Vodafone special edition - strategy update June 2006
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Published:
Week 22
June 2006 -
Image Source:
Vodafone
News:
Vodafone offered few surprises in its strategy update. It acknowledged that the landscape of the mobile industry is changing and defined five key objectives to address this:
- Reduce costs and stimulate revenues in Europe
- Deliver strong growth in emerging markets
- Innovate and deliver on customers' total communications needs
- Actively manage the portfolio to maximise returns
- Align capital structure and shareholder returns policy to strategy
Key challenges it identified included:
- Customer demanding simpler products that deliver real value
- The emergence of new technologies (e.g. Voice over IP)
- Intensifying price, competitive and regulatory pressure
It also announced a change to the organisational structure of the business to focus on three key areas:
- Europe (i.e. mature markets) covering all of Vodafone’s Western European controlled businesses headed by Bill Morrow
- EMAPA (Eastern Europe, Middle East, Africa, Asia Pacific and affiliates) focusing specifically on Vodafone’s emerging market portfolio – headed by Paul Donovan
- New businesses focusing on converged products of mobile, broadband and the Internet headed by former CTO, Thomas Geitner.
