INTRODUCTIONThetelecommunications industry has become a dynamic key area for the economicdevelopment globally.
It is a huge industry, including companies makinghardware, software and other services provided. This industry was started inthe nineteenth century, the beginning was the telegraph and developed throughtelephone and then internet. Products like telephone handsets, videobroadcasting satellites, fiber optic cables etc. comes under hardware. Softwareis what all makes it work, from sending and receiving mails and SMS to allother applications used till now. Different services include different top up plans,internet services, international calls etc.VodafoneGroup Plc Is aBritish multinational telecommunications company which startedwith its first mobile call on January 1985. Their Headquarters is located inLondon to serve their customers across 30 countries worldwide.
It is rankedfifth in by the income and second in 2016 for the total number of users whichis around 469.7 million connections. The company was the first one to introducethe world’s first international roaming call in 1991 and recently came out witha new idea which was to send and receive money easily using mobile phones.The UAEis a country with strong expanded economies and financial backing that attractsthe foreign investors towards the country. The upgrading of the UAE to emergingmarkets will move forward their relative attractiveness around the regionalmarkets. As stated by the industry analysts, by 2017 there willbe 1.
7 billion new mobile users around the world and the greater part will befrom the emerging markets, which means 77% of the users will be from these businesssectors. Growth in the industry has been dramatic in any measure and expect tosee much more growth in 2017. Vodafonegroup Plc Offers different range of products and services which includesvoices, messaging, PC connectivity services, Mobile broadband devices, mobilehandsets and other unified communications solutions.
Vodafone has alsocommenced to the production of mobile phones, launched their very firstsmartphone in December 2011. The phone came with a base specifications of2.80-inch touchscreen display, resolution of 240 pixels by 320 pixels. Thenthere was the smart ultra 6 model, known as the best affordable phone of itstime. The most recent model is the Smart V8 with some new striking featureslike 5.5-inch, 1080p LCD display, 3 gigs RAM, 16 MP rear camera and 8 MP frontfacing one.
Vodafone also offers mobile phones of different brands includingiPhone and Samsung with monthly installment packages and other pay as you godeals.INDUSTRY’S DOMINANT FEATURESThecommunication market is growing day by day as the technology increases whichleads to the increase in number of users. As seen in the statistic (Figure 1) there are millions ofVodafone users around the globe, they have their own and partnered operationsin more than 30 different countries. The company owns a remarkable share oftelecommunications markets in the countries which it operates.
Vodafone totallyhas a high proportion of market in South Africa where it owns 50% of theVodacom, one of the leading company in the country. Since 2009, the company hasconstantly generated over 60 billion US dollars annually and the brand wasranked fifth amongst the most valuable telecommunications brands in the world2016. AT &T, Verizon, china mobile and Deutsche Telekom were the otherbrands ahead. Vodafone also has a large number of employees scattered aroundthe world. In 2016, the company had overall more than 111,600 employees workingin different operations. Vodafonefaces some extraordinary high rivalry from the competitors due to low callrate. In addition, competitors provide different advanced products and servicesto the customers. However, the switching cost from both developed and emergingmarkets is low and the company should have a differentiation strategy to keepback their customers from rivals.
In Europe where the number of users areextremely high, value added services were the key differentiators there thecompany launched their cloud computing services and Vodafone 360 in the market.India is one of the highest growing mobile markets around the world whileVodafone and the other telecommunication companies like Airtel, Idea, Reliance,and BSNL are facing extremely strong price competition because of the lack ofdifferentiated services.All theproducts and services in the market passes through four stages of life cycle:Introduction, growth, maturity and decline. The life cycle concept can be usedto examine the category of product, a product form, and brand value. It dependsupon the present demand of a product in the market and the growth potential infuture along with many other changes that take place during the evolution ofproduct and capability of the producers. Vodafone is in the growth stage asthey are bringing out new products and services day by day. There are many moreproducts and services yet to come in the industry. Therefore, the market is notsoggy in terms of services and the innovations are going continuously.
From theresearch we can see that Vodafone uses long term strategies to gain theirsuccess. They have changed their marketing and financial strategy in past fiveyears, have introduced different new products in existing markets to gainsuccess. Vodafone’s worldwide sponsorship strategy has conveyed a solid set of results overevery Vodafone markets. Central sponsorship assertions, as wellas the UEFAChampions League plus the label sponsorship ofthe Vodafone McLaren MercedesF1 group, have bolstered different business targets and empowered Vodafone to offercustomers through differentiating brand and product encounters. POTERS FIVE FORCES THREAT OF NEW ENTRYWhen anew firm emerges to a new market it should be capable to handle the constraintsand obstacles which the will face in the new market. Being UAE one of thebusiness hub on the globe and the telecom industry been owned by government andentry of virgin telecom is a right time to emerge into the market as thetelecom industry was duopoly over in UAE.Highlevel of efficiency and effectiveness makes the Vodafone to enter in mobile industry of UAE as serviceproviders are unattractive.
And less incompetition comparing to other markets.Vodafonemust continue to reduce cost below of other service providers in UAE so thatthe gain the market share and attractmore customers. COMPETITOR RIVALARYCompetitionmakes a business grow and bring up new ideas and strategies to compete with therivals so that the can beat the competitor and gain the market share, Vodafoneshould be more innovative and adaptive to change with the phase of advancetechnologies so they can excel in the market.Toughcompetition with the other competitors in providing offers and value to thecustomers. Vodafone should conquer the market through reducing the price andproviding good offers and value to the customers along with competition. SUBSITUTESAsmentioned UAE was a duopoly by having only 2 telecom providers namely du andEtisalat by the launching of the virgin mobile it created other telecomindustry to try their luck in UAE market which helps Vodafone to come into themarket with their product and services to the market.
Costleadership strategies makes it difficult to compare substitute to be producedat a reasonable price,Efficientand effective utilization of resources for profit maximizing and market share, Purchasingpower and engrossment of short termprice generates revenue from suppliers which is been extinct to the end users. BUYERS POWERCustomersare the king of the market, they have the buying power and the decision isbased on their buying power what to buy and what not to. Earlier due to duopolythere was only two choices for the customers in telecommunication.
By thecoming of virgin and Vodafone it helps the customers to right to choose amongthe network providers.Hugepurchasing power can cut down the prices of cost leaders.Vodafonecontinues the attain profit share that of the other competitors in the market. SUPPLIERS POWERVodafoneoperates the achieve a profit margin than of the competitors and allows to getprice that rises with the suppliers more likely than its rivals, so that thecan the target market and customers.Due thehuge market share of Vodafone can bring the rivals cost lower and could attainprofit even the competitors are gaining marginally less return. RESOURCES ANDCAPABILITIESValueValuableresources and capabilities of Vodafone enables a firm to exploit an externalopportunity and reduces external risks and threats.it helps in boostingVodafone’s value. RarityInnovativeand adopting new strategies for the development and successful merging are oneof the rare capabilities of Vodafone rare feature.
InimitabilityAchievementsgained over a period of time such as expertise gained or strategies implementedare hard to imitate or develop by the competitors. Firms lacking to attainresources may face high cost in order to achieve the target market comparingwith the rivals such as du or Etisalat. Opportunity Firmsshould be well organized in such a way that operations should be effective andefficient so that the can exploit the market in full potential strengths sothat it can compete with the rivals. ISSUES OF CONCERN IN THEINSTITUTIONAL ENVIRONMENTVodafoneis considered as one of the world’s best telecom organization. It has itsbusiness in Europe, India and numerous different countries or region. Vodafonehas made its place in the worldwide world.
It has it’s headquarter in Newbury,England. Vodafone is the organization that is the world best media transmissionsupplier. It has the best market estimation of around one hundred billionpounds. It has its business in more than thirty nations and is extending itsbusiness with an awesome pace.
With the organization with nations in variousareas, Vodafone has been profiling the system. As Vodafone has been a worldwideorganization, there are sure outside elements that should be considered toassess the achievement of the organization. Political Factors Thepolitical elements are especially powerful in the method for the advance of theorganizations like Vodafone as it needs to create foundation for theorganization to be operational in a specific state. The organization is subjectto the political situation of the nation in which it is working. In any case,there are sure things like the tranquility of the state and the politicalflimsiness which laid direct effect on the organization. A nation withpolitical unsteadiness turns into a war inclined zone and the foundation ofgood framework for the system turns into a tedious undertaking.
It could brokedown from the illustration that the current clashes in Europe have incrediblyinfluenced the organization in general. Economic Factors This isone the essential measurement for the organization like Vodafone. The more thestates will build up the higher are the odds of the organization to grow andopen its new units in the recently created zones. The great GDP of the nationimplies that the general population has more wage and will be more inclined inadjusting the most recent correspondence innovation.
Along these lines, thegeneral benefit of the organization will be expanded and the organization willdependably be in a position to grow all inclusive. In addition, the generalfinancial emergency the world has been looking lately has additionally animmediate effect on the organization like Vodafone. The worldwide vulnerabilityhas rolled out the organization to improvement its methodologies occasionally. Social Factors Theseeffects are absolutely in light of the nearby convictions and culture of thegeneral population in which the organization is working. This is anexceptionally powerful area and for the achievement, the organization must showadaptability in its arrangements relating to the nearby culture. Vodafone isessentially a simply European organization however it has changed itsinclinations and the related approaches according to the nearby social factorsin which the organization is being worked.
Technological Factors Vodafonehas been popular on the planet for its advancement. Vodafone has its main goalto dependably take after the contemporary patterns in the mechanical andcorrespondence circle. There are many opponents of Vodafone now. It is occupantfor the organization to venture out in front of the innovation.
The itemsVodafone is creating are for the most part mechanical related so it is one of abasic factor which the organization needs to keep in see while chalking out theapproaches and evaluating the inevitable propelling of gadgets and thehighlights of the gadgets. Vodafone has been the innovation driven organizationand concentrating on the most recent patterns of innovation ought to have beenthe central proverb which the organization ought to take after. Legal Factors For theworldwide organization like Vodafone which has many opponents. Vodafone must beespecially cautious about the legitimate issues like duplicate and otherpilfered issues. States has commonly censured Vodafone for the legitimateissues relating to the circle of framework. In this viewpoint, Vodafone needsto confront numerous punishments. Aside from this multiple occasions, Vodafonehas been blamed for not paying much to its workers when contrasted with itsopponents.
The individual working in Vodafone regularly leaves and joins theadversary organizations, which boosts the dangers of spillage of creativethoughts. Vodafone should chalk out some legitimate ties in this point of view.In addition, Vodafone ought to dependably comply with the legitimate issues ofthe space keeping in mind the end goal to expand the clients and to keep up apositive picture in the market which will dependably help in picking up thetrust of the clients. Environmental Factors Withthe ascent of globalization, individuals have turned out to be increasinglymoral and morals situated. The shoppers dependably anticipate from their mostloved brand to be socially capable. They generally need from their image toassume a crucial part in the advancement of the general public overall. Theworking states of the organization should likewise be adequate to pull in thebest of the people to be the piece of the Vodafone family.
Vodafonehas been an organization which is exceedingly powerful in nature. Keeping inmind the end goal to keep up the market and extend the system, Vodafone oughtto dependably consider the previously mentioned actualities and examination.These outside, and additionally inner variables are the real fixings in theachievement of the organization. They unmistakably characterize the motivationthe organization should take after to stay away from the disappointment. SWOT analysis Vodafoneis the world’s second largest telecommunication provider with around 435million subscribers in 26 countries around the globe. The company has created agood brand image with their best services among the customers. Accordingto the report, one of the main drawback faced by Vodafone will be that it isnot introduced to the UAE market now and there can be several issues due to thelate entry to the market competing with two huge public sector competitors. But, when the company is introduced to themarket there can be a vast number of opportunities if cooperated with any ofthe existing network providers.
UAE is a country with high percentage of youthsand working class people, providing different offers at reasonable cost canincrease their sale as well as brand value. The brand will have to come up withbetter technologies and cut down unfair prices by other competitors. STRENGTHS WEAKNESS OPPORTUNITIES THREATS · Brand Image Vodafone has not explored UAE market. Partnership deeds with existing network providers.
Advance technology should be used to compete. · 2nd in the world in telecommunication. Two public sector competitors. High percentage of youth and working class. Internet services should be boosted. · High growth strategy. Late entry may cause high cost to establish and gain market.
High cost of offers in Du and Etisalat. Cut down the unfair prices in promotion and offers. MODE OF ENTRY ANALYSIS Vodafonewas founded in 1982 through the joint task ofa United Kingdom electrics company Racal Electronics Ltd anda US communications corporation Millicom (15%) and theHambros generation trust (5%). In December 1986, RacalElectronics offered out Millicom and Hambros from Vodafone for GB£ onehundred ten million. In 1988, the business enterprise was renamedas Racal Telecom. (History of Vodafone) via fears ofthe enterprise being hammered on the stock markets anda need to beautify the business resultedin a floatation of 20% of the employer. (Vodafone group plc.
)This floatation valued Racal Telecom at GB£1.7 billion. (Records ofVodafone)Despitethe fact that Vodafone set upsuccessful companies in many countries global, one ofthe most success markets that we looked at wasinto the UAE marketplace.With only two telecomoperators licensed within the UAE at gift – Etisalatand du – the introduction of Vodafone will cause uncertainty onhow the marketplace will operate. UAE is one of the mostactive markets in the world and one ofthe international’s leading mobile markets, nownot simplest in terms of length however additionally in terms ofinnovation and its ability to be early with the introductionof advanced technologies. As theUAE market is one of the superior markets, it will be an attractive alternative forVodafone.
It is miles characterized with the aid of distinctly low levels ofpenetration compared to Europe and has only two countrywide operators competing. Likemany other western European enterprises, recognized UAEas an ability marketplace a long term in thepast but took its time in entering the foreign market.Modesof entry into a new marketplace are the channels which the enterprise employsto benefit access to a new global market place. righthere we may be thinking about modes of entry into theUAE market which includes the Exporting, Licensing, franchising, international distributors,Strategic Alliances, Joint Ventures, distant places Manufactureand international sales Subsidiaries. ExportingExportingin telecommunication industry canbe described as income of telecommunication equipment or services that pass nationalborders.The import and export of telecommunication devices conforms well toour conventional understanding of alternate as buying and selling.
LicensingLicensingis the business enterprise prices a rate and/or royaltyfor the use of its generation, and expertise. It includesfranchising, in which the company offering branding, principles, expertise, andin fact maximum sides which might be needed tofunction in an overseas marketplace, to the franchisee. Joint ventureThe UAEis an Islamic jurisdiction and Islamic Sharia law is the main source oflegislation. There are free zones within the seven Emirates, with laws whichare passed by the relevant Emirate but limited to the area within the freezone. The most notunusual options for overseas companies settingup a business are both a constrained legalresponsibility agency (LLC) and a free zone entity.Overseas groups can either sign up anew company inside the form of a free zone establishment (FZE),a free zone (FZ Co)or genuinely establish a representative office or department intheir current or parent company primarily based withinthe UAE or overseas.
Accordingto the UAE law, foreign companies interested to start their business in UAE hasfive options;effect a permanent establishment, concerning which inthat place areseven specific types; establish a branch office;create an entity UAE uninterrupted zone; create a non-military enterprise(only in Dubai and Sharjah); or enter into business company agreement. FINAL RECOMMENDATIONAs thetelecom market in the UAE is growing and competitive we would suggest Vodafoneto do justice on their offers and promotions by providing different plans andrates for customers like students, working class entrepreneurs and so on.We would say data packs should be made available with competitive price thanthat of du or Etisalat and various plans such as student plans with lowrates to customize our plans to entrepreneur or working people depending ontheir daily or monthly usage.
Availability of home network and home telephones.Introduction of CDMA phones for people who can’t afford high end phones. Tariffsand rates should be low comparing to the rivals offers on usage like for individualcustomers should be given offers on their usage graph. REFERENCES· Vodafone.com.
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Khaleej Times – Telecom. online Available at:https://www.khaleejtimes.com/business/telecom/ Accessed 27 Dec. 2017. Appendix (Figure 1)