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REPORT

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Vodafone Insight 2007 acquisition, management change & caution

Vodafone Insight 2007 acquisition, management change & caution

  • Publication date: 19/07/2007
  • Number of Pages: 166
  1. Report Details
  2. Table of Contents
  3. Companies Listed

Report Details

Vodafone was set to become the largest mobile operator in the world, but then things started to go wrong. With China Telecom staking that claim by virtue of its gigantic subscriber base sourced from the fast-growing Chinese market, Vodafone has had to settle for the title of largest operator outside of China. Its once brave growth strategy by acquisition seems to have been superseded by a measure of caution.

- Has the Management change led to a less ambitious company?
- With the only major acquisition made under Arun Sarin being Hutchison Essar in India, is Vodafone really growing its global market share?
- Or are the shareholders content with a strategy of indifference?

Once faced with the possibility of near-global footprint coverage and the benefits of economies of scale in its purchasing power, Vodafone is now looking at a fragmented market where a country by country approach may be beneficial rather than a globally harmonised strategy.

- Is Vodafone lagging behind its major competitors or is it being strategically cautious?
- Is the Vodafone corporate culture fully committed to the serious deployment of converged services such as fixed-mobile convergence or mobile Internet?
- What will Vodafone do next?

Restructuring its operations into three separate units was designed to make the company run more effectively. Focusing on key regions, this grouping enables the company to tackle the issues that affect a number of countries on a pan-regional scale. But is this working? Will it work? Visiongain’s latest report, "Vodafone Insight 2007 – acquisition, management change & caution", tells you what the company is doing and how its future is being mapped out. It will provide you with analysis of its key operations and strategies for the near to middle term.

The report highlights the following:

• Vodafone’s operations
• Vodafone’s strategies
• Market environment
• Growth opportunities
• Vodafone live! and it’s future
• Future options
• Strategic choices
• Performance of Vodafone across the globe

With analysis of current and future strategies for the group and all of its operations in major markets, this report will help you understand Vodafone’s position in the market. You will also learn how the operator will try and shape each of these individual markets and the industry as a whole. Despite a less clear strategic focus than it once had Vodafone is still a key player and its movements will influence market and industry development. If you are working with Vodafone, want to work or collaborate with the company, or are pitted against it in your domestic market you need to know how this player will move forward. Ignoring this company is not an option. Order your copy of this 160+ page report today.

By reading this report you will learn:

• How far Vodafone’s business models have been adapted to changing market environments
• About Vodafone’s competition and how the operator is dealing with this
• What Vodafone’s Brand strategy is
• How its operational models are developing
• The company’s approach to Global Asset Management
• What the company’s financial strategies are
• What issues Vodafone faces in the future, and how it could resolve them

Who should you read this report?

• Mobile Network Operators
• Handset manufacturers
• Content Providers
• Specialist Service Providers
• Application developers
• Aggregators
• Distributors

Table of Contents

1. Introduction
1.1 Focus of the Report
1.2 Executive Summary
1.3 Aim of the Report

2. Strategic Analysis
2.1. Vodafone: A Review
2.1.1. Early History
2.1.2. Becoming and Remaining a Genuine Global Player
2.1.3. End of an Era: Management Change
2.1.4. Leadership and Corporate Culture
2.1.4.1. Leadership Change and Honorary Life Presidency
2.1.4.2. Concerns about Strategic Direction
2.1.4.3. Rebalancing under Arun Sarin
2.1.5. Corporate and Brand Positioning
2.2. Issues Facing Vodafone
2.2.1. Effects of Core Market Saturation
2.2.2. Competition: Facing the Multiple-Play Carriers
2.2.3. Segmentation
2.2.3.1 Segmented Pricing and Products
2.2.3.2 Segmentation to address competition
2.2.4. Regulatory Considerations

3. Vodafone Today: A Rebalancing Strategy
3.1. Proactive versus Reactive
3.2. The Group’s so-called Five Strategic Objectives
3.2.1. “Reducing Costs and Stimulating Revenues in Europe”
3.2.1.1. Cost Reduction Initiatives in Europe
3.2.1.2. Stimulating Revenue Growth in Europe
3.2.2. “Delivering Strong Growth in Emerging Markets”
3.2.2.1. New acquisitions outperform original business cases
3.2.3. “Innovation and delivering on customers’ total communications needs”
3.2.3.1. Broadband and DSL
3.2.3.2. Mobile-PC Convergence
3.2.3.3. Mobile Advertising
3.2.3.4. Mobile-Centricity at the Core
3.2.4. “Actively manage the portfolio to maximise returns”
3.2.5. “Align capital structure and shareholder returns policy to strategy”

4. Vodafone and its Core Product Strategy in 2007
4.1 Multimedia content via Vodafone live!
4.1.1. The further development of Vodafone live!
4.1.2. Vodafone live! and the 3G dimension
4.1.2.1. Vodafone Mobile Connect 3G/GPRS: A Prelude to Vodafone live! with 3G
4.1.2.2. The Launch of Vodafone live! with 3G
4.1.2.3. An Issue of Market Acceptance
4.1.2.4. Recent Rises in Adoption
4.1.3. The Vodafone live! attempt to leverage existing Internet brand strengths through alliances
4.1.3.1. Rising Web 2.0. Brand Equity
4.1.3.2. Rival Web 2.0-based mobile developments
4.1.3.3 Bringing Web 2.0 Brands into Vodafone live!
4.1.4. Opening up the Web: Vodafone Mobile Internet
4.1.4.1. Vodafone live! and Vodafone Mobile Internet: Pricing Models and Changing Contexts
4.1.4.2. Prepaid Exclusion from Unlimited Flat Rate Data Pricing: An indirect prepaid-contract migration strategy
4.2 Convergence: Driving Fixed-Mobile Substitution
4.2.1. The Vodafone At Home and At Office solutions
4.2.2 Gearing Prices to the Home Consumer and Business Segments
4.2.2.1 The German FMC Market Situation
4.2.2.2. The Italian FMC Market Situation
4.2.3. Synergising Mobile with DSL, ULL and alternative Wireless Broadband options
4.2.3.1. Asset light approach towards DSL provision
4.3  Services for Emerging Markets: Mobile Remittance
4.3.1. Mobile Remittance: Target markets
4.3.2. M-payment for domestic markets
4.3.3. M-PESA Project: Successes
4.4  Developments in Group Handset Strategy
4.4.1 Handsets for Emerging Markets
4.4.2 Supporting the Mobile Plus Strategy: Multimedia Devices

5.         The Mobile Communications Market:       A Background
5.1  The Global Mobile Subscriber Market Context 2000-present
5.2. Vodafone within the Global Context
5.2.1. Vodafone and its Global Shift

6. Vodafone’s Relative Position in the UK
6.1. Consequences of UK Market Saturation
6.2. Redressing the Balance under Competitive Pressure
6.3. UK Cost Rebalancing: Acquisition and Retention
6.4. Vodafone live! and 3G Adoption in the UK
6.5. Vodafone UK Data Revenue Growth
6.6. Vodafone UK and The Mobile Plus Strategy in 2007

7.         Vodafone's Relative Position in Germany
7.1. The Effects of German Market Saturation
7.2. Redressing the Balance under Intense Pricing Pressure
7.3. Embracing Fixed-to-Mobile Substitution
7.3.1 FMC as a Growth Driver
7.4. Encouraging Mobile Data Growth
7.5. Pushing the Mobile Plus Strategy

8.         Vodafone's Relative Position in Spain
8.1 Market Saturation and Intensified Competition
8.2 Strong customer growth for Vodafone Spain
8.3. Revenue stimulation offsets declining ARPU
8.4. A Shifting Competitive landscape
8.5. Acquisition and usage stimulation helps drive 3G adoption
8.6. Balancing Traditional Growth Variables with the Mobile Plus Strategy

9.         Vodafone's Relative Position in Italy
9.1. Italy: Europe’s most advanced mobile market
9.2. The effects of saturation and competition on performance
9.3. Usage stimulation
9.4. Non-voice revenue increasing in 2006-2007
9.4. HSPA drives 3G adoption over 2006-2007
9.5. Multiple-play increases competition
9.6. FMC: Vodafone Casa and Regulatory Issues
9.7. The Mobile Plus Strategy for Italy:  The need to minimise time-to-market

10.       Vodafone's Relative Position in its minor Western Europe markets: Greece, Netherlands, Portugal, Ireland
10.1. Comparison between European Markets
10.2. Other Europe Performance Highlights
10.3. Vodafone Greece fined by national regulator
10.4. Reduced Competition in the Netherlands

11.       Vodafone EMAPA - The Core Growth Markets
11.1. EMAPA Market Characteristics
11.2. Global Players and the Regionalisation of Emerging Markets

12. Romania Overview
12.1. Capitalising on Romanian Market Growth
12.2. Usage and ARPU Growth
12.3. Encouraging 3G adoption and usage driven by Vodafone live!
12.4. Vodafone Office: Deriving Strength from the Romanian Business Segment
12.5. Pre-empting fixed line penetration using FMC
12.6. Market Leadership within Reach

13. Turkey Overview
13.1. Turkey: Scope for Growth
13.2. Vodafone Turkey outperforms acquisition business case and past record as Telsim
13.3. ARPU Growth across Segments
13.4. The Benefits of Best Practice Knowledge Transfer
13.5. Regulatory Concerns
13.6. Segmentation, Products and Distribution as Growth Drivers

14. Egypt Overview
14.1. Vodafone outperforms chief rival Mobinil
14.2. Prepaid-driven Growth
14.3. Key Success Factors since acquisition
14.4. Implementing Mobile Plus in Egypt
14.5. Positioned to compete

15. Overview of South Africa and other Vodacom operating territories
15.1. Strong Performance across territories
15.2. South Africa: Growth-driven performance
15.3. South African Subscriber Growth offsets Declining Averages
15.4. The Key Role of Segmentation in South Africa
15.5. The Mobile Plus Strategy in South Africa: Implementation breeds positive results and outlook
15.6. Regional growth outside South Africa

16. India: A New Frontier for Growth
16.1. Monthly Additions Enhance Performance Prospects
16.2. Hutchison Essar as a Growth Platform for Vodafone
16.3. Regional Subscriber Distribution Patterns and Growth
16.4. Vodafone’s Investment and Cost Efficiency plans for Indian operations
16.5. Marketing: From Hutch to Vodafone
16.6. Confident Outlook

17. Vodafone's Position in the "Grey Areas"
17.1. Marginalisation or Opportunity in the USA?
17.1.1. Vodafone’s lack of influence over Verizon Wireless’ Strategic Direction
17.2 Minimal Participation in fast-emerging China

18. Conclusions: A Question of Redefinition
18.1. Vodafone’s Positioning in a Changing Market Environment
18.2. The Vodafone Business Model in a Changing Market Environment
18.3. Vodafone's Corporate Mentality: Pragmatism and Potential Pitfalls
18.4. Marginalisation in the growing Internet space.
18.5. Pragmatic Approach to Multiple-Play

Companies Listed

3 Italia
AA
AFK Sistema
Aircel
AirTouch Communications
Alcatel-Lucent
America Movil .
Apple
Arcor
AT&T
AT&T Mobility
AT&T Wireless
Avea
Barclays
Bell Atlantic Communications
Bharti Airtel
British Sky Broadcasting
BSNL (Bharat Sanchar Nigam Ltd)
BT Group
Canale 7
Cell-C
China Mobile
China Unicom
Cingular Wireless
Citigroup
Connex GSM
Cosmote Romanian Mobile Telecommunications
Dada
Deutsche Telekom
Discovery Channel
eBay
Eircell
eircom Group
Electronic Data Systems (EDS) Corporation
EMI Music
E-Plus
Ericsson AB
Etisalat Misr
Facebook
Fastweb
Fox Entertainment Group
France Telecom Group
Friendster
Google
Gruner + Jahr
Guardian News and Media
HBO
Hutchison 3G UK
Hutchison Essar Ltd
Hutchison Telecommunications International Ltd (HTIL)
Hutchison Whampoa
IBM
Idea Cellular
J-Phone Co.
Kiss 100 (Emap)
KPN Mobile
Mannesmann
Microsoft
Millward-Brown
MobiFon
Motorola
Movistar
MSN Inc.
MTC Group
MTN Group
MTS
Multimap
MySpace
Neuf Cegetel
News Corporation
Nickelodeon
Nokia
Nokia-Siemens Networks
Novarra
NTT DoCoMo
O2
Omnitel
Orange
Orascom Telecom Holding S.A.E
Oskar Mobile
Peoples Phone
Portugal Telecom Group
PriceRunner AB
Proximus (Belgacom)
Racal Electronics
Reliance Communications
Research In Motion
Safaricom
Samsung
SFR SA
Sharp
Singlepoint
SingTel Group
Skype
Slingmedia
SmarTone
Softbank Mobile
Sogecable
Sony BMG Music Entertainment
Sony Ericsson
Spice Telecom
Sprint-Nextel
Sun Microsystems
Swisscom
Swisscom Mobile
Talkland (UK) International
Tata Teleservices
T-Com
TDC-Mobil
Telecom Egypt
Telecom Italia
Telefonica Group
Telekom Malaysia
Telenor
TeliaSonera
Telsim
Telstra
Tesco Mobile
The Egyptian Company for Mobile Services (Mobinil)
TIM (Telecom Italia Mobile)
T-Mobile International
Turkcell
Turkish Savings Deposit and Investment Fund ("TMSF")
UEFA
Universal Music Group International
Verizon Communications
Verizon Wireless
Viacom
Virgin Media
Vivendi Universal
Vodacom Group
Vodafone Group
Wanadoo
Warner Music
Wind Telecomunicazioni
Ya.com
Yahoo
Yoigo (Xfera Móviles S.A.)
YouTube
Zapp Mobile (Telemobil SA)
ZTE Corporation