The paper "Vodafone’ s International Strategies" is a good example of a business case study. A number of strategic issues that face Vodafone has been identified in this case analysis; poor customer service, accounts/billing inaccuracy, and poor coverage. The report will further examine Vodafone’ s international strategy, how it can derive increased value from its international businesses portfolio, and why it should divest some of its businesses. The number of mobile customers across the globe has increased tremendously; most of them are from the western world. Still, high percentage growth in the number of customers is projected to surface from the emerging markets, particularly India, China, and other countries across Asia.
Although Vodafone Group operates in both mature and emerging markets, the market share it has acquired in Asian markets is exceedingly small. The mobile phone market economics has affected Vodafone’ s market share, and as a result, the company has come across numerous threats. A number of companies intending to become a global leader are increasingly engaging in strategic alliances because they lack sufficient resources to succeed on their own. For this reason, Vodafone utilises merger and acquisition as an expansion strategy.
The telecom market is changing continuously; therefore, to enhance competitive advantage, Vodafone has ingrained merger and acquisition activity into the corporate strategies. The strategic issues facing Vodafone has been analysed and evaluated and recommendation on how to overcome these strategic issues has been identified with the goal of improving Vodafone’ s competitive positioning. Even though Vodafone is well-established, Webb (2013, p. 5) asserts that the company faces a number of strategic issues that create a need for radical structural reform of its business practices.
The report offers a number of attainable recommendations that will enable Vodafone to mitigate the strategic issues discussed in this report. 2.0 Strategic Issues 2.1 Accounts/Billing Inaccuracy A number of customers have been complaining about incorrect billing, charged for mistaken usage and erroneously charged for terminating accounts. Such issues have been exacerbated by the inconsistency of Vodafone’ s online billing and account system that has resulted in outages in late 2010. Sometimes the incorrect amounts that the customers are charged are attributed to the excess usage of data, which should not be incurred. Furthermore, network problems have resulted in extra cost since one SMS is sent multiple times and each message is charged.
Although some charges are reversed, the company has failed to explain why it overcharges its customers. Furthermore, most customers are complaining that they experience dropped calls and as a result, they are charged the minimum call and flag fall charges every time they retry a call. In consequence, this has led to higher bills for numerous customers. According to Morley (2016), a combination of billing bungles and shoddy service has resulted in an increase in the number of complaints.
The number of complaints in the UK made to Vodafone increased to 32 per 100,000 customers between October and November of 2015. Regrettably, the complaint attitude to charging and billing accuracy is widespread across countries where Vodafone operates. Therefore, this has become a global issue and an obstacle to strategic plan since customers are becoming unhappy.
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