SWOT Analysis - Vodacom

Angela L.

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SWOT Analysis - Vodacom

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Themes

SWOT, Vodacom, communication companie, Africa, digital services, business services, Safaricom, VBA Vodacom Business Africa, prepaid services, technology, global communication, market leaders, Verizon, Deutsche telkom, Nippon telegraph, mobile phone industry, worldwide vaccination programs, customer base, shareholder, innovation, cost of data, environmental impact, government regulations

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Abstract
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Abstract

Vodacom is a company that originated in South Africa in 1993, founded by Alan Knott-Craig Senior, who later handed the reins over to his son, Alan Knott-Craig Junior. The company has become the leading purpose-led African provider of financial and digital services, and connectivity, offering a wide range of services which include mobile lines and landlines, messaging, data, Enterprise ET, and financial and converged services.

The company expanded its network and launched its services in Lesotho in 1995, Tanzania in 1999, the DRC in 2002, followed shortly thereafter by Mozambique in 2003. With the acquisition of 35% of Safaricom in 2017, the company managed to gain a foothold in the Kenyan market. The company serves more than 130 million customers across the enterprise and consumer segments in Africa. It also offers its business services to more than 48 countries across the African continent through its VBA division (Vodacom Business Africa) and a mobile network population of over 303 million people.

Introduction
1. Presentation of Vodacom
2. Industry and market data
SWOT Analysis of Vodacom
1. Strengths
2. Weaknesses
3. Opportunities
4. Threats
Conclusion and strategic recommendations

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[...] On 18 May 2009, the company was listed on the JSE. At the time, the company was owned equally by Telkom and the Vodafone Group Plc. As part of the listing transaction, Telkom sold a further 15% of its stake in Vodacom to Vodafone, giving them the majority shareholding in the company. Telkom then underwent further changes, and the remaining 35% stake in Vodacom was unbundled to its shareholders. Revenue-wise, Vodafone is one of the largest communications companies in the world, providing Vodacom with a strong support system and access to valuable resources. [...]

[...] The advances in technology and the growing number of new companies entering the market pose a significant threat to Vodacom. The threat of new competitors is linked to our second listed threat, government regulations. The telecommunications industry, made up of telephone, communications and internet companies, are heavily regulated by the government in most courtiers across the globe. In South Africa, ICASA, The Independent Communications Authority of South Africa, regulates all broadcasting, postal and communications services. Vodacom has operations across the African continent and needs to ensure that they remain aware of all applicable laws and regulations to avoid disruption to their operations. [...]

[...] Spectrum pooling has also been suggested as there is just not enough bandwidth available. By pooling resources, mobile operators across the board could maximize the benefits from the available spectrum. Spectrum trading would see those operators using the spectrum most efficiently being able to have the spectrum rights transferred to them to reward this efficiency. Environmental impact is a hot topic around the world, and the telecommunications industry faces significant challenges when it comes to this subject. According to research, this industry is responsible for around of global power consumption. [...]

[...] The main players in this industry are AT&T, being one of the oldest companies in the business and estimated at being worth around $171,8 Billion. Followed by Verizon at $128,3 billion, Deutsche Telkom AG from Germany is worth $119,1 billion, Nippon Telegraph & Telephone Corp, a Japanese based telecommunications company standing at $110 billion. China Telecom has recently stormed in at R54,4 billion, and Vodafone Group PLC, the major shareholder of Vodacom, comes in at a respectable 7th place in this impressive line-up with an estimated value of 53,1 Billion Dollars. [...]

[...] The company has three pillars of purpose comprising Planet, Inclusion of All and Digital Society. They released a business strategy, Vision 2025, where they lay out the companies' strategies to half their environmental impact while improving the lives of a further 100 million consumers and creating a better digital society for all. [...]

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