Background on Vodafone
The competition in the telecommunication industry is growing at unprecedented rate. Many companies are considering developing customer awareness through the marketing approach that will also generate long-term sustainability competitive edge. According to Vodafone (2009), strategic marketing is essential in allowing the organization to establish competitive advantage by allocating its resource efficiently. With strategic marketing, the businesses can align its marketing objectives with organizational objectives. This study addresses the Vodafone’s strategic marketing process through strategic analysis. Besides, Vodafone is marketing processes focus on the stimulation and engaging the consumers by developing brand equity so that it can survive the fierce competition in the telecommunication industry (Beard 2013). Therefore, this report will analyse the external environment in understanding the ability to manage customer relationships.
Vodafone is a leading UK telecommunication company that was established in 1984 following the move by the public to acquire Racal strategic radio limited (Vodafone 2009). Vodafone earned an international appeal by merging with leading Air Touch that was an influential American company. Today, the UK-based company serves about 341 million customers worldwide as showed in appendices 1 and 2. With the growing and fast growing technology industry, Vodafone experiences various business challenges. The company initiated a global system through the GSM card for its mobile. According to Lo (2012), globalization has helped Vodafone to achieve tremendous business success. The business is also offering services relating to voice and data communication around the world. In the 1990s, the organization was working with about 6,000 people. However, the organization has made a dramatic effort to expand its operations to meet the demand relating to the rapid inventions in computer and mobile fields. Currently, the company has expanded its workforce base to 90,000 employees. Since its inception, the firm has supported its operations from the headquarters in London.
The global telecommunications corporation its largest mobile phone organization based on revenues. China Mobile is the only company that has beaten Vodafone based on the number of subscriptions (China Mobile 2014). Up to 2010, the organization had attracted over 341 million customers. It operates in 30 countries, and established network partners in 40 countries. Vodafone owns about 45 percent of the American leading mobile phone company, Verizon Wireless and 24 percent of the UK market (Statista 2017). In fact, this is evident in its voice data aspects because it uses the mobile phones to copy the conditions of information services and voice. Kumar and Reinartz (2012) hold that the company is part of the 100 FTSE index and listed in the London Stock Exchange market. As at 2010, the Vodafone’s market capitalization stood at £920 million (Klauer 2014).
Vodafone’s Position in the Market
The E-CRM is a web-enabled technology that has helped the company to synchronize customer relationship between the business functions and communication channels. This web-centric approach is part of the building its marketing activities, techniques, and tools through the internet using e-forums to develop and maintain string customer relationships (Anyen 2015). Chinunda (2011) affirms that the use of this technology has longstanding customer relationship potential because the company can use the feedback to improve the e-CRM. Without a doubt, the company established the e-CRM to improve services and retain its customers (Rodriguez, Ajjan, & Peterson 2014). Based on this analysis it is evident that Vodafone took advantage of the technological innovations that has enabled it to raise the capacity. Similarly, the technology has ensured the organization analyses the behaviours if its customers online.
With the e-CRM, Vodafone has synchronized and coordinated its interactions with customers via various channels including fax, telephone, and emails (Lo 2012). The use of the E-CRM solution has ensured the company’s personnel improves their productivity by maximizing the capabilities of the new automated workflow. The electronic customer relationship management has helped the firm to manage customer calls at any time.
Since customers are never the same in preferences and demand, Vodafone the needs and preference have opted for the technology to serve each segments distinctively. In fact, it offers each customer segment special offers that meet their expectations (Anyen 2015). The new technology has also helped Vodafone to monitor customer feedback this enhancing its application of experience to improve the future campaigns. With the feedbacks, the organization has managed to determine the shopping behaviours of customers. According to Chang, Park and Chaiy (2010), the development of customer-business relations depends on the introduction and development of services delivered by the firm. However, for Vodafone, customers are important and the management process is meant to meet the expected service quality. It is important for the organization to incessantly improve quality and change services based on the needs and demands of customers.
The establishment of a strong internet infrastructure gives the company an edge in the market. With competition becoming fierce, the businesses, such as Vodafone have opted for developing the best relations network with clients. The E-CRM technology has helped Vodafone to track the clients and serve them better (Schmitt 2001). This implies that the management should have the ability to acknowledge the significance of customers to the telecommunication company. Vodafone has developed activities that support long-term customer relationships. As explained by Harrison, Hague and Hague (2010), the E-CRM ensures the business community and investors use new communication techniques and engagement methods such as emails, social platform, and SMS to reach out to all customers.
The Importance of E-CRM Technology in Improving Customer Relationships
The e-CRM strategy stands for economics as it addresses the aspects of cost-effectiveness. Indisputably, both customers and businesses would focus on efforts that minimize costs. The new technology guarantees them this objective because if invests in the economy of customers. For instance, Vodafone has invested in the best distribution strategies that rarely require huge investments. The online services ensure the customers can access the available products at no costs. They can thus make the distribution decisions based on the quality of services offered as well as customer initiatives (Seth, Deshmukh, & Vrat 2005). The e-CRM systems also focus on evaluation. The economy of any client depends on the knowledge-based interactions between the customer and the company. In most cases, Vodafone uses the behaviour of its users to evaluate their economy levels (Williams 2014). For instance, the amount customers use on airtime is enough to justify their ability to sustain the services. The company thus responds to the needs by developing or designing products that befits the needs.
Vodafone is a leading telecom company in the world. The company has defined its market position around world. As a leading telecommunication provider, the company enjoys a significant market value that runs into billions of pounds. The company continues to profile its network but it needs to consider the external factors that can affect its operations as described by Enders, Konig, Hungenberg, and Engelbertz (2009).
Political factors have proved influential in any business environment because they affect the progress of companies including Vodafone. These factors focus on the regulatory framework and government policies (Thomas 2014). In response, Vodafone has established a strong infrastructure to operate in each country. Enders et al (2009) held that the firm depends on the political environment of any state. Recently, many countries have experienced political instability thus directly affecting the organization. Indeed, countries experiencing political instability are war zone areas thus making an establishment of a strong network a nightmare (Khan, Alam & Alam 2015). In fact, the recent conflicts experienced in Europe have affected the operations of Vodafone. In the United Kingdom, there government has established the Office of Communications that regulates the industry and ensures there is a fair business environment and delivery of quality services. Through the local loop unbundling program, the government privatized its telecom services. With these regulatory changes, the organization has defined its mobile services (Thomas 2014). Many governments control the mobile phone licensing and access. This makes it safer for the customers to access quality phones.
Impact of Political Factors on Vodafone’s Operations
The economic factors cover exchanges rates, taxation policies, interest rates, inflation, and economic growth. According to Abudbakar and Bello (2013), these economic factors disrupt the company’s competitiveness. For instance, the cost of an individual to access a licenced Vodafone phone is high. With the 3G licensing bidding war becoming fierce, Vodafone experienced high economic explosion leading to intense payments. Similarly, the enter industry suffered from the high costs of maintaining and constructing network framework because even the other network operators experienced the impact of this costs (Majumdar & Bhattacharya 2014). Klauer (2014) affirms that Vodafone needs significant revenues to breakeven. When the GDP improves, many people can afford the latest communication technology. With these profits, the business can expand its global position. The recent economic turmoil affected the organization thus compelling Vodafone to initiate new strategies.
These factors are founded on the local cultures and beliefs of people served by the company. They focus on the safety prominence, age distribution, population growth rate, and health awareness (Brealey, Myers, & Allen 2011). For an organization to succeed, it must be dynamic in adopting the policies relevant to the local market (Majumdar & Bhattacharya 2014). In the United Kingdom, for instance, Vodafone used an exploration strategy and discovered that many citizens were getting older. The subsequent years, the population will grow at the rate of 4 percent. Since mobile phones are valued by the youthful population. With the ageing population becoming a concern in the UK, the market for mobile phones will reduce.
The mobile phone industry has undergone a significant change regarding technological innovations. The future of the company also depends on how it embraces the aspects of technology in its service delivery. In the modern world, Vodafone has been the global leader in innovation (Klauer 2014). It pursues the mission of following a contemporary trend in the communication and technology spheres (Majumdar & Bhattacharya 2014). Indisputably, competition is a reality in the mobile industry and Vodafone has the opportunity to counter the competitive pressure. It has to produce and launch technological-related products and services. It continues to focus on the new technology trends. Vodafone can also adopt the 3G technology to increase its revenues because it offers the best contents to customers.
Since Vodafone is a global player, it faces various legal issues in the market including pirated and copyright issues. In the UK, the Sales of Goods Act of 1974 was adopted to ensure that goods or product sold to consumers serve the intended purpose (Kiteleys Solicitor 2012). In the United States, many local governments have blamed the company for issues relating to infrastructure. As a result, the company experienced multiple litigations and penalties. The company has also been accused of underpaying its workers compared to the local competitors (Thomas 2014). To this effect, its experts have migrated to its rivals thus leaking the company’s innovation ideas. Therefore, the company has the duty to maintain its positive image by abiding by the legal requirements.
Impact of Economic Factors on Vodafone’s Operations
Recommendations and Conclusions
The current investment intensity of the company in research and development is insignificant. The company needs to intensify its investment in this area so that it can improve the quality of customer services (Seth et al. 2005). With technological advancement, Vodafone will improve the technological features thus ensures customer satisfaction and experience. For instance, the company can use the opportunity to improve the mobile networks and the internet speed. Therefore, by developing new technological capacity, the organization has the potential to justify its presence in the market. To this effect, it is prudent for the organization to consider technological factors in improving its competitive nature.
The organization has to invest in the new technology at all costs. This is the only way it can enhance customer experience than creating such experiences. Companies in the telecommunication industry have always invested in creating customer experiences. This move has failed to offer solutions to the poor business output. To this effect, Vodafone must consider how it can use the new software and technology to enhance the already enlightened customers. It is therefore, important for the telecommunication company to define its customer experience and identify the best technology that can assist in building it. The firm should also avoid moulding the experience of customers around technology. This can act a blow to its growth. However, Vodafone needs to consider finding a technology that befits its strategy, For instance the CRM systems can help in managing relationship. Through this system, the organization’s employees can respond to the inquiries quickly.
Vodafone must avoid creating experiences around its brands, but invest in the people. This should ensure the organization personalize experiences based on the engagement with clients. Building strong customer relationships is a plus for the firm because it is a source of developing. It must always anticipate extending the relationship beyond the expectations leading to memorable experiences.
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