BCG MATRIX

Based on the following points we have come up with the following Strategic Business unit

MOBILE SERVICE:-

Following are the significant factors which we have taken into accounts before arriving at Mobile services as
SBU of Vodafone.

Revenue:-

Vodafone Essar has continued its robust growth in India. Its telecom services revenue has gone up by 14%
to Rs 23,200 crore in fiscal 2009-10 from Rs 20,400 crore in Fy 2008-09. The strong growth is despite being
in a highly competitive market with 14 operators.

http://voicendata.ciol.com/content/vnd100_2010vol-II/110070503.asp

Profits:-

EBITDA grew by 9.2% driven by the increased customer base and the 37.6% increase in total mobile
minute usage during the year, with costs decreasing as a percentage
of service revenue despite the pressure on pricing.

http://voicendata.ciol.com/content/vnd100_2010vol-II/110070503.asp

Competitors:-

There are 14 Competing operators in India that are providing mobile services.Vodafone stands second
among them in terms of revenue and third in terms of subscribers.Vodafone is facing a tough competition
with Airtel,Idea,Reliance.

Segment:-

Vodafone is come up with various prepaid plans,postpaid plans targeting the various group age customers
like Vodafone Campus Pack,Vodafone friends circle,Vodafone Gappagoshti.It came up with eco friendly
solar charging handset VF 247 in india. Research in Motion (RIM), the producers of the popular
smartphone, just added another feather to its cap, tying up with Vodafone and leading healthcare solutions
provider, Maestros, for the eUNO R10 healthcare solution to aid in early detection and prevention of heart
attacks

Investment:-

Vodafone has increased its market share to consolidate its position in India as the second largest operator in
terms of revenue. Over the past three years, it has invested over Rs 20,000 crore to expand operations and
serve customers better in India. In addition to voice and text, Vodafone will also work on investing in
products and services that drive access to various data offerings. They will continue to increase investments
in new business areas like enterprise and carrier business. Network expansion also continued with the

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addition of 9,000 base stations by Indus Towers and an additional 16,000 by Vodafone Essar, making Indus
Towers the world's largest tower company with over 1,00,000 towers under management.

2) Market Size

Total mobile subscriber till june 2010 are 63,55,05,083.Vodafone has total subscriber of 10,90,60,704.

http://www.coai.com/statistics.php

3) Market Share:-

Vodafone has a market share of 17% .

http://www.coai.com/statistics.php

VODAFONE: Circle wise subscriber base(June 2010)

Andhra
Pradesh 63,32,518
Assam 9,43,880
Bihar 37,91,641
Delhi 55,61,512
Gujrat 1,14,96,133
Himachal
Pradesh 2,14,339
Haryana 31,09,554
J&K 2,78,416
Karnataka 55,11,044
Kerala 44,47,067
Kolkata 37,15,365
M.P 21,11,656
Maharashtra 78,10,838
Mumbai 52,70,404
North East 5,87,657
Orissa 12,20,184
Punjab 32,91,478
Rajasthan 77,93,520
Tamil Nadu 95,14,086
U.P.(East) 1,12,00,654
U.P.(West) 70,00,654
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 West Bengal 78,58,104
Total 10,90,60,704

http://www.coai.com/statistics.php

4) Competitors and their market share:-

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 Group Company wise % market share - Jun'2010

Name of Total Sub % Market

Sl. No.
Company Figures Share

1 Bharti Airtel 13,66,20,401 29.92%

2 Vodafone Essar 10,90,60,704 23.89%

3 IDEA 6,88,86,539 15.09%

4 BSNL 6,68,87,839 14.65%

5 Aircel 4,16,79,575 9.13%

*Reliance
6 Telecom 1,63,11,206 3.57%

7 Uninor 60,23,655 1.32%

8 MTNL 49,02,380 1.07%

9 Loop Mobile 29,26,797 0.64%

10 Videocon 19,42,364 0.43%

11 Stel 13,26,506 0.29%

12 Etisalat 18,196 0.00%

All India 45,65,86,162 100.00%

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 http://www.coai.com/statistics.php

5) Market share of largest competitor

Bharti airtel is the largest competitor of Vodafone with market size of 13,66,20,401 and market
share of 30%.

http://www.coai.com/statistics.php

6) Relative Market Share:-

Relative market share is 0.8

7) Position in the Matrix:-

SBU lies in the Question mark.

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 Strategic Market share Market Share Relative Market Quadrant in
Business unit (SBU) (largest market share growth rate which the
competitor) SBU lies

Mobile 17 22 0.8 49 Question

services mark

50%

Market
Growth 25%
Rate

0%
10x 1x 0.1x
RelativeMarket Share

9) Analysis

Vodafone lies in the Question mark quadrant.As per the theory in this quadrant there are products or
businesses, that compete in high growth markets but where the market share is relatively low in comparison
to competitor market. A new product launched into a high growth market and with an existing market leader
would normally be considered as a question mark.Because of the high growth environment, they can be a
“cash sink”.

Vodafone India come in the market in 2007.Despite being in a highly competitibve market with 14 operators
its telecom revenue service has gone up by 14%.Vodafone this year manage to secure a 3G spectrum in nine
circles comprising 60% of the operator’s subscriber base for Rs 11,617 crore. Vodafone has continued to
grow with its multitude of offerings. Vodafone Essar also launched its first mobile applications store in
March this year, which saw over 10,000 downloads in the first few days itself. In April, Vodafone also
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launched unlimited GPRS browsing for its customers in Karnataka at Rs 95 a month, and in the same month
also signed a deal with Aegis Srinagar BPO to handle its call traffic, offering hundreds of Kashmiris
working in Delhi and NCR a chance to return home. Besides this, the operator's ZooZoo IPL campaign
earlier this year was another winner, which proved a huge success in terms of revenue for the operator.
Vodafone is the first operator to announce its launch of the Apple iPhone 4 in India in September this year.
Free cash flow increased by 26.5% to £7,241 million due to increased cash generated by
operations, dividends received and lower taxation payments partially offset by
higher interest payments. Cash generated by operations increased by 4.8% to £15,337 million primarily
driven by foreign exchange and working capital improvements. Cash capital expenditure decreased by £247
million primarily due to lower expenditure in India partially offsetby higher reported spend in South Africa
following the change from proportionate
to full consolidation of Vodacom during the year.Vodafone will be trying to shift towards stars category by
increasing its market share.In order to do it will continue to increase investments in new business areas like
enterprise and carrier business.