Vodafone Case Study
Vodafone Group:
Strategic Approach
November 28, 2010
Leo Welch
Strategic Management
Professor Brad Bridges
Company Overview
Vodafone Group is a global telecommunications company headquartered in Newbury, United Kingdom. It is the world’s largest mobile telecommunications company measured by revenues. Vodafone has more than 150 million proportionate subscribers operating networks in 16 countries and has partners in over 10 additional countries. Vodafone boasted a market capitalization of $166 billion making it the eleventh most valuable company in the world. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States. The name Vodafone comes from voice data phone, chosen by the company to reflect the provision of voice and data services over mobile phones. Key Performance Indicators for Judging Strategic Performance To evaluate Vodafone’s performance and determine the effectiveness and success of its strategy the following balanced scorecard elements must be measured and tracked. The tracking of these elements will serve as financial and strategic controls so when performance is found to be lacking corrective action can be taken to secure a sustainable competitive advantage. * Net subscriber gain/loss (total # of subscribers) * Blended Customer Churn Rate * Average Monthly Revenue per User * Service Revenue * Non-Voice Services as a % of Service Revenue * Voice Usage Volumes * Net Acquisition Costs * Net Retention Costs * Upgrade Volumes Market conditions are challenging in the mobile telecommunication industry in particularly in the mature domestic market of the UK and the Euro zone. However, expansion possibilities exist in developing economies and should be explored. To capitalize on existing market dominance and share, Vodafone should cut costs and focus on customer retention. Core Competencies Vodafone has competitive advantage because it focuses
Strategic Approach
November 28, 2010
Leo Welch
Strategic Management
Professor Brad Bridges
Company Overview
Vodafone Group is a global telecommunications company headquartered in Newbury, United Kingdom. It is the world’s largest mobile telecommunications company measured by revenues. Vodafone has more than 150 million proportionate subscribers operating networks in 16 countries and has partners in over 10 additional countries. Vodafone boasted a market capitalization of $166 billion making it the eleventh most valuable company in the world. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States. The name Vodafone comes from voice data phone, chosen by the company to reflect the provision of voice and data services over mobile phones. Key Performance Indicators for Judging Strategic Performance To evaluate Vodafone’s performance and determine the effectiveness and success of its strategy the following balanced scorecard elements must be measured and tracked. The tracking of these elements will serve as financial and strategic controls so when performance is found to be lacking corrective action can be taken to secure a sustainable competitive advantage. * Net subscriber gain/loss (total # of subscribers) * Blended Customer Churn Rate * Average Monthly Revenue per User * Service Revenue * Non-Voice Services as a % of Service Revenue * Voice Usage Volumes * Net Acquisition Costs * Net Retention Costs * Upgrade Volumes Market conditions are challenging in the mobile telecommunication industry in particularly in the mature domestic market of the UK and the Euro zone. However, expansion possibilities exist in developing economies and should be explored. To capitalize on existing market dominance and share, Vodafone should cut costs and focus on customer retention. Core Competencies Vodafone has competitive advantage because it focuses
References: Hitt, M., Hoskisson, R., & Ireland, D. (2009). Strategic management: Competitiveness and Globalization. Mason: South Western South University: “Online Lectures” 2010.Strategic Management. Accessed November 28, 2010 from http://myeclassonline.com/re/DotNextLaunch.asp?courseid=4620444