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 weaknesses and threats.
Vodafone Strategy Case Study
Key Learning Outcomes
- Understand the broad macro-environment of Vodafone and the UK telecommunication sector in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
- Use our swot analysis example to gain an overall understanding of Vodafone's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
- To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.
Analyse the macro environment of Vodafone and the UK mobile telecommunications industry using pestle followed by a Vodafone Swot Analysis.
- See also, Vodafone Porters Five Forces 2019
Founded in 1982, Vodafone is UK’s third biggest telecommunication provider and a part of Vodafone group, the world’s second largest phone company. Headquartered in Newbury, Vodafone offers a range of telecommunication services including; mobile telecommunication networks offering cellular phones, tablets, mobile internet services, applications among others. The company operates in over 26 countries with at least 444million customers globally and 19.5 million in the UK.
As of 2017, Vodafone’s annual revenue for the three months ending March fell £8.4 billion to £6.9 billion due to the struggling UK telecommunication business (Statista 2018). Never the less its operating profit increased from £3.7billion to £5.1 billion (Yau 2017). Vodafone UK commands 21% market share after BT and O2 with 28% and 26% respectively.
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