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Latest posts by Prudence K. Magezi(see all)

    Vodafone is a provider of telecommunications services in the United Kingdom and part of the Vodafone group is the world second largest mobile phone company as of May 2019 Vodafone of U.K has 17.2 million subscribers and is the third largest mobile telecommunication network nationally. This report examines the Porters five forces that will help us analyze the competition and profitability in the Vodafone Company in which it operates in and companies it competes with such BT and O2.

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    Vodafone Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
    • Analyse the mobile telecommunications industry and how the five forces have affected Vodafone and rival firms and the impact on industry structure, attractiveness, and profitability.
    • Understand how Vodafone manages to defend against intense competition and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.

     

    Analyse Vodafone through the lens of Porters five forces to assess how the five forces affect it.

    1.0 INTRODUCTION


    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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