Vodafone

NAME:- Omar Khaled Abdelaziz

1. Distribution and Reach: Vodafone has a large number of outlets in almost every state, supported by a strong
distribution network that makes sure that its products are available easily to a large number of customers in
a timely manner.
2. Cost Structure: Vodafone’s low cost structure helps it produce at a low cost and sell its products at a low
price, making it affordable for its customers.
3. Automation: of various stages of production has allowed the more efficient use of resources and reducing
costs. It also allows for consistency in quality of its products and provides the ability to scale up and scale
down production as per the demand in the market.
4. Entering new markets: Vodafone’s innovative teams have allowed it to come up with new products and
enter new markets. It has been successful in past, in most of the initiatives it has taken in new markets.
5. Product Portfolio: Vodafone has a large product portfolio where it provides products in a large range of
categories. It has a number of unique product offerings that are not provided by competitors.
6. Vodafone is a brand that has been in the market for years, and people are aware of it. This makes its brand
awareness high.
7. Partnerships: Strategic partnerships are established by Vodafone with its suppliers, dealers, retailers and
other stakeholders. This allows it to leverage them if need be in the future.
Weaknesses:
1. Research and Development: Even though Vodafone is spending more than the average research and development expenditure within
the industry, it is spending way less than a few players within the industry that have had a significant advantage as a result of their
innovative products.
2. High Day Sales Inventory: The time it takes for products to be purchased and sold are higher than the industry average, meaning that
Vodafone builds up on inventory adding unnecessary costs to the business.
3. Rented Property: A significant proportion of the property that Vodafone owns is rented rather than purchased. It has to pay large
amounts of rent on these adding to its costs.
4. Low current ratio: The current ratio that shows the company’s ability to meet its short term financial obligations, is lower than the
industry average. This could mean that the company could have liquidity problems in the future.
5. The company has low levels of current assets compared to current liabilities, and this can create liquidity problems for it in
operations.
6. Cash flow problems: There is a lack of proper financial planning at Vodafone regarding cash flows, leading to certain circumstances
where there isn’t enough cash flow as required leading to unnecessary unplanned borrowing.
7. Integration: Vodafone's current structure and culture have resulted in the failure of various mergers aimed at vertical integration.
OPPORTUNITIES

Customer engagement :
 Growth of modern technologies including AI and digital technology offers immense potential for growth. These
technologies can be used to drive customer engagement higher and to design better and more engaging customer
experiences that help to reduce churn rate and grow market share. Customer experience has grown central to
marketing and promotions in the 21st century.
Digital marketing :
 Digital marketing can help Vodafone find faster growth. The company has in the recent years grown its investment in
digital technology. It is using its Vodafone app and website to grow its marketing reach and to engage users better.
However, the company should also use social media and other more channels to grow its reach among its users.
Technology & Innovation :
 Investing in technological innovation can help companies like Vodafone find faster growth and grow their customer
base in various markets. 5G is going to be the next game changer in the world of telecommunication. Vodafone is
investing in this area. Apart from it, there are other emerging technologies too investing in which would prove
profitable for the brand.
 THEARTS

Competition:

 Growing competition in the telecommunication industry is a major threat for Vodafone. In some of the important European
markets, the brand lost market share, revenue and customers in 2018 because of the growing penetration of competitors.
While India is one of the core markets of Vodafone, there too the penetration of competing players has grown and Vodafone
would need to focus upon its pricing, marketing and customer engagement to grow its customer base.
Regulatory threats:
 Higher level of regulation in the telecom industry has become a threat to the telecom players. While it can be a challenge for
faster growth compliance related pressures are also driving the operational costs higher for brands like Vodafone. In several
markets including India, the regulatory pressures took a toll on its revenue in 2018. Regulatory pressures restrict growth and
Vodafone is entering into new partnerships to overcome the regulatory challenge.
Uncertainties caused due to Brexit:
 Brexit has caused significant uncertainty for brands like Vodafone. While it might not have significant effect on markets
outside European Union, still Vodafone’s operations could be significantly affected. Vodafone has readied a special team that
will focus upon the implications of Brexit on Vodafone’s operations. However, still there is a lot of confusion and uncertainty
over Brexit and it can affect Vodafone’s operations in several ways.
Growth and competitive strategies

The competition among the telecommunication companies in Egypt is very high. The company's

nearly provide the same services, offerings, promotions.

Etisalat with 20% and we 20%.

The broad aim of Vodafone when considering these strategies is to maximize the profitability

and broaden market share to maintain relevancy and ensure long-term business growth. The
effective implementation of these strategies requires the firm to exert the intensive efforts,
particularly when management considers them as a source of competitive advantage.
Objectives for 2022

Vodafone is proudly leading the telecommunication industry in Egypt With the highest
Market share and millions of subscribers. We manage to use the latest technology in
our
Business to offer the highest service quality available for meeting the trust of our
customers. At Vodafone we believe in connecting and empowering people and
communities that include our clients, employees, stakeholders, government.
Vodafone External Enviroment (Pestle)

1-Political forces:
It’s the forces that tends to be alternated by the influence of the government on the infrastructure of
country. it may involves environment regulations, employment laws, tariffs and tax policy
2-Economic factors:
Vodafone in Egypt National crises and their implications for multinational corporations
economic factors or forces is involving interest rates, inflation, and growth of economy, cost of
living, working hours, wage rate and exchange rates by Combining these factors, it last greater
impact on organization sector
3-Social factors:
The culture or social influence on certain businesses vary from country to country. It is
significant to consider these factors Vodafone social factors focus on safety and health
consciousness, various demographics, population growth rates and cultural aspect by trying to
conncet all people and society with each other easily
4-Technological factor
Vodafone Egypt implications for multinational corporations technology is one of the most
important way of being competitive in the highly competitive market arena. Not only this, it drives
globalization, and the factors includes environmental and ecological aspects, and available services as
well as products. As Any organization should innovate and be compatible with the technologies
5-Legal factors:
Vodafone Egypt National crises and their implications for multinational corporations legal factors
involves the certain laws and regulations which might effect on the business operations of an
organization. It also includes impending and current legislation that tends to impact on the industry
in areas including competition, employment, safety and health
6-Environmental factors:
Vodafone Egypt National crises and their implications for multinational corporations environmental
factors include all those factor lasting impact or influence, the surrounding environment most likely
determine environmental factors. The factors involves awareness of the seasonal or climate change
or terrain variation