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

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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
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

1

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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