Introduction

Vodafone introduced its current speech mark logo The O's in the Vodafone logotype are opening and closing

quotation marks, suggesting conversation

Agenda

• History• Vodafone Vision• Vodafone Products portfolio• Vodafone Fact Sheet• Vodafone key milestone• Strategies of CEOs • Benefits of International Scope of Business• SWOT Analysis• Conclusion

Vodafone Vision

Vodafone: To become a global mobile leader in terms of profit, customers and value, making mobile networks the "nervous system" of the networked economy spanning three major developed markets (Europe, US and Japan).

Products and Services

• Voice Mobile telecommunication Services• Mobile text centre ( Messaging Service )• Data Service, internet Service., Roaming

Services.• Devices (Handset accessories and Vodafone

mobile connect)

Vodafone Fact Sheet• Description: Vodafone Group PLC is the world's leading mobile

telecommunications group

• Mr.Vittorio Calao of Italy is the CEO of Vodafone after Mr.Arun Sarin retirement in july,2008

• Revenue:£21,761 million (half-year ended 30 September 2009)

• Listings: London and NASDAQ

• Market capitalisation: Approximately £71.2 billion at 12 November 2009

• Employees: Approximately 79,000 during year ended 31 March 2009

• Customer base: Group has Approximately 333 million customers.

Global NetworkIt is currently operating in 31 countries across 5 continents. And has partner markets in a further 40 countries

Vodafone Key Milestone• 2005, Vodafone announces completion of acquisition of 10% economic interest in Bharti

Tele-ventures in India.

• 2006, Vodafone launches first Vodafone-only branded 3G consumer handset

• 2007, Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications for 11 billion USD.

• 2008, Completion of the acquisition of a 70 percent stake in Ghana Telecom.

• 2009, Completion of merger between Vodafone Australia Limited and Hutchinson 3G Australia Pty Limited.

International Strategy of Chris Gent • No deployment of any standard template in integrating its international acquisitions.

• Economies of Scale by entering new markets and spreading fixed costs.

• Gain market share by differentiation through value-adding content, network quality and customer care.

Challenges faced by Chris Gent

• Overpaid for license of 3G wireless communication.

• Bursting of “TMT”(technology , media, telecommunications) stock market boom.

Arun sarin

• One Vodafone Project• Redrawing organization chart• Establishing two management committees Challenges faced by Arun sarin

• CDMA and GSM wireless Technology.• Loosing market share In US and Japan.• Disinvestment in other parts of EU and Africa , India.

Vittorio Colao

• Customer value enhancement and cost reduction

• Vodafone slowed expansion in emerging markets

• Strengthen capital discipline

Benefits of International Scope

• Gain Market Share • Economies of Scale• Product Differentiation • Acquire Technology• Utilization of surplus funds

SWOT Analysis

Strengths• Experience and knowledge in the mobile

phone business.• Strong ability to manage change and

acquisition. Weaknesses• Vodafone slow in responding to the trend

towards bundling

SWOT Analysis

Opportunities• Vodafone launched its own software

application store-The Joint Innovation Lab in may 2009.

Threats

• Increasing Competition• Difficult to raise funds because of recession

PEST Analysis - Political• 74% FDI Investment• Lack of Transparency in

Spectrum & License Allocation

• 3G Policy & MNP still Pending

Regulation

PEST Analysis – Economic

– GDP growth rate - Averaged around 7.9 % from 2002-2008 – Rising Tele-density – Target of 45% by 2010 – Growing per capita income/disposable Income (Rs 12000

in 2002 to – Rs 33000 in 2008) – Falling Handset Prices – Moderate inflation levels which were prevalent during the

past 7 – years – around 5-6%

PEST Analysis – Social

• Demand for VAS & Broadband services

• among Youth • 28 % Urban Population • Rapid Urbanization • Rising Income level

Classification of Indian Population

PEST Analysis – Technological

– CDMA – Already there are big players in this segment Reliance , Tata

– 3G – Value added services potential still to be tapped fully

– 2G/3G – GSM Currently commands 70% of mobile subscribers in India

Technology

Five Force Analysis Model

Five Force Analysis

• Industry Rivalry – High

Five Force Analysis Model

Buyer Power – High

• Lack of differentiation among Service Providers

• Cut throat Competition • Low Switching Costs • Number Portability will have negative impact • Businesses & Consumers

Five Forces Analysis Model

Substitute - Low

• Landline • CDMA • Video Conferencing • VOIP - Skype, Gtalk, Yahoo Messenger • e-Mail & Social Networking Websites • BROADBAND SERVICES

Five Force AnalysisSupplier – Low• Network Outsourcing and Maint. Deal

– Price link to capacity– SLA for usage and network quality

• Information Technology – Pricing and payment as % revenue– SLA for quality and deployment

• Passive Infrastructure– Increase stress on sharing passive infrastructure– Reduce Capex spending

• Call Centre Out sourcing– Common platform across the group– Scalable business model to meet the business

requirement

Five Force Analysis

New Entrant – Low

• Huge License Fees to be paid upfront & High gestation period

• Entry of MVNOs & WiMAX operators • Spectrum Availability & Regulatory Issues • Infrastructure Setup Cost - High • Rapidly changing technology

Current Strategy

• Increase exposure in emerging markets.• Drive operational performance through value

enhancement &• cost reducion.• Innovate and deliver on customers’ total

communications needs.• Actively manage portfolio to maximise returns.• Strategic tie-ups & Alliances.

Positive Outcomes

• Earned credentials -- Most Respected Telecom Company.- Best Mobile Service - Most Creative and Most Effective Advertiser of

the Year.• Responsiveness towards newer market

challenges- Docomo per second billing.

Gaps in current strategy

• Tapping potential of semi –urban markets.• Tackling threat of churn of profitable

customers• shifting to new entrants with Mobile number

Portability.

Future Growth Drivers

• Rural telephony• Infrastructure sharing• Managed services• Enterprise telecom

Recommendations for Future

• Tapping rural markets• Preparing for the introduction of 3G in India.• Increase GPRS subscriber base – Marketing, Cross –selling

etc• Diversifying in Broadband services, DTH , Voice over

internet• protocol (VOIP)• Provide services to allot IMEI number to unregistered

mobile phones.• Concentrate more on Value Added Services.• Launch location based services (LBS)

Conclusion

Advice Vodafone on its International strategy How can Vodafone derive increased value from International portfolio of Business?• Vodafone should make a deal with Google

nexus to compete with rivals in market.• Vodafone should provide laptops on contract

with minimal charges with data card in developing countries.

Are there any business where Vodafone can divest

• Vodafone should enter the entertainment market.

• Invest in joint venture with local service provider internationally.