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Noha El-Moslyon 17 April 2014
Transcript of Vodafone Egypt
Vodafone Group acquired International Partner VIVENDI France share
Click GSM was rebranded to Vodafone Egypt
Vodafone International Services
Vodafone Egypt launched its off-shore operations under the name of Vodafone International Services (VIS)
It is dedicated to outsourcing business processes and IT services for Vodafone operators and beyond.
Vodafone Egypt’s shareholders structure consisted of Vodafone Group with 54.93%, Telecom Egypt with 44.94% and a minority free float of 0.13%
Vodafone Egypt completed a full acquisition of Raya Telecom to penetrate the fixed-line data communication business.
Vodafone acquired Sarmady
It became the digital arm delivering Vodafone internet experience in Egypt; putting Vodafone Egypt on the forefront of data innovation in the market.
Entrance in Egypt
Misrfone Telecommunication Company / Click GSM entered the Egyptian telecom market as the second operator.
It was a consortium between Vodafone international, Air Touch, and local/ international partners.
Vodafone Group Acquisitions
Vodafone Group acquired Air Touch share
Vision and Mission
Become the partner of choice delivering world class Integrated Customer Care Services (CCS) and Technology Services (TS) Value Adding Services.
We are committed to high standards of corporate governance, which are critical to our business integrity, and to maintaining investors' trust in us. We expect all our directors, employees and suppliers to act with honesty, integrity and fairness
Looking at Executive team profiles, you can see that all of them are subject matter experts in their field with extensive experience in large corporate environments with proven track record of success in similar roles within Vodafone or outside Vodafone. Having them working for Vodafone for long period in various positions and teams give them the advantage to be fully aware and living Vodafone Culture.
Code of Conduct
Code of Ethics
It almost covers basic ethics like honesty, integrity and shows how Vodafone is trying to be a value based company driven by ethics.
Having it accessible to public and enforced on employees, contractors and partners shows how Vodafone is truly trying to have it into actions and being applied in day-to-day operation
“We have adopted a Code of Ethics in compliance with Section 406 of the US Sarbanes-Oxley Act of 2002, which is applicable to the senior financial and principal executive officers”
Vodafone developed Code of Ethics compliant with world standard of audit and compliance to ensure that Management committed to work for shareholders best interest.
Corporate Social Responsibility
Vodafone Egypt Foundation
was established in 2003, as a corporate foundation donor, supporting NGOs and civil society organizations to implement developmental project in the areas of health and education for children, community development, the usage of mobile technology for development and access to communications.
Political instability situation in Egypt affected Vodafone ability to provide services as expected with
Over-night employee’s accommodation in hotels
Hiring extra employees in reaction to possible higher absenteeism.
Also, business ability of
is questioned due to government changes expected and inability to predict the next governmental strategies.
After 2011 revolution, an economic slowdown affected Vodafone Egypt as political and institutional uncertainty and rising insecurity continue to hurt tourism, manufacturing, and construction
is expected in the next 2 year, this will offer great opportunity to Vodafone to grow its business.
Inflation Rate increasing
, this will put pressure on services cost and prices
Uncontrollable currency exchange rates
puts a very high risk which could deeply impact the cost of services.
introduction to market will increase the ability of Vodafone to expand in Data services.
Increasing internet usage
will enable Vodafone to expand its services and offerings to greater portion of populations.
Network of roads and infrastructure availablity
in most of popular areas made the job of building sites and outlets to service customers a quick and successful job.
Nice and stable weather
makes Vodafone challenges related to equipment selection and operational environment at minimum.
trend is getting higher and that is a good indicator that consumers are willing to pay for more services.
is increasing which is good as this will allow Vodafone to reach more qualified peoples with less cost.
Big youth population
can be an opportunity for Vodafone Egypt to increase the services and offers targeting this segment.
Corporate Tax Rate
is expecting to be constant during the coming years which is good for upcoming business during the coming years
Generally speaking, Egypt is trying to have
rules and regulations
to attract investments and facilitate business startup and growth
Issues Priority Matrix
Value Discipline Triad
Vodafone Egypt’s strategy is based on 2 main axis
Focusing on improving their current network and services provided to improve its efficiency and reduce its cost.
getting ready for the introduction of the latest 4G mobile broadband technology.
It is considered as an
Based on NTRA's survey, Vodafone and Etisalat are perceived to have the best customer service
Based on NTRA's QoS report, the 3 companies have very similar results.
Porter's Five Forces
Threat of new entrance
Threat of Substitute Products or Services
Bargaining Power of Buyers
Bargaining Power of Suppliers
Relative Power of Other Stakeholders
Rivalry among Existing Firms
Vodafone Egypt and Mobinil are considered the leaders of the market with very similar results. This is clearly reflected in the slight difference in market shares.
Etisalat Egypt is following; this is due to the late entrance in the market and the need to have better and bigger infrastructure.
Core Competences & Competitive Advantage
Large scale of services and products that help adding value to customer.
It has established VIS for ITO, BPO and KPO services
It acquisitioned Sarmady for digital services
It also acquisitioned Raya services
The first mobile operator to switch into a total solution service provider.
It is using a mix of business models for each function, service or product.
Value Chain Analysis
It is a
company structure with only
6 reporting levels
from bottom to top which helps in a relatively fast decision making process
Is it Sustainable?
Costly to Imitate
+ Customer Solutions
Service operation services
+ Profit Pyramid
One Company, Local Roots
Speed + Simplicity + Trust
Be an Admired Leader
Review of Mission and Objectives
“Our mission is to be admired as a diverse ethical company operating responsibly and providing products and services that enable a more sustainable society for our customers and our community”
DOES NOT NEED TO CHANGE
1- Innovative in consumer services
2- Tackle Offshore market strongly
3- Cost efficient company
4- Actively contribute in Social activities
5- Have enough capacity for expansions
NEEDS TO CHANGE
Strategy Evaluation & Control
The current flat functional structure is good for implementing this strategy.
More focus should be put on ability of handling large expansions using current calibers and develop them.
More focus should be put on people development through training programs and talent management
Innovation department would be one of key players executing the proper strategy as cost is not the main factor anymore but range of products and services.
Larger span of controls required and work delegation.
Empowerment to middle management and team managers is required
Culture should be more transferred into new joiners. Having such quick growth and expansions makes culture a corner stone on how people are working efficiently together.
More incentives and reward programs for top performers and achievers.
Work setup as open space with enough joyful decorations especially in call center areas to ease their job and give them the impression of having good time while working.
With such a huge number of sub-teams and customer focus, the marketing department is helping Vodafone to stay number 1 in the market. They are covering all aspects from pricing till reaching customers with best offers and solution
Having such a huge customer care department with various channels to serve customer in a world class standard helped Vodafone to maintain number one in market. Looking at the main goal of the department which is differentiating Vodafone from competitors based on service quality shows how important and customer focused functions it is.
From the above analysis of current functions within technology, we can see it is a huge department with many functions integrated together. That will give Vodafone a very good opportunity of making max use of specialization but in the same time there is a high risk of conflicts or bureaucracy if no proper controls in-place
Looking at how HR department is big and covering a lot of functions crucial to business and people. The main theme is being people focused where helped Vodafone Egypt to win “Employer of The Year” award last 3 years in a row