Vodafone is one of the world's leading mobile telecommunications companies operating in over 30 countries. Some key points from the document: - Vodafone has nearly 360 million customers globally and around 19 million in the UK. - Their vision is to be the leading provider of mobile voice and data services in Papua New Guinea and Solomon Islands in terms of market share, profitability, and customer loyalty. - They aim to provide outstanding mobile services to consumers and enterprises that are affordable, reliable, high quality, and include valuable added services. - A PESTEL analysis identifies political, economic, social, technological, environmental, and legal factors impacting Vodafone's business

1. VODAFONE

2. THE VODAFONESTORY
We're one of the world'sdrivingportable interchangessuppliers,workinginmore than30 nationsand
inassociationwithsystemsinmore than40 more.Overthe world,we have verynearly360 million
clientsandaround19 millioninthe UK.We influencedthe principal evercell phone toapproach1
January1985 from Londonto our NewburyHQ.Still situatedinNewbury,we now utilize more than
8,000 individualsoverthe UK.
Our identity
We're not aboutshowytechnology–orabout doingthingsonlyforit.We concentrate on whatmakes
individuals'livessimpler.Take contentinforming,forinstance.We concoctedthat.Presentlywe manage
more than 44 millionmessagesperday.
Visionproclamation
To be the mainsupplierof versatile Voice andDatabenefitsin PNGandthe SolomonIslandsasfaras
piece of the pie,gainfulnessandconsumerloyalty.
Statementof purpose
To give astoundingversatile Voice andDataadministrationstothe residentsof PNGandthe Solomon
Islandsfulfillingall partnersbygiving to:
1. Consumersadministrationsthatare
• Affordable
• Reliable
• Demonstratinghighlimitandscope
• Includinghelpful Value AddedServices
2. Enterprises
• Bundled(withourTPNGaccomplice) benefitsthatempowerEnterprisesusingour
administrationstobringdowntheirworkingexpensesandupgrade the administrationstheycangive to
theirclients
• A esteemedandtrustedbusinessaccomplice

3. 3. The Societiesinwhichwe work
• Good Corporate native shipconsideringimportantourcommitmentstoworkina protectedand
legitimate wayadvancingwithbusinessandadministrationsthe groupsinwhichwe work
4. Our Owners
•Wealthcreationbyboth beneficial exchangingandmakinganelementof quicklyexpandingesteem
EXAMINATION OFVISION STATEMENT
Societyisendingupprogressivelysubjecttoportable innovation.Individualsare incontactwitheach
otherconstantly.Thishasmade individuals'close tohome andbusinesslivesspeedierandsimplerbe
that as it may,inthe meantime,more mindbogglingaswell.Theyneedthatclientsmusthave the
capacityto dependontheiritemsandadministrations,andall day,everydaybenefit,totally.Thatisthe
reasontheyneedtobe simple anduncomplicatedasatelecomorganization.Theyendeavortooffer
theirclientsapredictable anduncomplicatedexperience bymakingitsimpleforthemtoutilize their
itemsandadministrations.Theyhave communicatedthisas"ConstantlyEasiest".Theyneedtobe EASY
to workwithand EASY to workfor.'Most straightforward'istiedinwithemergingandcontinually
knowingthe territorieswhere Vodafone canshow improvementoveritsrivals.'Continuously'remains
for persistentchange.
INVESTIGATION OF MISSION STATEMENT
Making openings consistentlywiththe assistance of correspondence - thatisthe thingthatwe remain
for.This isaboutmore thanessentiallymakingabenefit.Itisadditionallyaboutthe pathinwhichwe
can make a positive commitmenttosociety;bymakingversatile workingconceivable,forinstance,
empoweringustogive our clientsalevel of adaptabilityandopportunitythattheydidn'thave some
time recently.
Qualities:The Vodafone Way
The Vodafone Wayshapesthe systemforthe route inwhichwe can understandourvisionandmission.
Overthe worldwe urge ourkinto work ina clientsituatedwayandtobe creative,goal-orientedand
aggressive.Toaccomplishthis,we have atantamountworkingtechnique setupineveryone of the
nationsinwhichwe work,while likewisewatchingnearbyesteems.Ourthree sharedesteemsare
speed,effortlessnessandtrust.Forus,speedimpliesthatwe concentrate onthe progressionof the
marketand rushto enhance,improve andtake care of issues.Resultsare the mostessential thingforus
and we take qualityandsecurity,andinadditionthe moneyrelatedfuture andnotorietyof the
organization,intoaccounthere.Forus,straightforwardnessimpliesthatwe make thingssimplefor
clients,accomplicesandourselvesbyofferingbasicarrangementsandbyevacuatingimpedimentsthat
make pointlessmultifacetednature.AtVodafone,trustimpliesthatwe are dependable,thatwe behave

4. decently,sincerelyandsensiblyandthatwe regardthe assume that our clients,businessaccomplices
and workersputinus.
PESTEL Analysis
Political
 Government policies
 Privatization of British telecom
 Phone licensing
 Tax policies
Economic
 Economic stability – after crisis
 High labor cost in UK
 High cost of building and maintaining network
 Competitive industry

5. Social
 Health awareness
 Growing older population in UK
 More social media users
 Increasing access to internet and internet users
Technological
 Technological advancements
 Additional Services
 Licensing, patents, 3G
Environment
 Dispose handsets
 Social Responsibility
 Recycling programs
Legal
 Current market legislation – convenient and stimulates competition
 Changing environmental regulations
 Use of phone while driving

6. PORTER’S 5 FORCES
Porter five forces analysis is a framework to analyze level of competition within an industry and business
strategy development.
Bargaining power ofConsumers: HIGH

7. • Lack of differentiation among service providers
• High competition
• Low switching costs
• Lack of brand loyalty
Bargaining power ofSuppliers: MEDIUM
• A few major suppliers
• Lack of substitutes
• Outsourcing network abroad
• Common platform across the groups
• High switching costs
• Nokia, Apple, Samsung etc.
Threat of substitutes: MEDIUM-HIGH
• Landline users are declining
• Videoconferencing
• VOIP – Skype, Yahoo Messenger,Gtalk
• E-mail & Social network websites
Threat of newentrants: LOW
• Huge license fees to be paid upfront
• High initial capital required
• Complex regulatory issues
• Infrastructure cost – very high

8. • Rapidly changing technology
Industry rivalry: HIGH
• Less or no brand loyalty for specific product
• Little discrimination other than cost/price
• Open market for competition – legislations favor competition
SWOT ANALYSIS
STRENGTHS
• Globally renowned brand name
• Great geographical exposure
• Gained economies of scale due to its size
• Highly innovative company
• Integration of subsidiaries under Vodafone umbrella
• High level of network infrastructure
• Leading mobile company in the UK
WEAKNESSES

9. • Mainly concentrated in Europe and Asia
• Lost the 2nd
position in UK to Orange & 02 partnership
• Weak in fixed network area
• Lack of rural network wireless access
OPPORTUNITIES
• Increase the 3G coverage
• Tao into emerging markets
• Reduce costs through efficiency – offer better prices
• Diversification into new areas
• Invest in R&D and innovate new offerings
• Expand towards non-mobile services
THREATS
• Market saturation in UK and Europe
• Uncertainty of regulatory climate
• Increasing usage of Skype, Teleconferences,Whatsup, iMessage
• Increasing competition

10. THE EXTERNAL FACTOR EVALUATION (EFE) MATRIX
An External Factor Evaluation (EFE) Matrix allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political,
governmental, legal, technological, and competitive information.
Each factor has been assigned a weight that ranges from 0.0 (not important) to 1.0
(very important)Each factor is also assigned a rating between 1 and 4 to indicate how
effectively the firm‟s current strategies respond to the factor, where 4 = the response
is superior, 3 = the response is above average, 2 = the response is average, and 1 = the
response is poor. Ratings are thus company-based, whereas the weights are industry-
based.
Key External Factors Weight Rating Weighted
Score
Opportunities
1. Rapidly growing subscriber base 0.08 4 0.32
2. Huge market potential 0.08 3 0.24
3. Government policies and regulations 0.10 3 0.3
4. Growing revenue from Mobile Value Added Services 0.07 2 0.14
5. Significant revenue from Mobile Number Portability 0.04 2 0.08
6. Steading rising penetration rate 0.04 3 0.12
7. Innovation in Service and Technology 0.05 1 0.05

11. Threats
1. Continuously decreasing Average Revenue Per User 0.10 3 0.3
2. Excessive competition that leads to price wars 0.10 4 0.4
3. Lack of proper infrastructure 0.09 2 0.18
4. Non- availability of adequate 3G spectrum 0.07 3 0.21
5. High regulatory charges 0.08 2 0.16
6. Low profitability in rural areas 0.06 3 0.18
7. Growing multiplicity in SIM ownership 0.04 2 0.08
Total 1.00 2.76
REMARKS:
OPPORTUNITIES:
1. India is the second largest telecommunication market. It has grown from 33.69 million
subscribers in March 2004 to 898 million subscribers as of March 2013 and has
reached about 904.46 million at the end of July 2013.
2. Though the urban market looks like it is fast reaching the saturation point, 70% of
population live in rural areas which holds huge potential to drive future growth of our
telecom companies.Tele-density in rural areas is only just about 15%. The government
has proposed to achieve a rural Tele-density of 25% by deploying 200 million-

12. connections at the end of the Eleventh Five Year Plan. The optimum utilisation of USO
fund and increase in mobile services might help the government attain this goal.
3. In order to encourage consolidation in this sector, an empowered group of ministers
(EGoM) has cleared the mergers and acquisitions (M&A) guidelines for the
telecommunication sector. The Telecom Commission has authorized Rs.5,000crore
(US$ 817 million) government proposal to give away 2.5 crore mobile handsets at
subsidised prices.
4. VAS constitutes 7 -10% of total telecom revenue for Indian telecom operators. VAS
includes,Digital music consisting of CRBT and ringtones alone constitutes 35% of
VAS revenue.Astro, Bollywood, Cricket, and Devotional continue to be most preferred
services. Music downloads, Internet Apps, Search has seen an upsurge. Services like
Mobile banking, 3G, 4G and M-commerce will see rapid growth.
5. According to a survey conducted by professors from Sardar Patel University, Gujarat,
from among a total of 107 respondents, almost half of the total respondents (57.9 %)
wanted to change their current Mobile Service Provider. Vodafone was the choice of
majority (52.3 %) of the respondents.
6. Tele-density has grown from 112 per cent in urban and 21.2per cent in rural areas in 2009 to
around 147 per cent in urban and 41 per cent in rural India as of March 2013.
7. Worldwide Interoperability for Microwave Access (WiMAX) WiMAX could be used as an
alternative to cable and DSL for providing broadband access in rural areas. It would not only
enable high-speed internet services through high bandwidth spectrum but also prove to be a
useful mode of communication in inaccessible terrains.
THREATS:
1. With the easing of FDI, increase in new entrants in this space has resulted in intense
competitive pressure and cut throat pricing which has resulted in declining ARPUs.
2. The fierce price war among the telecom operators has commoditized the market resulting in
branding taken a backseat. This also puts a pressure on the profit margins.

13. 3. The operators should have to incur high initial fixed costs to be able to provide
services in rural areas which lack even basic infrastructure such as road and power.
They also lack trained personnel necessary to operate infrastructure.
4. Since spectrum, the most essential resource required to provide services Spectrum is
very Limited/finite and is inversely proportional to the number of operators. Therefore,
larger the number of service providers smaller will be the amount of spectrum available
to each of them.
5. The regulatory charges in the this sector have a complicated structure. The multiple
levies prove as a hurdle to the smooth implementation of telecom projects in India.
6. Continuous supply of electricity, cash economies, operational and security risks and
availability of trained personnel are few challenges faced when going rural.C K
Prahlad said in his book, “The Bottom of the Pyramid” the aspirations of the rural
consumer is no different from the current consumer .The rural consumer is also
looking for better access and experience to go hand in hand with his own changing
consumption patterns.
7. From among the new additional subscribers, dual-sim contributes to about 30%-35% for
which one of the reasons may be the service of Mobile Number Portability.

14. THE INTERNAL FACTOR EVALUATION (IFE) MATRIX
Internal Factor Evaluation Matrix is a popular strategic management tool for auditing or
evaluating major internal strengths and internal weaknesses in functional areas of an
organisation. The IFE matrix comprises of factors (Internal strengths and weaknesses).
Each factor has been assigned a weight that ranges from 0.0 (not important) to 1.0 (very
important)Each factor is also assigned a rating between 1 and 4 to indicate how effectively
the firm‟s current strategies respond to the factor, where 4 = the response is superior, 3 =
the response is above average, 2 = the response is average, and 1 = the response is poor.
Ratings are thus company-based, whereas the weights are industry-based.
Key Internal Factors Weight Rating Weighted Score
Strength
1) Prominent market position 0.07 3 0.21
2) Global presence and diversification
Revenue 0.1 3 0.3
3) Strong advertising strategies and impact on
People 0.15 4 0.6
4) Strong customer base 0.05 3 0.15
5) Global brand strength 0.09 2 0.18
6) Wide geographical reach 0.13 3 0.39
Weakness
1) Centralised management system 0.08 1 0.08
2) High level of customer churn rate 0.08 2 0.16
3) Servicing of client needs 0.12 4 0.48
4) No network coverage in rural areas 0.06 3 0.18

15. 5) Low return on assets 0.07 2 0.14
Total 1.00 2.87
REMARKS:
STRENGTHS:
1.BhartiAirtel has a market share o 26.38% during the September 2013 quarter. Vodafone is in
the second position with 23.05%.
2. Vodafone has expanded its business in different parts of the world like Europe, Middle East,
Africa and Asia, Pacific and Affiliates. It has partnership with mobile operators in over
40 countries and equity interest over 30 countries. It has a diversified revenue base (i.e.) Germany
contributes 18% of the revenue, Italy(13.5%), Spain(12.7%), UK(11.2%), India(7%). Africa,
Central Europe, Asia and Pacific account for 12, 8 and 7.5% respectively.
3. The “Zoozoo” concept was created specially to convey value added service offering. It was a
creative advertising which has captured the imaginations of millions. This advertisement gained
so much popularity all over the world. It not only helped the company to raise its profits but also
increased its brand value.
4. Vodafone is a company with leading market position. Vodafone India has 152.4 million
subscribers as of march 31, 2013. It has postpaid customer base of 8.6 million subscribers as of
Q4 2013. Prepaid customers account for 94.4% of its total customer base. Increased rural
penetration with 73 million rural subscribers.
5. Vodafone is present in many countries within Europe. It allows customers to enjoy the
services in their home country. In few countries though Vodafone is not physically present (eg:
Norway) it has strategic alliances which provide better services to the clients. In Northern and
Central Europe – Czech Republic, Germany, Hungary, Ireland, Netherlands, Romania, Turkey,
UK.In southern Europe – Albania, Greece, Italy, Malta, Portugal, Spain. In Africa, middle east
and Asia pacific – Australia, Egypt, Fiji, Ghana, India, New Zealand, Qatar

16. WEAKNESSES:
1. Vodafone has a centralised management system which is highly inflexible for today's
competitive market.
2. Churn rate refers to the number of individuals moving out over a specific period of time.
Vodafone has a high level of customer churn rate which is about 33.33%. postpaid churn
declined to 18.2%. prepaid churn declined to 47%. Total churn declined to 47%. This is
common in any subscriber-based service model companies.
3. More than 80% of Vodafone's business is running in the Europe. (Vodafone suffered a 4.8
percent hit to organic service revenue in the last three months of 2013 after a poorer European
performance. In Europe, pricing was hit by competition between operators, as consumers and
businesses sought out cheaper phone tariffs)

17. THE COMPETITIVE PROFILE MATRIX (CPM)
The Competitive Profile Matrix (CPM) identifies a firm‟s major competitors and its
particular strengths and weaknesses in relation to a firm‟s strategic position. The weights
and total weighted scores in both a CPM and an EFE have the same meaning. However,
critical success factors in a CPM include both internal and external issues; therefore, the
ratings refer to strengths and weaknesses, where 4 = major strength, 3 = minor strength, 2
= minor weakness, and 1 = major weakness.
Airtel Vodafone Reliance
Critical Success Factors Weight Rating Score Rating Score Rating Score
1. Number of Subscribers 0.20 4 0.8 3 0.6 2 0.4
2. Market Share 0.10 4 0.4 3 0.3 2 0.4
3. Connectivity 0.15 2 0.3 4 0.6 3 0.45
4. Customer care 0.10 3 0.3 4 0.4 1 0.1
5. Value added services 0.10 4 0.3 3 0.3 2 0.2
6. Innovation in Services 0.10 4 0.4 2 0.2 3 0.3
7. Individualized attention 0.05 3 0.15 4 0.2 2 0.1
8. Advertising and 0.10 3 0.3 4 0.3 2 0.2
Promotion
9. Market segmentation 0.05 3 0.15 4 0.2 2 0.1
(Target markets
and
Ages)

18. 10
. Attractiveness of 0.05 3 0.15 4 0.2 1 0.05
schemes (Eg: Booster
pack)
TOTAL 1.00 3.25 3.3 2.3
BOSTON CONSULTING GROUP (BCG) MATRIX:
Boston Consulting Group invented the BCG matrix, which is a tool that helps an enterprise to
classify and evaluate its products/services.
BCG matrix is a decision making tool that helps the enterprise to balance the activities that
make profits, ensure growth, constitutes the future of the firm and heritage of the enterprise.
BCG matrix is a four-quadrant matrix where the product/service of the company is placed in
each quadrant according to the market share and market growth of the product/service.
CDMA, LTE - STAR:

19. LTE (Long Term Evolution)
CDMA (Code Division Multiple Access)
As demand for mobile services moves from voice and text to data, Vodafone have been
investing to build a superior data network.This trend is being driven by a number of
factors such as increased usage of Smartphones and an increased choice of apps for
business and social use.
As a result data traffic increased by more than 53% over the last year and data now accounts
for 73% of the total traffic on our network.
Vodafone, which is operating both CDMA and GSM in 16 countries, is beginning to build
4G (or LTE) networks, which will at least double the data speeds.
3G Services – QUESTION MARK:
Vodafone spends INR 47,301 million in Financial Year 2013 with focus on future growth
areas including 3G and data.Total data users are 37.3 million, out of which 3G customers are
3.3 million. 3G services are promising services for Vodafone. By boosting this service by
appropriate investments to monitor the growth and maintain a position of strength, Vodafone
can become market leaders in 3G services, which can contribute to the company's
profitability.
They are becoming progressively „cash cows‟ with market saturation.
Wire Lines, SMS and Calling Services – CASH COW:
FixedWire Lines, SMS and calling services are mature and which generate effective profits
and cash, but need to be enhanced in order to secure its future. These services should be
profitable to finance other activities (such as LTE, 3G services) in progress.

20. MMS Services – DOG:
MMS is Multimedia Messaging System, which allows users to share multimedia messages
such as audio, video, text, graphs etc.
MMS services are positioned in a declining and highly competitive market. The threat of
substitution is high, with the emergence of various new apps such as WhatsApp, Viber, etc.
Vodafone have to get rid of MMS services, as they become unnecessarily expensive to
maintain. Vodafone must decide whether MMS services still inject liquidity, otherwise it is
wise to eliminate the „dogs‟.