PESTEL analysis Vodafone, telecommunication sector, Mannesmann, Capital Hutchison Essar, market data, China Mobile, ERT European Roundtable of Industrialists, profitability, new technologies
Vodafone is a British telecommunication company based in Newbury. The company was created in 1984 and known as Racal Telecom, a branch of Racal Electronics. It is only in 1991 that the company became Vodafone group.
The company made its entry in the stock market in 1988 under the name Racal Telecom. Since that period, Vodafone started to acquire lots of companies like Mannesmann in 2000 for an amount of 181,4 billion EUR. In 2007, Vodafone acquired 67% of Capital Hutchison Essar, the 4th telecom operator in India for an amount of 11,1 billion USD.
[...] The company has a leading global loT platform for continued business partnerships. Besides, this in order to make payment method easier for its customers, M-Pesa platform has been developed which is the largest payment platform in Africa. Although the company has a leverage over its competitors in terms of having assets and infrastructure, but they are more focused upon optimum asset with sustained network leadership through maintaining capital smart infrastructure partnerships and leading the gigabit networks." Vodafone is great in the innovation sector, which has allowed the group to put in place, new products and services that meet the need of its clients. [...]
[...] PESTEL analysis of Vodafone Political Unlike other companies, Vodafone always get involved in politics. In fact, Vodafone usually engage with different governments around the globe in order to discuss their business along with other activities. The main aim of the dialogues between Vodafone and other groups around the globe is to obtain good and fair taxation policies when needed. For example, as a member of The European Roundtable of Industrialists Vodafone discussed taxation and finance policies with the organization in 2018. [...]
[...] Although it might seem hard for Vodafone to follow this trend, this is an opportunity for the company to use renewable energies for its production process. This will attract all defenders of the environment and ecology to use products and services from Vodafone. Therefore, the company will increase its customer base, which leads to an increase in profitability. The company has a goal of totally using renewable electricity across Europe by 2025. In order to match the Paris agreement of fighting climate change, Vodafone has planned to diminish the emissions from its operations to a net zero of 15°C maximum. [...]
[...] So, Vodafone needs a stable country where it can operate and make previsions of its activities. In fact, a stable country politically must provide future trends of the market to the company so that even the investors will believe in the company. Having a global presence makes the company's growth vulnerable due to lack of stability or suitable policies in some regions where the company operates. In fact, in India for example, the presence of Mukesh Ambani in the telecom industry poses a big threat to Vodafone. [...]
[...] Economical As it was the case with the political factor, the economic situation must also be stable in order to allow Vodafone to operate in good conditions. In fact, the economic situation in developing countries is favorable for Vodafone to operate. Nowadays, everybody is operating online and there is no company that can reject the internet, for example. Based on the fact that Vodafone is a telecommunication company, this means that Vodafone's services are demanded all over the globe. This means that the company must be ready to exploit each and every business opportunity that might come their way. [...]
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