1. 1
3. Core Values and SWOT Analysis
3.1 Core Values
3.1.1 Core values of Vodafone
The core values of the Vodafone are customer centric services, continuous innovation, Make
lives easy for the customers, sustainable growth and being reliable and transparent (Vodafone,
2020). The company is dedicated to exceed the needs of the customers. The company is
innovation obsessed and therefore ensure that the all the production and services are released in
the market on the priority basis. Company makes sure that all their activities are steps are for the
better of people and the society. They keep all their policies clear and transparent.
3.1.2 Core values in decision making
The core values of the company plays an important role in decision making process. Without any
basic values and principles, it becomes difficult for the company to take the decisions. Their core
value helps the company in remain centric. For example, their core value of innovation provokes
the company to take decisions supporting innovation. With the core value of betterment of
customers and society, the company takes the decisions in favor of society. For example, the
company considers environmental protection, a basic concern in their decisions. Due to clear
and transparent policies, it becomes easy for the company to take decision and deciding what is
correct and what is incorrect.
3.1.3 Core value and vision and mission
The core values of the company are in support of the vision and mission of the company. A
company can transform the lives of people ( which is their vision) (Vodafone, 2020) only when
it considers the customers as the core values and make best possible efforts to make them
satisfied and transforming the lives is only possible through continuous innovation.
Their value of sustainable growth is directly related with the mission “supporting the
communities we live in, and reducing our environmental impact” (Vodafone, 2020). It’s the
sustainable development that drives the company for meeting its responsibilities towards the
environment and the society.
3.2 SWOT Analysis
Strengths
2. 2
1. Vodafone is the largest mobile phone operator in New Zealand market. In 2018,
Vodafone was having highest market share. Vodafone was having a market share of
41% , spark 32% and 2 degrees 21%. While only 6% was shared by other mobile
operators (Annual Telecommunications Monitoring Report, 2018).
2. The company has a huge customer base with more than 516million mobile consumers
involving 18million broadband customers and 14million Television customers (Priyanka,
2017).
3. Vodafone has a high brand recognition with strong market throughout the world . It
offers services to more than 1,900 multinational companies (MNCs) and 90,000 national
and public sector agencies (Vodafone, 2017).
4. Vodafone follows good marketing strategies. Vodafone pug is the most popular service
that follows the Vodafone users throughout the world. . Vodafone’s zoozoo’s was a
amazing campaign that made a number of people huge fan of Vodafone. On frequent
basis, Vodafone keeps on running such campaigns.
5. Another key strengths of company is its wide range of services. The company offers
products and services like mobile connections, Fixed line connections, Broadband
services, Digital TVs, Internet TVs and IPTV services to business as well as retail
customers (Vodafone NZ, 2019).
6. Vodafone’s mission to connect the whole work including the rural and remote area
people is providing its anew identity (Vodafone, 2020).
Weakness
1. Although Vodafone is a leader in the telecommunication industry but it faces a lot of
challenges from changing one product segment to another.
2. Vodafone seems to have its leading position to its strong competitor Spark. The main
reason of decreasing performance is its low investment in Research and development
activities (Vodafone NZ, 2019). The company needs to understand the market trends and
align the business activities accordingly. Below figure indicates the spending of
Vodafone
3. 3
Source : (Vodafone NZ, 2019)
3. Vodafone has a high attrition rate for the workforce. And to make the employees skilled
and competent, the company needs to spend a significant amount for their training and
development that increases the training cost of the company.
4. Vodafone is not good enough in forecasting the business and this is the reason that they
always end up with high inventory in-house as well as on-channels.
Threats
1. The company has a fierce competition with other mobile services providers like spark
and 2- degree in New Zealand market. The main race remains between spark and
Vodafone. Spark is found to provide similar services at cheaper rates. The following
figure indicates how Spark gradually came very close to Vodafone
4. 4
Figure: Markets share of different mobile service providers in NZ market ( Statista, 2017)
2. Although the company has released several products in recent time but all were based on
the other competitors’ development. There has been seen a continuous dearth in the
innovation. With lack of innovation, the company will lose its position of leader.
3. The differentiation strategy of Vodafone really works great in initial years, but in fierce
competition, there has become a high significance of prices. Competition might be
healthy for the customers but for the companies, so much competition brings a lot of
disadvantages. For Vodafone, the revenue has been decreasing for last years and also its
profitability has been decreased due to selling services at low prices. For Vodafone,
revenue in 2018 was a little up from $2.2 to $2.3 billion but operating profit was
decreased from $106.9 to $92.4 million and profit after tax (PAT) was $39.9 million as
compared to earlier $47.6 million (O'Neill, 2018)
Opportunities
1. This is an era of technology and whichever company will choose disruptive technologies
like Cloud and Artificial intelligence early in their business, will become the leader in
telecommunication market (Disruptive Technologies for Telcos and CSPs, 2020).
Vodafone needs to adopt these cutting –edge technologies in the business.
2. Continuous economical growth in New Zealand is a good opportunity for Vodafone to
expand its business and gain more new customers.
5. 5
References
(2018). Annual Telecommunications Monitoring Report.
Disruptive Technologies for Telcos and CSPs. (2020). Retrieved 2020, from
https://telecomstechacademy.com/programme/disruptive-technologies/
O'Neill, R. (2018). Vodafone NZ restates 2017 financial statements amid lower profits in 2018.
Retrieved 2020, from https://www.reseller.co.nz/article/646150/vodafone-nz-restates-2017-
financial-statements-amid-lower-profits-2018/
Priyanka. (2017). Vodafone ties up with Discovery. Retrieved 2020, from
https://www.gizbot.com/telecom/news/vodafone-ties-up-with-discovery-adds-12-hd-sd-
channels-043117.html
Vodafone. (2017). Annual Report 2017.
Vodafone. (2020). About Vodafone group. Retrieved 2020, from
https://www.vodafone.com/about
Vodafone. (2020). Discover the values that drive us. Retrieved 2020, from
https://www.vodafone.co.nz/careers/culture-values/our-values/
Vodafone NZ. (2019). Annual Report.
Vodafone. (2020). Vodafone NewZealand. Retrieved 2020, from
https://www.vodafone.co.nz/our-company/in-new-zealand/
