STRATEGIC MANAGEMENT

ASSIGNMENT

SUBMITTED BY:

MITHILESH PAMNANI

09020541035

SYSTEMS AND FINANCE

Introduction:
1. Vodafone Group plc is a British multinational mobile network operator headquartered
in Newbury, England
2. Vodafone is the world's largest mobile telecommunication network company, based on
revenue
3. It currently has operations in 31 countries and partner networks in a further 40
countries
4. Based on subscribers, it is the world's second largest mobile phone operator behind
China Mobile (538 million subscribers), with over 428 million subscribers in 31 markets
across 5 continents as of March 2010

Vodafone in India

1. Vodafone Essar, formerly known as Hutchison Essar covers 23 telecom circles in India
and is based in Mumbai.
2. Vodafone Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest
mobile phone operator in terms of revenue behind Bharti Airtel, and third largest in
terms of customers.

Aircel MTNL LoopStel Etisalat

Mobile Videocon
Uninor
9%
1% 1% 0%
1% 0% 0%
*Reliance Telecom Bharti Airtel
4% 30% Bharti Airtel
Vodafone Essar
BSNL IDEA
15%
BSNL
Aircel
*Reliance Telecom
Uninor
Vodafone Essar MTNL
24% Loop Mobile
IDEA Videocon
15% Stel
Etisalat
 VODAFONE: Circle-wise Subscriber Base
West Bengal Andhra Pradesh
7% 6% Delhi
Assam
U.P.(West) 5% Bihar
1%
U.P.(East) 6%
10% 3% Gujrat
11%

Himachal Pradesh
Haryana 0%
Tamil Nadu 3%
9%
Karnataka
5% J&K
0%
Rajasthan
7% Kerala
4%
Punjab
3%
Orissa Kolkata
1% North East M.P 3%
1% Mumbai Maharashtra 2%
5% 7%

Developments

 Vodafone’s revenues from Indian operations have increased 26.4% to £954 million (Rs
6,868 crore) in the first quarter of 2010-11, compared with £755 million (Rs 5,436 crore)
in same quarter last year. In organic terms, revenue for the June has risen 13.7%,
including a 1.5% benefit from Indus Towers, representing an improvement on the
previous quarter.

 Vodafone has revised its agreement with Indian partner Essar and will additionally pay
Rs 3,400 crore over and above the fair market value, if Essar exercises the put option for
its 33% stake in the company.

In the recently concluded 3G spectrum auctions, Vodafone got the licence for 9 circles by
paying Rs 11617 crore. The expected revenue it has defended is 68% and has covered 52% of
the total market, focussing on high teledensity market.
CORE COMPETENCIES:

PRODUCTS
a. Post-paid Services
b. Pre-paid Services
c. Magic Box Handsets
d. World Calling Cards
i. (World Calling Card from Vodafone is a Pre-paid long distance calling card
that one can use with their Vodafone Prepaid and Post-paid mobile
phones to make ISD & STD calls.)
e. Home Calling Cards
i. Vodafone Home Calling Card is a Pre-paid calling card that allows one to
make calls from landlines, PCOs & mobile phones from over 100
countries. And helps save up to 90% as compared to International
Roaming charges.
f. Handyphone
i. Vodafone Handyphone is a landline that’s loaded with all the features of
a cell phone - including low call rates. And Vodafone Handyphone isn’t
that expensive either
SERVICES
1. Tunes & downloads
2. Entertainment
3. Devotional
4. Sports
5. News & Updates
6. Call Management Services
7. Astrology
8. Finance
9. Travel
10. Mail, messaging & more
11. Dial in Services
12. Bill Info
Vodafone has competitive advantage because of the following reasons :-

1)VAS (value added service) - Number of schemes they have. Especially the add on plans. This
is separate from the main plan. It is a major source of revenue for the company. They have
plans like “Chota Recharge”, etc which gives them an edge over other companies.

2)Marketing strategies - Vodafone has given birth to the Zoozoo: a special character created
specifically to convey a value added service (VAS) offering in each of the newly released
commercials.Vodafone has come with creative advertising campaign for its various plans. This
strategy has captured the imagination of millions.

3)Core Competency – Vodafone as a brand has always focussed on its core competent area.

4)Technological Advantage – Vodafone has installed SAP technology. SAP is delivering mobile
capabilities such as mobile asset management, mobile sales for handhelds, mobile service for
handhelds, mobile time, mobile travel, mobile BI, mobile warehouse management, and
mobile direct store delivery. These capabilities of SAP Mobile Business establish new ways to
interact with enterprise systems and empower new user communities to participate in
collaborative business processes, resulting in increased customer satisfaction, profitability,
and competitive advantage.

5)Market development – Vodafone has sought FIPB (Foreign Investment Promotional Board)
for two licences and it aims to become a full-fledged communication services provider in the
country. It can now provide Internet services and many more services.M2M solutions are now
set to expand further helping Vodafone to gain a competitive edge.

6)Cost Advantage - Obtaining these licences has reduced capital spending by over 60%,
operating costs by 40% and staff numbers from 3,200 to 1,700. Overall, the company has
refocused and become clear about its direction, strategy, values and brand. They have the
ability to execute; empowered by strong local and global channel partners and systems
integrators. The company's revenues in India stood at 2.68 billion pound, while from the
entire Asia-Pacific region revenues were at 5.81 billion pound for the fiscal 2009.

7)Continuous Improvement – Vodafone as a brand keeps on improving and coming up with

new plans. It adjusts according to market need. Brings up innovative plans which give them a
competitive advantage
Vodafone’s market prospects:

1. Around 60% of the Company’s customer additions now come from upcountry areas.
With a distribution reach of about 1.2 million outlets, Vodafone is well-geared to serve
customers in the remotest corners of India.
2. In addition to voice and text, Vodafone will also work on investing in platforms that will
enable the delivery of internet and data services to a large part of the country
3. Vodafone will also continue to increase investments in new business areas like
enterprise and carriers business
4. The apple iphone 3gs which supports over 1.5 lakh applications from AppStore should
help capture more market as it will attract users from various segments
5. The company has taken steps in making strategic alliances to develop customized
solutions for the end users