BCG Matrix
BCG Matrix
BCG Matrix
Based on the following points we have come up with the following Strategic Business unit
MOBILE SERVICE:-
Following are the significant factors which we have taken into accounts before arriving at Mobile services as
SBU of Vodafone.
Revenue:-
Vodafone Essar has continued its robust growth in India. Its telecom services revenue has gone up by 14%
to Rs 23,200 crore in fiscal 2009-10 from Rs 20,400 crore in Fy 2008-09. The strong growth is despite being
in a highly competitive market with 14 operators.
http://voicendata.ciol.com/content/vnd100_2010vol-II/110070503.asp
Profits:-
EBITDA grew by 9.2% driven by the increased customer base and the 37.6% increase in total mobile
minute usage during the year, with costs decreasing as a percentage
of service revenue despite the pressure on pricing.
http://voicendata.ciol.com/content/vnd100_2010vol-II/110070503.asp
Competitors:-
There are 14 Competing operators in India that are providing mobile services.Vodafone stands second
among them in terms of revenue and third in terms of subscribers.Vodafone is facing a tough competition
with Airtel,Idea,Reliance.
Segment:-
Vodafone is come up with various prepaid plans,postpaid plans targeting the various group age customers
like Vodafone Campus Pack,Vodafone friends circle,Vodafone Gappagoshti.It came up with eco friendly
solar charging handset VF 247 in india. Research in Motion (RIM), the producers of the popular
smartphone, just added another feather to its cap, tying up with Vodafone and leading healthcare solutions
provider, Maestros, for the eUNO R10 healthcare solution to aid in early detection and prevention of heart
attacks
Investment:-
Vodafone has increased its market share to consolidate its position in India as the second largest operator in
terms of revenue. Over the past three years, it has invested over Rs 20,000 crore to expand operations and
serve customers better in India. In addition to voice and text, Vodafone will also work on investing in
products and services that drive access to various data offerings. They will continue to increase investments
in new business areas like enterprise and carrier business. Network expansion also continued with the
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addition of 9,000 base stations by Indus Towers and an additional 16,000 by Vodafone Essar, making Indus
Towers the world's largest tower company with over 1,00,000 towers under management.
2) Market Size
Total mobile subscriber till june 2010 are 63,55,05,083.Vodafone has total subscriber of 10,90,60,704.
http://www.coai.com/statistics.php
3) Market Share:-
http://www.coai.com/statistics.php
Andhra
Pradesh 63,32,518
Assam 9,43,880
Bihar 37,91,641
Delhi 55,61,512
Gujrat 1,14,96,133
Himachal
Pradesh 2,14,339
Haryana 31,09,554
J&K 2,78,416
Karnataka 55,11,044
Kerala 44,47,067
Kolkata 37,15,365
M.P 21,11,656
Maharashtra 78,10,838
Mumbai 52,70,404
North East 5,87,657
Orissa 12,20,184
Punjab 32,91,478
Rajasthan 77,93,520
Tamil Nadu 95,14,086
U.P.(East) 1,12,00,654
U.P.(West) 70,00,654
2
West Bengal 78,58,104
Total 10,90,60,704
http://www.coai.com/statistics.php
3
Group Company wise % market share - Jun'2010
4
http://www.coai.com/statistics.php
http://www.coai.com/statistics.php
5
Strategic Market share Market Share Relative Market Quadrant in
Business unit (SBU) (largest market share growth rate which the
competitor) SBU lies
50%
Market
Growth 25%
Rate
0%
10x 1x 0.1x
RelativeMarket Share
9) Analysis
Vodafone lies in the Question mark quadrant.As per the theory in this quadrant there are products or
businesses, that compete in high growth markets but where the market share is relatively low in comparison
to competitor market. A new product launched into a high growth market and with an existing market leader
would normally be considered as a question mark.Because of the high growth environment, they can be a
“cash sink”.
Vodafone India come in the market in 2007.Despite being in a highly competitibve market with 14 operators
its telecom revenue service has gone up by 14%.Vodafone this year manage to secure a 3G spectrum in nine
circles comprising 60% of the operator’s subscriber base for Rs 11,617 crore. Vodafone has continued to
grow with its multitude of offerings. Vodafone Essar also launched its first mobile applications store in
March this year, which saw over 10,000 downloads in the first few days itself. In April, Vodafone also
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launched unlimited GPRS browsing for its customers in Karnataka at Rs 95 a month, and in the same month
also signed a deal with Aegis Srinagar BPO to handle its call traffic, offering hundreds of Kashmiris
working in Delhi and NCR a chance to return home. Besides this, the operator's ZooZoo IPL campaign
earlier this year was another winner, which proved a huge success in terms of revenue for the operator.
Vodafone is the first operator to announce its launch of the Apple iPhone 4 in India in September this year.
Free cash flow increased by 26.5% to £7,241 million due to increased cash generated by
operations, dividends received and lower taxation payments partially offset by
higher interest payments. Cash generated by operations increased by 4.8% to £15,337 million primarily
driven by foreign exchange and working capital improvements. Cash capital expenditure decreased by £247
million primarily due to lower expenditure in India partially offsetby higher reported spend in South Africa
following the change from proportionate
to full consolidation of Vodacom during the year.Vodafone will be trying to shift towards stars category by
increasing its market share.In order to do it will continue to increase investments in new business areas like
enterprise and carrier business.