When compared with other competitors, the company also has a better network strength. Another strategy that Vodafone uses is cost leadership it aims at being the lowest cost producer in the telecommunication industry. This makes the company to enjoy the maximum benefits. Most of the times, Vodafone discounts its products and therefore maximizes on it sales. The evidence is the company's "Home Cell" tariff which it has created for its Metro Digital Service. In this tariff, Vodafone offers off-peak calls from an indicated location (like an office) for 8 cents a minute. Vodafone has without doubt been able to score a cost advantage over other competitors such as O2, 3, orange.
Vodafone also uses differentiation focus where it targets to differentiate within only a small number of or only one target market segments. The needs of the special customers that are found in the segment mean that there is opportunity to provide services/products that are obviously different from the competitors who may be pursuing a bigger group of customers (Vodafone, 2013). What makes Vodafone succeed using this strategy is that the company is familiar with the needs and wants of the customers – that is to say that there is an authentic basis for differentiation – and that the other competitors are not fulfilling those needs and wants. This can be evidenced by the total One Net solution, which is a fixed hosted and mobile voice service for Small and Medium Enterprises. This move is deemed as very effective for the company because its model is to charge per user for every month. The One Net can be cheaper by up to 15 % – 20 % that Small and Medium Enterprises pay normally for current services.
Vodafone Competitor Analysis - Price and Quality .
Vodafone has created a renowned brand image in the perception of the customers. Therefore, on the basis of quality, the company is already a trusted mobile service provider and is known for its exclusive nature of products and services.
