Case study ----- Vodafone
Group Members: Tao Gu 1461379
Jia Guo 1463305
Yi-Chieh Li 1490606
Chenya Lian 1474013
Yang Li 1429174
Date: 28/04/2015
INTRODUCTION (Yang Li)
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1. Identify strategic issues--MBV, RBV, OBV, Corporate, International (Yang Li )
2. Identify key strategic issues—Key issue 1. (Chenya Lian) & Key issue 2. (Jia Gu
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3. Recommendation—1. (Chenya Lian) & 2. (Jia Guo)
4. Action plan—Plan1. (Yi-Chien Li) & Plan2. (Tao Gu)
5. Conclusion(Tao Gu)
Strategic Issues ( Yang li )
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1. Government’s privatization breaks down BT’s monopoly.
2. Slower economic recovery poses a threat to the market growth.
3. Facing a challenge to keep continued upgrading technology and speed.
4. The fierce competition among operators in UK market.
5. Underperformance in European market and which has been saturated.
6. Financial risk and instability.
7. Lose stronger position and leadership in telecom industry.
8. Has no advantage in price.
9. Price does not perfectly match up with the service.
10. Facing intensive price competition in emerging markets—India
KEY ISSUES: 1. lose dominant position in t elecom industry (Chenya Lian)
Why ?
• Fierce competition among rivals ( Porter’s Five )
• No obvious competitive advantages in both price and s ervice ( Resources & Capabilities )
• Price does not perfectly match up with the service. (Val ue Chain)
• Lose market share (PESTEL)
• Lagging behind other innovative operators( EV forces )
Recommendation 1 (Chenya Lian)
• Improve customer loyalty
• Strategically expand overseas market
• Reduce capital investment
Action Plan 1 (Yi-Chien Li)
Short-term : 1. Implement differentiation strategy
2. Set a reasonable and attracting price
3. Close or sell unprofitable stores
4. Develop innovative products
Long-term: 1.Collaboration with some related industries
2.Create new value-added services
3. Employee training program
KEY ISSUES : 2. Underperformance in Eu ropean markets (