Vodafone Group Plc - Company Strategy & Performance Analysis
Vodafone offers a range of services including mobile, fixed broadband, video content, and cloud and hosting, Internet of Things (IoT) business solutions, and branded phones and devices. The company has a robust presence in Asia Pacific, Europe, and Middle East and Africa. Vodafone has witnessed significant growth in mobile subscriptions in the Middle East due to the launch of new services and multi access technologies such as WCDMA, GSM, and LTE. Nevertheless, the company generated 60% of its revenues from the European region in 2016
MarketLine’s Premium company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading telecommunication companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore the reports allow benchmarking company performance through the provision of key performance indicators including: subscriber volumes, subscriber churn, ARPU, and MoU.
Robust presence in several markets
Vodafone enjoys strong market position as evident from the high market shares it enjoys and from the strong brand it owns. The company has robust presence in countries such as Germany, Italy, Spain, the UK, and India. For instance, the company is the second leading competitor in Italy and India with market shares of 30%, and 19% respectively in 2016. It holds third position in Germany, Spain, and the UK with shares of 26%, 26%, and 22% respectively in 2016.
Weak performance in key European countries
Vodafone generates a substantial amount of its revenue from Europe, however, it reported weak performance in 2016. In 2016, Vodafone Europe posted revenue of US$30,102.5 million, reflecting a negative YoY growth rate of -3.4%. The declining revenues in Europe can be attributed to the weak performance in the UK, Spain, and Netherlands. These countries posted negative YoY growth of -14.18%, -4.60%, and -4.44%. The weak performance of these countries is attributed to the increased pricing competition, MVNO losses, and reduced roaming charges.
Mergers and acquisitions enable company to expand its presence
The company is aggressively focusing on pursuing inorganic growth strategies such as acquisitions to expand its presence in the market. For instance, in February 2016, Vodafone and Liberty Global agreed to merge their operations in Netherlands. The merger creates a 50‐50 joint venture to form a national unified communications provider in the Netherlands with complementary strengths across broadband, video, mobile, and B2B services.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook