The Changing Business Environment Of Vodafone Marketing Essay

The purpose of this paper is to understand changes made by Vodafone to achieve great success using the depth and applying business environmental theory. I have applying qualitative research method for applying the business environmental theory for Vodafone. This research proposal describes that Vodafone has change its business environment according to time. Vodafone has changing his business strategy. Vodafone is using long term strategy for achieving success. Using this proposal author mainly describes the strategy adopted by Vodafone in past five years. Vodafone has adopts methodology and strategy for solving some internal and external disputes. By using business environment Vodafone has changed its marketing and financial strategy. Data analysis part describes Vodafone’s strategy implementation, financial status, challenges, and achievements, changes done by organization and globalization and its impact on organization.

Findings:

Business environment is the way to implement and apply the business strategy for the organization. Business environment provides techniques and methods to face the challenges and solve them. Following are the key findings and based on the business environment.

How changing in business environment makes influence on the Vodafone?

What are the main issue and challenges face by organization and how?

What are the main techniques to changing the business environment of Vodafone?

Introduction:

“Business environment is combination of strategy to achieve success for organization. This is the method for organization to make strategy using business environment. This business environment includes political, economical, social, technological, environmental and legal issues of organization. This gives opportunity to find out strength, weakness, opportunity and threat for organization. It includes business strategy implementation and formulation and how it can be apply to organization. In past few years business environment theory has made some tremendous changes in the organization to find the proper path of success.”

Vodafone is the UK’s largest mobile telecommunication company. Vodafone is known for its best services. Vodafone operates its business in 26 countries. Vodafone is one of the public listed companies which is listed in LSE (London Stock Exchange) and NSE (New York Stock Exchange). This British company is subsidiary of Racal Electronics plc which is started its independent business and called as Vodafone. After merged with American company “Air touch” company achieves great success and in the wireless technology. Vodafone is the leading network provider in the United Kingdom. Due to globalization Vodafone has spread its business in whole world proves itself by maintained unique image among customers. Now Vodafone is third largest telecommunication company in the world and first in United Kingdom

History and Background of Vodafone:

In 1984, the original company is Racal strategic radio limited has change its name many times but 20% capital of Racal telecommunication organization was taken by public at that time company was fully demerged and called as independent small company whose name is Vodafone. Merging with American company Air Touch makes great influence on Vodafone which gives it an international fame and status. . Vodafone has committed 200 million customers in all over world. But due to fast and growing technology Vodafone is facing some business challenges. Vodafone has started its service from GSM card (Global system) for mobile. Vodafone is the live example of achieve tremendous success in business due to globalization. Vodafone is also providing service related to data and voice communication. In early 90s Vodafone was working with only 6000 employees but due to rapid invention in mobile & computer field makes great influence for organization. Now Vodafone has more than 70,000 employees from worldwide. Vodafone is operating its business from its head office in London. Vodafone mainly focus on its customers with providing them best service.

Analysis:

During the data analysis process of Vodafone i always focus on what changes made by organization using the business environment study. Vodafone is the organization which is change and expands with time and technology. Vodafone has made significant change in its services, products, and technology with time, new invention and to achieve competitive advantages. Vodafone is using proper marketing and management strategy for doing business. Vodafone is using management model for launching the new product in the market. Vodafone has identified its strength and weakness time by time and make its weakness as strength. These significant changes make Vodafone more reliable to customers. Vodafone are using some business experts which are the strategy maker for organization. Detail study of business environment gives methods to make changes and gives empirical evidence why these changes achieve great success for organization. Management methods like environmental scanning gives answer of this questions. Vodafone has made changes in its business strategy due some reason like globalization, changing in technology, competitors; maintain status of largest telecommunication sector. Changing in business environment is long term strategy to achieve success. Strategy is the one kind of future planning for organization to tackle the upcoming problems. Vodafone has changed its strategy regarding to customer service. The main part of Vodafone is to achieve great success is its strategy formulation and apply it in proper way. Study of business environment gives Vodafone to formulate the strategy regarding to productivity, marketing, financial future planning. The biggest challenge for Vodafone is to handle competition in the challenging business market of telecommunication.

Business Environment Theory:

Business environment is done on the base of environmental scanning. This environmental scanning includes macro and micro environment. This environmental scanning is used to make the strategy which gives proper direction to achieve success and competitive advantages over the other organizations. This theory identifies all the key factors which help to make strategy formulation and implementation for organizations. Vodafone and other firms feel positive influence by using this kind of business theory. Strategy formulation is the most important part of organization because this will gives proper decision making direction. This theory is useful for identify factors for future crisis, and gives direction to solve them.

!. Macro environment includes PESTEL or PEST analysis and SWOT analysis of organization. These are the technique which identifies factors which makes influence on the organization. These are important factors to make decision and implementation the business strategy of the firm.

2. Micro environment includes some marketing strategy regarding to product and services. This includes method like Portor, five forces, marketing mix and Ansoff matrix. Porter’s methods are beneficial to achieve competitive advantage over the other organizations in rivals. Marketing mix is applying for making marketing strategy for the organization. And Ansoff matrix is useful to make strategy for launching new product in new environment or in current environment. During the case study of Vodafone we can apply that how organization have achieved strategy using these technique and what challenges it face during the strategy implementation duration.

Case Study:

This part of proposal gives brief evidence that how Vodafone feels change in last five years by using business environment theory. Vodafone is world’s third largest telecommunication firm. This success is achieved by using proper strategy and applying at the proper time. Vodafone is not a big name in past few years. So Vodafone has change its business strategy using the business environment theory. In 2000, Vodafone was merged with Airtouch communication. But due to globalization more telecommunication organization are taking interest in the mobile technology and creates competition in the rival of telecommunication organization. Vodafone has start business form GSM cards in mobile industry and now it can provide wireless technology also. These significant changes made through changing in business environment. Vodafone has identified all the factors which make influence on success of firm. This organization has made some technical innovation for which gives it rapid success. Vodafone has changing its marketing strategy in past few years. Vodafone believes in quality of service not in quantity. In 1991 Vodafone has launched first GSM card for mobile and now it is working on 3G technology. According to environmental theory Vodafone has identify mainly technological factor to grow the business because it is technical sector company. Vodafone has launched first 3G services in 2004. Vodafone has 1 million customers when it has launched Vodafone live messenger service. Vodafone has faced many challenges to attract the customers and maintain them because there are another firms are also available to provide same technology in the market. The biggest challenge for Vodafone is that how to achieve competitive advantage because there are lots of other company are available. For that Vodafone has using business environment method for maintain its position and stability. Vodafone has done some significant changes by using these methods.

Changing in marketing strategy:

The most important strategy to improve marketing plan and execute it for Vodafone is that Ansoff matrix. This environmental study gives strategy to launch product with new service in previous market. So Vodafone has launched its 3G service using this matrix. It is business tool by using this firm can decide its product and marketing growth. There are following steps to do this method.

1. Market penetration: This phase gives Vodafone to sell existing product in existing market. So Vodafone has to launch its existing product in existing market by doing detail analysis of competitors in rivals. Vodafone has launched some existing service with new marketing style, pattern in existing market. So it is tough to make profit in existing market with existing product. But this method briefly analyzes all the factors which affect the growth and sale of product. Vodafone has increased its revenue by increasing market sale during last few years. Firm has maintaining market share of current product in the existing market. Using promotional strategy Vodafone has attracted the existing customers in past few years. Changing in environment of organization makes tremendous change in growth of business in some past years.

2. Market Development: This is the key method for where Vodafone has launched its existing product in new market. In past years Vodafone has launched its wireless service in some part of Asia with new strategy. Vodafone has launched its wi-fi technology in India so it is challenge for any organization to launch and get success of existing product in new environment. Due to geographical changes Vodafone has made some changes in its marketing strategy, distribution strategy. Vodafone has focus on demographic factors, Cultural issues and some political and economical factors before launching product in new market area.

3. Product Development: This method gives direction to Vodafone to launch new product in existing market. So Vodafone has launched its wi-fi service in UK and it is the existing market for this product where same service is provided by other organization. So to achieve competitive advantage this is the key method. Vodafone had started its broadband service in Europe by using this technique.

4. Diversification: Vodafone has launched its service in new market and country first time so that is the challenge for organization to build up its status and attract customers. This method gives strategy for making strong marketing strategy to attract the customers.

Marketing Mix:

This includes marketing strategy of Vodafone. This includes 4p strategy Price, Product, Promotion and Place. Vodafone has made changes due to above four factors.

Price cut: Due to competition Vodafone has also cuts price to increase sale of products and service, Vodafone has cut price by analyzing its competitors like three, O2 and orange. Due to recession and high inflation rate firm has cuts its service cost in Europe and other countries. Vodafone has launch some attractive skims for customer like festival skim, wholesale skim, price discrimination of product, money back, free sim card in past few years.

Promotions: This is most important strategy to attract the customers. Good advertisement and marketing strategy increase sale of products. So Vodafone is using some sports and film celebrity like Football star and Hollywood star to attract the customers. Marketing strategy is a technique to create value of product and service among the customers. Internet marketing, free home delivery, online shopping, free customer service, free access of wireless service at the start up of service. These kinds of strategy attract the customers.

Place: Vodafone has started its new organization where other operators are not providing this kind of service. Vodafone has launched its new organization in some Asian country like Bangladesh, Srilanka, Indonesia and other countries. Vodafone has made strong its distribution channel, transportation management, and accessories regarding to products.

Product: Vodafone has launched some new product with new strategy and planning this includes Apple i-phone with 3G access, mms facility, Skype facility, GPRS, CDMA technology, internet technology, live messenger, internet broad band and wi-fi, and GPS facility. All this is done by great invention in technology sectors and rapidly adopted by Vodafone.

Changing in competitive strategy;

Challenge for achieve competitive advantages: Vodafone had used Portor’s generic theory of business environment to achieve competitive advantage over other organization.

Portor’s Theory:

Vodafone feels competition due to other virtual mobile network operator in the world. This method gives opportunity to identify strength and weakness of its competitors and work on that. The biggest competitor of Vodafone in United Kingdom is three mobile which gives same service like wireless, gsm and 3g service. In past years three has changing its marketing strategy to attract the customers that result made problem for Vodafone. Other service providers provide better service than Vodafone in wireless technology. So Vodafone has identified power of buyer and power of supplier to expand the business. Vodafone feels threat of new entrants like T-Mobile, Orange and other organization in past few years. To overcome these kinds of problems Vodafone use portor’s theory for achieving competitive advantages.

SWOT Analysis of Vodafone

This the part of business environment theory which gives all the factors that affect on the organization. Vodafone has identify its strength, weakness, opportunity and threat using this method in last five years and made strategy to stable its position and status in fast and growing technical environment.

Strength: Vodafone know that no other organization is providing better services to customer than Vodafone. So they are at the stable position in past five years. Only thing is that they have to maintain its reputation and service. Vodafone is brand name. In early 2000 Vodafone has covers all over the world to providing service. Vodafone has make alliance with large mobile technology organization Apple. Apple is the one of the biggest technological organization in the world. 3g service plays key role to attract the customers in Europe, and Asia. Innovation in wireless sector is beneficial for Vodafone because before this there is other organization gives 3g service.

Weakness: Vodafone has identified that its wireless technology is not too much strong as compare to other network provider like three telecommunication. Vodafone know that it has not too much expert technician and engineers which makes rapid innovation in new technology. Vodafone has strong reputation in Europe but in Asia it has limited user because of its high cost and limited access of network services. Vodafone has some issues regarding to customers complain so using that organization has made strategy to overcome the solutions.

Opportunity: Vodafone has opportunity that due to globalization it has expanded its business in other fast developing countries like India and China. So Vodafone has launched its service in developing countries to make more profit with better services. This is beneficial for both country and organization because customer gets new technology and service and organization get more profit.

Threats: Vodafone has faced this problem many times because after globalization every year launched new company which makes threat for organization. So Vodafone is very careful for this issue and new arrival in the telecommunication sectors. Vodafone feels threat from other service provider like, At&t, Three, O2, Orange, T-mobile.etc. Due to competition Vodafone feels some threat regarding to price crises. Because due to rival every organization has same strategy regarding call price, service price etc. Vodafone is decreasing its price and cost every year due to competition. In last five years Vodafone has decrease price 13 times. At present it is the cheapest and best service provider in United Kingdom.

PEST Analysis:

This analysis is the method which describes all the factors that make impact on the organization. This method is focus on the Political, Economical, Social and Technological factors.

Political Factors: In last five years Vodafone has made significant changes due to political issues. Government has increased the tax policy and issue VAT on every business. So Vodafone has to make some changes due to this. Vodafone has decreased its price in past years but increase its business and revenue. Due to legislation law new government made new rule and organization must have to follow them. Government made pressure to decrease its price due to highly inflation rate in some countries. Due to ethical issue Vodafone has done some significant change in internal and external environment of organization.

Economical Factors:

This is the biggest challenge face by Vodafone because lots of countries feels recession problem at present. This recession is directly effect on the growth of organization. Due to economy crisis Vodafone has cut its price. Vodafone has released some employees due to less business. Vodafone has decrease marketing criteria due to this. Vodafone has stopped some future project. High inflation rate in some part of the world make influence on the business.

Social Factors: Social factors can also make influence on the Vodafone.. Local culture, society, religion also make influence. Organization has to do business in customer’s culture so organization has to follow the circumference of the customer’s culture. Mobile technology any how affects the human body so some people are not using technology due to this. Technology provides ways to addicted from gambling, erotic access, gaming and adult material access by internet so some country has ban mobile to less than 18 years.

Technological Factors: Vodafone has made significant changes in its technology in past few years. Vodafone achieves great success in wireless technology. Vodafone is providing 3G access now. 3G is the wireless technology which is tremendous achievement for organization. Alliance with Apple I-phone gives strong reputation to attract the young and technical customers. Due to other competitors Vodafone has started wireless service as early as possible because every day scientist does new invention in telecommunication sector. Vodafone has achieved great success after invention of wi-fi technology. This kind of organization has made revolution in market and almost removes the concept of wire and broadband technology. Vodafone has rapidly accepted the new technology. Vodafone has made its network quality better by using latest machinery and information technology. Great innovation in information technology gives opportunity to adopt latest technology for Vodafone.

Challenges face by Vodafone in past years and use of business environment:

The biggest challenge face by Vodafone telecommunication in past years is competition in virtual network operator. There are lots of organization available like 02, three mobile, T- mobile, At&T, Orange etc which provide same service. All other competitors’ cuts price in past few years so Vodafone has also make strategy for price cut. In last few years Vodafone has given good challenge in market of Asia like developing nations China, India, Indonesia, and Malaysia. Vodafone has using Portor’s theory to achieve competitive advantage over its competitors. Another biggest challenge for organization is recession. During that time organization has to release some employees and making salary cut to their employees. Vodafone has launched new service through i-phone alliance with Apple. Vodafone has expanded the business in Asia so in present it is challenging for organization where local operators are also strong.

Influence of Business Environment theory on Vodafone:

Business environment theory is very important for all the organization for making the strategy for upcoming time. It is good for organization that they have planned to solve the problem using these methods. So Vodafone has expanded its business by using these methods. It identified its weakness and work on it so that is good for organization. In very short time period Vodafone has increase the customer and revenue. Due to globalization Vodafone has started its network in other countries and get opportunity to do business. This theory aware organization form upcoming problems. This theory gives proper direction to making marketing strategy, decision making, and overcome form financial crisis, expand business.

Conclusion:

According to study of business environment Vodafone has made some significant changes in its services, technology and product which gives superb influence on the organization in the sense of business growth, financial growth, improving service, build up strong relationship among customers, profitability, and problem solving techniques. Using this Vodafone has bind more than 10 million customers in all over the world. Vodafone has increased its revenue and sales in past five years. It feels some rivalry challenges but due to proper strategy and management methods gives it success to achieve competitive advantages. Vodafone has changed its marketing strategy by doing analysis of local environment and achieve success. PEST analysis gives it the direction to find factors which affect on organization. Now Vodafone is on the stable stage. According to me business study of business environment gives us all the factors for making strategy and applies them to achieve long term success in challenging environment.