The paper 'Strategic Management at Vodafone" is a good example of a management assignment. A firm can be able to identify the primary and secondary activities that add value to its final product by conducting a value chain analysis. The value chain analysis describes the activities a firm undertakes in an endeavor to transform its inputs into outputs. The analysis aims at recognizing the activities within the firm that are most profitable and the ones which could be leveraged to offer a competitive advantage. In other words, the analysis is used to identify the firm’ s strengths and weaknesses.
The analysis is comprised of primary activities and support activities. Primary activities add value directly to the firm’ s final product while secondary activities add value indirectly. In order to be able to understand the value chain of a mobile service operator, it is equally important to note that no single company alone has the capability to establish an online digital economy. The success of a single company requires inputs from diverse industries. The direct effect of this is exhibited in co-operation, collaboration, and consolidation of different complementary companies.
Major players in this include companies involved in telecommunications, computer hardware and software, entertainment, creative content, news distribution, and financial services (Frost & Sullivan 2006). These companies have seized the opportunity of this huge market by working together through mergers and acquisitions, Infrastructure and service can be identified as the primary activities of the company and include mobile transport, mobile service, and delivery support, and marketing. Secondary activities of the company include Human resource management, firm infrastructure, procurement, and technology. Figure 1.1 The year 2005 saw Vodafone’ s internal strategy change significantly as Mr. Sarin took over from Chris Gent as the C. E.O.
The firm had suffered a loss of $40 billion most of which was paid off to overvalued acquisitions and paying 3G service licenses. Vodafone needed a new strategy as investors were demanding for improved bottom-line performance and an increase in the shareholder's returns. Mr. Sarin, therefore, made structural changes in its primary and secondary activities that saw Vodafone strengthen its core competencies and capabilities.
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