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INTRODUCTION

The
telecommunications industry has become a dynamic key area for the economic
development globally. It is a huge industry, including companies making
hardware, software and other services provided. This industry was started in
the nineteenth century, the beginning was the telegraph and developed through
telephone and then internet. Products like telephone handsets, video
broadcasting satellites, fiber optic cables etc. comes under hardware. Software
is what all makes it work, from sending and receiving mails and SMS to all
other applications used till now. Different services include different top up plans,
internet services, international calls etc.

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Vodafone
Group Plc Is a
British multinational telecommunications company which started
with its first mobile call on January 1985. Their Headquarters is located in
London to serve their customers across 30 countries worldwide. It is ranked
fifth in by the income and second in 2016 for the total number of users which
is around 469.7 million connections. The company was the first one to introduce
the world’s first international roaming call in 1991 and recently came out with
a new idea which was to send and receive money easily using mobile phones.

The UAE
is a country with strong expanded economies and financial backing that attracts
the foreign investors towards the country. The upgrading of the UAE to emerging
markets will move forward their relative attractiveness around the regional
markets. As stated by the industry analysts, by 2017 there will
be 1.7 billion new mobile users around the world and the greater part will be
from the emerging markets, which means 77% of the users will be from these business
sectors. Growth in the industry has been dramatic in any measure and expect to
see much more growth in 2017.

Vodafone
group Plc Offers different range of products and services which includes
voices, messaging, PC connectivity services, Mobile broadband devices, mobile
handsets and other unified communications solutions. Vodafone has also
commenced to the production of mobile phones, launched their very first
smartphone in December 2011. The phone came with a base specifications of
2.80-inch touchscreen display, resolution of 240 pixels by 320 pixels. Then
there was the smart ultra 6 model, known as the best affordable phone of its
time. The most recent model is the Smart V8 with some new striking features
like 5.5-inch, 1080p LCD display, 3 gigs RAM, 16 MP rear camera and 8 MP front
facing one. Vodafone also offers mobile phones of different brands including
iPhone and Samsung with monthly installment packages and other pay as you go
deals.

INDUSTRY’S DOMINANT FEATURES

The
communication market is growing day by day as the technology increases which
leads to the increase in number of users. As seen in the statistic (Figure 1) there are millions of
Vodafone users around the globe, they have their own and partnered operations
in more than 30 different countries. The company owns a remarkable share of
telecommunications markets in the countries which it operates. Vodafone totally
has a high proportion of market in South Africa where it owns 50% of the
Vodacom, one of the leading company in the country. Since 2009, the company has
constantly generated over 60 billion US dollars annually and the brand was
ranked fifth amongst the most valuable telecommunications brands in the world
2016. AT &T, Verizon, china mobile and Deutsche Telekom were the other
brands ahead. Vodafone also has a large number of employees scattered around
the world. In 2016, the company had overall more than 111,600 employees working
in different operations.

Vodafone
faces some extraordinary high rivalry from the competitors due to low call
rate. In addition, competitors provide different advanced products and services
to the customers. However, the switching cost from both developed and emerging
markets is low and the company should have a differentiation strategy to keep
back their customers from rivals. In Europe where the number of users are
extremely high, value added services were the key differentiators there the
company launched their cloud computing services and Vodafone 360 in the market.
India is one of the highest growing mobile markets around the world while
Vodafone and the other telecommunication companies like Airtel, Idea, Reliance,
and BSNL are facing extremely strong price competition because of the lack of
differentiated services.

All the
products and services in the market passes through four stages of life cycle:
Introduction, growth, maturity and decline. The life cycle concept can be used
to examine the category of product, a product form, and brand value. It depends
upon the present demand of a product in the market and the growth potential in
future along with many other changes that take place during the evolution of
product and capability of the producers. Vodafone is in the growth stage as
they are bringing out new products and services day by day. There are many more
products and services yet to come in the industry. Therefore, the market is not
soggy in terms of services and the innovations are going continuously.

From the
research we can see that Vodafone uses long term strategies to gain their
success. They have changed their marketing and financial strategy in past five
years, have introduced different new products in existing markets to gain
success. Vodafone’s worldwide sponsorship strategy has conveyed a solid set of results over
every Vodafone markets. Central sponsorship assertions, as well
as the UEFA
Champions League plus the label sponsorship of
the Vodafone McLaren Mercedes
F1 group, have bolstered different business targets and empowered Vodafone to offer
customers through differentiating brand and product encounters.

 

POTERS FIVE FORCES

 

THREAT OF NEW ENTRY

When a
new firm emerges to a new market it should be capable to handle the constraints
and obstacles which the will face in the new market. Being UAE one of the
business hub on the globe and the telecom industry been owned by government and
entry of virgin telecom is a right time to emerge into the market as the
telecom industry was duopoly over in UAE.

High
level of efficiency and effectiveness makes the Vodafone to   enter in mobile industry of UAE as service
providers are   unattractive. And less in
competition comparing to other markets.

Vodafone
must continue to reduce cost below of other service providers in UAE so that
the gain the market share   and attract
more customers.

 

COMPETITOR RIVALARY

Competition
makes a business grow and bring up new ideas and strategies to compete with the
rivals so that the can beat the competitor and gain the market share, Vodafone
should be more innovative and adaptive to change with the phase of advance
technologies so they can excel in the market.

Tough
competition with the other competitors in providing offers and value to the
customers. Vodafone should conquer the market through reducing the price and
providing good offers and value to the customers along with competition.

 

SUBSITUTES

As
mentioned UAE was a duopoly by having only 2 telecom providers namely du and
Etisalat by the launching of the virgin mobile it created other telecom
industry to try their luck in UAE market which helps Vodafone to come into the
market with their product and services to the market. 

Cost
leadership strategies makes it difficult to compare substitute to be produced
at a reasonable price,

Efficient
and effective utilization of resources for profit maximizing and market share, Purchasing
power and   engrossment of short term
price generates revenue from suppliers which is been extinct to the end users.

 

BUYERS POWER

Customers
are the king of the market, they have the buying power and the decision is
based on their buying power what to buy and what not to. Earlier due to duopoly
there was only two choices for the customers in telecommunication. By the
coming of virgin and Vodafone it helps the customers to right to choose among
the network providers.

Huge
purchasing power can cut down the prices of cost leaders.

Vodafone
continues the attain profit share that of the other competitors in the market.

 

 

 

 

SUPPLIERS POWER

Vodafone
operates the achieve a profit margin than of the competitors and allows to get
price that rises with the suppliers more likely than its rivals, so that the
can the target market and customers.

Due the
huge market share of Vodafone can bring the rivals cost lower and could attain
profit even the competitors are gaining marginally less return.

 

RESOURCES AND
CAPABILITIES

Value

Valuable
resources and capabilities of Vodafone enables a firm to exploit an external
opportunity and reduces external risks and threats.it helps in boosting
Vodafone’s value.

 

Rarity

Innovative
and adopting new strategies for the development and successful merging are one
of the rare capabilities of Vodafone rare feature.

 

Inimitability

Achievements
gained over a period of time such as expertise gained or strategies implemented
are hard to imitate or develop by the competitors. Firms lacking to attain
resources may face high cost in order to achieve the target market comparing
with the rivals such as du or Etisalat.

 

 

 

 

Opportunity

Firms
should be well organized in such a way that operations should be effective and
efficient so that the can exploit the market in full potential strengths so
that it can compete with the rivals.

 

ISSUES OF CONCERN IN THE
INSTITUTIONAL ENVIRONMENT

Vodafone
is considered as one of the world’s best telecom organization. It has its
business in Europe, India and numerous different countries or region. Vodafone
has made its place in the worldwide world. It has it’s headquarter in Newbury,
England. Vodafone is the organization that is the world best media transmission
supplier. It has the best market estimation of around one hundred billion
pounds. It has its business in more than thirty nations and is extending its
business with an awesome pace. With the organization with nations in various
areas, Vodafone has been profiling the system. As Vodafone has been a worldwide
organization, there are sure outside elements that should be considered to
assess the achievement of the organization.

 

Political Factors

The
political elements are especially powerful in the method for the advance of the
organizations like Vodafone as it needs to create foundation for the
organization to be operational in a specific state. The organization is subject
to the political situation of the nation in which it is working. In any case,
there are sure things like the tranquility of the state and the political
flimsiness which laid direct effect on the organization. A nation with
political unsteadiness turns into a war inclined zone and the foundation of
good framework for the system turns into a tedious undertaking. It could broke
down from the illustration that the current clashes in Europe have incredibly
influenced the organization in general.

 

 

Economic Factors

This is
one the essential measurement for the organization like Vodafone. The more the
states will build up the higher are the odds of the organization to grow and
open its new units in the recently created zones. The great GDP of the nation
implies that the general population has more wage and will be more inclined in
adjusting the most recent correspondence innovation. Along these lines, the
general benefit of the organization will be expanded and the organization will
dependably be in a position to grow all inclusive. In addition, the general
financial emergency the world has been looking lately has additionally an
immediate effect on the organization like Vodafone. The worldwide vulnerability
has rolled out the organization to improvement its methodologies occasionally.

 

Social Factors

These
effects are absolutely in light of the nearby convictions and culture of the
general population in which the organization is working. This is an
exceptionally powerful area and for the achievement, the organization must show
adaptability in its arrangements relating to the nearby culture. Vodafone is
essentially a simply European organization however it has changed its
inclinations and the related approaches according to the nearby social factors
in which the organization is being worked.

 

Technological Factors

Vodafone
has been popular on the planet for its advancement. Vodafone has its main goal
to dependably take after the contemporary patterns in the mechanical and
correspondence circle. There are many opponents of Vodafone now. It is occupant
for the organization to venture out in front of the innovation. The items
Vodafone is creating are for the most part mechanical related so it is one of a
basic factor which the organization needs to keep in see while chalking out the
approaches and evaluating the inevitable propelling of gadgets and the
highlights of the gadgets. Vodafone has been the innovation driven organization
and concentrating on the most recent patterns of innovation ought to have been
the central proverb which the organization ought to take after.

 

Legal Factors

For the
worldwide organization like Vodafone which has many opponents. Vodafone must be
especially cautious about the legitimate issues like duplicate and other
pilfered issues. States has commonly censured Vodafone for the legitimate
issues relating to the circle of framework. In this viewpoint, Vodafone needs
to confront numerous punishments. Aside from this multiple occasions, Vodafone
has been blamed for not paying much to its workers when contrasted with its
opponents. The individual working in Vodafone regularly leaves and joins the
adversary organizations, which boosts the dangers of spillage of creative
thoughts. Vodafone should chalk out some legitimate ties in this point of view.
In addition, Vodafone ought to dependably comply with the legitimate issues of
the space keeping in mind the end goal to expand the clients and to keep up a
positive picture in the market which will dependably help in picking up the
trust of the clients.

 

Environmental Factors

With
the ascent of globalization, individuals have turned out to be increasingly
moral and morals situated. The shoppers dependably anticipate from their most
loved brand to be socially capable. They generally need from their image to
assume a crucial part in the advancement of the general public overall. The
working states of the organization should likewise be adequate to pull in the
best of the people to be the piece of the Vodafone family.

Vodafone
has been an organization which is exceedingly powerful in nature. Keeping in
mind the end goal to keep up the market and extend the system, Vodafone ought
to dependably consider the previously mentioned actualities and examination.
These outside, and additionally inner variables are the real fixings in the
achievement of the organization. They unmistakably characterize the motivation
the organization should take after to stay away from the disappointment.

 

SWOT analysis

 

Vodafone
is the world’s second largest telecommunication provider with around 435
million subscribers in 26 countries around the globe. The company has created a
good brand image with their best services among the customers.

According
to the report, one of the main drawback faced by Vodafone will be that it is
not introduced to the UAE market now and there can be several issues due to the
late entry to the market competing with two huge public sector competitors.

 But, when the company is introduced to the
market there can be a vast number of opportunities if cooperated with any of
the existing network providers. UAE is a country with high percentage of youths
and working class people, providing different offers at reasonable cost can
increase their sale as well as brand value. The brand will have to come up with
better technologies and cut down unfair prices by other competitors.

 

 

 

 

 

 

 

STRENGTHS

WEAKNESS

OPPORTUNITIES

THREATS

·        
Brand Image

Vodafone
has not explored UAE market.

Partnership
deeds with existing network providers.

Advance
technology should be used to compete.

·        
2nd in the world in
telecommunication.

Two
public sector competitors.

High
percentage of youth and working class.

Internet
services should be boosted.

·        
High growth strategy.

Late
entry may cause high cost to establish and gain market.

High cost
of offers in Du and Etisalat.

Cut
down the unfair prices in promotion and offers.

 

 

MODE OF ENTRY ANALYSIS

Vodafone
was founded in 1982 through the joint task of
a United Kingdom electrics company Racal Electronics Ltd and
a US communications corporation Millicom (15%) and the
Hambros generation trust (5%). In December 1986, Racal
Electronics offered out Millicom and Hambros from Vodafone for GB£ one
hundred ten million. In 1988, the business enterprise was renamed
as Racal Telecom. (History of Vodafone) via fears of
the enterprise being hammered on the stock markets and
a need to beautify the business resulted
in a floatation of 20% of the employer. (Vodafone group plc.)
This floatation valued Racal Telecom at GB£1.7 billion. (Records of
Vodafone)

Despite
the fact that Vodafone set up
successful companies in many countries global, one of
the most success markets that we looked at was
into the UAE marketplace.
With only two telecom
operators licensed within the UAE at gift – Etisalat
and du – the introduction of Vodafone will cause uncertainty on
how the marketplace will operate. UAE is one of the most
active markets in the world and one of
the international’s leading mobile markets, now
not simplest in terms of length however additionally in terms of
innovation and its ability to be early with the introduction
of advanced technologies. As the
UAE market is one of the superior markets, it will be an attractive alternative for
Vodafone. It is miles characterized with the aid of distinctly low levels of
penetration compared to Europe and has only two country
wide operators competing. Like
many other western European enterprises, recognized UAE
as an ability marketplace a long term in the
past but took its time in entering the foreign market.

Modes
of entry into a new marketplace are the channels which the enterprise employs
to benefit access to a new global market place. right
here we may be thinking about modes of entry into the
UAE market which includes the Exporting, Licensing, franchising, international distributors,
Strategic Alliances, Joint Ventures, distant places Manufacture
and international sales Subsidiaries. 

Exporting

Exporting
in telecommunication industry can
be described as income of telecommunication equipment or services that pass nationalborders.
The import and export of telecommunication devices conforms well to
our conventional understanding of alternate as buying and selling.

 

Licensing

Licensing
is the business enterprise prices a rate and/or royalty
for the use of its generation, and expertise. It includes
franchising, in which the company offering branding, principles, expertise, and
in fact maximum sides which might be needed to
function in an overseas marketplace, to the franchisee.

 

Joint venture

The UAE
is an Islamic jurisdiction and Islamic Sharia law is the main source of
legislation. There are free zones within the seven Emirates, with laws which
are passed by the relevant Emirate but limited to the area within the free
zone. The most not
unusual options for overseas companies setting
up a business are both a constrained legal
responsibility agency (LLC) and a free zone entity.
Overseas groups can either sign up a
new company inside the form of a free zone establishment (FZE),
a free zone (FZ Co)
or genuinely establish a representative office or department in
their current or parent company primarily based within
the UAE or overseas.

According
to the UAE law, foreign companies interested to start their business in UAE has
five options;
effect a permanent establishment, concerning which in
that place are
seven specific types; establish a branch office;
create an entity UAE uninterrupted zone; create a non-military enterprise
(only in Dubai and Sharjah); or enter into business company agreement.

 

FINAL RECOMMENDATION

As the
telecom market in the UAE is growing and competitive we would suggest Vodafone
to do justice on their offers and promotions by providing different plans and
rates for customers like students, working class entrepreneurs and so on.
We would say data packs should be made available with competitive price than
that of du or Etisalat and various plans such as student plans with low
rates to customize our plans to entrepreneur or working people depending on
their daily or monthly usage. Availability of home network and home telephones.
Introduction of CDMA phones for people who can’t afford high end phones. Tariffs
and rates should be low comparing to the rivals offers on usage like for individual
customers should be given offers on their usage graph.

 

 

 

 

REFERENCES

·        
Vodafone.com. (2017). online
Available at:
http://www.vodafone.com/content/annualreport/annual_report16/index.html
Accessed 27 Dec. 2017.

 

·        
Engadget.
(2017). Vodafone shows again that own-brand phones can be good value.
online Available at:
https://www.engadget.com/2017/07/11/vodafone-smart-own-brand/ Accessed 27 Dec.
2017.

 

·        
Profile, V.
(2017). Product Life Cycle. online Jdforvodafone.blogspot.ae. Available
at: http://jdforvodafone.blogspot.ae/2014/09/product-life-cycle.html Accessed
27 Dec. 2017.

 

·        
Vodafone.com.
(2017). Brand and Distribution – Business – Vodafone Annual Report 2008.
online Available at:
https://www.vodafone.com/content/annualreport/annual_report08/business/brand_and_distribution.html
Accessed 27 Dec. 2017.

 

·        
Khaleejtimes.com.
(2017). Khaleej Times – Telecom. online Available at:
https://www.khaleejtimes.com/business/telecom/ Accessed 27 Dec. 2017.

 

 

 

 

 

 

 

 

 

 

 

 

Appendix

 

 

                                                                         
(Figure 1)

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