3) How does Vodafone appeal to all subscribers across the spectrum- 2G/ 3G/ 4G?
Vodafone can appeal to each of these spectrum as it carters to the needs of
different target groups 2G: It will focus on the limited usage customers as well as rural customers, less competitive. The gap of about 70 million people having mobile but not having internet must be focused on this segment. Cost, Coverage, Low handsets low utility are the barriers for the segment. The focus must be in providing low cost bundles of 2G internet as well as providing utility by VAS like M-Commerce, etc. older 2G networks will be repositioned as machine-to-machine (M2M) and Internet of Things (IoT) networks operated by MSPs, MVNOs, and even large enterprises and utilities. It must concentrate to improve the coverage in low adoption category C markets where the 2g adoption rate is high. The category is important because it is a low cost but a massive segment 3G: Focus will be on providing standard and quality speed at optimal price. This will be focused in the category A and B markets where the 3 G adoption is high and the potential for growth is high. Quality of the service must be of the focus with lesser call drops and buffering. This market would be stable and high margin due to the competition shift after the 4g development. Wide range of the bundles must be done as well as VAS which will drive ARPU 4G: Focus must be on high speed internet with a 3G fall back. Initial broad range of low cost bundles must be introduced to target the 3G to 4G shift with low switching cost. The negative returns, competition and low ARPU must be tackled with Value added services like Video and music on demand services to the customers. Optional 4G upgradation plans for the experience. Develop fixed devices like Dongle and WiFi services for 4g to develop services.
4) What differentiated strategy should VF deploy in its leadership and challenger
markets ? Dominant market: In the dominant markets the focus must be on increasing margins (High ARPU) by introducing wide range of bundles across categories (combining Voice, Data, VAS, etc.) The service must shift from cost based leadership to network quality based leadership. Personalized services, tiered pricing strategy can be done for increasing the market profitability. Investment in alternate technologies like DAS, fiber optics, Wi-Fi networks for faster connections in dominant metros like Mumbai. In current dominant markets like Gujarat, Maharashtra (category A) faster and low cost roll out of 4G for easy customer shift. Challenger markets: Direct low price strategy will lead to collusion with competitor and leads to decreased profit margins. Differentiating strategy focusing on underserved groups based on a review must be done. For high potential markets like UP, Bihar etc. simple low price schemes of lower usage for customer acquisitions (First time customers-2G focus) and acquire additional spectrum acquisitions as they are potent markets. For saturated markets like Karnataka etc., focus on 4G roll out for higher customer acquisitions. For low potential markets like Assam, Himachal, etc., a review the cost structure to become leaner and cooperation between other service providers for additional coverage.