Submitted To:- Submitted By:-

Mr. Rakesh Gupta Mukund Jajodia

Navneet Yadav

Neha Malik

Puneet Garg

Saravjeet Singh
 ACKNOWLEDGEMENT

We express our immense gratitude to our Prof. Rakesh Gupta, who not
only guided us throughout the project but also gave us an opportunity to be
acquainted with the current market conditions and enhance our practical
knowledge. His motivation and constant mentoring has helped us in the completion
of the project.

Mutual understanding and coordination amongst the group members is

also highly appreciated.
 Project Proposal

Vodafone is the world’s most leading international mobile communication

company. It has now operations in 25 countries across 5 continents and 40 partner
networks with over 200 million customers world wide. Vodafone has partnered
with the Essar groups as principal joint venture for Indian market. Vodafone Essar
in India is a subsidiary of Vodafone group plc and commenced operations in 1994
when its predecessors Hutchison Telecom acquired the cellular license for
Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India’s
mobile customer base, with over 34.1 million customers.

In this project we will discus about Vodafone Company in details, its

formulation, and history. We will come to know about the company’s vision and
mission from here. We will try to discuss the steps taken by the company to reach
such a height i.e. what made it so different from other cellular operators so that it
reached at such a big height.

Telecom industry is such a competitive market and for sustaining in the

market one has to give some extra benefits to retain its customers and attract new
customers, in other words I mean the company should provide some
differentiation. In this wide industry Vodafone has to suffer a huge problem from
its competitors like Airtel, Reliance, Mtn, AT&T, Verizon, etc. Here we will try to
open the forum for discussion on the company’s internal strategies and the plans
they have laid within the organization for its development. We will not only
discuss internal management but also look at the external factors which the
company has to face and how well they plan their strategies. Some of the external
factors are political, economical, and social. We will also focus on competitors and
their relative steps taken in the market. We will also look at the strength, weakness,
opportunity, and threats of Vodafone in details.

To discuss on the above mentioned points we need some tools like PEST
analysis, POTER’S 5 FORCE model, SWOT analysis, TOWS Matrix, and many
more.
 INTRODUCTION OF THE TELECOM INDUSTRY

The Indian Telecommunications network with 110.01 million connections is

the fifth largest in the world and the second largest among the emerging economies of
Asia. Today, it is the fastest growing market in the world and represents unique
Opportunities for U.S. companies in the stagnant global scenario. Indian Telecom sector,
like any other sector in the country, has gone through many phases of growth and
diversification. Starting from telegraphic and telephonic systems in the 19th century, the
field of telephonic communication has now expanded to advanced technologies like
GSM, CDMA, and WLL to the much awaited great 3G (Third Genera-tion) Technology
in mobile phones. India is the world's second largest mobile market behind China and it
has seen extraordinary levels of growth in recent quarters. The first three quarters of
2008 all saw net additions in excess of 25m, and Q4 08 went one better with a gain of
31.58m, an all-time Indian and world record. The number of connections in India stood
at 346.77m at the end of 2008 with annual growth of 48.5%, compared to 60.8% in
2008.Market leader Bharti continued to pull its weight with a Q4 gain of 8.17m, the
second highest figure ever recorded in the Indian market. With 85.65m customers and
24.7% market share, Bharti is the powerhouse of Indian mobile. However, the strength
in depth of the market is extraordinary. The second- and third-placed operators, Reliance
(61.35m customers end-2008) and Vodafone (60.93m), both scored their best ever
figures for net additions in Q4 with figures of 5.30m for Reliance and 6.31m for
Vodafone. Moreover, the previous records for both companies were set just three months
earlier. Aircel, the seventh largest operator with 16.08m customers end-2008, achieved
the same feat, recording its best ever figure in Q4 08 (+2.20m) and its second best ever
in Q3 08 (+1.95m). Meanwhile, fifth-placed IDEA (34.21m) also recorded an all-time
high in Q4 08 with a gain of 3.83m. Although March figures are not yet complete, the
January and February numbers suggest that Q1 09 is almost certain to break the record
for quarterly growth. The January gain of 15.37m smashed the previous record of
10.76m (set in December 2008) while February was not far behind with 13.77m. With a
two-month gain of 29.17m, and March GSM additions at over 11m, a figure in the
region of 45m seems likely. January's record was inspired chiefly by Reliance, which
added 4.95m customers thanks to its launch of GSM in several new markets, and it
topped the market again in February with a gain of 3.29m. Bharti posted a new record of
2.73m, maintaining its extraordinary consistency, while Vodafone and Tata also
recorded new highs of 2.58m and 1.08m reserved. Telecom Industry in India is the
fastest growing markets and is second largest mobile market in the world just after
China. India has added around 9.5 million new mobile subscribers to the network each
month for the year 2008. Upcoming services such as 3G and WiMax (Worldwide
Interoperability for Microwave Access) will help for further growth rate. The service
providers are offering services at cheap call rates, low-cost handsets and network
expansion is fuelling the boom for the industry.
There exists enormous business potential for telecom companies on
account of the country‘s low teledensity, which stand at 33.23 for December 2008.
Every day there is an addition in Value added Services (VAS), technology
advancement and reduction in traffic charges. Increase in private and public
players in the sector has enhanced the telecommunication technology to give the
maximum benefits to their customers.
 INTRODUCTION OF VODAFONE

Vodafone Group Plc is the world's leading mobile telecommunications

company, with a significant presence in Europe, the Middle East, Africa, Asia
Pacific and the United States. The group mobile subsidiaries operate under brand
Vodafone, in U.S. the group work as in undertaking of Verizon wireless, in last
two years the group has also entered into arrangements with network operators.
Company has total market capitalization of euro 74 billion. Earlier in India
Company overtook HUTCH.
Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc.
Then known as Racal Telecom Limited, approximately 20% of the company's
capital was offered to the public in October 1988. It was fully demerged from
Racal Electronics Plc and became an independent company in September 1991, at
which time it changed its name to Vodafone Group Plc. Following its merger with
Air Touch Communications, Inc. (‗Air Touch‘), the company changed its name to
Vodafone Air Touch Plc on 29 June 1999 and, following approval by the
shareholders in General Meeting, reverted to its former name, Vodafone Group
Plc, on 28 July 2000.
Vodafone Group plc is a British multinational mobile network operator
headquartered in Newbury, Berkshire, United Kingdom. Vodafone is the world's
largest mobile telecommunication network company, based on revenue, and has a
market value of about £71.2 billion (November 2009).It currently has operations in
31 countries and partner networks in a further 40 countries. Based on subscribers,
it is the world's second largest mobile phone operator behind China Mobile, with
over 427 million subscribers in 31 markets across 5 continents as of 2009.In the
UK, its home ground, Vodafone has badly underperformed in the last few years
due to brisk change in administration. It has slipped from first to third largest
telecom operator generating a revenue of £4.9 billion from its 18.7 million
customers in 2008-09. As of March 31, 2009, the company employs more than
79,000 people worldwide.

The name Vodafone comes from voice data fone, chosen by the company to
"reflect the provision of voice and data services over mobile phones".

Vodafone owns 45% of Verizon Wireless, the largest wireless

telecommunications network in the United States, based on number of subscribers.

Vodafone has some large minority stakes, which are not included in its
consolidated turnover. In order to provide additional information on the overall
scale and growth trends of its business, it publishes "proportionate turnover"
figures, and these are included in the tables below. For example, if a business in
which it owns a 45% stake has turnover of £10 billion, that equals £4.5 billion of
proportionate turnover for Vodafone. Proportionate turnover is not an official
accounting measure, and Vodafone's proportionate turnover should be compared
with other companies' statutory turnover.

Vodafone also produces proportionate customer number figures on a similar

basis, eg. if an operator in which it has a 30% stake has 10 million customers that
equals 3 million proportionate Vodafone customers. This is a common practice in
the mobile telecommunications industry.

Year Turnover Profit Profit for Basic eps (pence) Proportionate

ended 31 before tax the year
£m customers (m)
March £m £m

2008 35,478 9,001 6,756 12.56 260

2007 31,104 (2,383) (5,297) (8.94) 206.4

2006* 29,350 (14,835) (21,821) (35.01) 170.6

2005 34,073 7,951 6,518 9.68 154.8

2004 36,492 9,013 6,112 8.70 133.4

Partner markets
Vodafone Group has entered into arrangements with
network operators in countries where the Group does not hold an
equity stake. Under the terms of these Partner Market
Agreements, Vodafone and its partner operators co-operate in the
marketing of global products and services with varying levels of
brand association.
This strategy enables Vodafone to implement services in
new territories and to create additional value to their partners' customers and to
Vodafone's travelling customers without the need for equity investment in these
countries.

KEY PLAYERS IN INDIAN TELECOM INDUSTRY

Major Players
There are three types of players in telecom services:
State owned companies (BSNL and MTNL)
Private Indian owned companies (Reliance Infocomm, Tata Teleservices)
Foreign invested companies (Vodafone-Essar, Bharti Tele-Ventures,
Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL
Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest
Telecommunications Company providing comprehensive range of telecom services
in India: Wire line, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier
service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five
years it has become one of the largest public sector units in India.
BSNL has installed Quality Telecom Network in the country and now focusing on
improving it, expanding the network, introducing new telecom services with ICT
applications in villages and wining customer's confidence. Today, it has about 47.3
million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM
Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations,
480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602
Districts, 7330 cities/towns and 5.5 Lakhs villages.

BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit, ranging from being the first mobile
service in Delhi, first private basic telephone service provider in the country, first
Indian company to provide comprehensive telecom services outside India in
Seychelles and first private sector service provider to launch National Long
Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July
7, 1995 for promoting investments in telecommunications services. Its subsidiaries
operate telecom services across India. Bharti‘s operations are broadly handled by
two companies: The Mobility group: That handles the mobile services in 16
circles out of a total 23 circles across the country. The Infotel group: That handles
the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together
they have so far deployed around 23,000 km of optical fiber cables across the
country, coupled with approximately 1,500 nodes, and presence in around 200
locations. Bharti Tele-Ventures' strategic objective is ―to capitalize on the growth
opportunities the company believes are available in the Indian telecommunications
market and consolidate its position to be the leading integrated telecommunications
services provider in key markets in India, with a focus on providing mobile
services.

RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles
conglomerate .It is also an integrated telecom service provider with licenses for
mobile, fixed, domestic long distance and international services. Reliance
Infocomm offers a complete range of telecom services, covering mobile and fixed
line telephony including broadband, national and international long distance
services, data services and a wide range of value added services and applications.
Reliance India Mobile, the first of Infocomm's initiatives was launched on
December 28, 2002. This marked the beginning of Reliance's vision of ushering in
a digital revolution in India by becoming a major catalyst in improving Quality of
life and changing the face of India. Reliance Infocomm plans to extend its efforts
beyond the traditional value chain to develop and deploy telecom solutions for
India's farmers, businesses, hospitals, government and public sector organizations.
Until recently, Reliance was permitted to provide only ―limited mobility services
through its basic services license. However, it has now acquired a unified access
license for 18 circles that permits it to provide the full range of mobile services. It
has rolled out its CDMA mobile network and enrolled more than 6 million
subscribers in one year to become the country‘s largest mobile operator. It now
wants to increase its market share and has recently launched pre-paid services.
Having captured the voice market, it intends to attack the broadband market.

INTERNATIONAL COMPETITORS OF VODAFONE

 Deutsche Telekom
 Orange
 Telefónica O2 Europe
 Verizon Wireless
 AAPL
 ACQUISITION OF HUTCH BY VODAFONE
15 March 2007, Vodafone announced acquisition from Hutchison
Telecommunications International Limited ("HTIL") of companies with interests in
Hutchison Essar Limited ("Hutch Essar"). Vodafone paid US$10.9 billion (£5.5
billion) in cash to HTIL, reflecting retention and closing adjustments agreed
between Vodafone and HTIL. UK telecom Vodafone has acquired the 67 per cent
stake of Hutchison Telecom International in Indian mobile company Hutchison
Essar. The company was valued at $18.8 billion. So Vodafone paid $11.1 billion to
HTIL for the 67 per cent stake. Vodafone assumed net debt of approximately $2.0
billion. As of now, it looks like Essar will remain the minority partner with 33 per
cent. Vodafone, however, said that it would make an offer to buy Essar‘s stake at
the equivalent price per share it has agreed with HTIL.

VISION OF VODAFONE
Our Vision is to be the world’s mobile communication leader – enriching
customers’ lives, helping individuals, businesses and communities be more
connected in a mobile world.

MISSION OF VODAFONE
Vodafone is primarily a user of technology rather than a
developer of it, and this fact is reflected in the emphasis of our work programme
on enabling new applications of mobile communications, using new technology for
new services, research for improving operational efficiency and quality of our
networks, and providing technology vision and leadership that can contribute
directly to business decisions.
VODAFONE CUSTOMERS

Essel Group.
Wipro.
ICICI group.
Siemens.
Future group.
Mother Dairy.
Govt. of Gujarat.
Ernst & Young.
GE
Akzo Nobel
Whirlpool
Bajaj Auto.
Deloitte.
Coca Cola.
Godrej group.
Kotak Group

PRODUCTS OFFERED BY VODAFONE

Gateway
Data cards
Blackberry
Voice
World calling card
Magic box handsets
Prepaid / Postpaid
Vodafone At Home
Vodafone Office
Vodafone Passport
 PORTERS FIVE FORCES MODEL

Bargaining Power of Buyers

The buyers in the mobile telephony industry are strong. These powerful
buyers can reduce the cost leaders prices, but not past the level of their closest
competitor. This ensures Vodafone will continue to profit at above average returns
compared to its closest competitor.

Bargaining Power of Suppliers

Suppliers of the mobile telephony industry are strong. Vodafone, by
being a cost leader, operates with margins greater than its competitors, which, in
turn, allows them to absorb price increases from its suppliers easier than its
competitors. By being a large, focused player of the mobile telephony industry,
Vodafone could hold suppliers costs down, and it could make a profit even if its
competitors are making only average returns.

Potential Entrants
While the threat of new entrants is weak, Vodafone must continue to
reduce costs below that of its competitors. By maintaining high levels of
efficiency, Vodafone can help make the entrance into the Mobile telephony
industry unattractive to its potential competitors.

Product Substitutes
Vodafone faces a low threat of product substitutes. The focused cost
leadership strategy that Vodafone operates under makes it difficult for a
comparable substitute to be produced at a lower rate by their excellent use of
economies of scale, their buying power, and their absorption of temporary price
increases that come from suppliers that don‘t need to be passed on to the consumer.

Industry Rivalry

Vodafone faces a very high industry rivalry from its competitors

because as the differtent mobile opperaters slashes its rate per call or provides any
new services then they also have to provide to its customers.

Swot analysis of Vodafone

Strength-

The main strength of Vodafone within the telecommunications market lies

in its brand image and recognition. Vodafone, having established a global presence
and having invested highly in marketing a differentiated image by promoting a
Vodafone life style, currently enjoys a differentiating advantage that, if exploited
properly, can offer a lead in competition. The presence of Vodafone in numerous
countries within Europe as well as in all part of the world enhances this image. It
allows customers to travel and enjoy easily the services of their home country
operator. It has established strategic alliance to provide better service to client.
Weaknesses:

The expansion of Vodafone has been completed at the expense of direct

control of its operations. The company grew through a process of acquisitions of
national telecommunications companies (e.g. the acquisition of the third biggest
Czech mobile phone operator, Cesky mobile) rather than organic growth. This
increased its subscribers’ base quickly, offering direct market knowledge and
immediate additions of customer bases at the expense of direct effective control of
the subsidiaries. At the same time though, it implicitly imposed a centralized
operational structure for the group, nominating the UK headquarters as the leading
business unit running a much centralised marketing and handset procurement at
group level. This has resulted in the neglect of local markets and local differences,
allowing market share to be gained by smaller local competitors. Due to the highly
saturated Western European market this has resulted in an increase in the price
elasticity of demand, with consumers becoming continuously price oriented. This
has resulted in high customer churn rates reaching the level of 32.8% in the UK
compared to O2’s 24%.

Opportunities:

The telecommunications market, even though highly saturated in some

regions offers great potential due to the ageing population and the sophistication of
the consumers. It offers great opportunities through a careful market segmentation
and exploitation of particular profitable segments. Different strategies should be
pursued – simple phones and simplified pricing plans to the ageing population and
more updated, sophisticated solutions for younger generations. The expanding
Boundaries of the market could provide further opportunities by allowing
Vodafone to enter more aggressively into fixed‐line service and to better enjoy the
benefits of its high investment in 3G technology. Moreover the company has
undertaken its first steps in establishing strategic alliances to develop customized
solutions for end‐users.

Threats:

The European part of Vodafone’s market is characterized by existing high

levels of competition. Major brands such as O2 and T‐Mobile are exploiting the
price sensitivity of customers and in this way they are building a stronger image
and presence in the market. Indirect competition is also increasing further, through
the presence of Skype and other related (not only voice) Internet‐based services.
This combined with the upcoming European legislative measures is expected to
limit further the tariffs for the network providers imposing further need for price
cuts which could harm the bottom line profitability of the company.
Internal Strategic Factor Weight Rating Weighted Comments
Score
Strength-
Strong mobile telecommunication
1)-Wide geographical present operations in Europe, Middle east,
0.15 4 0.6 Africa and Asia pacific

2)-Dominance in cellular Vodafone is one of the largest

market 0.1 3 0.3 Player in cellular market

3)-Global brand strength

0.15 3.5 0.52 Vodafone is world largest brand

4)-Consistent in making 60%

Payout 0.1 2.5 0.25 Vodafone is a global brand with
revenue 35,478£

Weakness

1)-Centralized control
0.15 Due to centralized control there is
3.5 0.52 neglect of local market

2)-Slow growth rate in UK

and Italy 0.15
2.5 0.37 Number of subscriber is
decreasing in Italy and UK

3)-Limited exposure in
emerging market 0.25
3.5 0.87 Vodafone has a limited expose
in emerging market

Total Score
1.00 3.43
External Strategic Factors Weight Rating Weighting Comments
Average

Opportunities-

1)-Booming in Telecom Telecom industry is growing

industry 0.1 3 0.3

2)-Research and development Now Vodafone is launching

of new technologies 0.2 3.5 0.7 4Gtechnologies

Vodafone should focus on

3)-Focus on developing market developing market
0.1 3.5 0.35

4)-Strategic Alliance Vodafone can established

0.1 2.5 0.25 Strategic alliance to develop
customized solution to end-
user
Threat-

1)-Highly competitive market

Telecom industry is highly
0.15 3.5 0.52 Competitive market

2)-Market saturation in Europe Major market share of

Vodafone is in Europe and is
0.1 3 0.3 now saturated

3)- Emerging of low cost brand

Now many of low cost brands
0.15 4 0.6 are emerging

4)The presence of Skype and Due to presence of such

other internet based service 0.1 3 0.3 Internet based service harm
profitability of company

Total score 1.00 3.32

 Internal Factors
External Factors
Opportunities(o)
1-Boom in telecom industry
2-Research and development of
New technologies
3-Focus on development market
4-Stratgic alliance
Threats(t)-
1-Highly competitive market
2-Market saturation in Europe
3-Emerging of low cost brand
Strength(s)
1-Wide geographically present
2-Dominance in cellular market
3-Global brand strength
4-Consistant in market 60% payout
SO strategies
1)-Vodafone should use it’s
geographical present to get benefits of
boom in industry
2)-Vodafone is dominant player in
Cellular market it can make strategic
Alliance with other to provide added
Service to customer
ST strategies
1)- Vodafone is wide geographical
present to overcome from market
Saturation in Europe
2)- It can use its global brand image
To counter new emerging brands
Weakness(w)
1-Centralized control
2-Slow growth rate in UK & Italy
3-Limited exposure in emerging market
WO strategies
1)- Vodafone should focus on
development market, so that slow growth
rate in UK & Italy doesn’t
Effect
2)-Vodafone should use new
technologies like 4G, so that it increase it
market share
WT strategies
1)- It should expose itself to emerging
markets, so as not to saturate in Europe
Only
2)- It will have to adjust cost of service
To counter the threat of low cost brands
 PEST ANAIYSIS

A scan of the external macro-environment in which the VODAFONE

operates can be expressed in terms of the following factors:

Political
Economic
Social
Technological

POLITICAL
Needs to create self regulating controls in relation to content
Public concern

ECONOMIC
Levels of Growth
Company‘s activities
Ethical Values
i. Spam Text Messages
ii. Partnership with Government
iii. Code of Practice

SOCIAL
Adult content
Mobile phone theft
Malicious calls
Text bullying
Blue jacking

TECHNOLOGICAL
Telecommunication
Text messages
Blue tooth Technology
First Generation Technology
Second Generation Technology
Advent of 3G mobile phone Technology
 CORE COMPETENCY OF VODAFONE

Vodafone’s primary aim is to be the world's mobile communication leader

enriching customers' lives through the unique power of mobile communications
and also to maintain the top position in the mobile telecommunications group.
With immense competition Vodafone has so far dominated the market by being the
world’s leader in mobile telecommunications. 
Vodafone, being a global leader in mobile communications is a customer
oriented company. By analysing Vodafone’s overall structure it can be understood
that the reliable innovative services and the customer-centric “passion for
customers” are the core products and are very important for the company. 
Vodafone's capabilities in management and research and development
should also be considered their core competencies because these abilities give them
a source of competitive advantage over its rivals. Acquiring and merging with
companies has allowed Vodafone to grow their customer base internationally. By
investing in research and development, next generation platforms for mobile
telephony for both voice and data allow Vodafone to maintain a competitive
advantage.
Vodafone has a sustainable competitive advantage
Only using valuable, rare, costly-to-imitate, and non-substitutable
capabilities create sustainable competitive advantage. Vodafone had valuable, rare,
costly to imitate capabilities, but these capabilities were substitutable, thus, they
had a temporary competitive advantage. However, if Vodafone finds a way to
successfully differentiate itself to become non-substitutable, it will have a
sustained competitive advantage. This temporary competitive advantage has
performance implications of average returns to above-average returns.
(a) Valuable - Yes
Because Vodafone sticks to what it knows best, mobile telephony, and has not
ventured into fixed line.Telephony or providing content, they created value for
their customers by being the best and most focused.
(b) Rare - Yes
Vodafone's ability to develop innovative technology and successfully merge are
rare capabilities.
(c) Costly to Imitate - Yes
The organizational culture of Vodafone must be strong to successfully complete
mergers and acquisitions, while simultaneously developing innovative technology.
These capabilities have developed over time and the expertise gained will be very
difficult for other firms to develop.
(d) Non-substitutable - No
Vodafone's mobile telephony is substitutable, as evidenced by the high turnover
throughout the industry.
While most organizations have gone the way of outsourcing their
peripheral activities while managing their core competencies in-house, a recent
happening in the Wireless industry seemed to have changed this rule. March 18,
2009 witnessed an announcement from Vodafone that they have decided to
outsource the administration of their large wireless network in the UK to none
other than Ericsson.
Vodafone’s brand image is very evident and has a strong market value,
analysis. As Vodafone has a very strong market value in the UK, the report also
mentions about how Vodafone prepares itself for the future. Vodafone being such a
powerful brand in the Mobile industry, it is hence very important to discuss, in
terms of the strategic planning, management as it will decide the future position of
the company.
 SLEPT ANALYSIS OF VODAFONE

SLEPT analysis is one of these tools and which looks at changes in five
areas:

Social - trends in society

Legal - legal restrictions and considerations
Economic - the health of the economy, inflation, etc
Political - government policy
Technological - developments in computing, etc.

The following sections provide some examples of each factor, which are relevant
to Vodafone.

Social factors

Society is concerned about under 18s being at risk. Parents may have
concerns about their children being contacted (using mobile phones) by
paedophiles or other adults. Society is also concerned about adult content being
available via mobile phones to under 18s. Adult content includes gambling, violent
games, erotic material etc. Further issues related to 'social' include the rise of
mobile phone theft.

Legal factors

Some laws regulate all businesses e.g. The Sale of Goods Act 1974 stating
all products must be fit for the purpose they are intended. A mobile phone must
therefore work. Certain laws are created to regulate particular industries. Examples
include the ban on using holding a phone while driving introduced in 2003.

Independent industry regulatory body:

OFCOM -the Office of Communications. OFCOM is the independent body for
regulating the communication industry - www.ofcom.org.uk.

Vodafone goes beyond government regulation, working with its competitors

in self-regulation. However to retain its leading position in the industry Vodafone
believes it must exceed both legal regulations and industry self-regulation.

Economic factors
 The state of the economy, for example levels of growth can impact
companies. Companies' activities also contribute to the overall economy.
Companies should remain true to their ethical values. If they do not, customers
may question the company's beliefs.

Political factors

Government policy indicates that it wants the mobile phone industry to

create self-regulating controls in relation to content. The government also shares
public concern about unwanted contact and content.

Technological factors

The mobile phone industry has seen a great deal of technological change and
will continue to do so. Mobile phones were originally used for telephone
conversations. Text messaging became available and usage has increased
dramatically. However, most of the texts were between people who already knew
each other and had swapped contact numbers. In other words the users were happy
to communicate with each other.

As technology developed, it has become possible to swap information

between mobiles and other devices via Bluetooth technology. This can be used
inappropriately to send anonymous and unwanted texts. This practice is known as
Bluejacking and can be distressing particularly if the recipient is a child or young
person.

The advent of 3rd generation (3G) mobile phone technology is bringing

with it a richer mix of content and providing more services. This further raises the
issue of ethics as Vodafone (and other suppliers) can now offer a wide variety of
content to mobile phones with this new technology. Naturally, 3G will help the
companies to increase their sales revenues. However, Vodafone recognises that it
brings additional responsibility. This includes the need to protect young people
from inappropriate contact, including violent games, gambling and erotic material.
 Competitive Advantage
C Low Cost High Cost
O B

M R
Differentiation
P O

E A

T D

I Overall Cost
Vodafone
T Leadership
has a cost I N
leadership V A
advantage, asE
it R Differentiation
always focuses on Cost Focus
R Focus
cost reduction.
S O
Here in this
C W
industry the main
focus of the O
competitors Pare of cost cutting. Differentiation is a very low here.
THE BCG MATRIX
E

A H

R I

K G

E H

G L

R O

O W

H H I G H L O W
 ?
Question
Mark
Star
Vodafone
lies in the Star
category as its Cash Dog
generating good Cow
revenue, still
companies have to
do huge investment and the industry has not yet matured. So keeping all factors in
mind we have drawn our BCG matrix.

Conclusion

After doing the whole project we can say that Vodafone has a very huge
market share not only in India but also in the whole world. It has a very huge
advantage on cost leadership. In this huge competitive world of telecom industry
its very difficult to sustain but in the past years we are seeing that Vodafone is
generating a huge amount of profit. It has planed all its strategies’ so well that it
can compete well with its competitors. If they continue to prosper in the same rate
their goal of being a leader in telecom industry will be fulfilled.