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Vodafone and the Use of Internet - Essay Example

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Vodafone and the use of internet Executive summary Vodafone Group Plc, the UK based multinational telecommunications company, is currently the world's largest mobile telecommunications firm on the basis of revenues. It was formed in 1982 as a subsidiary of Racal Electronics Plc and it became the largest mobile network in the world in 1987…
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Download file to see previous pages As it operates in the telecommunication sector, it has optimal internet applications and those applications heighten its power, even while nullifying the threats. It uses internet not only for its operations but also as part of marketing tool, with its website being its main marketing tool. Vodafone UK’s Website is aptly designed providing detailed information about its products and services, but still more interactive can be incorporated. Its B2B model is working aptly benefiting both them and their partners. From ethical angle, Vodafone has included restrictions on adult content for children, so they do not become morally corrupt. Thus, Vodafone’s e-business initiatives through internet are working effectively, with need for only few optimization strategies. E-Business background Vodafone is the world’s largest firm in terms revenues earning more than 45 billion pounds and is the second-largest in terms of subscribers having close to 450 million subscribers as on December 2011. (Vitorovich 2012). In all those operations, internet technologies played and are playing optimal role in Vodafone. Vodafone’s major e-Business achievements include launching the first prepaid analogue package in the UK in 1996, acquiring the largest 3G license available in the UK by 2000 and launching their 3G service in 2004. (Further examples in Appendix A). In terms of services, Vodafone offers Mobile Broadband, Pay As You Go, etc. (Appendix B). As far as products are concerned, Vodafone do not build the phones paired with their service contracts, instead they collaborate with certain manufacturers to create Vodafone-branded phones. According to the Porter’s 5 Forces analysis (Complete analysis in Appendix C), the suppliers of Vodafone have less bargaining power due to the availability of similar handsets from many different manufacturers. On the other hand, the buyers have more bargaining power in relation to Vodafone because with strong alternatives, they can switch to new networks without major financial burden. In addition, with internet offering the buyers the option to compare the various service providers or competitors and their services, buyers have sizable power. (Campbell 2007). There is a fairly low threat of new entrants thanks to the high costs and infrastructure including IT related ones required to compete with the big providers like Vodafone. (Thiele, Blakeway and Hosch 2010). There is a threat of substitutes in the form of mobile internet and the related services like Skype for phone calls, and other social networking options like Facebook, mails, etc., for other communications, but still there will be adequate space for Vodafone to operate. Vodafone faces high competitive rivalry from O2, 3, Orange, T Mobile, Virgin Mobile, Asda Mobile, etc. as they offer internet enabled services and products with good features and at competitive prices. E-Marketing analysis As part of e-marketing, Vodafone carry out optimal marketing strategies through various mediums particularly the internet. With internet as the ‘foundation’, Vodafone does e-marketing through its official websites, other Third Party websites in the form advertisements, press releases, etc., and also through social networking websites. Personalization: The Vodafone’s official website features all its products and services, as well as the benefits of using them, thereby providing the customers to personally choose what they ...Download file to see next pagesRead More
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