1.

INTRODUCTION Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific, and the United States. The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In United States the Group's associated undertaking operates as Verizon Wireless. During the last two financial years, the Group has also entered into arrangements with network operators. The services provided by the Vodafone Group are mobile voice communications, text, picture and video messaging, email, mobile connectivity with internet and fixed broadband offerings to meet the needs of every segment of the customers. Other information, mobile applications, data roaming, DSL, and Vodafone live! With 3G (Third Generation) are the special services provided by the company. Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. It was fully demerged from Racal Electronics Plc and became an independent company named Vodafone Group Plc in September 1991. Currently it is a public limited company with its footprints in over 32 countries across the world. The company is incorporated in England and having its registered office as Vodafone House, The Connection, Newbury, Berkshire, RG14 2FN, UK. The Vodafone Group has justified its success by having 280 million customers on the globe and a total market capitalisation of approximately 79 billion with a turnover of 35,478 million in the year 2008. There are approximately 72,000 employees working with Vodafone Group Plc.The Company's ordinary shares are listed on the London Stock Exchange and the Company's American Depositary Shares are listed on the New York Stock Exchange. The company has invested 5.1 billion in capitalized fixed asset additions, including 1.0 billion in operations in India, where it has over 44 million customers, with over 50% pro forma revenue growth. (www.vodafone.com).

Vodafone Group has shown immense development since its birth in every aspect of the business and great interest in Indian market, this project will guide you through the growing strategies and the key strengths of the Vodafone Group PLc., which has helped this company to reach such heights.

2. STRATEGIC ANALYSIS. Strategy is the pattern of objectives, purposes, or goals and the major policies and plans for achieving these goals, stated in such a way as to define what business the company is in or is to be. Andrews (1971, p 31). 2.1 INTERNAL ENVIRONMENT. 2.1.1 VISION. A vision statement is an articulation of what the company wishes to become or where it seeks to go. Grant (2006, p 61). Vodafone Group PLc. states its vision as Our Vision is to be the worlds mobile communication leader in an increasingly connected world enriching customers lives, helping individuals, businesses and communities be more connected in a mobile world. (www.vodafone.com).

2.1.2 MISSION. Acccording to the Vodafone Group PLc. Our mission is to lead the industry in responding to public concerns regarding mobile phones, masts and health by demonstrating leading edge practices and encouraging others to follow. (www.vodafone.com).

2.1.3 VALUES. Vodafone Group PLc. Says, their corporate Value is Passion for the world around us. "We will help the people of the world to have fuller lives - both through the services we provide and through the impact we have on the world around us." (www.vodafone.com). 2.1.4 OBJECTIVES. Harold Koontz et al. (1983) defined objectives as The end towards which activity is aimed. The main objectives of the Vodafone Group Plc on which its strategies are focused: 2.1.4.1 Revenue stimulation and cost reduction in the market. 2.1.4.2 Innovate and deliver on our customers total communications needs. 2.1.4.3 Deliver strong growth in emerging markets. 2.1.4.4 Drive operational performance. 2.1.4.5 Pursue growth opportunities in total communication. 2.1.4.6 Strengthen capital discipline. (www.vodafone.com). 2.1.5 STAKEHOLDERS. According to McGee, et, al (2005, p 781) Stakeholders are individuals or organizations that have an interest, or some kind of stake in the firms ongoing activities. Following are the major stakeholder groups for the company: 2.1.5.1 Non-governmental organisations 2.1.5.2 Investors 2.1.5.3 Consumers 2.1.5.4 Industry forums 2.1.5.5 Employees 2.1.5.6 Suppliers 2.1.5.7 Shareholoders 2.1.5.8 Governments and regulators 2.1.5.9 Local communities

The company engages with its stakeholders in a range of ways, including one-toone meetings, routine engagement on individual issues, partnerships, forums and at conferences. They engage with stakeholders to understand their expectations and respond to stakeholders with their evolving CR targets and programmes. Finally the company reports the progress back to its stakeholders. (www.vodafone.com). 2.1.6 ORGANISATIONAL CULTURE: The Board of the Vodafone Group PLc. is committed to high standards of corporate governance, which they consider are critical to business integrity and for maintaining investors trust in the company. The Board adopts proper standards of business practices, operates with integrity and observes and respects the culture of every country in which it does business. 2.1.7 RESOURCES. 2.1.7.1 TANGIBLE RESOURCES. Vodafone Group PLc has tangible resources or assets amounting 127,270 million in the year 2008. It has 96,500 base stations to send and receive voice calls and other mobile services, 5,500 Vodafone stores, over 100,000 mini stores and over 8,000 mobile stores. (www.vodafone.com). 2.1.7.2 INTANGIBLE RESOURCES: Intangible resources of the Vodafone Group PLc excluding goodwill were amounted to 15,705 million and represented 14.3% of the Groups total assets. Vodafone has three key attributes as its essential intangible resource which differentiate them from there competitors: 2.1.7.2.1 2.1.7.2.2 The scale of technology with which it continues to drive network and centralisation of core activities. It provides its customers with great value for money and delivers innovative services with reduced costs.

2.1.7.2.3

It introduces more services over time, providing increased capacity and more efficient services every time.

(www.vodafone.com). 2.1.7.3 ORGANISATIONAL CAPIBILITY. Vodafone Group PLc. has strong presence in the enterprise market, in large corporates as well as in small and medium sized businesses which helps it to establish itself confidently in new, emerging global markets.(www.vodafone.com). 2.1.7.4 HUMAN RESOURCE.

Vodafone has developed a brand essence, Red, Rock Solid, Restless, which communicates a common way of behaving which is designed to enhance business performance and customer orientation. It also aims to the well being, treat people with respect, engage employees, and offer attractive incentives and opportunities. Over 4,500 managers across the group had completed 36,000 hours of dedicated total communications training. (www.vodafone.com). 2.1.8 COMPETENCIES.

Vodafone has established a set of six core competencies to build up on their success. 2.1.8.1 Delivering results The ability to set measurable targets and managing time and to get proper resources is essential. 2.1.8.2 Customers Delight -- The employees should appreciate the value of having profitable customers. 2.1.8.3 Performing through people This can be done by developing the working environment by creating mutual trust and respect for others. 2.1.8.4 Creating a personal difference Vodafone has certain high standards and the staff strives to put on some extra efforts and takes up responsibility. 2.1.8.5 Managing a changing environment Cooping up with the change is essential.

2.1.8.6 Communicating for impact - Vodafone values the aptitude to communicate clearly, concisely and confidently. (www.vodafone.com). 2.1.9 PRODUCT PORTFOLIO. The basic product line offered by Vodafone Group PLc is the communication services. The company has a range of mobile handsets integrated with PC and internet facilities. Wireless facilities like 3G and HSDPA (High-Speed Download Packet Access) and fixed line broadband services like DSL (Digital Subscriber Line) are also completely new technologies for the users. The consumer can also take the benefits of consumer push email service, accessing instant messaging services and images and videos sharing from their handsets. (www.vodafone.com). 2.1.10 RECENT PERFORMANCE. Vodafone Group PLc has shown immense growth in last few years. Currently the companys services are spreaded over 32 countries. For the last financial year the total market capitalisation of the Group was approximately 79 billion with a turnover of 35,478 million and the number of issued shares was 53,132,666,870. Vodafone Group PLc has been awarded as the most powerful brand in UK and 11th globally in the BrandZ ranking. The Group also has the awards for the best innovations and for saving environment by its green work strategies. (www.vodafone.com). 2.2 EXTERNAL ENVIRONMENT

2.2.1 PESTEL ANALYSIS: The PESTEL framework categorizes external environmental influences into six main types: political, economic, social, technological, environmental and legal. Johnson (2008 p 65).

2.2.1.1 POLITICAL FACTORS 2.2.1.1.1 Have to face risks from laws and regulations of different governments in geographical expansion. 2.2.1.1.2 Member of key industry trade associations on public policy issues, like: World Economic Forum GSM Association International Telecommunication Union. 2.2.1.1.3 Group policy for not making any political donations or political support, in which it has no legitimate business interest. 2.2.1.1.4 Vodafone has a commercial alliance with Manchester United football team and Ferrari formula one team.Vodafone is able to develop new value added services specifically for Manchester United fans. This dual branding exposes the Vodafone name in countries where it may not have been previously known. 2.2.1.2 ECONOMICAL FACTORS. 2.2.1.2.1 In the year 2009, the GDP growth is estimated to be 6.9%. 2.2.1.2.2 Partner network strategy enables the group to implement its global services in new territories, extend its brand reach into new markets, and create additional revenue without any investment. 2.2.1.2.3 Vodafone contributes directly to countries in which it operates through licence fees, taxes, and by purchasing products and services. With the cash value added parameter Vodafone has added 12.3 billion to the global economy in 2007/08.

2.2.1.2.4 Low penetration and low GDP rates in emerging markets restricts the group from revenue growth opportunity in entertainment and internet services. 2.2.1.3 SOCIAL FACTORS. Social investment is not an add-on to business activities, but at the heart of how to engage with the communities where the customers, employees, investors and suppliers live. (Vodafone Group Plc Social Investment Policy). 2.2.1.3.1 Special accessible features and services for disabled and elderly people, and other customers who find it difficult to use mobile phones. 2.2.1.3.2 Vodafone Group PLc. supports emergency telecommunications systems by having mobile technology for responding to disater situations. 2.2.1.3.3 Provides mobile services and monetary contribution for increasing awareness on health, education, and welfare issues. 2.2.1.4 TECHNOLOGICAL FACTORS. 2.2.1.4.1 Innovative services provided via 3G/3G broadband (HSDPA) with working towards reducing the costs. 2.2.1.4.2 An MVNO (Mobile Virtual Network Operators) leases capacity from a network operator, which has helped to create dramatic reduction in mobile prices. For example, Tesco mobile in UK using O2s network to run its services at lowest rate. 2.2.1.5 ENVIRONMENTAL FACTORS. 2.2.1.5.1 Vodafone has direct control over the running of its networks. It has a strategy to reduce the energy use and control impact on climate change.

2.2.1.5.2 The companys special division recycles more than 95% of the network equipment and all local operating companies collect mobile phones for reuse and recycling. 2.2.1.5.3 The Group contributes to funding independent scientific research to resolve scientific uncertainty in areas identified by the World Health Organization (WHO). 2.2.1.5.4 Emphasis over video conferencing to reduce the pollution from traveling trips. 2.2.1.6 LEGAL FACTORS. 2.2.1.6.1 Privilege leave entitlements are recognized as a liability, in the calendar year of rendering of service, as per the rules of the company. 2.2.1.6.2 Contribution to Superannuation fund is being made as per the Scheme of the Company. (www.vodafone.com).

2.2.2. PORTERS 5 FORCES: 2.2.2.1 COMPETITIVE RIVALRY: Vodafone Group PLc has a number of strong rivals across the world. As the company is slightly poor in manufacture of mobile handsets it can face a strong competition from Virgin, O2, Nokia, Samsung, Sony and T-mobile whereas in telecommunication services the group has to face a rivalry from Bharti AirTel, Orange, Virgin, Reliance and O2. To overcome the challenge of competitive rivalry measures like innovative features, new product launch and cost reduction can help the group to take the advantage over its rivalry products.

2.2.2.2 SUBSTITUTES: In increasing technological world there can be many substitutes for the products and services Vodafone Group PLc is providing. PDAs are very common substitutes for the mobile phones and for other services personal computers, landline phones, internet, satellite phones etc. can be the substitutes. 2.2.2.3 NEW ENTRANTS: Telecommunication market is spreading very quickly all over the globe. Vodafone Group PLc. Is facing threat from the upcoming new brands like LHS, Debitel and Tangens etc. 2.2.2.4 BARGAINING POWER OF BUYERS: Vodafone has a threat from its rivals as the customers have more choices from new packages from other operators. The potential buyers of the Group come from every segment of the market. The advanced technological services like gaming and entertainment are mainly used by the baby boomers and on-mobile internet services are generally preferred by the working class. To maintain the consumers segments, the Group needs to stick to the requirements and needs of the consumers and proper promotion strategy has to be adopted. 2.2.2.5 BARGAINING POWER OF SUPPLIERS: Vodafone Group PLc. has its own certified and chain suppliers. It assesses new and existing suppliers for compliance with the Code of Ethical purchasing, so theres hardly any problems regarding suppliers for the business. (www.vodafone.com).

3. SWOT ANALYSIS:

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It deals with the Strengths, weaknesses, opportunities and threats of a company. S.W.O.T analysis involves analyzing the external and internal marketing environment. Kotler (2006).

STRENGTHS 1. By referring recent performance, the Group has global experience and ability to deploy across many countries. 2. With Manchester United and Ferrari, Vodafone enabled to develop its own global presence, as a political factor. 3. Having a huge product range, hence differentiated and innovative services. 4. As explained before in resources, the Group has a well trained and innovative human resource.

WEAKNESS 1. Competitive rivalry in Porters 5 forces has explained that the company is having a weak product range e.g. Mobile handsets and other equipments. 2. By companys financial reports it can be derived that the Group is investing a huge amount on research and development and tangible assets which finally lower the profits.

OPPORTUNITIES 1. By taking the social aspects of into mobile

THREATS 1. Declining economy and decrease in the value of currency. 2. Group policy of making less political interference, with reference to political factors. Hence strict rules of different government. 3. With a number of new entrants there is high competition in the emerging markets with upcoming brands and a huge range in new products. 4. Low penetration and low GDP rates in emerging markets restricts the group from 11 revenue growth.

consideration,

increasing

trend

phones is an advantage to the Group which can help it to increase its sales. 2. The Group has competitive advantage, as it is the innovator of new technologies e.g. 3G, HSDPA as explained in technological factors of the company. 3. High disposable income and decreasing price of electronics in Europe. Hence the Vodafone group has an advantage as it is well established in European countries.

RIVALS AND THE HIGHLY COMPETITIVE MARKET. Vodafone Group PLc. has shown development in all the aspects of the business. The company is well established in the global market with excellent figures for profits and its success. At this position Vodafone Group has some key issues and challenges to be faced which are proving as hindrances in the path of its success. The major problems faced by the Group are its rivals and the highly competitive market. The company is facing strong competition in the telecommunications and product segments. The brands like AirTel, Orange, Virgin, Reliance, and O2 are among the major rivals of the Vodafone Group. The issues which are of major concern are that the competitors could be having better suppliers and better network providers. Every year the Vodafone Group PLc spends a huge amount on its marketing strategies but still it is facing a very high competition in the market. To overcome this problem there could be internal and external factors, by implementing these, the companies can develop its strategies. Internal factors include betterment of human resource and technological advancement. External factors can include differentiation of products and cost leadership. As the Vodafone Group PLc is the telecommunication leader it can develop itself and can bring its footprint in rest of the countries. But this needs to overcome the problem of competition in the market. So by working and improving on its marketing and other strategies the group can be on top of its rivalry group.

5. STRATEGIC OPTIONS 5.1 RESOURCE BASED STRATEGY12

5.1.1 (Option -1) Human resource is associated with the people working in the organization .an efficient, talented and trained human resource can help Vodafone Group PLc to get and acquire the best talent from a huge and educated work force. A proper procedure of selection, training, and development of the employees and proper incentives and rewards is very essential to motivate the employees and get the best out of them. For Vodafone Group PLc strategy is very essential to conquer its rivals in terms of products and services. 5.1.2 (Option -2) Technological advancement can be another option to increase the reputation of the company and to overcome its competitors strategies. The company has to give emphasis to the research and development department to get new and innovative ideas for its products and services offered. The company can take the advantage of its innovative services via 3G/3G broadband (HSDPA). 5.1.3 (Option -3) Marketing and sales strategies can be a efffective option to have a power over its rivals. Innovative promotional strategies, meaningful and attractive slogans like Hutch is now Vodafone can be very helpful for the comapanys popularity. Sales strategies covering special offers , lower tarrif rates, personalised servicing and a proper coustomer service centre can have a strong influence on the consumer market which can help Vodafone Group PLc to increase its sales and conquer its rivalry competition.

5.2 ENVIROMENT BASED STRATEGY5.2.1 (Option -4 ) Cost is a major part of any business as it goes as an essential factor to attract the customers towards the companies services and the products offered. As the company is spreaded globally, Vodafone Group PLc can reduce its costs by centralise its services and by reducing the expenditure on its capitalisation. With lower services rates the Group can establish itself in the

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countries where there is low disposable income and amoungthe lower class consumers. 5.2.2 (Option- 5) The strategy for differentiation of products and services from its competitors is very essential for Vodafone Group PLc. The company and its rivals almost have the same product line , so it becomes essential for the Group to defferentiate its products and services by using innovative and better technology to place its product in the market as the customers first choice. Lower tarrif rates, attractive internet plans etc could be introduced in the market to take the lead over its cometetors.

6. STRATEGY SELECTION

OPTION

CONSISTENCY

SUITABILITY

VALIDITY

FEASIBILITY

BUSINESS RISK

ATTRACTIVNESS TO STAKEHOLDERS

Human resource

YES

YES

YES

YES

NO

YES

Technological advancement

YES

YES

NO

NO

YES

YES

Marketing and sales

NO

YES

NO

NO

YES

YES

Cost leadership

NO

NO

NO

NO

YES

YES

Differentiation

YES

YES

YES

NO

NO

YES

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6.1 STRATEGY SELECTION CRITERIA. By Johnson (2008 p 357) 6.1.1 CONSISTENCY. The purpose of the organization, a prime test of any option has to be its consistency whether it is in agreement with the objectives of the organization. In a business context, this is likely to be the mission and its ability to deliver the agreed objectives of the organization. 6.1.2 SUITABILITY. Suitability means to be appropriate for the context of the strategy of the organization both internally and externally. The environment can be explored from the mixture of opportunities to be taken and threats to be avoided. 6.1.3 VALIDITY. Validity means that the calculations and other assumptions on which the plan is based are well-grounded and meaningful. In addition, many options will use business information that may be well grounded is background materials or alternatively, doubtful in its nature. 6.1.4 FEASIBILITY. Feasibility means that the proposed strategies are capable of being carried out. Although option may be consistent with the mission and objectives, there may be others difficulties that limit the likelihood of success. An option may lack feasibility in three areas: 6.1.4.1 Culture, skills and resources internal to the organisation. 6.1.4.2 Competitive reaction and external factors. 6.1.4.3 Lack of commitment from managers and employees. 6.1.5 BUSINESS RISKS. 6.1.5.1 Financial risk analysis: Cash flow, breakeven, company borrowing

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requirements, financial ratio analysis. 6.1.5.2 Sensitivity analysis: Optimistic assessment, pessimistic assessment. 6.1.5.3 Scenario projections: Broader view of future developments; can take qualitative as well as quantitative view; less concerned with future and more with contrasting views. 6.1.6 ATTRACTIVENESS OF STAKEHOLDER Includes the following factors: 6.1.6.1 6.1.6.2 6.1.6.3 6.1.6.4 6.1.6.5 Financial risks to shareholders Employment levels for employees Management opportunities or redundancies Broader community issues such as environmental concerns Government response to strategy initiatives.

7. STRATEGY IMPLEMENTATION. Vodafone Group PLc has shown immense development in the emerging market of technology. The Group has always reacted to its rivalry strategies and every time, the company has brought a positive change in the market and has innovated technologies which has helped the Group to retain its customers and provide its best products and services to them. After a complete analysis of the Groups resources and environmental factors, it has been proved that the company is very good on its strategy formation but the area which can effects the companys reputation and make the Group stand lower to its rivals is Human Resource. Human resource of an organization is very important factor in order to strive in this competitive market of todays world. The Group has to utilize its human power efficiently in order to which the company has to improve itself on the process of man power planning, recruitment, selection, training and development and staff retention strategies. Man power planning includes the proper estimation

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of employees and talent required in the future. Recruitment process can be improved by using proper techniques for making the choice of the workforce. Selection criteria should be made according to the nature of work of the employees and the proper assessment is needed to acquire the best talent. Training and development are the factors which can help Vodafone Group PLc to make its employees understand the nature of the work and the objectives of the Group; it will also make the Group to utilize maximum efficiency and talent from the trained workforce. Finally, the Group has to provide proper strategies for incentives and rewards of its employees in order to decrease the staff retention rates and to utilize its full man power. Proper strategy on human resource can make Vodafone Group PLc standing on top of the business world. A proper and trained human power has always been a competitive advantage for any business. With a good human resource the company can express itself in a better and a broad way which will help the Group to overcome the problem of competition and provides a better platform in the future then that the company is holding now.

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References: Andrews, J. (1971), The Concept of Corporate Strategy, Homewood publications. Grant, R. (2003), Contemporary Strategy Analysis. 5th ed. Blackwell

Publishing. United Kingdom. Johnson G, Scholes K, Whittington R, (2008) Exploring Corporate Strategy, Pearson Education. Kotler, P. Keller, K.L. (2006). Marketing Management. 12th ed. USA: Prentice Hall. Koontz, H. Donnell, C. Weihrich, H. (1983), p 162, management, McGraw Hill International Book Company, Auckland. Lynch, R. (2006), Corporate Strategy, 4th ed. UK: Pearson Education. McGee, j. Thomas, H. Wilson, D. (2005), strategy: analysis and practice, p 781, The McGraw Hill companies, Berkshire, United Kingdom. Vodafone Group Plc Annual Report 2008. Vodafone Group Plc, Social Investment Policy. www.vodafone.com, [Accessed 4th January 2009]. http://www.vodafone.com/start/about_vodafone/who_we_are.html. [Accessed 6th January 2009]. http://www.vodafone.com/start/about_vodafone/corporate_governance/business_ principles.html, [Accessed 6th January 2009]. http://www.vodafone.com/start/responsibility.html, [accessed 7th January 2009].

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http://www.vodafone.com/start/responsibility/our_approach/stakeholder_engage ment.html, [accessed 7th January 2009]. http://www.vodafone.com/start/responsibility/performance___commitments.html, [accessed th January 2009]. http://www.vodafone.com/start/about_vodafone/what_we_do.html, [accessed 2nd January 2009]. http://www.vodafone.com/start/investor_relations/vodafone_at_a_glance0/fact_s heet.html, [accessed 26th December 2008]. http://www.vodafone.com/start/responsibility/our_social___economic.html, [accessed 3rd January 2009]. http://www.vodafone.com/start/responsibility/environment.html, January 2009]. http://www.vodafone.com/start/responsibility/environment/data.html, 4th January 2009]. http://www.vodafone.com/start/responsibility/environment/reuse___recycling.html , [accessed 4th January 2009]. http://www.vodafone.com/start/responsibility/supply_chain/supplier_assessments .html, [accessed 4th January 2009]. [accessed [accessed 4th

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Bibliography: 1) Drummond, G. Ensor, J. (2001). Strategic Marketing Planning And Control. (2nd ed.) Butterworth Heinemann. 2) Johnson, G., Scholes, K., & Whittington, R. (2005). Exploring Corporate Strategy (7th ed.) Pearson Education Limited (p, 83). 3) Anwar, S.T.(2003). Cases Vodafone and the Wireless Industry: A Case In Market Expansion and Global Strategy. Journal of Business and Industrial Marketing, 18(3): p.281. 4) Eaton, J. & Brown, D. (2002). Coaching For a Change with Vodafone. Career Development International, 7(5): p.284.

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