Presentation By:Deepika Iyyappan priyanka shah

Indian Telecom Industry

Overview
Vodafone Group Plc was founded in 1984 and is based in Newbury, United Kingdom. Vodafone currently has equity interests in 31 Countries across five continents and around 40 partner networks worldwide. It offers mobile voice services to approximately 391 million customers as of September 2011, messaging services; mobile data services; fixed broadband services to approximately 6 million customers; and whole sale carrier services to approximately 40 African countries.

 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 the companys subsidiary undertakings, joint ventures, associated undertakings, and investments. Company has total market capitalization of approximately 89.4 billion as of 23 December 2011.

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 wireless connection. India is known to rank fourth in the telecom industry in Asia after China, Japan, and South Korea and second in emerging economy India is one of the few countries in the world to have more GSM subscribers than fixed line subscriber.

Internal analysis
Resources

Tangible Resources

Intangible Resources

Management

Raw material

Location

Trust

Knowledge

Experience

Vodafones ability for management to complete successful acquisitions Vodafone's management has the ability to acquire and merge with other companies while maintaining an effective, low cost, organizational structure

their research and development to Enable innovative technology Vodafone is able to maintain technological leadership in mobile telephony systems

Competitive Advantage
Resources (intangible resources and tangible resources) Capabilities (management ability & Research and Development)

Competitive Advantage

Strategy

Market Position Operative management Diversification Quality of services & infrastructure

SWOT Analysis
Strength: Huge customer potential High growth rate Lower capital expenditure Engaged and active management team Sustainable business model

Weaknesses: Poor customer service Late adaptor of new technology Most competitive market A market strongly regulated by government Entry barrier

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

Threats: Shrinking economy Less demand for telecommunication services An increase in health care cost Increased regulation A decrease in the no. of radio frequencies

Leadership strategies
COMPANY ANALYSIS: VODAFONE

GENERIC STRATEGY
What are generic strategy?

Basically those are core ideas of a firm. Lets say, (Vodafone) has implemented differentiation strategy.
Why they chose differentiation strategy?

because to appeal customers with a special sensitivity for a particular product attribute. ( focusing to develop CUSTOMER LOYALTY).

GRAND STRATEGY
Indicates time-period over which long range 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.

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.

Business Strategy

FARUQUE

Industry Rivalry

Business Model (Outsourcing or Vertical Integrated)

IBM Deal: IBM has signed an extended deal estimated at up to $1 billion to manage the 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 single data charging system to support Vodafone India subscribers. This will help Vodafone India boost its data subscriber take-up, capture new revenue streams, and reduce operating costs through simplified operations.

Current Strategy
Increase exposure in emerging markets. Drive operational performance through value enhancement & cost reduction.

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 on Android 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 the 3G spectrum auctions.) By COAI.

Implementation by Vodafone
Differentiation strategy Designed to appeal customers with special sensitivity for a particular product attribute.

(i.e better network coverage, charging customer for their uses only & network reliability).
To build customer loyalty. Non implementation of COST LEADERSHIP but adopted DIFFERENTIATION STRATEGY.

Why differentiation strategy by Vodafone?

Continuous innovation thinking. They believe that their strategy should be to directly related to consumer needs.

(Eg: Double the number of outlets than the closest competitor in Metro cities.)
They provide: - Better network coverage - Better network reliability - Charging only for the consumers used services.

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.

Recommendations for Future

Tapping rural markets. - {In January 2012, net addition run rate of all circles (except Metro circle) 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 internet protocol (VOIP). Concentrate more on Value added services. (Money factor blocks Indian customers to adopt newer technologies).

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-financialr2019602.htm

Thank You