Student ID: S220732

BA Business Studies;

Contemporary Management Issues in

2023
the 21st Century
Word Count: 1634

12/10/2023
Vodafone
 Student ID: S220732

Table of Contents

1. Introduction ………………………………………………….………….. 2
2. AI theory and practice in business strategy at Vodafone
2.1. Vodafone's Porter`s Five Forces …….…………...……..………. 3
2.2. The Ansoff Matrix …………………………………..……….…. 4
2.3. Blue Ocean Strategy …………………………….……………… 5
Conclusion ……………………………………………………...………….. 7
Reference List ………………………………………………….…..………. 8

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1. Introduction
In the corporate landscape of the 21st century, the meaning of an innovative
company is to transform from a traditional telecommunications company into a
technological communication company using innovative strategies (Jindong,
2022).
This report will look at the role and importance of the power of artificial
intelligence and machine learning. In addition, it will shed light on how
Vodafone is driving innovation, enabling network and systems automation, and
improving costs. It is based on differentiating new and intelligent data services
that better serve customers. The organization's well-defined strategic position
leads to revenue maximization and innovation stimulation.
The study will examine and investigate the many innovations implemented by
Vodafone UK based in London, which is the world's largest
telecommunications corporation, to achieve its goals.

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2. AI theory and practice in business strategy at Vodafone

2.1. Vodafone Porter's Five Forces research examines the corporation's
reasonable background, focusing on measuring the company's position against
the five forces (Porter, 2008).
2.1.1. The threat of new entrants
Vodafone Group Plc manages a mobile and fixed network throughout
Europe, providing Internet of Things connectivity, protection, and insurance
facilities. There are authority restrictions that a company is required to obey,
making it problematic for new entrants to enter this market, where they must
authorise a significant amount of funds to establish their network infrastructure.
As technology continuously evolves from 3G to 4G and then to 5G, the new
entrant must supply profoundly in network infrastructure and technology
development. However, the new entrant must devote significant effort to
acquiring new customers. Existing players are very aggressive, making it
difficult for a new player to survive. Altogether, each nation has a restrained
number of telecommunications operatives, making it challenging for new firms
to enter. The threat of new entrants is low.
2.1.2. Threat of substitutes
Buyers in the telecommunications area have a low transferring budget.
Most ones can easily swap to other Vodafone competitors if they are
disappointed with the deal due to the dual SIM idea. Internet video conferencing
and messaging functions are substituting cellular facilities. In addition, the new
cable Internet approach expertise allows Internet connection even in remote
locations where telecommunications providers cannot reach. This is yet another
substitute that puts the telcos in between. The threat of substitutes is high.
2.1.3. Bargaining power of customers
Vodafone consumers have a significant bargaining power in that when
changing to another operator they can even keep their previous number thanks
to the portability of their mobile phone number. Customers want to get the best
services while paying the least amount of money. All telecom operators can
offer comparable products and services. Customers can easily switch to another
product due to low product differences.
2.1.4. Bargaining power of suppliers
Raw materials for telecommunications expertise tools are consistent and
extensively accessible from various contractors. Providers do not have the
comfort of shifting to a further purchaser because the industry has a very limited
number of buyers. This weakens their negotiating position. Vodafone operates

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in various countries and expects considerable quantities of raw materials or

further equipment. As a result, it can charge a reduced price. The bargaining
power of suppliers is low.
2.1.5. Competitive Rivalry
The telecommunications business is highly competitive, with fierce rivalry
between firms. Incumbent firms must compete to retain and increase market
share. Since shifting prices are minimal for clients, all companies intend to
acquire new consumers with a variability of unique proposals. Corporations in
Vodafone's business lower amounts to obtain market share and decrease costs
through economies of scale. As a conclusion, though there are limited
competitors, they are aggressive.
2.2. According to (Hanlon, 2021), The Ansoff Matrix is a technique for
analysing corporate growth potential.
2.2.1. Product extension is a method of proposing new goods into the
existing market. Vodafone's substantial arrangement of products and services
suggests that product creation is ingrained in the company's DNA. Nevertheless,
before developing existing items or generating new ones, businesses need first
to establish purchaser requirements. It will help them encounter purchaser
requests and make them more robust than their competition. As a result of this
style of merchandise expansion, it has been able to vary its enterprise into
IPTV, smart televisions, mobile phones, Internet Television, and further
products and services, although its primary offering stayed mobile networks.
2.2.2. Diversification is the process by which businesses expand their
operations by selling new items in new markets. It is the riskiest method
because the corporation does not know the new market or client demand for
new products. Contextualising the Ansoff Matrix for Vodafone indicates that
the company's diversification strategy is heavily used as it has been launching
new telecom products and services that are irrelevant to its central industry.
Digital TVs and routers, for example, are not among Vodafone's primary
offerings. Furthermore, supplying services to organisations such as DHL or
Unilever demonstrates their willingness to diversify. It may also result in
significant losses because the company will be new to the market and will not
be aware of the demand for its new product.
2.2.3. Market penetration is the activity of enlarging a corporation's
strategies in an existing market and growing its market share in that market via
substantial marketing and efficiency plans. Contextualising the Ansoff Matrix
for Vodafone implies that Vodafone is an international broadcasting activity
that approaches services all over the world. They can expand their sales in the
countries they service by increasing market penetration. To attract more clients,

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they could implement a loyalty programme and create special deals to promote
their services and products. To gain market penetration, Vodafone must do
something that customers have rarely seen before.
2.2.4. Market development is the approach of pursuing new markets or
new segments of a prevailing market. Current items and services are sold to a
newly targeted market during this procedure. According to the Ansoff Matrix
analysis for Vodafone, the company is very diverse, with hundreds of products
and services sold worldwide, both in its own and franchise outlets. Through
online deals platforms, the organisation already has operations throughout
Africa and the Middle East, the Americas, Asia-Pacific, Europe, and the rest of
the world. Through online sales channels and franchise networks, the business
is constantly requesting to expand its business to the rest of the world. In
addition, the company is constantly trying to shield huge businesses. For
example, he founded Vodafone Global Enterprise to serve multinational
corporations such as DHL, Unilever, The Linde Group, and others. This
suggests that the company is constantly seeking to increase its market (Cypher
Systems, 2006).
2.3. Blue Ocean Strategy
Blue Ocean Strategy was first established as a strategy concept by Kim and
Mauborgne (2014). The entire Blue Ocean Strategy framework is based on the
rejection of traditional business strategy: there must be a cost-value trade
Vodafone has an uncontested market in its fiscal fourth quarter with its full
2021 results released, as a three-year strategy to reorganise the corporation
ends.
It stated that it is entirely dedicated to becoming a next-group digital
connectivity and service contributor for Europe and Africa.
Vodafone also stated that it had met its earlier commitments by restructuring its
operations in both regions, exceeding its aim of €1.3 billion in cost savings over
three years, and successfully launching its infrastructure unit Vantage Towers
(Majithia, 2021).
Blue Ocean's approach looks to distinguish parties and labels such as Vodafone
Group Plc to construct customer perception and requirements in a new market.
The blue ocean strategy meets the increasing challenge in open market space,
executing the competitors off base.
The blue ocean method and framework qualified Vodafone Group Plc to
explore new market divisions that were not viable or dynamically employed by
existing competitors in the existing corporate surroundings.

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Vodafone Group Plc has spotted rapid enlargement and a higher profit when it
implements the blue ocean tactic, changes the game's rules, and eliminates
competition, making environmental issues obsolete and irrelevant.
Vodafone Group Plc has rebuilt strategic profiles for the company and its
various offerings in uncontested market spaces using a ground-up approach.
Companies often must choose between distinction and low cost. Vodafone
Group Plc has also managed to upset this trade-off by attacking the strategic
formation, foundation, and logic of the industry, challenging industries, and
working within general boundaries. Value innovation has the potential to create
an unchallenged new market sector for Vodafone. As a result of its unrivalled
market share, the corporation faces no price competition and faces dominance.
Vodafone's involvement in national crises and the repercussions for
international firms was centred on differentiation within the blue ocean strategy.
Its efforts to differentiate are centred on delivering distinctive consumer value
in its product and service offerings (Agnihotri, 2016).
They also prioritise keeping the value additions and differentiated products and
services they provide affordable. They often re-evaluate and re-evaluate their
processes and systems constantly to retain efficiency at high prices.

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Conclusion
Through their sole concentration on the mobile industry, Vodafone implements
a concentrated business-wide cost leadership strategy. Because Vodafone hasn't
had the interferences that their opponents have, such as landlines, they've been
capable of protecting cash and passing the investments on to their clientele or
retaining a turnover even when their nearest player is only making ordinary
revenues. Vodafone kept a wide viable field and concentrated on the price to
gain a reasonable gain.
Finally, the Boston Consulting Group stated last year that AI is critical to
resolving the climate challenge. When global climate and AI leaders were
polled, 87% agreed that advanced analytics and AI are important instruments in
the battle against climate change.
Consultants predict that corporations can accomplish up to 10% of their carbon
reduction goals just by collecting data, making connections that humans miss,
and recommending actions.
AI appears to have the potential to make work more engaging, the earth less
polluted, and leisure time freer (Vodafone, 2023).

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Reference List
Agnihotri, A., 2016. Extending boundaries of blue ocean strategy. Journal
of Strategic Marketing, 24(6), pp.519-528. Mebert, A. and Lowe, S., 2017. Blue
Ocean Strategy: How to Create Uncontested Market Space. Macat Library.
Cypher Systems (2006). Cypher Systems Competitive Intelligence
Consulting. Available at: http://www.cypher-sys./com/ansoff%20matrix.htm.
[Accessed 15 Nov. 2023].
Hanlon, A. (2021). The Ansoff Model. [online] Smart Insights. Available
at: https://www.smartinsights.com/marketing-planning/create-a-marketing-
plan/ansoff-model/ [Accessed 21 Nov. 2023].
Jindong, H. (2022). The Future of Innovation through Artificial
Intelligence and Machine Learning · Vodafone Careers. [online] Vodafone
Careers. Available at: https://careers.vodafone.com/life-at-vodafone/projects-
stories/the-future-of-innovation-through-artificial-intelligence-and-machine-
learning/ [Accessed 24 Oct. 2023].
Kim, W.C. and Mauborgne, R., (2014). Blue Ocean strategy expanded
edition: How to create uncontested market space and make the competition
irrelevant. Harvard Business Review Press.
Majithia, K. (2021). Vodafone lays out the next phase of its growth
strategy. [online] Mobile World Live. Available at:
https://www.mobileworldlive.com/featured-content/home-banner/vodafone-
growth-strategy/ [Accessed 15 Nov. 2023].
Porter, Michael. (2008) On Competition: Porter’s Five Forces. Boston
MA. Harvard Business Press.
Vodafone (2023). How artificial intelligence could change our lives for
the better. [online] Vodafone UK News Centre. Available at:
https://www.vodafone.co.uk/newscentre/smart-living/lifestyle/how-artificial-
intelligence-could-change-our-lives-for-the-better/ [Accessed 25 Oct. 2023].

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