The report of new area with analysis

Yibo Dong 063149

Bin Hao 063147

Ke Liu 063197

Jingyi Wang 063108

Jie Wang 063170content

1. Introduction

2. External analysis

2.1The Macroenvironment

2.1.1 Political

2.1.2 Social and Cultura

2.1.3 Demographic

2.1.4 Technological

2.1.5 Economic Forces

2.2 The Microenvironment

2.2.1 Suppliers

2.2.2 Competiters

2.2.3 Financial Institutions

2.2.4 Customers

2.2.5 Other Stakeholders

2.2.6 Geographical analysis of share holders

2.2.7 Intermediaries

3. Strategic Analysis

3.1 PESPEL Analysis

3.1.1 Political

3.1.2 Economic

3.1.3 Social

3.1.4 Technological

3.1.5 Environmental

3.1.6 Legal

3.2 SWOT Analysis

3.2.1 Weakness

3.2.2 Opportunities

3.2.3 Treats

4. Marketing Plans6

5. Conclusion

6. ReferencIntroduction

Our company:

Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments.○1

Our new service area:

It’s a wireless way of communication in local area by 3G technology, which is more convenience, higher secure and less expensive for some teams or organizes.

“VodafoneM-lan” makes it easy to achieve the communication among multi-phones or multicomputer. This system is also easy to work and install in a company or a family.

“VodafoneM-lan” can take the most of the advantage of Vodafone’s customers and the products. It can install on theVodafone’s phone and provide the customers’ a series of services.

For 3G has it’s fantastic speed of communication, “VodafoneM-lan” can let the customers have chance to experience the high speed on their 2G products at hand.

External analysis

The Macroenvironment

Political

The issues of 3 G license basically adopt public sale and judge. But most countries adopted the way of public sale to issue. Because the competition is too vehement, the price of license becomes an exorbitant one.

The graph of circumstance of the 3 G license in England

No. Operator

Issue time Issue a way

Price(USD)

1

Hutchison 3G UK Limited April 2000 Public sale

6,900,000,000

2

V odafone Limted

April 2000

Public sale

9,400,000,000

3

O2

April 2000

Public sale

6,350,000,000

4

T-Mobile

April 2000

Public sale 6,300,000,0005

Orange 3G Limited

April 2000

Public sale

6,440,000,000

According to the graph ,we know that the expend of 3G license is too expensive, and this also make the cost of service increasing.

Social and Cultural

Vodafone is the biggest operator company in the world, its

Demographic

The people of different post have different business needs, and the people of different age also have different business needs. So the company should provide services according to all the different people. For instant,the high level customer who can bring of income is obviously difference with the common customers. Give an example, a new service on a

system like P2P can make music infinitely downloading’ is according to people who fancy to music. The major client of Vodafone is the client of the high level, who deserves the good choice of the service ‘Vodafonemobileoffice’. If Vodafone make a service about voice communication for those clients, that service will be more popular.

Technological

At present, the 3 Gs continuously heats in the world since 2006, the 3 G companies of the world keeps on increasing the network, for that reason, the amount of 3 G’s clients is steady to increase. But now 3G technique is only developing rapidly in amusement area , not in business area. Vodafone is a biggest operator of Europe, also the biggest 2 G to move an operator. Obviously there is a problem, that is, how can originally possessed of the 2 G’s enterprises remove to the 3 G network successfully. The different of 2 G and 3 G’s network is clear, how to change of this solution is a trouble.Vodafone is deal with those troubles by making use of the 3 G data correspondence of the network development and by make use of a 2 G network to open exhibition speech business. Thisaction, on the other hand, is a experiment to make use of large-scale expand a 3 G business of beginning of data card business and strengthen the customer's experience to the 3 G service’ using. At present Vodafone’s 3G services mainly includes two major types, one is the mobile data card business on the GPRS net. The customers are able to insert the data card in the notebook anywhere to connects to a high-speed Internet at any time. The another is the 3 G service

‘Vodafonelive’.

Economic Forces

The disposable income of England is increasing. 10 year ago, the income of average family in England was about

34,796 pounds. Since now, the income of average family has already been 53,835 pound, soared about 55%. British people pay different type of tax, national insurance, house loan or rent, water electricity gas phone bill. Except of that, the disposable income of average is 34.5% of family income, lower to 32.6%. This influences the sales amount of Vodafone in some extent, so some services provided will regenerate in some part.The Microenvironment

Suppliers

Vodafone is the biggest global service and mobile operation company. The global user has surpassed 160000000. The amount of equipment purchase surpasses 5 billion pounds every year. Operations mobile network spread over 27 countries, such as the US, England, Germany, France etc. Vodafone is the leader of global 3G area.

Competitors

In Europe O2, Orange, T-Mobile, Virgin Mobile etc.

In Asia-Pacific China Unicom

In the Americas Cingular, Sprint, T-Mobile etc.

Financial institutions

Vodafone have the stable financial institutions. It can apply for the bank loan for some corporate business in some situations.

On February 16, 2007 Vodafone Group PLC reached thecredit service agreement with 5 banks, total amount of the loan is 3.5 billion US dollars, mainly uses in the common company and the possible purchase transaction. According to the news public, this loan fixed number of years is 18 months, expired disposable repays. Because the loans are not purely uses in to purchase the transaction, they do not contain the purchase premium.○2

Customers

We all know that customers mean everything to business. Assume the number of customers is stable, and each company has different shares of market. How should we do to get more customers? So far, each company has similar technology in mobile phone network, not only the level of technology, but also the service in communication. The key to success is to hold the current customers and attract more customers. So, Vodafone makes a distinction on communication with customer. ‘How are you?’ a simple words, moreover, it gives customer a regards. To enhance this, Vodafone makes a plan on the global market campaign. ‘Now’ as Vodafone new brand slogan, will provide more 3G service for customer. As somebusiness experts said, customers want the same needs, wish more products. So, this is a smart campaign for attracting new customers and hold current customers effectively. Perhaps, this will make some customers switch from other companies to Vodafone.

Other stakeholders

The stakeholder is a foundation of the company. It is the company's essential factor. Without the stakeholder, it is impossible to make a company. It is said from the general significance that, the shareholder refers the person who has the company’s stock or the company’s investment.

The following graph shows the stakeholder structures about Vodafone

Number of ordinary shares held Number of

accounts

% of total issued

shares

562,466

100.00 1 - 1,000 449,017 0.22

1,001 - 5,000 83,326 0.31

5,001 - 50,000 25,963 0.57Number of ordinary shares held Number of

accounts

% of total issued

shares

50,001 - 100,000 1,194 0.14

100,001 - 500,000 1,142 0.45

More than 500,000 1,824 98.31

Geographical analysis of shareholders

At 31 March 2007, approximately 56.02% of the Company's shares were held in the UK, 30.60% in North America, 12.38% in Europe (excluding the UK) and 1.00% in the Rest of the World.

Intermediaries

Vodafone is set to be the largest mobile operator in the world. The mobile operator doesn’t need the intermediaries because they can provide service only by themselves.

Strategic Analysis

PESTEL Analysis

Political:

Vodafone engages with regulators and governments on a number of issues relevant to our industry, as well as issues of broad public interest.In 2006, Vodafone engaged with regulators and governments on the following issues relevant to our industry:

International roaming

z Call termination

z Spectrum

z Universal service

z Privacy

z Data security

Vodafone also seeks to help governments meet their objectives on a number of issues of broader public interest. These include:

z Employmentz Innovation and prosperity

z Public service delivery and effectiveness

z National and public security.

Vodafone work with key industry trade associations on public policy issues. Vodafone is a member of:

z GSMA/GSME

z International Telecommunication Union

z World Economic Forum

For these reasons, intention of the government is

obvious--they would support Vodafone’s new plan of 3G network.

Economic:

According to the 3G's technique, Vodafone don’t need expensive 3 g license and profession maintenance personnel. This product's is just like probation of 3G. The advantage of 3G network is obvious, so if this product is afford regardless large business enterprise or a small scaled company even family.

The 3G network has been very mature, the reason it can't be universality is rising a 3G from the 2G of engineering is huge, and as it’s mentioned above, the license of the 3Gnetwork is very expensive. So our products can be said to be need not so much development, what we need is only the engineering of the simplification 3G, make its application contract all right, so the cost will not be very expensive for we excused the license expenses.

Social:

Vodafone is the biggest operator company in the world, its business spreads all over 39 nations in the world and region. Vodafone provide “Vodafonelive” which changes people’s attitudes to work and leisure. It makes customers to work at everywhere they want and have entertainment during their work. So the 3G network is in this style too. It makes the members of a big company communicate with each other in their office instead of call them to a meeting room. It also can be called “Vodafonelive”.

This kind of network is available for everyone work in a company. It’s convenient for male and female, old and young, manager or office clerk. Certainly it makes people work more efficiently and increase company’s income.Technological

Area in the bureau 3G network is applicable to 100 people, in 500 cubic meters. First it should be described just as a transition product, for it eventually will be replaced by 3G network completely, we just make use of this special period of 2G to 3G. But its profits will be considerable, first the network to the 3G is rivalrous of expansion function, people can contact 3G network earlier. Secondly, those people reluctantly to replace their phone to 3G phone, our product also influence their decision to purchase a 3G cellular phone more or less. Because Vodafone has many company's cooperative relation, this product of expansion doubtless have promote function to the sell of 3G cellular phone, and we can adopt the way that buy the phone with a net on free, make hardware and software mutual promote sale.

Environmental

3G network is “Green” network exactly. The customers are no need to worry about their health.

LegalIt’s commonly that a company will reserve a huge amount of money for the computer network safety. But for “VodafoneM-lan”, it’s not necessary. Because the scope characters of this kind of local area network, the invader who want to invade have to get into the company or work place so that can get in the net, surely the wise public security will block the stranger.

SWOT Analysis

Weakness:

As a worldwide company, Vodafone has a large member of subsidiaries which could leave it weak in some areas due to the huge span of control.

Since the Vodafone has a long history in telecommunication area, it owns high technical service and perfect institution. What it provide is becoming saturated for the customer and it ‘s difficult to make a further breakthrough in the current environment. So we need to go into a new area to have some new challenge.Opportunities:

To take over, merge with other global telecommunicate company, especially in China or India, some developing country. In these tremendous opportunities of global market, armed with our great experience and creditable reputation, Vodafone have the priority to get a big one.

For the amazing speed of development of the technology and the increasing amounts of demand of high quality life from the people, the telecommunication market will extend to every aspect of peoples life. 3G is not really so fresh these days, but it’s service is no so sophisticated. Few company has the fond and power to make a good change of the customers from their 2G mobile to 3G mobile, but that’s the opportunity for Vodafone. Since Vodafone has it’s own mobile and own service, she has a great advantage of rivalry towards other competitors.

Treats:

Vodafone is a one of the biggest and most powerful telecommunication companies of the world, so it’s natural to

become the target of competition, locally and globally. Vodafone dose not have the flexibility of some of its more focused competitors. So many subsidiaries of Vodafone over the world, there are political problems in some countries where the companies located in. In our new services area, there have been some companies working on it which might be a little threat to Vodafone to step in.

Marketing Plans

Program Abstract

In the past decade, the global mobile communications have gone through a golden era. Vodafone, the world's largest mobile communications operator, has created a number of new successful telecommunications enterprises. It does not only become the most important source for the profit growth of the telecommunications industry, but also to some extent changed the means of communication. However, it should benoted that with users tend to saturation (Vodafone users is more than 100 million all over the world), wireless communication is facing new challenges. Wireless data communication is one of the main businesses in the future, but in the scope of universal wide-area, starting 3G services clearly need a long and arduous process. Because of the specific region, the introduction of a wide range of application-specific technology, the market demand for diversification of services. We plan to introduce a local area network for the team or small companies which provide a cheap, safe, and convenient comprehensive 3G network. Compared to 3G networks, such limitations network is at a lower price. Such limitations of 3G network also bound to have accelerating the arrival of 3G area. As the world's largest mobile communications operator, the sooner 3G era advent arrives, the greater profits will arrive. So that we have put forward such a network which can be said a 3G network for the trial. Now that more people have come to realize 3G’s advantages, which are urging them to use 3G networks. And because of 3G network setting up with the high cost and complexity, it can also play a role in alleviating the pressure.

Basically there aren’t any competitors. First of all, there are few companies having financial strength to buy 3 G networks property. Then operators are not encroaching on the strength of the 3G mobile phone network. And powerful software companies are mostly controlled by Vodafone. Therefore, the risk is not big.

Products (services)

The concept of products, properties and characteristics Local 3G network within applicable to 100 people, 500 cubic meters within. This product is constructed on 3G technology, but not expensive 3G licenses and professional maintenance staff. This product can be compared to 3G’s probation. 3G networks’ advantages are obvious, so this product can be afford by both large and small companies, even from the family.

The competitiveness of their products in the market Some people may say that to a number of computer networks now can be competent for 3G network functions, it is quite correct, but what I would like to emphasize is the portable and arbitrariness of the phone network. When inspiration came,if you are troubled by the fact that you can not exchange that with other people? Use 3G networks, it’s just like we have now entered the conference room at the same time to discuss with you.

Security

The huge expenditure on security is saved. The network is save within the local area.

Speed

2 Mbps such a speed, it’s enough for the network and the document exchange. There are several technologies such as bluetooth technology and wap, but they are all one-on-one, and the relatively slow speed, so their competitiveness is very little.

Product research and development process

3G network is already very mature but not popular. It is because it’s an enormous work from 2G rose 3G works. And 3G network licenses are very expensive. Therefore, we cansay that the products do not need to research, as long as the simplification of 3 G works, it could narrow the scope of application, so the cost is not excessive, and it can remove a large license fee of 3G and maintenance costs.

Products in the market forecast

First should be clear that, as it mentioned above, this is only a transitional product, as it eventually will be replaced by 3G network completely, we only use this special period of 2G to 3G. But this return is great, the fact that his network of 3G promote positive role, so that it was earlier contact 3Gnetwork, followed by those reluctant to replace 3G network phone users, our products will be affect them more or less to purchase 3G phone. As Vodafone mobile phone developers with a number of cooperative relations, the promotion of this product will undoubtedly contribute to 3G handset sales, and we also can use the way that buy a delivery network activities, makes hardware and software and promote each other sales. There surely have a large number of customers in our new area.Conclusion

Through the external analysis, strategy analysis and marketing plan, we prove our new area surely has a bright future with a large member of customers. This service not only fit the clients’ tastes but also fulfills their needs. We also need to be well prepared for the ads and the feedback of the customers so that can make our new service perfect.

There are 5 key suggestions:

1.Since our new service just meet in the period of 2G to 3G,

V odafone must more concern about the position of the world so that the company could do some necessary change of the service.

2.The company's signal must give client the safe assurance,

which is the new service’s advantage. That is a kind of new challenge of the signal overlay area to the operator. The

region has already had a company’s signal to overlay, how the signal overlay to limit with a mansion, and have an

absolute safety is a challenge at the technique, and is also a kind of commercial of opportunity

3.We should avoid the customer's misunderstanding to the

service after the new service get into market, let customer not

confuse with other wireless communication technique like the blue tooth and the local area network of the computer,

definitely pointed out that the function of local area net in the mobile phone is not compared with other wireless techniques.

4.Firstly let the customer try it on free after the new service get

into market so that them will enjoy the advantage of service, with this foundation, push the service toward the whole

market.

5.All the services have some unexpected problems that after the

new service get into market, such as the problems of the

signal overlay. It is a kind of new technique, which must be to have certain limitation. So Feedback of clients is important for the perfect of the new service. We must let the customers feed back easily and willingly.Reference

[1]http://www.vodafone.com/start/about_vodafone/wh o_we_are.html

[2]http://www.for68.com/new/2006/1/li9712611116002 488-0.html

[3]http://www.vodafone.com/start/investor_relations/str ucture_and_management/shareholder_structure.html

[4]http://www.pday.com.cn

[5]http://www.qg.com.cn/articles/zhanlue/20070308115 6178.htm

[6]By Carol Dean, Dow Jones Newswires

[7]Adrian Palmer & Bob Hartley, The Business environment (Fifth Edition)下载本文