Business strategy of vodafone o2 ireland ioannis sapountzis ioanniss@kth se 2012 11 15 ik2514
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Business Strategy of Vodafone & O2: Ireland Ioannis Sapountzis [email protected] 2012-11-15 IK2514. Business Strategy of Vodafone & O2: Ireland. Facts: Small mobile market Mobile penetration: 119.7 % . Decreasing ARPU: Decreasing Voice ARPU Increasing Data ARPU

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Business strategy of vodafone o2 ireland ioannis sapountzis ioanniss@kth se 2012 11 15 ik2514
Business Strategy of Vodafone & O2: IrelandIoannis [email protected]


Business strategy of vodafone o2 ireland
Business Strategy of Vodafone & O2: Ireland

  • Facts:

  • Small mobile market

  • Mobile penetration: 119.7%.

  • Decreasing ARPU:

  • Decreasing Voice ARPU

  • Increasing Data ARPU

  • Vodafone & O2 = 69.1% market share

  • Target Segment:

  • Vodafone targets no specific customer group but is more focused on business customers

  • O2 has offers for everyone BUT

  • targets young people via 48 MVNO

  • Targets smartphone mobile users via BitBuzz

IK2514 – 2012/11/15

  • Type of Services & Offers:

  • Both provide Services to Private and Business customers

  • Mobile, Mobile Broadband, Home Broadband etc

  • Smartphones for free, depending on contract etc.

  • Vodafone opts for differentiated services to add value.

  • O2 opts for simplicity and the launch of new services (O2 money, Location-Based advertisements)

  • Customer Acquisition Focus:

  • Vodafone boasts for coverage

  • “Power to You”

  • Smartphones & other offers for newcomers

  • O2 except smartphone deals offers different deals or exclusive content

  • Both use Social Media effectively

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Business strategy of vodafone o2 ireland1
Business Strategy of Vodafone & O2: Ireland

  • Pricing Strategy:

  • Vodafone: both pre-paid and post-paid options. Voice, SMS and data in bundles with variable pricing dependent on usage and access speed. Highly complex pricing plans that differentiate depending on add-on services.

  • O2: simple pricing policy (boxed). No complex plans, added value is generated from the minimum possible top-up and the post-paid plans.

  • Network Development Strategy:

  • Same amount of spectrum for GSM & 3G

  • Vodafone acquired Complete Telecom. Invested 120m in network upgrade. Provides the network in wholesale. Will compete in future spectrum auction. Already have network sharing deal with 3.

  • O2 searches for revenue streams through new services. Has agreement with BitBuzz for indoor WiFi access. Invested 61m in networks. . Will compete in future spectrum auction. Already have network sharing deal with Meteor.

IK2514 – 2012/11/15

  • Summary:

  • Both mobile operators are leaders

  • and they seem to have similar strategies.

  • They both offer similar services but they have a different strategy for acquiring customers.

  • Both try to reduce their CapEx and OpEx for future networks via network sharing.

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