Test

Test

In this case report we will provide two detailed strategic options for Vodafone as a telecommunications provider to sustain its growth internationally. We will give reason for our recommendations and evaluate the VRIO Framework of the organization and provide a clear Five Forces Analysis.

Vodafone is a UK based telecommunications giant that has been a part of shaping the wireless phone industry as we know it today. Vodafone is present is most European and Asian markets. The company failed in Japan and has yet to enter the American market successfully as an independent company.

We have developed two strategies for management to consider. Our first option is highly innovative and requires the company to utilize technology that already exists by forming alliances with providers of internet connections and with phone manufacturers. Our second option suggest that Vodafone should enter the American market as soon as possible providing wireless phone service in the American market place using many aspects of its existing business model.

Suggesting the first option involves higher risk than option two. There is however room for sustainable growth with both options.

Case 3-11: Vodafone; E Pluribus Enum

Mission and objectives of Vodafone:

Vodafone is the world's largest provider of voice and data communication services to consumers and enterprise customers. The company employs about 66,000 people around the world. The company headquarter is situated in Berkshire, UK. Vodafone operates through single reportable business segment: supply of communications services and products. At the end of March 2007, the company had 206 million customers world wide. (Vodafone, 2007)

Vodafone's strategic objectives:

• Revenue stimulation and cost reduction in Europe

• Innovate and deliver on our customers' total communication needs

• Deliver strong growth in emerging markets

• Actively manage our portfolio to maximize returns

• Align capital structure and shareholder returns policy to strategy

Key issues and problems;

Key issues and problems for Vodafone include how the company manages to coordinate its growth and to maintain its competitive advantage in the dramatically changing market environment of the dynamic telecommunication sector.

VRIO:

Table 1.1 The VRIO framework

Value Rarity Imitability Organization Competitive implications

Network infrastructure Yes No No Yes Competitive