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Report - Essay Example

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Report Key purpose of this paper is to design an e-business proposal for Vodafone, which is one of telecommunication giants in the world. In the first part of this essay, the paper will present brief overview of the selected organization, in the second part; the study will use academic theories to understand the depth of the research problem and in the last part, the study will propose a coherent e-business proposal for Vodafone which can reduce their cost of operation…
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Download file to see previous pages... The company is headquartered at London, United Kingdom. The telecommunication giant started its operation as Racial Telecom in the year 1983 but the British telecommunication company changed their name to Vodafone in the year 1991 (Vodafone, 2012). The company has established its presence in continents like Asia, Europe, USA, Oceania and Africa. Total employee base of the company is more than 80,000. Global subscriber base for the company is over 350 millions (Vodafone, 2010). Vodafone focuses on developing its product portfolio in periodic manner in order to meet multidimensionality of ever changing consumer demand. For example, the company has implemented new facilities such as shopping order tracking from mobile phone in order to attract attention of online shoppers. The British telecommunication company faces competition from companies like BT Mobile, One Tel, Virgin and many others. Vodafone has earned sales revenue of $71.81billion in the year 2012 and market capitalization of the company is $ 127.18 billion (Yahoo Finance, 2013). Telecommunication industry in the world is going through a transitional phases, telecom companies are slowly moving towards synchronizing internet service with telecom services altogether in order to meet customer demand. Three key trends of the industry have forced telecom companies to rethink about adopting e-business model in order to reduce the cost of providing service. Evolution of Internet Entrust (2001) has reported that, internet usage in B2C & B2B transactions will increase threefold in next 15 years, which means by 2015, e-business will contribute more than half of the global transaction. Demand for Data BBC (2011) had reported that global data demand will rise to more than 400 exabytes within 2013 and companies need to use online business model in order to store such huge databases. Social networking, web browsing and online shopping produce huge amount of data, companies need to use the online platform in order to channelize these data properly for generating revenue. Demand for Convenient Service In modern world, both B2B and B2C customers prefer faster and convenient transactions in order perform strategic and non-strategic functions. These customers want to be empowered with faster internet access and real time data monitoring, telecom companies need to implement e-business model in order to fulfil increased demand for convenience among mobile users. The essay will propose a holistic e-business model for Vodafone. Next part of the essay will discuss theoretical framework of the proposed e-business model. Research scholars such as Dierickx & Cool (1989), Rumelt (1986), Grant (1991) and Barney (1986) have argued that, firms need to increase their resource capability such as technological integration capability, developing tangible assets etc in order to achieve sustainable competitive advantage over competitors. Porter (1980, 1985) had stated that, companies need to use competitive advantage as a source for ensuring sustainability of business operation. It is evident from the scholarly works of various research scholars, ...Download file to see next pagesRead More
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