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Strategic Management: Vodafone China

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Strategic Management: Vodafone China
Strategic Management: Vodafone Group

YunBai

9th January, 2011

Introduction

With the exceptional growth of cellular communications since the late 20th century, the trickle down impact on other sectors, society and economy at large is enormous. Dynamics of communications have strengthened the development of the entire information technology industry, enhanced economic growth and allowing better social interaction over expansive zones.

Currently, there are about 3 billion users of cell phones globally. Most of these users are found in western world. Nevertheless, 70% of the projected growth is predicted to take place in new markets, especially India, China, Asia and Africa. The challenges and opportunities faced by telecommunication companies in emerging markets are totally distinct from those in established markets like Europe.

The company in which this work is going to focus on is Vodafone Group. It is operating the biggest telecommunication network in the world with its presence in both mature and emerging markets. The main aim of this paper is to identify corporate strategy used by Vodafone Group and detailed analysis of this strategy using the existing analysis tools. At the end of this document, such tools as SWOT, PESTLE and Five forces will have been used.

The name Vodafone is coined from Voice data fone and it was selected by the company to portray the provision of both data and voice services using mobile phones. The company’s goal is to become the communication leader in an ever rising connected world. For it to achieve this mammoth goal, Vodafone has expanded its product portfolio beyond conventional basic services of SMS and calls by incorporating the following services:

Vodafone Office and Vodafone At Home (an integration of both fixed and mobile communications services).This product is geared towards meeting the



Bibliography: ‘Call Alert: Vodafone Seen as a Takeover Target’ 2006, The Economic Times. Retrieved January 9, 2011 from http://economictimes.indiatimes.com/articleshow/1515104.cms ‘Significant Transactions for the Year Ended’ 2006, Vodafone Group, Retrieved January 9, 2011 from http://www.vodafone.com/article/0,3029,Category_ID ‘Strategy’ 2006, Vodafone Group, Retrieved January 9, 2011 from http://www.vodafone.com/ section_article/0, 3035,Category_ID ‘Telecom Giants have Different Branding Strategies’ 2006, Intangible Business Retrieved January 9, 2011 from http://www.intangiblebusiness.com/Content/1194 Barney, J 1991, ‘Firm Resources and Sustained Competitive Advantage’, Journal of Management, 1991, vol Damodaran, A 2008, Strategic Risk Taking, Wharton School Publishing, New Jersey Higgins, J M & Vincze J, 2009, Strategic Management: Text and Cases, 4th ed., The Dryden Journal of International Business Studies, 1992, vol. 23, no. 2, pg. 311‐331) Schröder, P W 2006, ‘Impediments to effective risk management’, Perspectives on Strategic Homewood, Illinois TIOB, 2003, Strategic Marketing Management, Central Printing Works, Dar es Salaam

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