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Presentation By:-

Deepika Iyyappanpriyanka shah

Indian Telecom Industry

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Overview Vodafone Group Plc was founded in 1984 and is based in Newbury,

United Kingdom.

Vodafone currently has equity interests in 31 Countries across fivecontinents and around 40 partner networks worldwide.

It offers mobile voice services to approximately 391 millioncustomers as of September 2011, messaging services; mobile dataservices; fixed broadband services to approximately 6 millioncustomers; and whole sale carrier services to approximately 40

African countries.

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Vodafone Group Plc is the worlds leading mobile

telecommunications company, with significant presence in Europe,The Middle East, Africa, Asia Pacific, and The USA through thecompanys subsidiary undertakings, joint ventures, associatedundertakings, and investments.

Company has total market capitalization of approximately89.4 billion as of 23 December 2011.

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Telecom Industry analysis

Facts: Indian telecom industry is one of the fastest growing

industry in the world. Indian telecommunication network grew by 40% during

2010 Indian telecom network has about 742.13 million on 31st

October 2010, with this 706.70 million wirelessconnection.

India is known to rank fourth in the telecom industry in

Asia after China, Japan, and South Korea and second inemerging economy India is one of the few countries in the world to have

more GSM subscribers than fixed line subscriber.

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Internal analysis

Resources

TangibleResources

IntangibleResources

Management TrustRaw material Location Knowledge Experience

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Vodafones abilityfor management

to completesuccessful acquisitions

their research anddevelopment to

Enableinnovative technology

Vodafone's managementhas the ability to acquireand merge withother companieswhile maintaining

an effective, low cost,

organizational structure

Vodafone is able to maintaintechnological leadership

in mobiletelephony systems

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Competitive Advantage

Resources(intangible resources and

tangible resources)

Capabilities(management ability &

Research and Development)

Strategy

Market PositionOperative management

DiversificationQuality of services &

infrastructure

Competitive Advantage

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SWOT Analysis

Strength:

Huge customer potential

High growth rate Lower capital expenditure

Engaged and active management team

Sustainable business model

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Weaknesses:

Poor customer service

Late adaptor of new technology

Most competitive market

A market strongly regulated bygovernment

Entry barrier

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Opportunities:

Technological advances

More quality service

Value added services

Increase in communication channel Decrease in cost of broadcast signals

Provide fiber connectivity to 2,50,000

villages panchayat by 2012

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Threats:

Shrinking economy

Less demand for telecommunicationservices

An increase in health care cost

Increased regulation

A decrease in the no. of radio frequencies

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Leadership strategies

COMPANY ANALYSIS: VODAFONE

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GENERIC STRATEGY

What are generic strategy?

Basically those are core ideas of a firm.

Lets say, (Vodafone) has implementeddifferentiation strategy.

Why they chose differentiation strategy?

because to appeal customers with a specialsensitivity for a particular product attribute.

( focusing to develop CUSTOMER LOYALTY).

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GRAND STRATEGY

Indicates time-period over which longrange

objectives are to be achieved.

Vodafone has multiple geographic locations,

customer group & services, product portfolio.

Company has made is FOOT-PRINT through

Horizontal integration, joint venture, and

strategic alliances with each culture & norm.

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TURNAROUND STRATEGY

Cost reduction & asset reduction by

Vodafone company has implemented to

survive and recover from declining profits.

By implementing this strategy the firm as able

to improve bottom-line performance.

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FARUQUE

Business Strategy

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Industry Rivalry

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Business Model(Outsourcing or Vertical Integrated)

IBM Deal:

IBM has signed an extended deal estimated at up to $1 billion to managethe information technology systems of Vodafone's Indian unit until 2017(Reuters).

The agreement includes application development and maintenance,including billing, business intelligence, ERP systems, as well as data centre

operations, and end user services. 300 Vodafone Essar staff will transfer to IBM.

Nokia Seimens:

Nokia Siemens Networks has implemented Indias first network-wide singledata charging system to support Vodafone India subscribers.

This will help Vodafone India boost its data subscriber take-up, capture newrevenue streams, and reduce operating costs through simplified operations.

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Current Strategy Increase exposure in emerging markets.

Drive operational performance through value enhancement & costreduction.

Innovate and deliver on customers total communication needs.

Actively manage portfolio to maximize returns.

Strategic tie ups & alliances.

- (Essar, Blackberry, I-phone, Nokia ties up with Vodafone to take onAndroid phones)

Focusing on current 3G potential market.

- (An example of how big 3G is with respect to Indian markets is,GOI expecting INR 35,000 earned INR 67,719 crores against in the3G spectrum auctions.) By COAI.

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Implementation by Vodafone

Differentiation strategy

Designed to appeal customers with special sensitivity for aparticular product attribute.

(i.e better network coverage, charging customer for their usesonly & network reliability).

To build customer loyalty.

Non implementation ofCOST LEADERSHIPbut adoptedDIFFERENTIATION STRATEGY.

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Why differentiation strategy by Vodafone?

Continuous innovation thinking.

They believe that their strategy should be to directly related toconsumer needs.

(Eg: Double the number of outlets than the closest competitor inMetro cities.)

They provide:

- Better network coverage

- Better network reliability

- Charging only for the consumers used services.

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Positive Outcomes Earned credentials-

- Most respected telecom company.

- Best mobile service in the country.

- Most creative & most effective advertiser.

Responsive towards newer market challenges.

- Tata Docomos per second billing.

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Recommendations for Future Tapping rural markets.

- {In January 2012, net addition run rate of all circles (except Metrocircle) reported a modest increase}.

Preparing for the introduction of 4G services.

Increase GPRS subscriber base- Marketing, cross selling, etc.

Diversifying in Broadband services, DTH, Voice over internetprotocol (VOIP).

Concentrate more on Value added services.

(Money factor blocks Indian customers to adopt newer technologies).

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Bibliography www.vodafone.com

www.trai.gov.in

http://en.wikipedia.org/wiki/Vodafone

http://uk.finance.yahoo.com/q?s=VOD.L

www.agelbroking.com http://www.pr-inside.com/vodafone-group-plc-vode-financial-

r2019602.htm

http://www.vodafone.com/http://www.trai.gov.in/http://en.wikipedia.org/wiki/Vodafonehttp://uk.finance.yahoo.com/q?s=VOD.Lhttp://www.agelbroking.com/http://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.pr-inside.com/vodafone-group-plc-vode-financial-r2019602.htmhttp://www.agelbroking.com/http://uk.finance.yahoo.com/q?s=VOD.Lhttp://en.wikipedia.org/wiki/Vodafonehttp://www.trai.gov.in/http://www.vodafone.com/

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Thank You