requested URL: www.ukessays.com/essays/marketing/competitive-advantage-of-vodafone-over-other-telecom-players-marketing-essay.php, User-Agent: Mozilla/5.0 (iPhone; CPU iPhone OS 14_8_1 like Mac OS X) AppleWebKit/605.1.15 (KHTML, like Gecko) Version/14.1.2 Mobile/15E148 Safari/604.1. Vodafone has a very high brand visibility and strong brand recall 5. You can use it as an example when writing It has partnership agreements with local mobile operators in 58 markets and is operating through a joint venture or associates in mobile networks market in 26 countries. Get expert help in mere 10 minutes with: How Vodafone Applied the Principle of Comparative Advantage in Its Operations, Explore how the human body functions as one unit in harmony in order to life //= $post_title Vodafone with its zoo-zoos ad campaign has been successful in creating top of mind awareness amongst communication services companies around the world. . Vodafone first launched a wireless network under the brand name Arena in 1993, while Hutchison started under the brand name Orange says Business Monitor International Ltd (2008)., Vodafone has been following the process of acquiring certain amount of stake in a countrys local telecom operator and gradually acquire the majority stake so it can have control over the company and the company can be run with the name Vodafone. Mobile Number Portability to other competitors can reduce subscriber base. It dawned on me that. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Comparative Advantage Continued the Freeaman Ideas on Liberty. Strong advertising with ZooZoo concepts made Vodafone ads very popular 6. In a digital world, where customers are becoming more connected, technology can drive true competitive advantage. Unilever is a complex global organization that has a portfolio of 400 brands, spanning 14 categories in home and personal care and food products. Porters 'Generic Competitive Strategy. Bharti Airtel holds a dominant position in the telecom industry worldwide. 31. It is for this reason that Vodafone bought stakes in Romania and Czech with the buying of Mobifon and Oskar Mobil respectively. Globalization has opened up markets and brought more competition to the telecommunication industry to make it more competitive. Q;A: The Secrets of Vodafones Success. Sometimes it is hard to do all the work on your own. The first digital (GSM) mobile phone service was launched in the UK by Vodafone in 1991. The network effect is a phenomenon in which the increased number of people that consume a service improves its value. The analyst Jobber (2004) has proposed different advantages that are . Vodafone's Flexible Competitive Advantage In a strategy for differentiation one or more criteria used for selection by buyers in a market are chosen - and then a business plan is used to uniquely meet those criteria. It acquired stakes in European, American and Asian companies and in no time it had established itself as the worlds biggest mobile phone company with footprints in almost every nook and cranny of the world. According Ricardo the benefits of trade come about if in an economy where specialization thrives. Competitive Advantages through Value Chain Analysis of Vodafone. Having substitutable capabilities made the company only have a competitive advantage that was temporary. stm (accessed on April 23, 2008) BNET, (2008). The average Vodafone hourly pay ranges from approximately $19 per hour for a Customer Service Representative to $19 per hour for a Customer Service Representative. This naturally causes a loss of future potential for Vodafone. Over the years Vodafone has diversified its businesses from being merely a mobile telephony company to emerging as a major player in communication services industry which deals in broadband services, internet of things, Cloud services and mobile telephony. You can check my recent posts here, (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_3999100996") }), Your email address will not be published. Innovative Products: Its various products & services such as Vodafone Portrait, Vodacom, M-Pesa, Vodafone One and Vodafone Speechmark, has helped the company in being competitively ahead of its competitors in the respective market. The implementation of information technology can help to give rise to new areas of business. Various market forces such as high infrastructure cost, price wars in the most competitive markets, saturated mobile telephony market, government regulations affect the companies operating in the industry. In international trade such as the one conducted by Vodafone, the principle of comparative advantage plays a very critical role. Differentiation Advantage:-when a company delivers benefits that exceeds the benefits provided by their competitors. The creation of the given strategy and its observation is possible because of the availability of significant resources devoted to developing plans and their implementation at different levels. The research study will mainly discuss different factors relating to the competitive advantage. Comparative advantage is said to be one of the most straightforward and simple economic concepts Lee (2008). It can make businesses that were seemingly impossible in the past to be feasible now. Everybody is familiar with the cliche that the only constant in this world is change. Insights into Vodafone's business model, along with further breakdown and analysis of key business segments and business case study. Copyright 2008 CNET Networks, Inc. All Rights Reserved. Vodafone is targeting different sections of the societies with their different offerings. Available from http://business. SWOT analysis of Vodafone analyses the brand by its strengths, weaknesses, opportunities & threats. Marketing management. cellular-news. Applied Social Psychology and Causes: The Case of Control Arms Campaign, A critical analysis of porters five forces As applied to online financial service institutions, Spar Applied Systems (A): Organizational Change and Team Management. Available from http://www. Whether it is zoo-zoos advertisements or the M-Pesa movement in the African market, these vital steps and products have helped the company in creating high TOMA (Top of mind awareness), increasing ARPU (average revenue per user), and customer pulls in the market. So how did Vodafone use the principle of comparative advantage to gain a foothold in global mobile telephony market? No matter Vodafone did finally launch this service with promises to keep improving this service every other time. Vodafone deals in business verticals namely mobile telephony business, fixed-line services. Where the world's smartest students come to learn, If you are having problems with this page please contact our team and quote error code: Orange Lion. Studies on language not only covers one aspect only, but has extended to. There are several marketing strategies like product innovation, pricing approach, promotion planning etc. If you have any questions, then you always have the opportunity to contact the local office via Advantage phone number: (800) 777-5500. Stronghold in the European market: With 66% revenue contributed by European market, Vodafone has maintained its extensive presence by facilitating 87% of the market with 4G services and carrying 50% of the total data traffic on 4G networks. can use them for free to gain inspiration and new creative ideas for their writing assignments. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Exploring corporate strategy. The ethical issues carry significance because. Quizzes test your expertise in business and Skill tests evaluate your management traits. (ICFAI) Another big strategy that Vodafone came up with was the decision to make forays into markets where technology was relatively underdeveloped. By becoming amongst the first mobile phone companies to offer this technology, Vodafone thought it could it to as many countries where its subsidiaries were based and a make a kill, so to speak. Vodafone had formed a task force to look into the issues raised by the [proponents of the technology. Vodafone was also quick to notice the Indian potential and was quick to find partners there. 8th ed., Essex: Pearson Education Limited.. The company provides landline, mobile telephony, digital TV services etc 4. (ZDNet, 2008) Vodafone realized it could no longer rely on the voice-based operations only as its competitors were offering more than that. ?>. Occasionally, a low-priced leader will besides dismiss its merchandise to maximise gross revenues, peculiarly if it has a important cost advantage over the competition and, in making so, it . co. uk/tol/business/industry_sectors/telecoms/article2799361. Operations of these subsidiaries started becoming a matter of concern because it was proving difficult to follow their progress and so it was decided that they needed to be consolidated. Available from http://news. You will easily find the Advantage rental desk by following the directions in the Atlanta Airport Hartsfield, Georgia. Saturation point in getting new customers would eventually differentiate only on service 3. Available from http://www. org/Library/Topics/Details/comparativeadvantage. 92% of the customers of Vodafone are individuals/ families while 8% of its customers are enterprises. com, 2008) Once acquisitions had been made the thing that came next was establishing the market compositions in the different countries the acquisitions were based. It can also create new businesses within old ones. The opportunities for any brand can include areas of improvement to increase its business. With loads of value added services Vodafone progressed and expand rapidly as specified on the website www.vodafone.com. You cannot access www.ukessays.com. This was in contrast to moving to countries were technology had taken off like Japan and the United States where the consumers were spoilt for choice and therefore were in the habit of switching to what they viewed as companies that provided up-to-date mobile telephony technology. Another aspect related to the fields of language study is also growing. Browse marketing analysis of more brands and companies similar to Vodafone. 3. Worldwide Vodafone is solely focused on just one thing mobile technology. Johnson, G., Scholes, K. and Whittington, R. (2007) Exploring Corporate Strategy, 8th Edition, Prentice-Hall. The theory of comparative advantage simply deals with the benefits of specialization and trade Suranovic (1997). Introduction There are 4 generic business strategies in order to gain competitive advantage over others. Vodafone partners with IBM to prepare for the quantum era of applications in telecommunications . cite it. In todays fast-evolving environment, people attempt to manage change in their everyday lives, seeing its. Competitive advantage examples: Vodafone. database? The given approach presupposes a 1.2 billion euro operating cost reduction, which is also vital for generating a competitive advantage (Vodafone Group Plc, 2019). Mission- Creating opportunities every day with the help of communication, Vision- To improve peoples livelihood and quality of life by delivering connectivity and innovative services to them. As per Forbes list of brands globally, Vodafone has been ranked 395 out of 2000 brands with a market capitalization of $ 87.3 billion. Required fields are marked *. It operates in Europe, Asia Pacific, and the Middle East where Asia Pacific & Africa are the emerging markets for Vodafone which contributes 32% of the total revenue. Vodafone PLC has also been able to use Porter's generic strategies to position itself in the marketplace. This is a direct result of SWOT analysis. The telecommunications industry is competitive with the large numbers of the mobile telephone, TV cable and fixed line providers competing in the interrelated industry. The gains follow from specializing in those activities which, at world prices, the country is relatively better at, even though it may not have an absolute advantage in them. Let us start the Vodafone SWOT Analysis: For Vodafone, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position. Retrieved from https://phdessay.com/how-vodafone-applied-the-principle-of-comparative-advantage-in-its-operations/, Hire skilled expert and get original paper in 3+ hours, Run a free check or have your essay done for you, Didn`t find the right sample? The threats for any business can be factors which can negatively impact its business. Talk to (2003), Industry dynamics and strategic positioning in the wireless telecommunications industry: the case of Vodafone Group plc, Management Decision Volume 41 Article no 9 page 859-870 year 2003, We hereby certify that Mr. Shrikant Hawa is a bonafide student of our institution passing out course of Bachelor of Business Administration from University of Pune for the year 2007-2008 with specialization in Marketing. Marketing Strategy of Vodafone analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Currently, there are 16000+ Vodafone exclusive branded stores globally. It uses value-based positioning strategies. In Vodafone SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. 48 Vitosha Boulevard, ground floor, 1000, Sofia, Bulgaria Bulgarian reg. In international trade such as the one conducted by Vodafone, the principle of comparative advantage plays a very critical role. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving . Strong advertising with ZooZoo concepts made Vodafone ads very popular 6. The answer depends on who you talk to. Vodafone is a company has almost become synonymous with the word acquisition. Continue reading more about the brand/company. Vodafone Launches Mobile Payments in Afghanistan. Below are the Strengths in the SWOT Analysis of Vodafone : 1. There will taken into account different theories regarding the competitive advantage and factors that affect the telecommunication industry (Nelson & Todd, 2005, Pp. This is one of the reasons why Vodafone decided to buy controlling stake in South Africas Vodacom. Vodafone uses a mix of segmentation strategies to segment its offerings in mobile network services, enterprise services and broadband services accordingly. The biggest examples of this phenomenon include powerful social networks such as Facebook, Instagram, and Twitter. This gives Vodafone a competitive advantage because the problems raised by one customer are addressed so that they do not recur in future. 199). Harlow, England ; New York : Financial Times: Prentice Hall., Johnson, G. and Scholes, K. (2002). essay. International Trade Theory and Policy. Vodafone has over 1000,000+ employees globally 3. Operations strategy and competitive advantage, The extent to which supply chain activities within Zara supports its competitive advantage, get custom A sustained competitive advantage emerges, if the resource is difficult to imitate by the competitors. A country does not have to be best at anything to gain from trade. your own essay or use it as a source, but you need By continuing well assume youre on board with our Communications and mobility technology used innovatively can transform customer experience, radically improve business processes and develop new products, services and business models.

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