Report on Vodafone's success strategy in Europe

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Report on Vodafone's success strategy in Europe

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Abstract

Following the Schumann declaration (1950) the European Economic Community (EEC) or Common Market, of six nations was established by the Treaty of Rome in 1957. Since this time, the number of member states has increased to fifteen, and successive treaties have gradually strengthened the degree of co-operation between the member states. The European Union in its current form was established by the 1993 Maastricht Treaty.

Being the world's second largest market, trading with the EU gives Vodafone the opportunity to increase profits. In their first 15 years, they have become the largest company in Europe by market capitalization and the largest telecommunications company of its kind globally. Vodafone have a customer base of over 100 million and interests in network operators across 28 countries.

The best possible market for UK businesses is the EU market, as it has many similarities such as similar life styles etc. Vodafone trades with 13 of the 15 member states of the EU. As Vodafone is a service used for communication, it can easily be expanded as communication is needed in every part of the world. Another reason for trading with the EU is that it consists of economically advanced countries such as France, which possess large businesses that are in need of efficient communication services such as Vodafone.

Introduction: History of European Union (EU)
Enlargement of the European Union (EU)
The official languages of the European Union (EU)
Main events in the formation of the EU
The importance of EU market to Vodafone
Vodafone's trade with EU
Free trade
1. Advantages of free trade
2. Disadvantages of free trade
3. Free trade and Vodafone
The development of trading bloc
Characteristics of EU
Quotas
Tariff quotas
Subsidies
Advantages and disadvantages of trading blocs
Economies of scale
1. Internal economies of scale
2. External economies of scale
3. Internal and external diseconomies of scale
4. Vodafone's benefits from economies of scale
The four freedoms
1. The free movement of goods
2. The free movement of persons
3. The free movement of capital
4. The free movement of services
Business life cycle
Impact of a decline in GDP
Size of EU market and Vodafone
Competitiveness of the EU market
Vodafone's business in EU
The impact of EU treaties upon UK businesses and Vodafone
Supranationalism
The single European Act
The Maastricht Treaty
UK's benefits from EU membership
The benefits of membership
The cost factors
SWOT analysis
The impact of EU Policy
Impact of social policy on Vodafone
Impact of competition policy on Vodafone
Workplace issues
Operational changes involved with trading in the EU
Impact of cultural differences
Trade unions and business culture
Overview of the cultural regions
Vodafone's strategy for different markets
Conclusion
Bibliography

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[...] The EU assists these countries in taking on EU laws, and provides a range of financial assistance to improve their infrastructure and economy. What are the official languages of the European Union? On 15 April 1958, the Council laid down that the official languages of the Member States should be both the official languages of the Community and the working languages of the Community institution. Every Member State's official language is an official language of the EU. As several Member States share the same official language this means there are 11 official languages. [...]

[...] It benefited Vodafone and other businesses in the following ways: Businesses were able to sell their services across Europe without having to pay any taxes. Vodafone employees could be transferred to different countries without encountering any problems. Capital could be transferred to countries without having to pay taxes. At this time, the law of comparative costs was planned. It has been built and expanded as the European Union has been formulated. David Ricardo (1772- 1823), in his theory of comparative costs suggested that countries will specialize and trade in goods and services in which they have a comparative advantage. [...]

[...] According to the World Competitiveness Yearbook Austria's standard of living is one of the highest in the world, with a score of 9.59 on a scale of 10. According to latest statistics Vienna is in the top 5 cities in the world for the best quality of life. Belgium Population 10.2 million (2001) GDP US$24,414 (1999) per capita. Standard of living Belgium enjoys a high standard of living. Denmark Population 5.3 million (2001) GDP US$28,300 (2000) per capita Standard of living the standard of living in Denmark is high. [...]

[...] Vodafone will benefit from trading in Europe in the following ways: Internal: Managerial Specialists can be employed from all over Europe. Employees from different parts of Europe can come together and share different ideas to improve the quality of service. Financial As the business expands, it has more assets therefore borrowing will be cheaper. Technical Mass production techniques can be used. External: Skilled workforce. The Four Freedoms It is not only companies that benefit from the European Single Market; there is something for everyone. [...]

[...] Although English is widely spoken, an interest in Spanish and an effort on the part of the visitor to speak even a few words will be appreciated. Business cards are exchanged frequently as a matter of courtesy and appointments should be made. Office hours: Tend to vary considerably. Business people are advised to check before making calls. Sweden Business people are expected to dress smartly. English is widely spoken in business circles. Punctuality is important for business and social occasions. [...]

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