1. Vodafone
The Road To #13
2
1
M002LON - Sustainable
Strategy - From Planning to
Implementation

2. Page of Content
• Purpose
• PESTEL Analysis
• Porters Five Forces Analysis
• SWOT and TOWS Matrix
• Threshold and Distinctive Capabilities
• VRIN Analysis
• Value Chain Analysis
• Power and Ethics
• Conclusion and Recommendations
• References
• s

3. Purpose
• Since its establishment in the early 1980’s (Vodafone 2011a)
• Vodafone was #1 until 2009 (Johnson and Scholes 2011:563).
• Vodafone is the third largest mobile operator in the UK (Johnson and Scholes 2011:563).
• UK Market share (25%) (Vodafone 2011b).
• The Goal is to return to #1.

4. PESTEL Analysis
STRATEGY
Political
•Government stability allows Vodafone to make
long-term strategies.
• Relationship with the government and the
organization
• Social welfare politics.
• Government ownership of the industry and
attitude to monopoly and competition policy's
(Ofcomn.d.)
Socio-Cultural
•Change in lifestyle towards more
connectivity and networking.
•Social Mobility
•Shifts in values and culture
•Consumerism
•Demographic changes Education
and health
Technological
•Emergence of Fibre Optics and Very Large
Area Wireless Networking(Plummer 2011). (New
Product)
•The impact of the Internet
•Rates of obsolescence
•Speed of change and adoption of new
technology
Economic
•Costumers expenditure depend on
disposable income which depend on the
health of the economy.
•Inflation
•Energy costs
•Interest Rates
•Unemployment
Legal
•Telecom Regulations e.g.
bandwidth, Transmission Power...
Etc.
•Taxation, employment and safety
law
Environmental
•Ability to use renewable energy to power
operations.
•Rubbish, waste and its disposal
•Level of green house gas emission

5. Porters Five Forces Analysis
Competitive
Rivalry
Competitive Balance
(ukmobilecoverage.co.uk 2011)
Industry Growth Rate
High Fixed Cost
Low Differentiation
Threat of
New Entrants
Scale and Experience
Legislation or
Government Action
Differentiation
Buyer Power
Low Switching Cost
Substitutes
Price to performance
ratio: Internet, Lan line
phones
Extra Industry affects
Power of
Suppliers
No concentration of
suppliers
High Switching Cost
No Supplier competition
Threat

6. SWOT and TOWS Matrix
Strength
Brand (reputation),
Economies of Scale
(large infrastructure),
large customer base,
financial resources
Weaknesses
Depend on few
products, limited
landline services, slow
response to changing
environment (strategic
drift), high price of
international calls
Opportunities
4G, Partnership
opportunities,
Diversification
Opportunities
Threats
Increased
Competition,
Substitutes and
Technological threat,
low costumer loyalty
S O : Strategic Action
Large infrastructure – 4G: Become 4G leader
Large customer base - Diversification
Opportunities: to increase sales by value
Brand – Partnerships: Increase Value using
offers from the partner’s products and services
W O : Strategic Action
All/Any Weakness(es) – Partnerships:
Use Appropriate partnerships to overcome
any of the Weaknesses.
S T : Strategic Action
Large customer base + large infrastructure –
low customer loyalty: Use economies of scale
to reduce prices.
Brand + Financial Resources - Substitutes and
Technological threat: Diversify Products and
Services.
WT : Strategic Action

7. Threshold and Distinctive Capabilities
Resources Competences
Distinctive Capabilities
Required to achieve
Competitive market
• Specialized in mobile services
which allows them to provide lowest
overall prices for mobile services
(Johnson and Scholes 2011:562):
Vodafone infrastructure
isSpecialized to provide unified
mobile services.
Vodafone’s staff are highly trained
in providing unified mobile services.
• Global Brand
• Complete Understanding
of businesses mobility
needsand services which
allows them to secure
costumer loyalty (Vodafone
2011c).
Threshold Capabilities
Required to be able to
Compete in a market
All Other including ReliableConnections,
Having Stores and Hubs… etc.

8. VRIN Analysis
V Economies of Scale because of large infrastructure.
R Global presence makes new comers to the UK recognized Vodafone
brands instantly, highly specialized stuff for unified mobile services
I Brand (provides easy access to market segments), Vodafone
has a culture of being a market leader however the culture
dose not promote ceasing opportunities as they arise
N None
Increasing
bases of
sustainable
competitive
advantage

9. Value Chain Analysis
Technological development: newer protocols
2G, 2.5G, 3G, 3.5G, 4G (NGN)
Human resource management: Highly skilled
& competent workforce
Firm infrastructure: Sophisticated IT infrastructure
Procurement: ProcureCentral advertising
Inbound
Logistics:
Centralized
warehousing
Operations
Large
centralized
switching
servers
(economics
of scale) .
Outbound
Logistics:
Home
delivery
Marketing
&Sales
Online
Sales &
Marketing
(reducing
the cost of
sales)
Service
Online services
& support
Supportactivi
ties
Primary Activities

10. Power and Ethics
Staff
• Hiring and Keeping the best staff: leads to more effective operations
Customers
• Open and Honest Communication: makes Vodafone know the true needs of their
customers so they can provide better services
CSR
• Reduce Environmental Impact, Charities: increase Vodafone’s goodwill and customer
loyalty
(Vodafone d 2011)

11. Conclusion and Recommendations
• Vodafone’s scope of operations in the telecom industry is relatively narrow
• Vodafone has many opportunities to capitalize on using its strength and a
lot of room for reducing its weaknesses.
Recommendations
• Broaden Market Scope
• Promote a more proactive culture to capitalize on opportunities as they
emerge
• Vodafone should minimize its weaknesses through partnerships
• Cater for sub-segments to increase overall market share

12. Thank You

13. Reference List
• Johnson, G., Whittington, R and Scholes, K. (2011) 9th edn. Exploring Strategy. London: FT Prentice Hall
• Ofcom (n.d.) Enforcement [online] available from <http://stakeholders.ofcom.org.uk/enforcement/> [15
August 2011]
• Plummer, L. (2011) When is 4G coming to the UK? [online] available from <http://www.pocket-
lint.com/news/37946/when-is-4g-coming-to-uk> [15 August 2011]
• Ukmobilecoverage.co.uk (2011) UK Mobile Coverage [online] available from
<http://ukmobilecoverage.co.uk/> [15 August 2011]
• Vodafone (2011a) Company History [online] available from
<http://online.vodafone.co.uk/dispatch/Portal/appmanager/vodafone/wrp?_nfpb=true&_pageLabel=tem
plate09&pageID=PAV_0015&tabIndex=3> [15 August 2011]
• Vodafone (2011b) Key market review - Vodafone Annual Report 2011 [online] available from
<http://www.vodafone.com/content/annualreport/annual_report11/business-review/key-market-
review.html> [15 August 2011]
• Vodafone (2011c) Mobile solutions for your business [online] available from
<http://www.vodafone.co.uk/business/business-solutions/index.htm> [15 August 2011]
• Vodafone (2011d) Code of ethics [online] available from
<http://www.vodafone.com/content/index/investors/management/governance/code_of_ethics.html> [15
August 2011]