Claudia, a Junior at a Leading Firm of Strategy Consultants: Management Strategy Case Study, SMU, Singapore

Introduction

Claudia, a junior at a leading firm of strategy consultants, had just arrived with two senior colleagues at the headquarters of a medium-sized company considering its next strategic move. The CEO began the meeting by outlining the business the company was in and some of the history behind the firm’s significant success in European markets.

The recent entry into Europe of new aggressive competitors threatened their performance and the Board was wondering whether the company should globalize. The CEO then asked how the consultants might approach this problem. The consulting partner explained they would carry out a systematic strategic analysis of the company’s situation and Claudia knew this would be her responsibility.

Case Study Questions:

1. At the time of the case, how do each of the four ‘industries’ (fixed-line, mobile, television, and broadband) compare in terms of ‘attractiveness’ using Porter’s Five Forces framework?

2. What are the key drivers of change in the communications industry as a whole? What do you expect their impact to be over the next five years?

3. How do you expect the UK communications industry to converge in the next 3-5 years?  How attractive will that industry be?

4. What should Vodafone’s strategy be to achieve its goal of being ‘The Communications Leader in an Increasingly Connected World’?

CASE STUDY

Vodafone: developing a communications strategy in the UK market

In 2012, Vodafone, the world’s second-largest mobile telephone operator by revenue, was under increasing pressure to develop a strategy to ensure leadership in the rapidly growing market for high-speed Internet services in its UK home market. The challenge for Vodaphone was that the development of new technologies for voice, data, and video transmission was blurring the boundaries among traditional industries and forcing a reconsideration of what services were required to be a leader in the communications industry of the future.

This growth in demand for Internet services had attracted the interest not only of Vodafone’s traditional competitors in the mobile telephone industry. but from other communications companies such as BT (the largest provider of fixed-line telephones). Virgin Media (the largest cable TV operator in the UK) and Sky Broadcasting. which was the UK’s largest provider of satellite-based television. Other new competitors included a spin-off from the largest UK retailer of mobile handsets. TalkTalk. and traditional suppliers such as Apple. Nokia and Google had been investing heavily In digital content as well as hardware and software. In addition to changes in competition. Vodafone and other operators faced rapid changes In technology with the growth of IP  allowing voice data.