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Business Strategy of Vodafone & O2: Ireland Ioannis Sapountzis 2012-11-15 IK2514.

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Presentation on theme: "Business Strategy of Vodafone & O2: Ireland Ioannis Sapountzis 2012-11-15 IK2514."— Presentation transcript:

1 Business Strategy of Vodafone & O2: Ireland Ioannis Sapountzis IK2514

2 Business Strategy of Vodafone & O2: Ireland Facts: Small mobile market Mobile penetration: 119.7%. Decreasing ARPU: Decreasing Voice ARPU Increasing Data ARPU Vodafone & O2 = 69.1% market share 1 Type of Services & Offers: Both provide Services to Private and Business customers Mobile, Mobile Broadband, Home Broadband etc Smartphones for free, depending on contract etc. Vodafone opts for differentiated services to add value. O2 opts for simplicity and the launch of new services (O2 money, Location- Based advertisements) Target Segment: Vodafone targets no specific customer group but is more focused on business customers O2 has offers for everyone BUT targets young people via 48 MVNO Targets smartphone mobile users via BitBuzz Customer Acquisition Focus: Vodafone boasts for coverage “Power to You” Smartphones & other offers for newcomers O2 except smartphone deals offers different deals or exclusive content Both use Social Media effectively IK2514 – 2012/11/15

3 Business Strategy of Vodafone & O2: Ireland IK2514 – 2012/11/15 2 Network Development Strategy: Same amount of spectrum for GSM & 3G Vodafone acquired Complete Telecom. Invested 120m in network upgrade. Provides the network in wholesale. Will compete in future spectrum auction. Already have network sharing deal with 3. O2 searches for revenue streams through new services. Has agreement with BitBuzz for indoor WiFi access. Invested 61m in networks.. Will compete in future spectrum auction. Already have network sharing deal with Meteor. Summary: Both mobile operators are leaders and they seem to have similar strategies. They both offer similar services but they have a different strategy for acquiring customers. Both try to reduce their CapEx and OpEx for future networks via network sharing. Pricing Strategy: Vodafone: both pre-paid and post-paid options. Voice, SMS and data in bundles with variable pricing dependent on usage and access speed. Highly complex pricing plans that differentiate depending on add-on services. O2: simple pricing policy (boxed). No complex plans, added value is generated from the minimum possible top-up and the post-paid plans.


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