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About Vodaphone
Case Intro Key Info
Key Word Ports 5 Force Model 3 Ws
Growth Strategy - Real Data World
mark
celine
Vodafone development strategy
3 key factors:
Increasing acces to communication

Lowering the cost of internet-enabled devices

Developing applications that meet the needs
of people in emerging markets
1. Increasing acces to communication
Expanding networks in developing countries,
emerging markets, rural areas and remote
areas
Will bring telecomunication benefits to many
people and internet acces.
Mobile acces promote economic growth and
development - important keys to change
peoples lifes in better


Impacts of growing acces to
comunication:
Impact of mobile in India
GDP in indian states with higher mobile penetration will grow faster.
Mobile telephony can improve labour productivity, agricultural
techniques, roads and storage keys to poverty reduction.
Socio-economic impacts on people from countries have less acces to
basic banking services by transmission of small sums of money and the
evolving role of mobiles in micro payments.
Impact of mobile in Africa

boost to economic growth from greater mobile penetration in remote
rural communities
Mobile technology play a vital role in bridging the digital divide, in rural
areas where there is limited access to other forms of communication such
as roads, postal systems or fixed-line phones.
Studies shows that a further 10% increase in mobile penetration would
produce an additional 1.2% increase in annual GDP growth rate



2. Lowering the cost of internet-
enabled devices
Affordable handsets - Affordable mobile internet gives
more people the chance to communicate, learn and
look for vital information such as jobs and health
advice online.
All low-cost mobile internet phones use a customised
Opera Mini browser specially developed to offer a
high-quality mobile internet experience with affordable
handsets on a 2G network by compressing web pages
for faster downloads.
Vodafones innovative new WebBox provides low-cost
access to the internet on a big screen even without a
computer.


3. Developing applications that meet
the needs of people in emerging
markets
work in collaboration with partners to identify
opportunities and develop tailored mobile
services that meet these needs
Vodafone M-Pesa to enable people to transfer
small amounts of money to friends and family via
mobile phone
Vodafone mHealth Solutions for ex Nompilo
project in South Africa and Tanzania enables
community caregivers to input patient
information and access medical records more
efficiently using their mobile phone.
Environmental & social advantages
Earning customer trust : Privacy; Child safety
online ; Mobile advertising; Accessibility
Responsible network deployment
Responsible supply chain
Ethical business practices
Valuing our people
Eco-efficiency: Minimising our carbon footprint ;
Reducing impacts of our products and services;
Managing electronic waste


Vodafones five forces model analysis
THREAT OF ENTRY
Telecommunications industry is very capital-
intensive business with a huge amount of capital
to acquire which can represent a barrier for new
entries on the market.
Despite this MVNO (mobile virtual network
operators)have recently enterd on the market.
Amazon, google and other online companies are
perceived as new competitors in
telecommunications industry.
China Netcom and China Telecom
SUPPLIER POWER
Vodafone do not develop their own
technology.
They are technology users.
Technology is developed by companies like
Nokia
Motorola
network equipment manufacturers like
Ericsson
Alcatel-Lucent
Nokia Siemens Networks
Vodafone Group has enhanced its bargaining
power to key suppliers while focusing on One
Vodafone program to integrate business
activities to leverage economies of scale and
scope
http://www.youtube.com/watch?v=daR2Xdn
mOPo&feature=related
BUYER POWER
Its customers tend to be more price-sensitive in both
developed and emerging markets
despite this VOD focuse on full filling the needs of
customers by giving them thebest quality service.
Vodafone still relies on European markets with
significantly higher mobile subscriber penetration .
buyer volume is high - they purchase their services.
3G services, voice call and VodafoneLive! Vodafone
collects these services prices
Vodafone doesnt sell just sim card. They purchase a
little bit money from sim cards
Buyer information is high - In this sector companies
compete with each other aggressively by
advertisements - consumers are aware of pricing -

Brand Identity is high: Vodafone is offering to
their customers :
great service,
greatvalue
great innovation
never used low prices to attract
newcustomers.
Vodafone wants to collect their acquisitions
under the same umbrellaas One Vodafone
sponsored the Manchester United and Ferrari
Formula 1 team to improvetheir awareness and
perception of the brand
RIVALS/ COMPETITION
Has high industry concentration - invested
$270 billion in stock, competes in 26
countries, controlles cell phone operations in
16 countries has 150 million customers and
employed approximately 67.000 people
around the world
has many acquisitions with the other
companies
Exit Barriers are high because they have long-
term contracts

Industry growth it s high
Vodafone has a potential of touching untapped
areas and offer service to the half of the world
which is approximately 2.5 billion it s focused
on latin american and african countries
Product differentiation it s high
No worries about high interconnection fees or
different technical standards global calling at a
special per minute rate on the same network
change for connecting to companys IT
Vodafone Life offers a service to listen free music
from the internetand also to download ringtones








Threat of Substitutes
Internet calling has fundamentally changing
the telecom industry
Nokia presented its first Wi-Fi powered that
did not need the traditional mobile network
but a wireless LAN hotspot.
Skype another importaant allows people to
talk over internet


Vodafone Going East
WHY
Increase presence with
in region SmarTone,
Hong Kong 2004
Potential Market
growth level
479 Million Subs

WHAT
For CHMK,
strengthening its NPD
& CS
For SmarTone,
Experience &
Knowladge
Big ownership is
promising
HOW
With the power of Key
tech. & resources
With long lasting
relationships
Localizing needs IN
Globalize markets