Porter's Competitive 5 forces in brief

Porter's five forces help to identify where power lies in a business situation. This is
useful both in understanding the strength of an organization's current competitive
position and the strength of a position that an organization may look to move into.
 Vodafone

The name Vodafone comes from

voice data fone chosen by the company
to "reflect the provision of voice and
data services over mobile phones.
 General Info about Vodafone
• Vodafone Group is a British multinational telecommunications
company headquartered in London.
• Vodafone' brand started in 1982 with the establishment of Racal
Electronics plc – UK's largest maker of military radio technology.
• It is the world's 3rd-largest mobile telecommunications company
measured by both subscribers and revenues.
• It is a globally operating company, since Vodafone owns and operates
networks in 21 countries and has partner networks in over 40
additional countries.
MISSION
• We will be the communications leader in an increasingly connected
world.

VISION
• Our vision is to lead the industry in responding to public concerns
regarding mobile phones, masts and health by demonstrating leading
edge practices and encouraging others to follow.
Corporate Strategy: Growth objectives
• Drive operational performance through value enhancement
(maximize value of existing customers) and cost reduction.
• Total communications – expansion in mobile data services, enterprise
customers, high value consumers as priority.
• Expanding into newly emerging markets.
• Strengthening capital discipline – generating 5-6 billion pounds in free
cash flow annually to support investments for the future growth.
PORTER’s 5 Forces Model
Porter five forces analysis is a framework to analyze level of
competition within an industry and business strategy development.
 PORTER’s 5 Forces
Bargaining power of Consumers: HIGH
• Lack of differentiation among service providers
• High competition
• Low switching costs
• Lack of brand loyalty

Bargaining power of Suppliers: MEDIUM

• A few major suppliers
• Lack of substitutes
• Outsourcing network abroad
• Common platform across the groups
• High switching costs
Threat of substitutes: MEDIUM-HIGH
• Landline users are declining

Threat of new entrants: LOW

• Huge license fees to be paid upfront
• High initial capital required
• Complex regulatory issues
• Infrastructure cost – very high
• Rapidly changing technology

Industry rivalry: HIGH

• Jio,Airtel Etc
• Little discrimination other than cost/price
What is Porter's model of competitive advantage?

• A firm's relative position within its industry determines whether a

firm's profitability is above or below the industry average. The
fundamental basis of above average profitibility in the long run is
sustaninable competative advantge.
• The two basic types of competitive advantage combined with the
scope of activities for which a firm seeks to achieve them, lead to
three generic performance in an industry : cost leadership ,
diffrentiation, and focus.
 Suggested Strategy:

• Partnering with IDEA in order in order to gain access to a network

with less capital investment than building or acquiring its own.
• Diversifying in Broadband services, DTH etc.
• Remain innovative, improve 4G speed and prepare for lunching 5G
ahead of other competitiors