SWOT ANALYSIS ON VODAFONE
Vodafone Group plc is a global telecommunications company headquartered in Newbury, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers (behind China Mobile), with around 332 million proportionate subscribers as at 30 September 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers.
The name Vodafone comes from voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones".[non-primary source needed
Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £92 billion as of November 2010, making it the third largest company on the London Stock Exchange.It has a secondary listing on NASDAQ.
In 1980, Sir Ernest Harrison OBE, chairman of Racal Electronics plc's, the UK's largest maker of military radio technology, agreed a deal with Lord Weinstock of General Electric Company plc to allow Racal to access some of GEC's tactical battlefield radio technology. Briefing the head of Racal's military radio division Gerry Whent to drive the company into commercial mobile radio, Whent visited GE's factory in Virginia, USA in 1980.
In 1982, Racal's newly formed subsidiary Racal Strategic Radio Ltd under CEO Whent, won one of two UK cellular telephone network licences; the other going to British TelecomThe network, known as Racal Vodafone was 80% owned by Racal, Millicom with 15% and Hambros Technology Trust 5% respectively. Vodafone was launched on 1 January 1985.Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986, Racal Electronics bought out the minority shareholders of Vodafone for GB£110 million.
Under stock market pressure to realise full value for shareholders (the mobile unit was being valued at the same amount as the whole Racal group), in September 1988, the company was again renamed Racal Telecom, and on 26 October 1988, Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB£1.7 billion.On 16 September 1991, Racal Telecom was demerged from Racal Electronics as Vodafone Group.
In July 1996, Vodafone acquired the two thirds of Talkland it did not already own for £30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for £77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's network.In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores.
In 1997, Vodafone introduced its Speechmark logo, as it is a quotation mark in a circle; the O's in the Vodafone logotype are opening and closing quotation marks, suggesting conversation.
On 29 June 1999, Vodafone completed its purchase of AirTouch Communications, Inc. and changed its name to Vodafone Airtouch plc. Trading of the new company commenced on 30 June 1999.To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobilfunk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network.
On 21 September 1999, Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless.The merger was completed on 4 April 2000.
* Diversified geographical portfolio with strong mobile telecommunications operations in Europe, the Middle East, Africa, Asia Pacific and to some extent the US
* Network infrastructure
* Leading presence in emerging markets such as India
* Strong in Cities
* Negative return on assets (ROA) underperform key competitors like AT&T, BT Group, Deutsche Telecom
* US business not nearly as strong as European/rest of the world operations
* 80% of its business is generate in Europe (see below for explanation)
* No Network in Rural Areas
- Focus on cost reductions improving returns:-
- Majority stake in Hutchison Essar in India :-
- Research and development of new mobile technologies :-
- Good Tarrif packages
* Highly competitive market
* Still lags behind major competitors in the US
* Extremely high penetration rates in key European markets
* European Union regulation on cross-border cell phone usage by customers