Sunday, July 13, 2014

Vodafone's Flexible Competitive Advantage

       
       In a strategy for differentiation one or more criteria used for selection by buyers in a market are chosen - and then a business plan is used to uniquely meet those criteria. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products.Vodafone came up with a differentiation strategy when they launched the I phone service, even though they were charging their customer more than their competitors but they still got the edge over others by offering free Vodafone to Vodafone calls for life time calls and better network strength compared to other competitors.

       In a strategy for cost leadership, a company aims to differentiate within just one or a small number of target market segments.Vodafone introduced One Net, a hosted fixed and mobile voice service for SMEs.This move is regarded as to be very effective move for Vodafone as Vodafone's model is to charge per user, per month and claims the total One Net solution can be 15%-20% cheaper than SMEs pay for typical services currently.

          And of lately they have kept a focused on customers services in order to maintain high standards of customer satisfaction. In addition to above points Vodafone understands the change in market requirements with time and have always tried to come up with new innovative idea to attract more and more costumers for example:-of lately they have understood the need to penetrate in business organizations for which they have started 3 new plans which are catering to small, medium and large scale businesses with various plans and packages which can be customized according to their needs and requirements.

              Also, Vodafone is way ahead of its competitors when it comes to its retail footprint in India.













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