The advantages of sponsorship
A Vodafone case study

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Page 4: Vodafone´s corporate strategy

Vodafone Group's current target is to become one of the world's top five brands. To achieve this, it is expanding its global presence through dual branding exercises with the 30 other companies around the world in which Vodafone Group holds interests.

This involves using the locally recognised brand and the Vodafone name, i.e. Libertel Vodafone (Libertel is the network in the Netherlands). Once the Vodafone name becomes widely recognised in these markets, the Vodafone brand will become the sole brand. This initiative forms part of an ongoing programme to build the Vodafone brand globally.

Vodafone's current business strategy is to grow through geographic expansion, acquisition of new customers, retention of existing customers and increasing usage through innovations in technology.

This is proving a very successful strategy, as is evident from Vodafone's UK success. Vodafone opened the UK's first cellular network on 1 January 1985. It has been the market leader since 1986; its UK networks carry over 100 million calls each week. Vodafone currently has the largest share of the UK cellular market.

It is anticipated that by 2005 there will be over one billion mobile phone users throughout the world, using a wide range of phones including 'third generation' and Wireless Application Protocol (WAP) enabled phones. Nearly two-thirds of these mobile phones will be WAP enabled and with rapid increases in processing power, third generation mobile phone users will be able to:

  • find out cinema programme schedules and seat availability
  • book the tickets
  • study the best route and where to park
  • access the Internet
  • hold video conferences while on the move.

The mobile phone market is constantly moving forward; the pace of change and development is accelerating. Consumers' desire for better products is intensifying. To move the market forward, Vodafone is continually developing new services which, until they are there, are often beyond the average customer's imagination. Vodafone is well placed to benefit from these developments. As a global telecommunications company, Vodafone benefits from the advantages of operating across a range of markets which enables them to benefit from huge cost savings resulting from dealing with single suppliers worldwide for example.

Vodafone | The advantages of sponsorship