Vodafone Egypt

Basic Information

• Name: Vodafone Egypt• Business structure: Partnership• Industry sector: Telecommunications

Service• Source of finance: Owners.• Location: 6 October City (Smart Village)

Our Location• The main purpose behind choosing the

district of Smart Village because it contains all the key players in the telecom field as well as the National Telecom Regulator Authority, partners, suppliers which will support in achieving the most efficient working process.

Business DescriptionIndustry overview• Telecommunications industry is a very

dynamic industry, which is always having continuous innovations.

Products and service• End to end telecommunication services

from Mobile, DSL (Corporate and Residential) and fixed services.

The Market• Very competitive market with 3 big mobile

operators, and more than 50 Million customers. It is the fastest growing mobile market in the MENA (Middle East and North Africa) region.

Our Vision

• With you wherever, whenever you are

Our mission1. Provide end to end telecommunication services to our

customers anywhere and everywhere2. Acquiring the best R&D capabilities and resources.3. Provide customers high level of speed simplicity and

trust with the highest quality services in the whole market

4. Achieve the biggest market share as well as the highest revenue among the whole mobile operators.

5. Promote the biggest and the most powerful brand name in the telecom field.

6. Contribution of the social and community responsibilities.

ObjectivesShort-Term Objectives:

• Market Share of 43% in 2010 (Achieve 26M subscribers).

• Achieve revenue of 600M USD in 2010.

• Win the bidding for the compound license.

• Achieve above 50% market share annually.

• Achieve customer satisfaction equal to 97%

• Achieve 20% of the whole technology organization to be dedicated to R&D

• Acquire the fixed license.

ObjectivesLong-Term Objectives:

SWOT Analysis

External Scanning1st Opportunities

1. The Egyptian economy is growing rapidly. (Economical)

2. The penetration in the mobile market is still having a big space

3. New licenses offered by the government (Compound License and second fixed license) (Political)

4. Egyptian culture is into communicating and talking. (Social)

5. Legal terms and conditions are very fair, and not giving a preference for a mobile operator over the other competitors.

2nd Threats 1. Entering of Etisalat to market which will occupy part of

the market share as well as the revenue.2. Price sensitive market which may derive customers to

choose other competitor for only price reason. (Cultural)3. Economic crisis has an impact on the revenue.

(Economical)4. Some technological services are banned by

government, meanwhile they are available in other markets, for example GPS services. (Political)

5. Being not local company may affect customers' loyality.

Internal Scanning: 1st Strengths

1. Highest revenue in the past 10 years.2. Having the tools for recruiting the distinct human resources whom

are leading to huge intellectual capital.3. Multinational organization with global abundant experience of more

than 20 years.4. Brand value is already having its power in global market.5. Sponsoring the most popular organization that has the biggest 6. fans. 7. More than 30 OPCOs and partner networks all over the world

leading to cheaper and better roaming services8. Our strong R&D capabilities give the updated innovative services to

the customers before the other competitors. (Technological)9. Powerful social and community programs affecting public.10.Partnership with Raya and Mobile-shop.11. Very strong outsourcing services. (call centers)

Weakness1. During the past 10 years VDF was the second

market share.2. It is not 100% Egyptian company, which may affect

customers’ loyalty.3. Not focusing on low tear customers.4. Customers’ perception that it has the highest prices

among the competitors.5. The stores employees are not 100% VF employees. 6. Not very attractive marketing campaigns.

(Advertisement)

Tools for Analysis

• 1st EFE

Key external factors Weight Rating Weighted Score

Opportunities

The Egyptian economy is growing rapidly. (Economical) 0.1 1 0.1

The penetration in the mobile market is still have a big space (opportunity) 0.15 3 0.45

New licenses offered by the government (Compound License) (Political) 0.1 4 0.4

Egyptian culture like communicating and talking. (Social) 0.05 2 0.1

Legal terms and conditions are very fair, and not giving a preference for a mobile operator over the other competitors, for example pricing

0.1 2 0.2

Threats

Entering of Etisalat to market which will occupy part of the market share as well as the revenue. 0.2 3 0.6

Price sensitive market which may derive customers to choose other competitor for only price reason. (Cultural)

0.1 2 0.1

Economic crisis has an impact on the revenue. (Economical) 0.15 1 0.15

Some technological services are banned by government, meanwhile they are available in other markets, for example GPS services. (Political)

0.05 2 0.1

Total 1 2.2

Tools for Analysis

• 2nd IFE

Key Internal factors Weight Rating Weighted Score

Internal Strengths

Highest revenue in the past 10 years. 0.2 3 0.6

Having the tools for recruiting the distinct human resources whom are leading to huge intellectual capital.

0.05 4 0.2

Multinational organization with global abundant experience of more than 25 years. 0.05 3 0.15

Brand value is already having its power in global market. 0.1 4 0.4

Sponsoring the most popular organization that has the biggest fans. 0.05 3 0.15

Our strong R&D capabilities give the updated innovative services to the customers before the other competitors. (Technological)

0.1 4 0.4

Powerful social and community programs affecting public. 0.05 4 0.2

More than 30 OPCOs and partner networks all over the world leading to cheaper and better roaming services

0.05 4 0.2

Internal weaknesses

During the past 10 years VDF was the second market share. 0.15 2 0.4

It is not 100% Egyptian company, which may affect customers’ loyalty. 0.05 1 0.05

Not focusing on low tear customers. 0.1 2 0.2

Customers’ perception that it has the highest prices among the competitors 0.05 1 0.05

Total 1 3

Tools for Analysis

• 3rd Tows Matrix

TOWS Matrix

OpportunityEgyptian economy is growing rapidly x x x x xThe penetration still having a big space x x x x xNew compound Licence xThreatsEntering of Etisalat x x x x x x x x xPrice sensitive Market x x xEconomic Crisis

Not Pure Local company x

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Tools for Analysis

• 4th Space Matrix

Environmental Stability (ES) Ranking Industry Strength (IS) Ranking

Technological changes -2 Growth potential 5

Rate of inflation -3 Profit potential 5

Demand variability -3 Financial stability 5

Price range of competing products -2 Technological know-how 6

Barriers to entry -3 Resource utilization 4

Competitive pressure -2 Capital intensify 5

Price elasticity of demand -2 Ease of entry into market N/A

Productivity, capacity utilization 4

Total -17 Total 34

Average -2.43 Average 4.86

External Factors

Financial Strength (FS) Ranking Competitive Advantage CA Ranking

Return on investment 5 Market share -2

Leverage N/A Product quality -1

Liquidity 5 Product life cycle N/A

Working capital 4 Customer loyalty -2

Cash flow 4.5 Competition’s capacity utilization -3

Ease of exit from market 1.5 Technological know-how -1

Risk involved in business 4 Control over suppliers & distributors -3

Total 24 Total -12

Internal Factors

FS6

Conservative 5 Aggressive

4

3

2

1CA IS

-6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6

-1

-2

-3

-4Defensive Competitive

-5

-6ES

Tools for Analysis

• 5th BCG

BCG Matrix

DogsIV

Cash CowsIII

Question MarksI

StarsII

Relative Market Share PositionHigh1.0

Medium.50

Low0.0

Indu

stry

Sal

es G

row

th R

ate High

+20

Low-20

Medium0

Vodafone