Management Strategies Applied by Vodafone – Page 3

Reasons for Change

There are various factors that act as igniters to a change wave in Vodafone. One of them is the fact that Vodafone is a player in an industry highly driven towards growth and development by technology. Vodafone has to constantly update the technology that they use by ensuring that they are either ahead or at par with major competitors in the industry. Some of the other factors that engage change in an organization are following:


Change can be internally motivated within the government. It is vital for the entity to keep note of competitors’ in order for competition with other entities to remain elastic and establish new manner of doing business in a way that drive can be realized. The purpose of Vodafone is to avail competitive services to customers.


Advancement in technology prompts the organization to set up new facilities that shall ensure that the organization offers their services. Facilities entail both infrastructure and policies. The change targets adjustment in services and facilities inform of new policies.


In order to realize the business objective of making profit, a company can opt to position itself strategically through making change that was geared towards enlarging the company`s base to support its customers and accommodate new ones.

Exterior Causes:

External forces such as; market forces, competitor’s new infrastructure, financial limitation etc. Organizational change is at times triggered by pressures from the environment. Technology advancement and competitors adoption of new facilities contributes the Vodafone’s decision to consider change in technology adoption.


The changes in environment also caused the organization to change such as political influence, legal problems, and availability of resources. Vodafone also needs changes in some services because legal environment may restrict in some conditions.

Involvement of third party:

Change can at times be initiated based on pressure from investors pushing management to make changes towards improvement. When the bottom line of Vodafone was low, early stage, investors got involved. The intervention by stakeholders caused a great alteration in the organization frame.

Opportunities and Threats of Vodafone

There are diverse opportunities in this era for Vodafone. Firstly, NBN rollout is an enormous opportunity for Vodafone. NBN is taking over the infrastructures from Telstra due to providing broadband network all over Australia through optical cable. Thus, it is beneficial for Vodafone as the infrastructures are becoming nation’s property and Telstra will not have control over it any more. The next opportunity can be cloud service that Vodafone can improve in their business to compete with the competitors. Now, machine to machine (M2M) technology is becoming trend for every communication company from where Vodafone get benefited if they implement the scope to their strategy. Besides, the other opportunities can be business solution, increased usage of smart phone and so on.

On the other hand, the main threat of Vodafone is strong network coverage of competitors such as Optus and Telstra. Telstra has introduced 4G technology and that is a huge threat of Vodafone of losing the technology savvy customers. However, MVNO (Mobile virtual network operator) such as LycaMobile is a big threat of the company. Also, the increased usage of OTT (Over the top) Technology such as Viber, Skype, Whatsapp etc. is causing huge loss for Vodafone as the customers transfer data over the internet instead of using MMS and text.


Vodafone is a renowned company worldwide. Day by day, there is no doubt that the company growing by innovation and adaption of new technology. However, Vodafone should not overlook the threats to surpass the competitor and concentrate to compete with the leading companies in every aspect of business.


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