Vodafone Is the Worlds Second-Largest Telecommunication Company - Essay Example

Vodafone Vodafone is the world’s second largest telecommunication company in terms of turnover. It comes second to China mobile in terms of subscribers. According to its website, Vodafone’s vision is to be the world’s mobile communications leader. Vodafone lists a number of goals which it aims to achieve so as to remain profitable and also ensure long term improvement of the markets in which it operates. Top on the goals of Vodafone is to keep its customers connected at an affordable price. To achieve this goal, Vodafone has several products and services that serve its technology savvy clients. The work smart product enables its business customers to have a mobile office and transact business while still on the move. This is made possible by the firm’s wide array of smart mobile phones and fast internet speeds. The firm joined hands with technology giant Research in Motion to offer the famous blackberry to its executive clients. To cater for the youth market which is keen on social media, Vodafone has in its store touch screen mobile phones such as the HTC, Samsung Omnia, as well as the hugely popular iPhone 3GS which is coming soon. By offering all these products and services Vodafone ensures that no part of the market is left behind hence meeting its goal of keeping its customers connected. Corporate responsibility is another goal of Vodafone. In all the markets that the firm operates, it takes part in charitable events in support of worthy causes and also assist the less privileged in the society. Vodafone integrates its business strategy with the corporate strategy so in order to better meet the needs of its customers. In carrying out the corporate responsibility, Vodafone first engages with the stakeholders so as to understand what they exactly need. The company then implements its corporate responsibility and reports its success to the stake holders. Business strategy. The ultimate goal of any organisation is to increase profitability hence maximizing shareholders value. There are a number of business strategies that multinationals use to remain significant in a highly competitive market place. Vodafone operates in at least 31 countries spread in 5 continents. In order to make presence in more markets the firm has created a partnership with other networks. This has seen its brand visibility extend to some other 40 countries. Expansion in emerging markets. A firm cannot become a global leader if it only sticks to its traditional market. While a firm faces potential risks in new markets, it is always the best bet to increased profitability and global presence. (Vesa 2008). Vodafone realised this and this is why it has launched an aggressive expansion strategy especially in emerging markets in Africa and Asia. To this end, Vodafone extends communication opportunities to people who did not have similar opportunities before. Vesa (2008 p.78-79) notes that by extending its business to new markets, Vodafone together with its affiliates always has first mover advantages. For example in “East Africa, it successfully launched the biggest and most profitable mobile phone company in partnership with the Kenyan government”. Vodafone has also successfully entered the Indian market, Australia and New Zealand market. Building partnerships. Vesa 2008 observes that Vodafone has unique way of entering new markets without exposing itself to too much risk. It creates partnership with local networks to launch operations in market it considers potentially rewarding. In the United States, it started a partnership with Bell Atlantic to form the largest mobile provider Verizon wireless. In the Middle East and Africa, Vodafone has continued to increase its presence courtesy of its business strategy of working with local partners. In Egypt it partnered with Egypt Telecom and today it’s the largest share holder in Vodafone Egypt. In Kuwait Vodafone also formed a partnership with MTC and this saw the local mobile provider with substantial interests in Bahrain called MTC-Vodafone. Brand strength. Creating a strong brand in all the markets it serves is always at the heart of Vodafone’s business strategy. According to Vodafone’s website, it achieves this by building trust by delivering services beyond customer expectations. To maintain a strong brand in the mind of consumers, Vodafone strives to have a passion for customers. Having a passion for customers means Vodafone first understands the needs of the customers and then designs and delivers products that satisfy the needs. Passion for employees is another key pillar of Vodafone. It recognizes talent which is the hallmark of Vodafone business. This is why the firm offers employment opportunities to the local population in the market it serves. Finally Vodafone has a passion for results and the world in which it operates. A passion for results ensures that it offers the best services and thus creates trust among its customers. Finally Vodafone makes life better for the people by providing excellent services and at the same time taking part in activities that positively impact on the surrounding environment. Importance of innovation. Vodafone invests a significant amount of resources in trying to do research on the possible future business environment. It tries to understand the dynamic consumer needs and how it will effectively meet them. In partnership with China Mobile, Verizon wireless and Softbank Mobile, the firm formed the Joint Innovation Lab which is tasked with carrying out research and coming up with more innovative mobile services which will better serve its customers. The Betavine is a project spearheaded by Vodafone and it provides an online forum for experts to discuss the future of wireless and internet communication. It also tests new mobile and internet application. Vodafone engages in this business strategy so as to remain competitive in the future. A look into the future. Finally Vodafone pays close attention to what the business environment has in store for global players in the next decade. For instance what are the financial challenges that are likely to affect business operations 10 years from now? It also looks at the potential effect of formation of trade blocs as well as improved transport and communication networks around the world. All this is aimed at ensuring that Vodafone remains a competitive global player now and in the future. Reference: Vodafone 2009, Leading the way in mobile innovation. Viewed on November 23, 2009. http://www.vodaphone.co.uk/dispatch/Portal/appmanager/vodafone/wrp?_nfpb=true&_pageLabel=templateBlank&pageID=VIRTUAL_HOMEs Vesa, J 2008, Mobile services in the networked economy, Idea Group Inc (IGI, Hershey, PA. Read More