Vodafone group Essay

Chapter 1

Firm ‘s Profile

Vodafone Group is a nomadic telecommunications company. The company has a important presence in Europe, the Middle East, Africa, Asia Pacific and the United States. In the United States the group ‘s associated project operates as Verizon Wireless.

From a UK start-up company in 1984, Vodafone is now the universe ‘s taking nomadic telecommunications company. So Vodafone it ‘s a market leader in its current production. Businesss know that consumers place merchandises in relation to those of rivals. There can be a ‘pecking order ‘ or ‘product ladder ‘ . Merchandises might be market leaders. They are normally the chief merchandising merchandise and determinations on monetary values and publicity are frequently followed by other merchandises, known as market followings. ( Dave Hall et al, 2006 )

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Vodafone is amongst the major planetary suppliers of telecommunication services. The company has a strong presence in Germany, the UK, Italy, Spain and other European states. Through its direct and spouse webs, its planetary range extends to more than 38 states. Vodafone offers a broad scope of nomadic services such as voice, messaging, informations, and rolling services to clients and concern endeavors. Vodafone has a strong web substructure consisting 2G and 3G webs, which are operated over GSM and GPRS web criterions. These webs enable the group provide high velocity informations services.

Legal Type Of Firm

Vofadone was once known as Racal Strategic Radio Limited and changed its name to Racal Telecommunications Group Limited in 1985. Further, the company changed its name to Racal Telecom Limited in 1988 ; to Vodafone Group Public Limited Company in 1991 ; to Vodafone AirTouch Plc in 1999 ; and later to Vodafone Group Public Limited Company in 2000. Vodafone Group is headquartered in Newbury, the United Kingdom.

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Public limited companies tends to be larger and is the 2nd type of O limited company. This company name ends in plc. There are around 1.2 million registered limited companies in the UK, but merely about 1 % of them are public limited companies.

Shares in public limited companies may be freely bought and sold by the general populace on the stock market. Owners of plcs are hence seldom closely involved with the concern. The stock exchange is a market where 2nd manus portions are bought and sold.

Operating as a populace limited company is associated with both advantages and disadvantages.


  • All members have limited liability.
  • Huge sums of money can be raised from the sale of portions to the populace.
  • Production costs may be lower as houses may derive and this leads to ability to spread out and profit from economic systems of graduated table which means as the production increases the cost of production per unit lessenings. In this instance Vodafone will be able to put lower monetary values than rivals and in this manner addition gross revenues gross and possibly net incomes.
  • The great size of Vodafone, can frequently rule the market and lead to a market leader where the rival houses will hold to follow.


  • There can be possible direction jobs in the organisation.
  • There may be danger of coup d’etat
  • There may be danger of portions fring value through manner and rumor and this to take to a decrease of the stock market portions.

Some public limited companies such as Vodafone are really big so. They have 1000000s of stockholders and a broad assortment of concern involvements situated all over the universe. So, Vodafone is a transnational company which means that it has production workss in a figure of different states.

Type Of Competition

Vodafone Group Plc is the universe ‘s taking nomadic telecomunications, with a significantpresence in Europe, the Middle East, Africa, Asia Pacific and the united provinces through the company ‘s subsiadiary projects, joint ventures, associated projects and investings.

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Vodeafone is runing as an oligoply because it a market leader and has its dominant topographic point in the market. Oligopoly is one of the four market constructions. At one extreme perfect competition, where there are really many houses viing. Each house is so little relation to the whole industry that it has no power to act upon monetary value. It is a monetary value taker. At the otherxtreme is monopoly where there is merely one house in the industry, and therefore no competition, which involves a rather a batch of houses viing and where there is freedom for new houses to come in the industry, and oligopoly which involves merely a few houses and where entry of new houses is restricted. So, oligopoly is a market construction where there are few plenty firs to enable barriers to be erected against the entry of new houses.

Product Design And UCD Failures

Vodafone the universes largest Mobile operator, is seeking an experient free-lance to supportin the design and developmentof its sole merchandises and specific Vodafone owned devices for all client mark groups.

Vodafone ‘s purpose is to turn gross and better its net income border by adding value to its merchandises and services, i.e. Gaining more from each merchandise sold. The ‘Vodafone Live ‘ service enables clients to utilize image messaging to download polyphonic ringtones, colourgames, images and information, through an icon driver bill of fare. Vodafone offers a merchandise with many different characteristics provides clients with chances to chew the fat, play games, send and receive images, alteration ringtones, receive information and shortly position picture cartridge holders and send picture messages.

Vodafone and other nomadic phone industries use different ways in orderto prolongthe adulthood phase of their merchandise life rhythm and derive more net incomes. The cell phone life rhythm includes design, industry, distribution, usage and disposal ( or instead, renovation of recycling constituents ) .

Chapter 2

Swot Analysis

The intent of Swot Analysis is to carry on a general and speedy scrutiny of a concern current place so that it can place preffered and likely waies for the hereafter. Swot analysis involves looking at the internal strengths and failings of a concern and the external chances and menaces. ( Dave Hall et al, 2006 )


  • Diversified geographical portfolio with strong nomadic telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and to some extent the United states
  • Leading presence in emerging markets such as India
  • Large presence in Japan market
  • Strategig confederations with Apple iPhone


  • US concern non about every bit strong as European/rest of the universe operations
  • 80 % of its concern is generated in Europe


  • Focus on costs decreases bettering returns
  • Majority interest in Huthcison Essar in India
  • Research and development of new nomadic engineerings
  • Focus on developing markets ( Africa, Latin America


  • Highly competitory market
  • Still lags behind major rivals in the United states
  • Highly high incursion rates in cardinal European markets
  • European Union ordinance on cross-border cell phone use by clients
  • Develpment of VOIP communicating

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Pest-G Analysis

Pest -G analysis examines the external environment and the planetary factors that may impact a concern. It can supply a speedy and ocular representation of the external pressuresfacing a concern, and their possible restraints on scheme. It is normally divided into five external influences on a business-political, economic, societal, technological and green environment. ( Dave Hall et al, 2006 )

Political This is concerned with how political developments, regionally, rationally and internationally might impact Vodafone ‘s scheme. It might include a consideration of statute law, such as consumer Torahs, ordinance, political force per unit areas and the goverment ‘s position of certain activities.

Economic This might affect the analysis of a assortment of economic factors and their effects on concern. They might include consumers ativity, their willingness to pass. Economic variables sch as rising prices, unemployement, trade growing. Th effects ofchanges in merchandise and labour markets.

Social One societal issue that affects the operations of Vodafone in a positive manner is the increased population in India. So Vodafone operating in a market with high population leads to an addition demand for its merchandises.

Technological Businesses operate in a universe of rapd tehnological alteration. Organisation sneed to on a regular basis reexamine the impact of new engineerings upon their activities. Production may go out of day of the month and addition costs for the concern, communicating may go inefficient as ICT develops. That ‘s why Vodafone is puting in R & A ; D which is critical in industries where technological alteration is rapid.

Green Enviromental factors can act upon the determinations of Vodafone. Taking into history environmental considerations mayraise costs, but might besides bring forth greater gross revenues. Environmental and societal issues are really of import for Vodafone. They use the monitoring facet of the information system for international informations garnering across their operating companies. This information is fed into their corporate Social Responsibility ( CSR ) and has resulted in important informations qulality betterments.

Chapter 3

Global MIS/Risks

Vodafone is a transnational company runing in a globalised economic system where there is free international trade between different states.

International trade is based on the rule of competitory advantage. This means that concerns that benefit from the international trade are those which can bring forth their merchandises at the lowest chance cost than other states.

Harmonizing to Peter Jay the ability to bring forth anyplace in the universe, sell your merchandises anyplace in the universe and direct your net incomes anyplace in the universe is called globalization.

Vodafone is a really successfull cell phone company, as it is a market leader in the states that is runing and this it has been achieved by its international competitivness. With international selling houses have to see their USP ( unic merchandising point ) and their international competitivness in order to increase their planetary market portion. In this attempt multinational have to supply greater assortment of merchandises better qulity an vitamin D at lower monetary value. To better hence their USP and better their international competitivness multinationals should improgve productiveness per worker, invest in research and development and experience farther economic systems of graduated table. ( Dave Hall et al, 2006 )

Vodafone In Ghanaian Mobile Deal

Mobile phone house Vodafone is to spread out its presence in Africa which is a less economically developed state by purchasing a commanding interest in Ghana Telecom for 452 lbs. Rapid consumption in nomadic usage on the continent has attracted foreign houses. Vodafone is attracted by Ghana ‘s strong economic system and political stablity. Ghana is the most attractive markets in Africa. There are presently 2.7 million nomadic endorsers executive in Ghana, although overall nomadic incursion per caput of the population in the west African state reamauins low at 35 % . So, as a consequence of this Vodafone has late sought to concentrate on emerging markets with high potency and less established competition, bing more mature mrkets such as Japan.

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The Impact Of Vodafone In The Ldc ‘s

As we said antecedently Vodafone is a transnational company that operates largely in less economically developed states that are going emerging economic systems because it can be benefit in a figure of ways. However, the operation of Vodafone in those states is acossiated both with advantages and disadvantages.

It can increase the employment and in this manner it can increase the income per capita. An addition in domestic competition leads to an betterment in the efficiency of local houses and besides lessening rising prices. It can better the balance of payment history of the state if merchandise ‘s are sold abroad and besides the curency of the state in which a multinational operates in, and besides it can present new technogy, production procedures and direction stylkes and techniques.

Ethical Issues

There are some ethical issues that result from the nature of the operation of different multiationals in the ldc ‘s. One ethical issue is the development of workers. There are long on the job hours, they impose over clip and besides kid and labour captives.

They might run in ldc ‘s with lower environmental criterions.

Normally they have high orked related accidents and the ground is because it is cheaper for them to hold lower safety criterions.

They normally bring their directors ( mddle andhigh degree ) for ther headworkers and hence do n’t give many opportunties to local directors.

Because of the size and fiscal size of such endeavors, there are concerns about the ability of goverments to command them and in this manner they may be able to avoid paying operation revenue enhancement.


The above undertaking is an analysis of a planetary multinational company which is runing in different states and it is a market leader in the merchandises that it provides.

The consequences that came out of this undertaking are connected to the selling schemes that Vodafone uses in order to advance efficaciously its merchandises around the universe through the an appropriate selling Mix.

I Besides saw how different cocial environmental and technological issues benefit the company and which are the menaces that may increase costs of vodafone and possibly decrease net incomes.

Finally I analysed the operations of Vodafonesin the less econimically developed states andin which manner it can impact the economic system of these states and the ethical issues that may arrise through such operation.


Dave Hall, Rob Jones, Carlo Raffo ( 2006 ) , 3rd edition, Business Studies

John Sloman, ( 2006 ) 6th edition, Economics, Prentice Hall

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The rate of increasing monetary values per twelvemonth. When rising prices is increasing monetary values addition faster, when rising prices decreases monetary values maintain increasing but in a slower rate. Inflation is bad for houses and for the market. Since the merchandises are going more expensive, people ‘s buying power is reduced so they buy less.


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