Vodafone in European Business Environment Essay

Vodafone Company is a multinational British company whose headquarters is located in London. This is the globe’s second largest telecommunication company in terms of its revenues as well as the number of subscribers. The leading mobile telecommunication company is China mobile which by the end of December 2011 had registered over 450 million subscribers to its network. Vodafone is a mobile telecommunication company that aside from providing telecommunication services to its clients, provides various information technology services to numerous corporate customers in over sixty nations in the globe.
However, in the years 2000’s, Vodafone Company was faced with numerous challenges while trying to implement their expansion strategies. For instance, one of the company’s greatest challenge was that of the impairment review. This is where the former chief executive officer of the company twisted the corporation from a principal wireless machinist in Europe, to a mobile giant that had universal footprints on their expansion strategy. The other key issue or problem faced by the company in2000’s is its market in Europe and moreover in the United States, as well as in Japan.
Aside from this, Vodafone was also hit by different cultural differences in various European nations, and this influenced the company’s expansion across the European continent. Different nations in Europe have different cultural beliefs and behavior regarding the use of mobile networks. There are those nations whose cultures embrace the use of Vodafone and are behind the company in its expansion strategy. However, there are this other European union whose cultural differences are not in favor of Vodafone expansion. These embrace other mobile telecommunication networks that compete with Vodafone. This makes it difficult for Vodafone to implement it expansion strategies in the whole of Europe. These cultures feel that, with the high improvement in technology, they ought to use mobile networks that will assist them keep up with the ever growing technology. It also assists them in carrying out their daily activities such as businesses, and this is significant to them.
Many different companies just like Vodafone in this case are faced with various challenges, which are a, result of technological changes and also demographical changes. Technological change is one of the external factors that affect Vodafone as a company. These technological changes could be caused by future technological developments, infrastructural development, and the potential of the existing system. Therefore, if Vodafone’s MNA is due to technological changes, then the company should embrace and depend on the current technology. This way, the company will be up to date with the present technological changes which are significant in foreseeing a smooth strategy expansion. This should also happen since Vodafone has to compete with other of its competitors such as Samsung and Nokia. On the other hand, Vodafone should be extremely cautious with the various market changes which are triggered by changes in technology. With various market changes, there are innovations in technology and Vodafone has to be sensitive in order to maintain their market stability in the long run.
On the other hand, Vodafone Company should also be alert on the various demographic changes that may occur. Demographic changes are part of the external factors which may affect strategic expansion of Vodafone. Demographic changes lie under social factors, which include the, social acceptance of technology and these are the factors that have compelled the company into changing their publicity, production, and even business expansion over the years. Therefore, with the numerous demographical changes, Vodafone should be aware of their clients’ expectations. They should also know what ages most of their clients lie within since this assists them in knowing what to improve, and what not to improve within their network. For instance, if most of their clients lie between the ages 15 to 40 years, this means that their wide range of clients is youths or the young people. They should make certain; therefore, that the applications that are within their mobile network will be appealing and attractive to their clients. Otherwise, if this is not the case, their clients will move to other companies such as Samsung where they feel that the services are excellent. Therefore, Vodafone should do everything to ensure they sustain their patrons while at the same time attract additional clients from other networks.