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At VODAFONE plc group

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Index

Business Economics

Business economics at Vodafone plc group

Strategy and process

Strategic management

Strategies at Vodafone plc group

Strategic priorities of Vodafone

International Marketing

International Marketing in Vodafone plc group

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Business Economics

According to McNair and Merriam (1941), “Business

economics is defined as the economic modes of thought

for analyzing business situations”.

Business economics is the integration of theories of

economics with the business practices in order to facilitate

decision making and forward planning by the

management.

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Uses of Business Economics

• Helps in Optimizing resource allocation.

• Competent model building.

• Serve as a integrating agent.

• Focus on social obligations.

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Characteristics of business economics

It is micro in nature.

Principles and concepts of „theory of firms‟ or „economies of firm‟ are employed.

Business economics is concrete and realistic.

Normative in nature, not positive.

It simplifies the relationship between different variables,irrespective of evaluating its benefits.

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Business Economics at Vodafone plc group

Demand analysis and forecasting – Vodafone industry is

estimated to have modest growth in the FY 2012. but,

because of the global slowdown and unfavorable macro-

economic conditions, the level of demand for the existing

and new products may fall.

Production and cost analysis – Vodafone plc group

offers cost advantage all around the world through theirscale and scope. In order to have balance between the

pressure competition and inflation, Vodafone has forayed

cost reduction program of £1.0 billion over 3 years.

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Continued ….

Pricing policies and practices – Vodafone derives pricing

policy from their competitors by taking in to consideration

various factors such as sensitive information about the

prices and costs of the competitors, discounts, rebates and

signing agreements for fixing the product prices etc.

Capital management - Vodafone group has three internal

debt protection ratios are approved by the board i.e.retained cash flow to debt, Net interest to operating cash

flow plus dividends from associates and Operating cash

flow to net debt.

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Strategy and process

Strategy is a detailed plan to attain success, the bunch of

decisions and initiatives, which are chosen to realize the

long-term goals. There are three different level of

hierarchy of strategies and theses are:

Functional Strategy

Operational Strategy

Corporate Strategy

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Strategy formulation process

The strategy formulation process involves 6 main steps:

Setting objectives

Evaluation of Organizational Environment

Setting the Quantitative Targets

Aiming in the context with the divisional plans

Performance AnalysisChoice of Strategy

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Strategic management

Strategic management is defined as recognizing anddescribing the strategies that the managers carry on in

order to attain the competitive advantage for their

organization. Many importance can be availed by

formulating well strategy. Some of the benefits areexplained below:

Reduces aggravation

Formulated on the basis of rationale and logics

Helps in Growth of the business

Show great concern about the future.

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Strategy at Vodafone

The Broader corporate strategy at Vodafone has following

three components:

Sustainable Societies

Eco-Efficiency

Ethical Business

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Strategic Priorities of Vodafone

There are many strategic priorities of Vodafone plcgroup which they aim to excel in the market. Some of them are as follows:

Mobile data

Emerging markets

Enterprise and total communications

New services

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International Marketing International Marketing is defined as that series of

activities which satisfies or accomplish the needs of

individual or groups beyond the boundaries of the nations

It is more complex and complicated in comparison with

the domestic marketing. International marketing involves

four phases i.e. No-direct foreign marketing, infrequent

foreign marketing, regular foreign marketing and the last

phase is international marketing

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International marketing at Vodafone

Same strategies for marketing is applied by thecompany in all geographic locations. Some of thecommon strategies adopted by them are:

To increase dispersion of new data services, i.e. Vodafone live.

Maintaining present customers.

Innovative services or technologies in the process.

To grab the extra buyers. Continuous providing best quality as well as improving

the operational efficiency in Vodafone.

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Marketing strategies of Vodafone

Market penetration

Market development

Diversification strategy

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4 P’s of Vodafone

Product – It deals in messaging and voice services.

Company also sell their own brand handsets all around

the world.

Price – Economical price is charged by the company, butheavy burden of taxes may increase the prices.

Place – It sells their products and services all around the

world through retailers shelves and outlets.

Promotion – In order to attract and retain customers,company regularly offer new packages like, Vodafone

Email Plus, Music Download, and Vodafone PC backup

along with Vodafone 360 store.

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Conclusion

From last so many years, Vodafone is dealing only withthe telecom operations. But due to globalization and aim

to extend their global reach, company adopted

diversification strategy . This strategy was implemented so

as to meet the different perspectives of the buyers in theglobal market.

To cater with the other competitors in the world market,

Vodafone commenced its operations and started providing

broadband, mobile, internet along with financial services

also. The company is now enduring to take grip in the

eleven countries.

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References

Books, articles and Journals

Allen, A.C. 2010. Strategic Management: From Theory to Practice. John

Szilagyi publisher.

Burgelman, R.A., Christensen, C.A. and Wheelwright, S.C. 2008. Strategic

Management of Technology and Innovation. 5th ed. McGraw-Hill.

Plunkett, J. W. 2011. Plunkett's Telecommunications Industry Almanac

2006: Your Reference Source to the Telecom Business. The University of

Michigan: Plunkett Res ltd.

Brady, D. 2010. Essentials of International Marketing. New York: M.E.

Sharpe.

Fifield, P. 2012. Marketing Strategies. 3rd ed. UK: Routledge.

Kleindl, B., 2007. International Marketing. Cengage Learning.

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Continued…

Online references

Ang, R. 2011. Vodafone Global Telecommunications: OptimizingOperations. [Online]. Retrieved from:<http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1861415> [Assessedon 4th Sep 2012].

Bichta, C. 2001. The UK Telecommunications Industry. Available at:<http://www.bath.ac.uk/management/cri/pubpdf/Industry_Briefs/Telecomms_Constantina_Bichta.pdf >. [Accessed on 4th Sep 2012].

Gohring, N. 2006. Competition pressures Vodafone results. [Online].Available at: < http://www.infoworld.com/t/communication-and-

collaboration/competition-pressures-vodafone-results-316>. [Accessed on4th Sep 2012].

International marketing. n.d. [Online]. Available at:<http://www.marketing.org.au/images/cimages/internat.pdf >. [Accessed 4th Sep 2012].

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1861415

http://www.bath.ac.uk/management/cri/pubpdf/Industry_Briefs/Telecomms_Constantina_Bichta.pdf


http://www.infoworld.com/t/communication-and-collaboration/competition-pressures-vodafone-results-316


http://www.marketing.org.au/images/cimages/internat.pdf

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