Anantha- International Strategic management and innovation (Draft 3)

INTERNATIONAL STRATEGIC MANAGEMENT AND INNOVATION Vodafone group plc

Contents Introduction ................................................................................................................................ 2 Current strategic position of Vodafone ....................................................................................... 2 PESTLE Analysis ................................................................................................................... 2 Porter’s five forces .................................................................................................................. 5 Value Chain Analysis .............................................................................................................. 7 Primary Activities ............................................................................................................... 7 TOWS Matrix ......................................................................................................................... 9 References ................................................................................................................................ 11

In the framework of global trade, economic considerations have always been fundamental. There is a one-to-one correlation between the prosperity of national and global economies and the growth of multinational technology corporations. The number of people who use the internet and mobile services has skyrocketed recently. However, success is contingent on sales and income. These factors are directly impacted by the economic health of countries. Vodafone's primary markets include the United Kingdom, India, Spain, and Italy ( Howell and Potgieter, 2019). These countries' economies, along with those of Europe, have been thriving as of late. The Brexit-induced stresses on Vodafone's UK business will persist. Vodafone's revenue and profit are influenced by macroeconomic factors like the level of economic activity and the employment rate in a country or region (Jaseel, 2019). With more firms competing for customers' dollars, economic factors have become increasingly important in international trade. Organizations and their plans can't afford to ignore financial realities in the big picture. The rapidly growing Indian economy has Vodafone thinking big about opening new offices there. Social factors Sociocultural elements' function and significance in the corporate context have grown throughout time. The importance of local cultural norms and values to a company's success or failure is being increasingly acknowledged by large organisations. People's spending habits are affected by the ever-evolving societal norms and way of life Curwen, 2022). Throughout history, there has been a dramatic shift in the consumption habits and favoured products of people in various parts of the world. Tech businesses, in order to survive, must first acknowledge these changes. As more people and businesses gain access to the internet, there will be an increased demand for more bandwidth. These days, more and more people spend a sizable chunk of their day online. The growing need for online services has benefited multinational telecoms corporations like Vodafone (Hamza et al., 2020). People's reliance on the internet has increased as a result of the proliferation of social media platforms, and online retail sales continue to rise. Also, when promoting their goods and services internationally, businesses need to consider the role of social marketing features ( Calabrese et al., 2021). Technological factors

Technology is essential for the success of any telecom company. The company has broadened its product line in recent years to meet the increasing demands of both individual customers and institutional clients. Nonetheless, Vodafone has been obligated to pay attention to this aspect as well due to the growing significance of customer journey (Caron, 2020). Therefore, the company is implementing digital technology to enrich the customer experience and increase engagement. The company's extensive catalogue of offerings is accessible via the “my Vodafone” app and website. These serve as promotional and clientele expansion avenues for the business ( Hamza et al., 2020). To advertise, Vodafone employs digital methods as well. Consumer demand for data and connectivity has skyrocketed in this decade, making technological advancements a key differentiator in the telecom industry. Environmental factors Companies have increased their focus on sustainable and environmentally friendly methods since the turn of the century. In order to reduce their negative effects on the environment, companies nowadays are making massive expenditures in greening their operations (Amankwah and Asare, 2019). Building a trustworthy reputation is essential, but governments everywhere have passed laws to curb irresponsibility. Like the majority of other global corporations, Vodafone is trying to lessen the environmental damage it causes. In addition, the company strives to assist its clients in optimising productivity while minimising waste and ecological effect. Consistent performance improvements and reduced environmental impact are the result of well-established management systems. It diverts and repurposes the vast majority of the electronic trash produced by its daily operations into new products. The business also has top-notch systems in place for controlling its office trash and water usage. Meeting international and national laws and standards is another crucial aspect. Vodafone, as a multinational corporation, must comply with environmental rules in order to avoid the steep penalties for doing so. Legal factors In recent decades, the significance of law and legal considerations in the corporate sector has grown significantly. There has been a global trend toward more regulation and enforcement of corporations by governments and regulatory bodies. Increased scrutiny from governments around the world can stifle the expansion of international enterprises. It is crucial for firms to follow all tax, labour, and environmental policies as well as other laws and regulations. Major consequences await anyone who choose to disobey the law. The European Union (EU) and

consumer incurs less effort in switching. The telecom industry is extremely concentrated, with only a few of major firms. Because of this, consumers have few options to pick from. The telecommunications industry faces high customer expectations for a wide variety of services. They want to spend as little as possible for the highest quality services ( Hamza et al., 2020). They do this by evaluating the prices and offerings of numerous vendors in order to find the best feasible deal. All of the varying telecommunications providers offer similar offerings and services. There isn't anything particularly unique about the services and products that Vodafone offers. Customers have few qualms about moving on to a competing product due to the lack of differentiation between offerings ( Thakkar, 2019). Bargaining power of suppliers (Moderate) Standardized fundamental materials used in telecommunications equipment are available from a wide variety of sources. The materials Vodafone's network requires may be obtained rapidly and without any hassle (Caron, 2020). Providers therefore have some bargaining power. The products offered by various suppliers of telecom equipment are largely equivalent. Clients can easily switch suppliers in this market. Because there are so few suppliers, switching to a different consumer is not an option. Negotiating power has been eroded. Because of its extensive global footprint, Vodafone is best served by making bulk purchases. This makes it possible to set a lower asking price. To little effect in negotiations, from the perspective of suppliers (Calabrese et al., 2021). Threat of competition (High) Competition amongst already-established companies is fierce. The telecom industry features tremendous competition and harsh rivalry between enterprises. Over the course of a year, Vodafone's competitors will try to offer a wide variety of services to win over customers. Most national markets have reached saturation and are no longer growing (Khan and Suhaib, 2019). Therefore, existing players in the market need to compete for customer retention and acquisition. Since customers suffer few repercussions when they transfer brands, there is ongoing competition to win them over with time-sensitive discounts. Corporations have invested in the expansion and improvement of the internet's backbone (Hamza et al., 2020). This was a one-time charge. Companies like Vodafone are ready to decrease rates to gain market share and benefit from economies of scale. Companies are hesitant to leave the business because of the substantial investments they have already made. Therefore, even if there aren't many people taking part, the competition is cutthroat ( Jobber et al., 2019).

Value Chain Analysis Through the value chain analysis that they provide, Vodafone aids businesses in pinpointing their potential competitive advantages. The competitiveness of a company can be improved by examining a wide range of factors, and this analysis can shed light on those factors. This is due to the fact that the organization's competitive edge originates within as well as externally. The value chain analysis also assists in determining the internal and external links of the organisation and the relationships between them. The company's business units and the competitive advantage each location offers can be better understood with the help of these connections ( Hamza et al., 2020). Primary Activities Organizational activities along the primary value chain have an effect on the making and marketing of the product. These core operations have been crucial to the company's continued success. Since then, the company's customer base has grown, and with it, its competitive edge. Inbound Logistics In recent years, Vodafone has strengthened its partnerships with key suppliers, who are essential to the company's smooth product distribution. By improving the flow of raw materials into the production of finished goods, Vodafone has been able to improve the number of products that are really offered to its customers (Jaseel, 2019). The availability of raw materials and other production inputs has been facilitated in this situation by these internal considerations. That analysis has helped the company keep its edge over rivals. Operations Vodafone guarantees that all necessary components for making the final product are on hand at all times. The business is able to provide for the demands of its customers since all of its operational tasks, such as packaging, assembly, testing, and machining, are completed efficiently and on schedule. Furthermore, Vodafone guarantees that repairs and maintenance of equipment are completed on time and effectively to avoid production delays that could allow competitors to seize control of the market. By focusing on these business processes, Vodafone is able to increase its efficiency and retain its productivity, both of which are crucial

support services, which protect the integrity of the brand while also fostering rapid response times and productivity This benefit aids in spreading favourable opinions about the company. Infrastructure Differentiating products increases their appeal, which in turn affects consumer retention and gratification. Vodafone's ability to leverage and maximise the value of their product thanks to its infrastructure has enables the firm to gain a foothold in the industry. Thus, managing the infrastructure's operations has been crucial to fostering productivity and order. TOWS Matrix Vodafone's TOWS Matrix originates from a SWOT study. In order to obtain a significant edge in the market, the corporation should take advantage of the widespread availability of its network and 5G connectivity. Vodafone should prioritise improving its engineering services and customer support to boost the value it provides to consumers and so mitigate the risk of its differentiation strategy failing to pay off. Strengths - Large-scale infrastructure - Proactive R&D team - The breadth of 5G service - Huge capital investment Weaknesses - Dissatisfactory assistance to customers. - Price increases for all sorts of services Opportunities - The ever-increasing need for data services - Brand recognition can be boosted by prioritising customer service. - Also, the rival companies are criticised for providing poor service and poor value. - Joint ventures and other forms of strategic collaboration SO - To innovate data services and break into the business-to- business and business- to-consumer industries by investment in infrastructure and R&D. - By catering to the needs of businesses, the enterprise services provider can increase its share of the market. WO - Improve customer service in order to upgrade client amenities. - Establish a new brand identity by advertising discounted rates for network services. Threats - The market is quite competitive. - Profit margins contracting as a result of competitors' use of ST - Take use of 5G's unique capabilities to set your services apart from the rest of the pack and charge more for them. WT - Reverse the trend of declining market share by providing superior service to your clientele.

price discrimination tactics. - Maximize the advantage over the competitors by providing better service to your customers. - Drive more business and money with the new brand. Innovation Strategy of Vodafone To foster innovation, businesses might adopt the approach of "open innovation," which involves soliciting suggestions and input from a wide range of stakeholders. When compared to the typical, secretive nature of corporate R&D, the use of open innovation challenges represents a refreshing change from the status quo. When a corporation realises that there are smart people and more information outside the company, it might embrace an innovation model with a chance of success. Now is the time to seize the chance to bring in those outside resources, whether they be people or businesses. Businesses use a wide variety of open innovation strategies, including joint ventures, university endowed chairs, crowdsourcing contests, and innovation ecosystems. The global telecommunications firm came up with some fresh ideas for promoting its Vodafone You service aimed towards younger customers. The marketing team at Vodafone recognised that in order to communicate with Generation Z, they needed to do more than just appeal to the generation's fascination with everything cool and trendy. They also needed to appeal to the values and traits that define this group of digital natives, including their enthusiasm for entrepreneurship, founder, transparency, and individual fulfilment. As a large segment of their intended audience, students were the focus of their efforts to encourage participation. They needed to demonstrate empathy and credibility as a brand that stands behind young people's efforts to better themselves. Through a shared digital platform, they aimed to reach out to thousands of pupils. The group developed a daring initiative with the intention of sparking widespread discussion on college students' and recent graduates' use of technology to actively pursue their own personal and professional goals. They posted a problem statement on the online innovation platform and solicited responses from college students, asking for digital tools that would make it easier for them to study. In just 16 days, 525 concepts were generated. These remarkable outcomes can be attributed to their viral social media campaign and creativity-boosting strategy. Tens of thousands of kids were contacted, and the sentiments and encouraging gifts struck a chord with them, with each

economies of scale in the production of routers, digital televisions, and smart televisions, it may implement this technique. Companies can benefit from economies of scale through the implementation of a cost leadership strategy. Differentiation Strategy By differentiating themselves, businesses can ensure that their products continue to stand out in the market. By spending more on research and development, Vodafone will be able to provide differentiated services and products. If they put more money into making their service stand out from the competition, they'll attract a larger customer base and earn a higher profit margin from those customers. Life insurance, for instance, may be made available to subscribers who consistently meet minimum monthly internet usage requirements. Focus Strategy A focus approach can help Vodafone learn what their customers want and how to compete in the oversaturated telecommunications market. It's the practise of offering one-of-a-kind services at affordable rates (Singla, and Durga, 2015). With a concentrated effort, Vodafone can enter the specialised market. One of Vodafone's main goals in the UK may be to offer a network-boosting service in overcrowded areas.

References Amankwah, A.B. and Asare, G., 2019. The impact of sales promotional packages on customer switch and retention: case of MTN and Vodafone Ghana Ltd. International Journal of Academic Research and Reflection , 7 (4), pp.26-41. Calabrese, F., Cobelli, E., Ferraiuolo, V., Misseri, G., Pinelli, F. and Rodriguez, D., 2021. Using Vodafone mobile phone network data to provide insights into citizens mobility in Italy during the Coronavirus outbreak. Data & Policy , 3 . Caron, V., 2020. From traditional system toward agile methods: Digital transformation challenge in Vodafone. Curwen, P., 2022. Vodafone: large and sclerotic and ripe for takeover? A regular column on the information industries. Digital Policy, Regulation and Governance . Hamza, U.S.L.U., Taner, T.U.N.Ç., Musa, Ç.O.N., TAŞMEKTEPLİGİL, M.Y. and ERMİŞ, A., 2020. Evaluation of the factors affecting voluntary participation in sports events in Turkey: case of Vodafone 39th Istanbul Marathon. Turkish Journal of Sport and Exercise , 22 (3), pp.444-451. Howell, B.E. and Potgieter, P.H., 2019. Bagging bundle benefits in broadband and media mergers: lessons from Sky/Vodafone for antitrust analysis. Telecommunications Policy , 43 (2), pp.128-139. Jaseel, J., 2019. Impact of training and development on employee retention of the sales team in Vodafone at United Kingdom (Doctoral dissertation, Dublin Business School). Jobber, D., Lancaster, G. and Le Meunier-FitzHugh, K., 2019. Selling and sales management . Pearson UK. Khan, S.S. and Suhaib, M., 2019. Evaluating an International Human Resource Management Strategy for New Telecommunication Group in Developing Countries, Concentrating on Pakistan (A Case Study of Vodafone). Science International-Lahore , 31 (3), pp.457-461. Thakkar, A., 2019. The Idea-Vodafone Merger: Will it be a Game Changer in the Indian Telecom Industry?. Emerging Trends in International Business and Commerce , 137 .