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PESTEL and competitive evaluation of Vodafone

"A transnational, or multinational, corporation has its headquarters in a single country and manages wholly or partly owned subsidiaries in a single or more other countries. The subsidiaries are accountable to the central head office. The development in the number and size of transnational firms since the 1950s has produced controversy for their economic and politics electric power and the flexibility and complexity with their businesses. Some critics dispute that transnational organizations exhibit no devotion to the countries where they are integrated but act exclusively in their own needs. "

Mexican Market:

Mexican market telecommunications industry specifically, industry development has long outpaced broader monetary progress. Mexican telecom market will grow at a CAGR of 7. 9% over another five year to create $34. 9 billion in 2015, dua to radio-access migration from 2. 5 to 3G platform, spectrum winners and the accessibility of a fresh player increasing competition. In Mexican market slowest growth rate in the since 2002 but the Telmex type in the market so the Mexican the monetary expansion will be increase as well as the telecom sector are the most reliable sector throughout the market. During 2009 and early 2010 Mexico's telecom industry retained double figure gross annual expansion in the tough economy periods. Telmex only company who dominates the fixed-line market with around 90% of lines. Telmex raise the fixed lined annual growth compare to the 2000 it's only 13% to upsurge in 2009. Therefore the Mexican telecom current markets it's excellent opportunities of the other countries telecom company to enter in the marketplace and doing a good business. A telecom sector supply the new competition and even more 3G services offers of the country's telecommunications, mass media and technology areas to increase the Mexico's market.

Mexican governments and People encouraging telecom competition because of the better coverage, affordable process and communication has lead the market. Authorities expect mobile services earnings to account for 67 percent of the full total market by 2015, so it's increase total subscribes bottom part of about 41 million new gives between 2009 and 2015. In Mexico's most of the other telecom company has good opportunities to enter into the market.

Vodafone Track record:

Vodafone is the world's leading mobile telecom company, with a substantial present in Europe, India, The Middle East, Africa and the united talk about although company subsidiary starting joint projects associated undertaking and opportunities. The group's subsidiaries operate brand name Vodafone. Verizon wireless in the United condition from the Vodafone. During the last few 12 months companies came into into agreements with network operators in countries where the group will not hold an equity stake. Vodafone group and it's really partner network co-operate in the development and offering global services under the brand logo.

Vodafone Group is a largest telecom company in UK and it's headquartered in Newbury, Britain. They made first telephone call just moments after midnight on the 1st of January in 1985. Vodafone already recognized as a most significant company on earth. Vodafone is the largest telecommunication network provider in the world and it's really turnover and has a market value of about a hundred billion pound. From the FTSE 100 company and is placed 3rd. It's got also about 92 billion as of November 2010, making it's the 3rd largest company on the London stock market. It functions network in over 30 countries and has spouse systems in over 40 additional countries.

PEST Analysis:

Political Factors:

Regulations: In Mexican market segments telecom licence are incredibly tightly controlled and incredibly expansive. Mexico's government authorities not allow to the easily enter the telecom market because because of this industry has a very good growth. NAFTA (UNITED STATES Free Trade Arrangement) is not allowed to star business in the Mexico's. They follow a very high rules related to the customer need and the environment. Vodafone must take permitions to enter into the Mexican market and authorities also need very good quality for the service and also government tight measure are implemented to diminish mobile phone use for children because of medical issues.

Infrastructure: Vodafone must set up the infrastructure to support the network usually require taking permission from the federal government and other regulative body. So Vodafone must supply the brand image and belongings to take the advantage and coming into the Mexican market.

Communication function: Mexican market has own communication work so the Vodafone has to follow this act and change policy related to this take action. Mexican market has good opportunities for Vodafone but they have to follow the communication work so they can certainly enter the market and give the better service to the customer.

Economic Factor:

Recession: This past year recession durations also very aftereffect of the market so the customer not buying new product but doing a saving therefore the it's result to the Vodafone expansion so they need to change their plan related to the recession periods and catch the attention of to the client to buy a cellphone. In the tough economy periods the levels of money are prepared to spend; therefore there's a price battle between leading company network providers to power to down their call charges and sms charges.

Cost of New Licensing: In the current Mexican market 3G technology launched so Telmex also making use of this technology to cover the whole telecom market. It's creating competition between your local telecom providers and the Vodafone. New technology always would like a high expenses to acquiring new technology.

Inflation Rate: Mexican market current inflation rate are 3. 60% so the it's also impact to the client buying behaviour. So the Vodafone has to decrease his product price to comfortable for the client and they can buy easy. In case the inflation rate heading high then People saving cash and they control their buying. So it's directly effect to the Mexican market.

Social Factor:

Education: Mexico education level will be between 90 to 95 percentages so the people have a good decision for which product and company better for the coffee lover so it is also impact to the Vodafone. They have to focusing on people and fulfil they want then Vodafone will be success in Mexican market.

Life style change: On earth new technology always joining so it's very difficult for the company to persuade to the customer that they provides a better product then other. In Mexican Market always change a fresh technology always therefore the it's effect to the Vodafone strategy and customer level. Etc. I-phone. When the other company give the better phone and upgrade the merchandise then customer life-style and fashion always change so they proceed to the other company.

Technology Factors:

New Inventions: Mexican market is the growing and more developed market so many companies wants to type in to the marketplace and getting a great deal. So they doing something different to the neighborhood company so they always give better and upgraded product compare to the local company so it is always effect to the Vodafone that how do they provide the new technology to the client and convince then to use this technology. Etc. Wi-Max and 3G

GPS: it is also available in every handset so the Vodafone can give the navigation program to customer. Customer buying a navigation support handset not really a buy a higher price navigation system so it's will be also good point to get into the Mexican market.

Market Segmentation:

Segmentation is a way to have more targeted communication with the customers. This process represents the characteristics of the customer groups within the data. Segmenting means are adding the population directly into segments according to their similar characteristics. Segmentation is important part for the company to entering a new market. So they know who's customer and what they product needs.

Geographical: Mexico is the most populous Spanish-speaking country on earth. About 70% people are in urban areas therefore the Vodafone has to cover this area and give the good product and scheme to allow them to convince and purchase. Vodafone have to cover all the Mexico's market and add their product. Mexico divides into different parts so Vodafone has to cover all the physical area and enter into the marketplace.


Age: Mexico market telecom industry customer bottom on the age over 14 to 50. So the Vodafone has to fulfil all the needs and wants customer like product and new handset they have to provide. In this era periods people getting so they can buy a new handset for the style and basic uses so the company has to target this age group people to increase their market.

Gender: Telecom sector is only one sector that nobody requires monopoly means male and female both r interesting equally therefore the Vodafone must supply the good handset and system to both gender.

Education: Mexico people education level is 90 to 95 percentages so company have to identify to the client related to education. Vodafone has to launch a new product and plan therefore the educate people can certainly interested and buy a handset and plan also. So has to more concentrate on informed people. Education is the planned customer likely to be at lower education or higher education just what exactly their interests/age range will be company must always target that folks.

Social Category: Mexico has an alternative course people so company has to launch new product and plan related to the people class. Like company introduce i-phone so they need to target Businessman, Professional people. Company has launch different plan related to customer school life upper school, lower school.

Targeting Market:

Vodafone has to set a target market for his or her products that they are going to sell or service to the Mexican market. Company must segment of a certain market that a company identifies as a customer.

Vodafone must target in Mexico market at a middle classed workingmen with the average paid job. Also focus on the bigger classed people who earn fair amount of income. Company must target that folks those who loves product will never be cheap and looking for a quality product rather than bargain or an average deal. In Mexico overall economy is in progress periods therefore the Vodafone can target audience will be aged at midsection and higher class, professional working men aged 21-35 years. Vodafone has to use new technology and product to appeal to the Mexican people and give the cheap and better handset compare to the Telmex Company. Telmex is the first choice of Mexico's local, long-distance mobile phone and online sites Company Company so Vodafone has to launch a new plan and new product to provide the competitive benefit to the company.


Vodafone is a leading telecommunication company in the united kingdom and also shown in FTSE 100 companies so it's already brand image and position on the market. So it is really ideal for the company to entering into the Mexican market. Telmex already cover the Mexican market to give the landline service and Brand strap providers so it is take a large numbers of customer foundation on the market. Vodafone must using strategy in setting, UK Company use the brand "Power to You" campaign. So the company give the customer that vitality that they unveiling new service that bring the internet, the email and social areas to make use of to closer than ever to customers. Company must give service to use email and internet on cellular phone therefore the Mexican people always keep touching other friends and family participants. Vodafone customer services are also very good and it's improving the IVR so for the customer user friendly services. Vodafone also give I-phone applications so it's customer know the new product and better service on his i-phone.

Competitor Research:

In the Mexican Telmex already cover the whole the marketplace in landline and mobile sector and other opponents AT&T and Worldcom on the market so it's really thought for the Vodafone. But Vodafone has to launce Mobile handset and the service both sector in the market so they can give the tough competition to the Telmex and other company. Telecom sector is right now very good for the Mexican economy.

Customer always a main part for the any industry and market. Current situation customer has the choice of many types of product at the moment time due to the advanced competition. So Vodafone has to give some different types of product like broadband and 3G, GPS all of this services to the customer therefore the company market will be heading high and company generating a earnings.

Vodafone is a major network company in the united kingdom and rest of the world they have big brand image so it's really ideal for them to enter a new Mexican market and focus on the customer local people and divides them different sections.

In Mexico Market nobody telecom company give the all services to the whole market. Telmex supply the landline and AT&T supply the mobile services so Vodafone must good chance to repay the whole market to launce the new cheap product and Vodafone already know of it's customer support and network so it's really ideal for them to go into and give your competition to the other competitor.

Market Access Strategy:

Vodafone has a good brand image so it's quite simple to enter to the other country market, nonetheless they have to take licence from the federal government and search data what kind of the customer need and they gating.

In Mexican market Vodafone has to search the kind of service provide Telmex in the market which is that they customer satisfied or not. Telmex only concentrate on the landline customer so Vodafone must use the broadband and internet service and also give the good plan, better network so the customer can move to the Telmex to Vodafone.

Vodafone have already high capital so it is better to enter market immediately not using joint venture. They also have good reputation in the telecom market so they can utilize this brand image to go into a Mexican market. In case the Vodafone entering the marketplace then competition will be heading high so it's directly effect to the client plan and price will be going down, it's help the country overall economy and customer also.

Marketing Mix Methods:

Vodafone uses advantages as being a sizable international business and implements differentiation and cost management strategy they benefit from economies of scale. Big brand image also help for the Vodafone to provide the competitive gain and adding more value to their service and product compare to the competition.

The marketing Mixture contains many different factors like product, Place, Price and Campaign so Vodafone has to take this point and compete with their competitor.

Product: Vodafone offers different type of products to different type of customer and so can portion their market. Vodafone presently targeting the business enterprise people to give the business telephone like Blackberry, I-phone, HTC so it's supply the more benefit for the company to entice company. Vodafone has good network coverage plus they provide all over the world. Vodafone also produce 3G broadband and online sites in today's market and diversifying to the client to buy a product. Vodafone promote Vodafone live, Vodafone mobile hook up USB modem, Vodafone freedom packs etc. Each is good product. Vodafone provide good voice quality so the customer can favor new product and handset also. So it's ideal for the Vodafone to enter into the Mexican market and differentiate to customer to their products need and provides good quality of network and better plan compare to the Telmex.

Price: Vodafone have the ability to offer different customers to different services life Pay as you go, Pay monthly deal, simply sim and Business alternatives for business. So they have to structure their pricing method towards different need of the customer need. Telmex is the only person telecom company cover the most of the part in Mexican market so they use Monopoly of the purchase price and they give the higher rate of service so Vodafone have to control and cover the client base on the purchase price and service.

Place: Vodafone performs their customer through shops all around the uk, You will find over 400 in the shops and they also offer their services through self-employed retailer like Devices4u. So it's better to type in the Mexican market Vodafone has it's own image so local merchant prefer to take franchises of the business and earn a money. Vodafone have a good capital so they can build the new branch and store also to allow them to give the good competition to the opponents. Vodafone has to use easy way to steer selling to the customer in the Mexican market.

Promotion: Vodafone using a advanced of advertising plus they have a solid marketing framework. They always advertising poster on the road, TV Campaign and also famous Formulation one champ Lewis Hamilton to advertise their products. This ensures people know about Vodafone new offers and discounts. Vodafone has to also use the local super star in Mexico's so the people divert to the utilizing a company product and present the new offers.


Launch location platform services: Vodafone has a major telecom company in uk plus they have a brand image so they can simply enter in to the Mexican market. Vodafone must cover complete the Mexican market like rural and metropolitan area also and give the client need product. Rural area almost all of the people not earn much more so Vodafone must give the cheap and better product for the customer needs.

Increase GPRS Subscribers base: Within the Mexico's internet are the covering a good market and they provide good opportunities for the business so Vodafone has to kick off handset that support the GPRS and establish NEV also. A lot of people always like to use Facebook, Twitter, Yahoo Mail in mobile internet so Vodafone must improve the online sites to allow them to satisfied the customer need and contend with the Telmex.

Concentrate More on value Added Services: Vodafone supply the value added services like Reports, Face booklet, twitter, Country wide Lottery, Video games, Weather so it's earn a lot. Value added services are simple to operate plus they increase they company income so they need to improve the network but also raise the value added services.


Vodafone is the greatest mobile network merchant on the globe in conditions of turnover, has to continue to increase as develop more products and services. Vodafone maintain a sustainable competitive benefit have to upgrade service with the changing the new technology and is accessible in the telecom market changing. If Vodafone has to type in to Mexican market they use the new technology and increase customer services. Current situation technology is always changing aspect in the cellular phone industry so the Vodafone supply the competitive advantage to change to service. Vodafone's most powerful reference are their intangible property like human resources are the most vital reference for them to stay before their competitors and the primary way to obtain competitive benefits. Finally Vodafone has good opportunities to get started on a fresh business in the Mexican market and increase a revenue also.

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