Strategic planning for Vodafone

Introduction

Strategic planning devises strategic growth plan for an organisation. This article presents Strategic planning for Vodafone.

Strategic planning for Vodafone: Porter’s Generic Strategies

Generic model indicates the direction of establishing competitive advantage. The model is analysed below:

 

Cost leadership

Cost leadership is the way of increasing profit by reducing cost. When Vodafone will be able to reduce costs, it will increase their profit level automatically. When cost reduces, customers get attracted more and buy more from the company. Vodafone should apply the strategy to increase profitability. Vodafone may apply this strategy for Routers, digital television, smart TV on which it can reduce cost by economies of scale. Cost leadership strategy will assist the company to reduce cost by experiencing economies of scale.

Differentiation

Differentiation is the process in which company maintains the uniqueness of their product and stay strong. Vodafone will be able to provide unique service and products by investing more in R&D. They should increase their investment to make their service unique which will attract more customers and they will be highly profitable because customers stay ready to pay high price for unique products. For example, it can offer life insurance coverage for certain customers who achieve monthly targets of internet usages.

Focus

Vodafone can use focus strategy to find out the demand of customers and understand the competition of the too much competitive sector of telecommunication industry. It is the strategy of providing unique services with low price (Singla, and Durga, 2015). Vodafone can target the niche market to apply focus strategy. Providing network boosting service at congested area could be one of the focus strategies for Vodafone in the UK.

You may also like to read below blog posts:
PESTLE analysis of Vodafone
Ansoff Matrix for Vodafone
Porter’s Five Forces model of Vodafone
Stakeholder analysis for Vodafone
Strategic Planning for Kellog's
A sustainability and strategic report on Sainsbury’s

Strategic planning for Vodafone: Bowman’s Strategy Clock

Bowman’s clock strategy is the set of eight strategies and companies can pick one of them which is effective for the company. The strategy is analysed below:

 

Above diagram is called Bowman’s Strategy Clock which suggests a company to determine the perception and strategic direction of a company based on perceived value of the product to the customers and the price of the products and services. Below section has evaluated the categories of business and their proper strategic direction.

Low Price (Digital Television, routers and other devices)

Vodafone should follow low price strategy in which product price is low with medium perceived value of products and services to customers. Rationale this argument is that Vodafone has the options to reduce prices of these products, moreover these are generic products also offered by other companies.

Hybrid strategy (Broadband connection, mobile internet, and mobile network)

Among the strategies of Bowman’s strategy clock, Hybrid strategy will be appropriate for Vodafone ofr Broadband connection, mobile internet, and mobile network. Hybrid is strategy of modern production technologies and organizational structures. It ensures of achieving both high quality and productivity together. In the competitive business world, choosing singular generic strategies does not work properly therefore hybrid should be applied for better outcome which is the strategy of using both cost leadership and differentiation. It ensures that Vodafone will provide unique service within low price by reducing costs. It will create more customers for Vodafone because customers will get unique products with reasonable price. Vodafone will be able to create customer’s satisfaction by applying hybrid strategy and it will make the company highly profitable

Focused-Differentiation Strategy (tailored services to global companies, mobile fund transfer networks etc.)

Vodafone should charge premium prices for products and services such as tailored services to global companies (DHL, Unilever etc.), mobile fund transfer networks etc. These products are perceived highly by customers who demand that products quality will be superior. Accordingly, Vodafone should deliver high quality with high prices.