Vodafone Pestle and Swot Analysis 2019

By: Prudence Magezi

Vodafone is UK’s third biggest telecommunication company commanding 21% of the market share, serving approximately 19.5million customers in the UK. Currently, all is not well with the company, the company has been struggling majorly due to the UK’s challenging telecommunication sector and growing competition. As of 2017, the company’s revenue declined from £8.4 billion to £6.9billion the biggest decline since 2015. Some of Vodafone’s biggest challenges include changing political and legal environment of UK in recent years. Vodafone is also faced by the challenge of growing competition from OTT operators and other independent providers which is affecting the company’s revenue. However, the company has been able to maintain its profitability through its innovations especially IoT which experienced a 7.2% increase in 2018 to £747 million due to the growing number of IoT sim connections. Despite the fall in revenue, the company’s profits grew from £3.7billion to £5.1 billion. Using PESTLE, the author will examine threats from economic, social, technological, legal and environmental issues while identifying the available growth opportunities in the market. We will then use SWOT analysis to examine its key strengths and weaknesses and how it can use these strengths to mitigate its inner weaknesses and threats.

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