Industry analysis and market trends for Vodafone

Industry analysis and market trends for VodafoneVodafone PLC is one of the worlds largest fluid communications companies by tax revenue, operating across the globe providing a wide range of communications services. The companys vision is to be the communications leader in an increasingly connected world.Vodafone was formed in 1984 as a subordinate of Racal Electronics PLC. Then k right awayn as Racal Telecom Limited, approximately 20% of the companys capital was offered to the public in October 1988. It was fully demerged from Racal Electronics PLC and became an independent company in September 1991, at which time it changed its name to Vodafone Group PLC.Following its merger with AirTouch Communications, Inc. (AirTouch), the company changed its name to Vodafone AirTouch PLC on 29 June 1999 and, following approval by the sh beholders in General Meeting, reverted to its designer name, Vodafone Group PLC, on 28 July 2000. (History Vodafone.2010 Online).Group highlights for the 201 0 financial yearFinancial HighlightsTotal revenue of 44.5 billion, up to 8.4% with improving trends in most markets through the year. familiarized operating profit of 11.5 billion, a 2.5% decrease in a recessionary environment.Data revenue exceeded 4 billion for the first time and is now 10% of service revenue.1 billion cost reduction programme delivered a year ahead of the schedule further 1 billion programme now underway.Final dividend per share of 5.65 pence, resulting in a total for the year of 8.31 pence, up 7%.Higher dividends supported by 7.2 billion of free cash flow, an amplification of 26.5%.Operational HighlightsVodafone is one of the worlds largest mobile communication companies by revenue with 341.1 million proportionate mobile guests, up 12.7% during the year 2010.Improved performance in appear markets with increasing revenue market share in India, Turkey and South Africa during the year 2010.Expanded doctor wideband costumer base to 5.6 million, up 1 million durin g the year 2010.Comprehensive Smartphone range, including the iPhone, Blackberry Bold and Samsung H1.Launch of Vodafone 360, a new internet service for the mobile and Internet.High speed mobile broadband network with peak speeds of up to 28.8 Mbps.(Vodafone Group 2010 Annual Report, p. 1)Chairmans StatementThe company continues to deliver strong cash generation, is well positioned to benefit from economic recovery and looks to the prox with confidenceSir John BondChairman, VodafoneChief Executives ReviewIn a challenging economic environment our financial results exceeded our guidance on all measures we increase our commercial focus, delivered our cost reduction targets ahead of schedule and maintained strong capital investment levels.Victorio ColaoChief Executive, VodafoneTelecommunication IndustryAt a viewThe telecommunication industry has grown rapidly in size to provide essential services that facilitate a fundamental human need to communicate. at that place are 4.7 billion mob ile customers across the globe with growth around 20% per annum over the last three years. Vodafone is a stellar(a) company with a 7% share of the spherical market. The majority of customers are in emerging markets such as India and China. In contrast growth has been more muted in developed regions such as Europe which are relatively mature. ( Vodafone Group 2010 Annual Report, p. 4)On-going competitive and regulatory pressures have contributed to significant reductions in mobile prices which are being partly offset by higher mobile usage. Competition in the telecommunications industry is intense. Consumers have a large choice of communication offers from establish mobile and the fixed line operators. The combinations of competition and regulatory pressures have contributed to a 17% per annum decline in the average price per minute across their global network over the last three years. (Vodafone Group 2010 Annual Report, p. 4)Major TrendsThe mobile industry continues to evolve ra pidly, driven by new source of revenue, top Smartphone proliferation and new technologies.ServicesAround 80% of our service revenue comes from traditional voice and messaging services. The remaining 20% stems from the faster growing areas of mobile entropy and fixed broadband. (Vodafone Group 2010 Annual Report, p. 5)Network and product evaluationThis industry is undergoing significant technological change, with faster download speeds and product innovation improving the customer experience.They have been a pioneer in a range of new products. These include high speed mobile broadband for Internet and email addition and femtocells to enhance customers indoor 3G signals via their household broadband connection. (Vodafone Group 2010 Annual Report, p. 5)Market TrendsIf we observe and study the market trends in Europe alone, the trends seems to be improving incessantly in Service Revenue, Enterprise Service Revenue, volumes in outgoing voice and data revenue.Vodafone demonstrates a s trong economic stability in terms of revenue growth.Major CompetitorsAccording to research by London-based firm IRS, competencies are most often used inPerformance management/appraisal.Personal-development planning.Management training and development. joke descriptions.Role specifications.Management selection.(Sue Dewhurst and Liam FitzPatrick, 2007, How to develop outstanding internal communications, pp 14.)Vodafone PLC got many a few core competitors and the competency can be measured in terms of marketing strategy, revenue or the services it offer. Here, we are considering three core competitors as Virgin Group, British Telecommunications PLC and O2 Group.Lets throw some light on these companies to spang more about the financial and market status.About British Telecom Group PLCBT (British Telecom) Group PLC is operating in more than 170 countries, is one of the leading providers of communication solutions and services. Their principal activities include networked IT services, l ocal, national and international telecommunications services, and higher value broadband and Internet products and services. (Our Company BT.2010 Online)BT Group PLC is listed as BT.A in London line of merchandise Exchange.About Virgin GroupVirgin Group is a leading branded venture capital organization and it is one of the worlds most recognized and view brands. The Virgin Group was started in 1970 by Sir Richard Branson, which has gone on to grow very successful businesses in sectors ranging from mobile telephony to transportation, travel, financial services, media, music and fitness. (About Us Virgin. 2010. Online)Virgin Group is listed as VMED in London Stock Exchange.About O2 GroupO2 Group, also known as Telefnica O2 UK Limited, is a leading provider of mobile and broadband services to consumers and businesses in the UK. O2 is the leader in non-voice services, including texts, media messaging, games, music and video, as well as data connections via GPRS, HSDPA, 3G and WLAN.O 2 UK is part of the Telefnica O2 Europe group which comprises integrated fixed/mobile businesses in the UK, Ireland, Germany, the Czech Republic and Slovakia all of which use O2 as their consumer brand. Recently, O2 has established the Tesco Mobile joint venture business in the UK and Ireland. O2 is a solely owned subsidiary of Telefnica S.A. (O2 UK History Telefnica O2 UK Limited. 2010. Online).O2 Group is listed as TCEZ in London Stock Exchange.