Value Chain Analysis
Vodafone is one of the largest mobile telecommunication companies. The operations of the company established in 1984, and it is one of the biggest leaders of the market by taking into consideration the operations of the business. Vodafone gives focus on offering discounts and offers to the consumers, so that the customers get attracted towards the services and offers offered by the company. Vodafone is present in more than 38 countries and has a good image in the market. The mobile services offered by the company are voice, data, Social products, roaming services, USB modems, Vodafone live and also business enterprises. It also has a good infrastructure that includes the networks like 3G and 2G.
The company has more than 60,000 employees and also 151 million customers and shareholders. The company formed in 1984 as one of the subsidiaries of Racal Electronics and then it is considered as Racal Telecom limited with minimum 20 percent of the capital of the company and it was offered to the public in 1988. Vodafone also made an agreement for the roaming call between the Vodafone and Telecom Finland. The company also introduced services like digital fax and text messaging. Vodafone also expanded the business in Uganda, Germany, and Hong Kong.
This report will give a proper in-depth business strategic analysis of the Vodafone. The report provides proper information about the company. This will consist of Value Chain Analysis and also competitive analysis of the Vodafone Company. It has also created the proper strategic recommendations to the Vodafone so that the company can maintain its position in the competitive market.
The value chain is related to a chain of activities that the company takes into consideration, so that the valuable product can be delivered to the market. Value chain consists of two parts. First is related to the primary activities and second is related to the secondary activities. The first part of primary activities consists of the subparts like inbound logistics, operational, outbound logistics, service and marketing and sales (Kwenin et al., 2013).
The second part of secondary activities consists of the subparts like firm infrastructure, human resource management, technological development, and procurement. The secondary activities are also called support activities. This part gives full focus on the various subsections by taking into consideration the Vodafone Company. Value chain assists the managers also o identify and analyze the activities in an effective manner, so that at the time of conducting the activities it can be completed properly on time (Hill et al., 2014).
- Inbound logistics: By taking into consideration the inbound logistics of Vodafone it is analyzed that there are many activities that are outsourced to the company so that the activities can be operated smoothly. The activities of the business are conducted by giving focus on the sustainable and recyclable materials. Vodafone outsources the advertising activities to the other companies, so that the services can be promoted in an effective manner. Also, the centralized warehousing is taken into consideration in the inbound logistics. The company offers a high level of data accuracy and also enhances the control over the activities of the organization. The company gives emphasis on the environmental and ethical procurement (Johnson, 2017).
- Operations: Vodafone gives emphasis on offering proper services to the customers, so that profitability can be analyzed in a proper manner. When the services that are offered to the consumers are good, then the company can easily accomplish the goals and objectives. Vodafone takes into consideration demand management and end to end performance management.
- The operational excellence is only maintained if the company gives main focus on the two aspects. It is essential for the company to maintain proper operations and to offer quality services, so that the customers can be attracted towards the company. Vodafone has large centralized switching servers’ that helps to attain growth in the market (Armstrong and Taylor, 2014).
- Outbound logistics: Vodafone takes into consideration speedy and proper logistic system so that consumers can easily avail the services offered by the company. Vodafone also provide SIM home delivery in a proper way, so that consumer can feel comfortable to avail the services. It is important for the company to give emphasis on enhancing the network so that the satisfaction level of the customers can be enhanced. By giving focus on the introducing attractive taglines that company can attract the attention of the customers towards the products and services offered by Vodafone (Hatzithomas et al., 2016).
- Service: Vodafone gives attractive services to its customer, so that it can be easy for them to avail the services. The services that are offered by the company are given through conducting the activities online. The company offers many options for the consumers to pay their bills or to post any query by sitting anywhere in the world. Vodafone attained success by giving focus on enhancing the services for the consumers. When the services are given in the better manner and also on a timely basis then it can be easy for the organization to accomplish goals and objectives (Heerschap et al., 2014).
- Marketing and sales: Vodafone gives focus on marketing the services and products by giving advertisements and also by giving attractive offers to the consumers. The company tries to attract the consumer base s that the activities of the organization can be managed and operated. The sales and marketing are done by taking into consideration online marketing strategies that gives positive impact on the sales and profitability of the business (Wheelen and Hunger, 2017).
Vodafone also gave focus on the birth of ZooZoo, one of the special characters used to convey the value-added services offering to the consumers. It attracts the attention of the consumers. ZooZoo is a special character that has given success and also the campaign get popularity globally. The company has considered creative advertising campaigns for many plans that have given knowledge to the consumers about the plans introduced by the company in the market (Harlow et al., 2016).
- Human resource management: Human resource plays an essential role in conducting the day to day activities of the organization. It is evaluated that without human resource it is not possible for an organization to operate the activities in an efficient manner. Human resources are the lifeline of the company. If they do not have skilled and efficient candidates, then it can be difficult for an organization to accomplish the goals and objectives (Purevjav and Kim, 2014). Vodafone has skilled and capable candidates who can effectively control and manage the activities of the organization. It is seen that the suppliers cannot attain the high standards of the employees who are working in the organization if they do not take into consideration CEP consistently. It is important for the Vodafone Staff to give focus on the CEP consistently and also should have proper knowledge about the CR risks in the supply chain. The company also offers online training to its employees so that the information can be easily availed about the CEP and also to analyze the importance of implementing the high labor and environmental standards the in the supply chain (Reddy et al., 2016).
All the staff members should attain the CR targets so that the performance can be enhanced with proper goals and objectives. Training also plays a great role in the Company so that the human resources of the organization can be managed in a proper way. The human resource of the organization should have proper information about the products and services so that the satisfaction level of the consumers can be increased (Peppard and Ward, 2016).
- Technology development: Vodafone gives emphasis to increase the sales by taking into consideration e-commerce practices. It is essential for the company to take into consideration the latest technology so that the operations of the organization can be conducted efficiently and effectively. Vodafone has many new protocols like 3G, 2G, 2.5 G, 3.5 G, and 4 G. For availing high speed the company should use latest protocols, so that satisfaction level can be increased in a proper manner of the company as well as of the consumers. It is essential for the company to consider the latest technology for accomplishing their goals and objectives.
Primary activities
If the company do not consider the new protocols, then it can be difficult to survive in the competitive environment. The suppliers of the Vodafone can also raise concerns directly by taking into consideration fraud risk and security department or by the managed telephone hotlines. Corporate social responsibility is also considered by the Vodafone that uses to choose the suppliers and also monitor their performance. The other sectors on which the company focuses is technology, quality, and delivery.
- Firm Infrastructure: Vodafone has sophisticated IT infrastructure to conduct the day to day operations of the business. It is important for the companies to give emphasis on establishing more outlets so that the services can be given easily to the consumers and also customers can solve their queries in a proper manner. Not only in the center of the city, but the company should give focus on establishing new outlets on the outskirts of the city, so that the consumers can avail the services properly.
- Procurement: Vodafone gives focus on procuring central advertising and also its influence to encourage the suppliers. It also offers more products with a reduced environmental impact. This assists to stimulate the goods of the market. Like for example: It is evaluated that the company has purchased energy-efficient shuttle buses for the employees who are conducting their day to day activities at Newbury and also to purchase fair trade coffee for cafes (Mitra and Ray, 2013).
Competitive analysis of Vodafone can be evaluated by taking into consideration SWOT analysis (strength, weakness, threats, and opportunities).
Strength
The company has a wide coverage and is ranked as 395th by taking into consideration 200 brands. It is the second telecom operator and conducts activities in more than 25 countries. Vodafone generates many dollars of revenue every year. The marketing done by the company is legendary and also the Vodafone pug is popular globally. These strategies have given success to the company to survive in the competitive environment (Mensah, 2016).
Weakness
The company is losing the market share in many countries like in the USA. By taking into consideration the Brexit and other economic condition in Europe that performance of the company has been poor (Ghosh, 2016).
Opportunities
By analyzing the competitive environment it is evaluated that company has many opportunities prevailing in the market. The dependency on cellular networks is enhancing as the people are relying more and more on their mobile phones. Vodafone should give emphasis to emerging markets globally (Ahenkora et al., 2016).
Threats
The company has the major threat to the enhancement in the competition level. The company faces huge competition in the US also from the Verizon wireless. There is a high level of competition in the telecom sector and also it strongly gives effect on the Vodafone (Boateng, 2016).
By analyzing the theory of merger and acquisition it is evaluated that Vodafone is one of the biggest merger and Acquisition Company in U.S. One of the biggest deals that took place has been the acquisition of the Vodafone group (Nalwaya and Vyas, 2014). The Verizon communication and Vodafone Company are now owned by Verizon communication. Verizon is known as one of the largest and profitable wireless company giving focus on 104.6 million retail connections (Gherardi et al., 2014).
By conducting the value chain analysis and competitive analyze it is evaluated that the Vodafone’s greatest potential lies in is control over the large market share and on its resources. By the increase in the competition level and also the pressure from the regulatory bodies, the threats and weakness of the company take place. Vodafone has also taken into consideration proper measures to conduct the activities of the organization. Attractive marketing strategies are taken into consideration by the company, so that the consumer can be attracted towards the services and products offered by the company. Vodafone should also give focus on investing in a celebrity endorsed campaign. This will help the organization to survive for the long term in the competitive market.
Secondary activities
By evaluating the Theory of merger and acquisition it is evaluated that company should participate actively in the merger and acquisition concept, so that success can be attained. By evaluating the scenario of the U.S market it is seen that the company attained profitability and success. So the main focus of the Vodafone should be on enhancing the operations and activities by taking into consideration merger and acquisition concept. If the company takes into consideration proper and effective merger with the successful company then the competition level can also be minimized and the company can survive for long-term in the competitive market. So this will be the right step if considered by the company to enhance the market share and also to increase the image of the company in the minds of the customers. So, to attain growth and profitability the company should give focus on enhancing the market share and also on taking into consideration attractive marketing strategies to attract the attention of the customers towards the services and products offered by the company.
References
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