Vodafone ireland slides final 121211


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  • Values are centred around – Enriching customers’ livesAnticipating their needsDelivering greater quality Supplying value faster than their competitorsBeing a socially responsible, accountable organisation
  • Corporate culture of questioning and innovationEmployee involvement
  • 2.45 million customersMaking inroads into Irish broadband marketSegment customers based on value, behaviour and product life-cycleDistribution network throughout the country
  • Strict policies to ensure high standards throughout the supply chainMeasure all suppliers based on Vodafone’s six pillars of performanceSupply chain operates at a cost of 4% lower than peers – contributes to Vodafone’s competitive advantage
  • Average revenue per user (ARPU) fell by 10.5% to €32.50 for Vodafone Ireland in year end March 2011. Changes in consumer spendingStill continuing investment in data growth and technological advancements
  • Vodafone ireland slides final 121211

    1. 1. Astrid Malachewitz, Claire Egan, Gavin Hannon & Isabel Toland
    2. 2.  The Vodafone Vision – To be the worlds mobile communications leader Vodafone Group is rated the fifth most trusted brand in the world in the Brand Finance Global 500 Passion For Our People
    3. 3.  Employ 84,990 people worldwide, with 1,300 employed by Vodafone Ireland Vertical Structure – move towards flatter architecture CEO CFO Europe AMAP Technology Commercial Investments
    4. 4.  Market share of 41% in Ireland but under threat  Distribution via: ◦ 35 Vodafone Retail stores ◦ Carphone Warehouse ◦ Various smaller retailers ◦ Online shop
    5. 5.  Competitive landscape means price plans are similar across the board Price Plan Comparisons Vodafone Ireland O2 3 Mobile eMobile Unlimited calls to 3, 350 any network mins, Free calls & texts to Unlimited calls and unlimited texts to any 350 any network texts,Pre-Pay per month Vodafone mobiles plus texts to O2 and network, unlimited 1GB data, unlimited internet - €30 internet - €29.99 internet browsing - €20 landline calls - €30 150 mins, 150 texts, 1 GB Free O2 calls & 350 mins OR 700 texts, 300 mins, 300 texts,Bill Pay per month (18 data, free Vodafone to texts, 700MB data, unlimited data, 1 free unlimited landline calls,month contract) Vodafone calls and texts - 250 mins and 250 add-on - €40 3GB data - €49 €45 texts - €40
    6. 6.  Vodafone Cherry Points rewards pre-pay customers Powerful advertisingfocussed on bringingpeople togetherWebsite weak inuser-friendliness “Our network, your playground”
    7. 7.  Heavy investment in 3G technology  HSPA+ Dual Carrier Technology 99% coverage High speed capability “Best for Smartphones”
    8. 8.  Supply Chain: 4% lower than peers Vodafone‟s six performance pillars for suppliers Financial Technology Quality Commercial Sustainability Delivery Capability Stability Management Performance
    9. 9. 706050403020 210 2010 0 2009 Gross Net 1 Profit Profit 2010 Margin Margin 2009 0 Decrease in Asset Sales profitability & Turnover Revenue efficiency between to Capital 2009 and 2010 Employed
    10. 10.  Corporate Social Responsibility - o Chambers Ireland Outstanding Achievement in CSR award 2010 for reduction of carbon emissions ahead of schedule and targets Community Outreach Programs- o The Vodafone Ireland Foundation o World of Difference programme o Sponsorship of the Dublin GAA
    11. 11.  "Four operators and four million people is about as competitive as this market can get." - Jeroen Hoencamp, CEO Vodafone Ireland More feature rich phones Mobile Number Portability (MNP) Mobile Virtual Network Operators
    12. 12. STRONG BUYER POWER Low switching cost Standardised products Buyers Power LOW THREAT NEW ENTRANTS Capital Investment factors prohibit new entrants Resources of existing operators makes new entrantsSuppliers Intense unlikely Existing New Entrants Power Rivalry LOW THREAT SUBSTITUTES Skype & VoIP not yet a threat MVNO‟s threat but involve Substitutes partnerships STRONG SUPPLIER POWER Few suppliers dominate - Nokia, Samsung, LG Greater capital than operators Brand Centric purchasing
    13. 13. Political •Cost Cutting, Infrastructure policies cut Economic •Cost-conscious customer baseSocio Cultural •Demographic shiftTechnological •High uptake of new technology, Next Generation Networks coming fastEnvironmental •Costs outweighing environmental concerns, Green agenda now expected from organisations Legal •MNP regulations, Roaming Charges
    14. 14. STRENGTHS OPPORTUNITIES •Strong Brand Equity•Advanced technology & focus •Consumer Attitudes on innovation •Population Trends - •Lower production costs Younger – High Technology compared with rivals Uptake •Competitive pricing Older – Revenue potential •Commitment to CSR •Technology Trends WEAKNESSES THREATS •Market share is gradually •Falling ARPU decreasing •Cost Consciousness•Lack of focus on churn rates •High Penetration•Weak website in comparison •Low Differentiation to rivals •Competition •Lack of capital
    15. 15.  Vodafone are efficient and effective in: ◦ Strength of brand ◦ Market penetration ◦ Commitment to CSR The company cited its „Home of ◦ Product development Price plans the Smartphone‟ strategy as being pivotal to sustained Vodafone are innovative in: growth in its smartphone ◦ Product development base, which now consists of ◦ Sponsorship 530,000 users ◦ Commitment to sustainability Vodafone achieve high quality in: ◦ Network coverage and speed Vodafone achieve responsiveness to customers in: ◦ Providing tailored packages ◦ Cherry points rewards scheme ◦ Wide range of handsets
    16. 16. Maintain market leadership Grow Customer base Lead the way in Next Generation NetworksCREATE A SUSTAINED COMPETITIVE ADVANTAGE
    17. 17. Combined Strategy-Cost leadership (best value) in Vodafone operations and bundles - Differentiation in Vodafone marketing and technological developments
    18. 18.  Strategic Objective – Cost Leadership through greater value for our customers over our competitors Implementation ◦ Continue to develop value rich bundles ◦ Implement & promote Vodafone VIP rewards scheme for post paid customers ◦ Recognise potential market in Ireland is varied in its requirements ◦ Focus groups for best bundle plans ◦ More user friendly webpage
    19. 19.  Strategic Objective – Differentiation of Vodafone offerings by targeting of older audiences Implementation – ◦ Target advertising to older audiences ◦ Shift point of sale to be more inviting to older ages groups
    20. 20.  Strategic Objective – Differentiation of Vodafone offerings by becoming the home of innovation and a technology leader Implementation – ◦ Maintain home of the Smartphone strategy ◦ Look into multi SIM applications ◦ Become a part of the process for Next Generation Networks in Ireland
    21. 21.  Vodafone Ireland is currently facing many challenges There are plays being made for the Vodafone Market Leadership position Strategy ◦ Aggressive and focused ◦ Utilises strengths in technology & innovation Implementation– ◦ Leadership in value add and cost reductions ◦ Address the neglected older demographics ◦ Drive the progress of Next Generation Networks throughout Ireland
    22. 22. ◦ Strategic Objectives must be  TARGETED  WELL COMMUNICATED  AGREED