Sales and Distribution of Vodafone

Sales and Distribution of Vodafone
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2.3.2 STRUCTURE
telecom market has both public and private sector companiesparticipating: Public sector has over 60% market share, down from 90% in 2000. Private companies have added subscribers at a CAGR of 192% since 2000. Mobile operators have deployed both CDMA ( 16 million users) and GSM(55 million users) wireless networks Value added service features constitute 10% ofrevenue today (2 % in 2001)POLICY. Search 74% to 100% FDI permitted for various telecom services. Search History: FIPB approval required for foreign investment exceeding 49% in all Searching... telecom. Result 00 of 00
T he Indian
00 results for result for 2.3.3Services p.
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2.3.4 Sector Outlook

India expected to be among the fastest growing telecom markets in theworld. Projected growth of 30-40% p.a. to reach 250 million subscribers by20092010. Over 3 million new users are added every month mostly in wireless.
2.3.5 POTENTIAL
1. Favorable demographics and socio economic factors leading to high growth:
Growth of disposable income combined with changes in lifestyleIncreasing affordability-low tariffs, easy payments plans and handsetfinancing. Increased coverage and availability of mobile services.
2. Investment opportunity of $22 billion across many years:

T elecom Devices and Software for Internet, Broadband and Direct T oHome Services. Set T op boxes, Gateway exchange, Modem, Mobile handsets andconsumer premise equipments, Gaming Devices, EPABX, T elecom Software.
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T elecom
Services for voice and data via a range of technologies.
Applications and Content development ranging from gaming to education. Nokia, LG, Ericsson are all investing in India.
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CHAPTER 3
COMPANY BACKFROUND 3.1 COMPANY PROFILE
Vodafone limited
Vodafone, the worlds leading international mobile communicationscompany, has fully arrived in India. Vodafone Essar announced today thatthe Vodafone st brand will be launched in India from 21 Septemberonwards. he popular and endearing brand, Hutch, will be transitioned to Vodafoneacross India. T his marks a significant chapter in the evolution of Vodafoneas a dynamic and ever-growing brand. T he brand change over the next fewweeks will be unveiled nationally through a high profile campaign coveringall important media.
T
Vodafone, the worlds leading mobile telecommunication company,completed the acquisition of Hutchison Essar in May 2007 and thecompany was formally renamed Vodafone Essar in July 2007. AsimGhosh,Managing Director, Vodafone Essar, said Weve had a great innings asHutch in India and today marks a new beginning for us. Not as a departurefrom the fundamentals that created Hutch, but an acceleration into thefuture with Vodafones global expertise.
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T his HaritNagpal, Marketing and New Business Director, Vodafone Essar, said, transition is probably the largest brand change ever undertaken in this country and arguably as big as any in the world. It is even larger than our own previousbrand transitions as it touches over 35 million customers, across 400,000 shops and thousands of our own and our business associates employees. T he Vodafone mission is to be the communications leader in an increasingly connected world enriching customers lives, helping individuals, businessesand communities be more connected by delivering their total communication needs.
Vodafones logo is a true representation of that belief conversation, a trigger, a catalyst, a mark of true pioneering.
T he
start of a new
Vodafone established its presence in India in 1994 by acquiring the cellular license for Mumbai. It now has operations in 16 circles accounting for 70% of Indias mobile customer base. With over 27.7 million customers, it is one of Indias most reputed telecom companies. Vodafone, under the Hutch brand, over the years, has been named the Most Respected T elecom Company, the Best Mobile Service in the country, and the Most Creative and Most Effective Advertiser of the Year. Hutchison Essar is now part of Vodafone the worlds leading international mobile communications company. Vodafone now has operations in 26 countries across 5 continents and 36 partner networks with about 225 million proportionate customers worldwide. Vodafone has tied up with Essar as its principal joint Search venture partner for the Indian operation. T he Essar Group is one of Indias largest Search History: corporate houses with interests spanningthe manufacturing and service sectors Searching... T elecom & BPO, Shipping & Logistics and like Steel, Oil & Gas, Power, Result he Group Engineering & Constructions. T00 of 00 has an asset base of over Rs.20 billion (US$ 4.4.billion) and employsresults for result for 00 over 4000 people.
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3.2 DRIVE OPRATIONAL PERFORMANCE
3.2.1 VALUE ENHANCEMENT

T hey will drive operational performance through customer value enhancement (which replaces revenue stimulation) and cost efficiency. Value enhancement involves maximizing the value of their existing T hey will move away from customer relationships not just the revenue. unit pricing and unit-based tariffs to propositions that deliver much more value to our customers in return for greater commitment, incremental T his will require penetration of the account or more balanced commercial. a more disciplined approach to commercial costs to ensure their investment T hey are is focused on those customers with higher lifetime value. confident that by targeting their offers, they can deliver more value to our customers and have a better financial outcome for Vodafone.
3.2.2 COST REDUCTION
Cost efficiency requires them to continue to deliver scale benefits by optimizing operating and capital expenditure. Across the Group they have a significant number of cost programmers, which they expect to reduce current operating costs by approximately 1 billion per annum by the 2011 financial year. T his will offset the pressures from cost inflation and the competitive environment and enable investment in revenue growth opportunities. As a result, on a like-for-like basis, we are targeting broadly stable operating costs in Europe and for operating costs to grow at a lower rate than revenue in ACE (Africa and Central Europe) and APME (Asia Pacific and Middle East) between the 2008 and 2011 financial years. Capital intensity is expected to be around 10% over this period in Europe and to trend to European levels in emerging markets over the longer term.
3.3 PURSUE GROWTH OPPORTUNITIES IN TOTAL

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