presentation case vodafone
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GeneralVodafone is a mobile
network operator.
Headquartered inBerkshire, England, UK.
The largest mobiletelecommunicationsnetwork company in the
world. (market value of
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GeneralThe name of the company
(Vodafone) comes from
Voice data fone
reflect the provision ofvoice and data servicesover mobile phones.
Vodafone is managed and
organized through two
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Telecommunicati
ons ServicesCalls and SMS.
Vodafone At Home and
Vodafone OfficeVodafone Passport
Vodafone Live!
Vodafone 3G
Vodafone Mobile Connect
data cards and Mobile
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Estimated
penetration
Europe
andEMAPA
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GeneralVodafone is a mobile
network operator.
Headquartered inBerkshire, England, UK.
The largest mobiletelecommunicationsnetwork company in the
world. (market value of
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History1982
As Racal Telecomm, awarded thefirst mobile license in the UK
198
5
First mobile analogue call in the
UK1987
Launched Vodapage, a pagingnetwork covering 80% of thecountry
1988
Listed on the stock exchange
199
1
Separated from Racal Electronics
and since then quoted as
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History1999
Merged with AirTouchCommunications, producing a new
company, Vodafone Airtouch plc
2000
Began operating as the Vodafonegroup Plc.
200
0
Acquired Mannesmann AG and
established Verizon Wireless(grouping the mobile activities ofBell Atlantic and Vodafone
AirTouch in the USA)
200 Introduced Vodafone Live!
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History2005
Launched fixed mobileconvergence product in Germanycalled
Zuhause
200
6
Sold its Japanese unit to Softbank
and Swedish unit to Telenor
2007
Acquired controlling interestHutchison Essar Limited in India;
acquired Tele2 fixed
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EnvironmentAnalysisEU Regulatory:Framework for thecommunicationssector
The impact of EU Framework onVodafone: Vodafone had toreduce its mobile phone
termination rates considerably,
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EnvironmentAnalysisEconomic factors
The most commonindicator for measuring anations economic activity
is gross domestic product(GDP).
This indicator covers the
production activity of
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Economic factors the evolution of constant price
GDP (at fixed 2000 exchangerates) between 1995 and 2008
in the three Triad economies ofthe EU, Japan and the UnitedStates
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Economic factors
For the whole of thisperiod, GDP rose on
average by 2.4% perannum in the EU, whichwas below the average
rate of 3.1% per annumfor the United States, butabove the 1.4% per
annum growth rate
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EnvironmentAnalysisSocial Factors
Populationsocial systems
Consumption patterns
Education
Job markets in the coming
decades
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By 2045, the EU is likely to
have a significantly higherproportion of older personsthan its main global
competitors.
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EnvironmentAnalysisTechnological factors
Research anddevelopment (R&D) is adriving force behind
economic growth, jobcreation, innovation ofnew products, and
increasing quality of
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Telecommunications
Industry Analysis Porters five
forces
analysis is aframeworkthat isusually used
for theindustryanalysis and
business
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Telecommunications
Industry AnalysisCompetitive Rivalry
Telefnica O2TMobile
Orange
3
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Telecommunications
Industry AnalysisNetworks: BargainingPower of Suppliers
Network in Asia-Pacific.Majority-owned
Minority-owned
NoOwnersh
ipAustralia,
India,New
Zealand
Chinamainland,Fiji, India
Afghanistan, Armenia,
Hong Kong,
Indonesia,
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Telecommunications
Industry AnalysisNetwork in Europe.Majority-
owned
Minority-
owned
No
Ownership
Albania,Czech
Republic,Germany,Greece,
Hungary,
Ireland, Italy,
France,Poland
Austria,Belgium,Bulgaria,ChannelIslands,Croatia,
Cyprus,
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Telecommunications
Industry AnalysisNetwork in America.Minorit
y-owned
No Ownership
USA Anguilla, Antigua &Barbuda, Argentina, Aruba,
Barbados, Bermuda,Bonaire, Brazil, CaymanIslands, Chile, Colombia,
Curaao, Dominica,Ecuador El Salvador
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Strategy Review In May 2006, Vodafoneformulated a five point
strategy. maintained or improved share
against largest or referencecompetitors.
increased the share of revenuefrom non-core mobile servicesfrom 10% to 15%
increased ex osure to hi her
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Strategy Review Vodafone has three keyattributes:
Firstly, our scale in technologywith which we continue todrive network and IT savingsthrough consolidation andcentralisation of core activities.
Secondly, our strong presencein the enterprise market, in
large corporates as well as in
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Strategy Review Our strategy will now befocused on four key objectives:
Drive operational performance
Pursue growth opportunities intotal communications
Execute in emerging marketsand strengthen capitaldiscipline.
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Strategy Review
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Financial results Vodafone reportes its results inaccordance with InternationalFinancial Reporting Standards
(IFRS).Year
ended31
March
Turnoverm
Profitbeforetax m
Profitfor theyear m
Basic
EPS(pence
)
Proportion
atecustomers
(m)
200835,478
9,001 6,756 12.56 260
200731,104
(2,383)
(5,297)
(8.94)
206.4
2006*29,350
(14,835)
(21,821)
(35.01)
170.6
34,
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ProductsProducts promoted bythe Company include
Vodafone Live!Vodafone Mobile ConnectUSB Modem
Vodafone Connect toFriends
Vodafone at Home
Vodafone 710
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Corporate
SponsorshipVodafone Sponsored toImprove Awareness and
Perception of the Brand.Manchester United Football Club
Ferrari Formula 1 Team
Home-Start International:worldwide family support charity
UEFA Champions League
Vodafone Oaks and VodafoneDerby horse races
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SWOT Analysis
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SWOT AnalysisStrengthDiversified geographical
portfolio with strongmobiletelecommunicationsoperations in Europe, the
Middle East, Africa, AsiaPacific and to some extentthe US
Network infrastructure
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SWOT AnalysisWeaknessNegative return on assets
(ROA) underperforms keycompetitors like AT&T, BTGroup, Deutsche Telecom
US business not nearly as
strong as European/rest ofthe world operations
80% of its business is
generate in Europe
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SWOT AnalysisOpportunities
Focus on cost reductions
improving returnsMajority stake in
Hutchison Essar in India
Research and developmentof new mobile
technologies
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SWOT AnalysisThreats
Highly competitive market
Still lags behind majorcompetitors in the US
Extremely highpenetration
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Recommendation
s The main goal of the optimalstrategy is to create sustainablevalue for shareholders,
considering both opportunitiesfor benefit and threats tosuccess.
The value of a firm cangenerally be considered as afunction of four key inputs.
Cash flow to the firm
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Recommendation
s With these inputs, it is quiteclear that for a firm to increaseits value, it has to do one or
more of the following.
Generate more cash flowsfrom existing assets
Grow faster or moreefficiently during the high
growth phase
Lengthen the high growth
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Recommendation
sReduce Cost Increase Revenue
Develop and Offer NewProducts
Extend to New Markets
Sell UnprofitableBusinesses
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