Mobile and Orange

Some organisations like to have a written statement about their mission and objectives. Some of them will have these statements but refer to them by a different name. Vodafone, by using their mission statement actually tells the consumer what their purpose is by being involved with their organisation. By issuing a mission statement Vodafone had tried and possibly gained a physiological advantage over their competitors by having a planned and written statement of important objectives. The style of Vodafone’s mission’s statement came across as very detailed but straight to the point.

There is no perfect way that a mission statement should be written as long as your message comes across effectively. This statement worked for Vodafone and furthermore they gained huge amount of benefits by using this style. Vodafone’s Objectives The primary objective of any organisation is to survive and the second most important objective would be to maximise the shareholders profits. Vodafone is strong in countries with high GDPs. Despite its diversity, the company still generates the vast majority of its revenue in Europe. Asia is the second most important region, just ahead of the Americas.

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Vodafone has management control of most of its businesses. This will allow it to fully leverage its global scale through cost savings on infrastructure and handset contracts. Vodafone is now achieving modest improvement in average revenue per user is some countries. This is being driven by an improvement in its customer mix and by higher usage by its existing customers. At the end of September 2002, 71% of Vodafone’s customers were post paid customers. Usage of mobile data is helping to lift revenues. Data contributes 13. 3 per cent to Vodafone’s group revenues in the 12 month ending September 3, 2002.

This represents a healthily increase from 11. 1 per cent for the 12 months ending March 31, 2002. The largest data contributions are now in Japan and Germany. In Japan for example, data contributed more than 20 per cent of revenues during August and September 2002. Vodafone is quickly becoming a market leader in relation to its mobile content applications. The new Vodafone Live! Service has been well designed and marketed, and had attracted more than 380,000 customers by the end 2002. Weaknesses Vodafone’s commitments in the next two to three years will restrict its ability to make further acquisitions.

The effect of this is already noticeable. In comparison with previous years, Vodafone’s acquisitions in the 12 months through September 2002 were very limited. Its expansion was largely limited to increasing its stakes in existing operations, such as Portugal, and in Sweden, where they increased their holdings to 74. 5 percent from 71 per cent. They also increased their stakes in their businesses in Germany, Spain, Australia and China. Vodafone is heavily committed to 3G technology, and their associated costs and uncertainties.

By the end of September 2002, Vodafone had begun internal field trials of 3G networks in five European countries, in addition to Japan. Yet, 3G will not provide a return on investment for Vodafone within the next five years, and possibly longer. Vodafone risks losing the market share as it focuses on customer acquisitions costs. During the six months through September 2002, Vodafone’s operating expenses decreased by 5 per cent. As it continues to reduce handset subsidies in some markets, it runs the real risk of losing customers to its competitors.

The imposition of lower termination charges by the UK regulator will negatively impact Vodafone’s UK revenues over the next four years. Vodafone won’t succeed in its proposed legal challenge to the regulator’s ruling. Opportunities Vodafone will reduce costs aggressively by leveraging its large scale. Specifically, they will focus on savings in relation to the purchase of handsets and infrastructure, along with product development and advertising. Vodafone will increase their use of common platforms across its operations.

They will drive down wholesale handset costs by engaging in more strategic relationships with fewer handset suppliers. The Vodafone Live! Service will be a success. Customer numbers will meet targets, and partly due to this service, Vodafone will see further improvement in average revenue per user in its European operations Threats The threats include fellow competitors in the UK, there are other competitors around the world, but the closest and most competitive rivals are the UK base rivals O2, T-mobile and Orange. Main Competitors in the UK are O2, T-Mobile and Orange.

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