Name of the Company: Orange S.A.
Business Sector: Telecommunication Services
Operating Geography: Europe, France, Global
About the Company: Orange S.A. is a French major telecommunications operator providing varied services like fixed line telephony, mobile communication services and internet services in Europe and Africa. It is also a global leader in corporate telecommunication services. It is headquartered at Paris and employs 157,000 from around the world.
Revenue: 40.2 Billion Euros
SWOT & PESTLE Analysis
|1. Having huge physical assets for fixed and mobile networks|
2. Record sales in France
3. Huge length of Submarine cable networks
4. A huge customer base
5. Huge future investments
|1. No presence in emerging Asian markets
2. Low existing portfolio of services
|1. Over 4.3 billion people on the planet who do not have internet access|
2. To provide services reflecting today’s service lifestyles:
• Payment Applications
• Smart Cities
• Digital Education
|1. Security and privacy
2. Growth in telecommunications is quite weak in recent years
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1) Having huge physical assets for fixed and mobile networks: By the end of 2015, 13 million homes in France, Spain, Poland and Slovakia had been connected by fibre optic broadband services. It has a huge coverage in Africa and is a part of people life by improving electricity supplies in rural and isolated areas.
2) Record sales in France: Orange’s ability to differentiate along various segments has helped increasing its customer base. Having high presence in a country like France where customers spend an average of 2 hours and 27 minutes on their smartphones is a great advantage to it.
3) Huge length of Submarine cable networks: Orange boasts of a 4,50,000-submarine cable network. Few operators in the world can boast of huge infrastructure of cable networks.
4) A huge customer base: Orange boasts of 18 million 4G customers in Europe and 1.9 million fibre customers in France, Spain, Poland and Slovakia. It has a total customer base of 263 million.
5) Huge future investments: Orange is investing 15 billion Euros in fixed and mobile networks between 2015 and 2018.
1) No presence in emerging Asian markets: Asian market which is seeing massive growth in telecommunications is a major market for any company. Orange has a presence in only African market but no presence in Asian market which is a major disadvantage for it when compared with other major players like Vodafone.
2) Low existing portfolio of services: No additional services are being provided in the name op mobile applications to the existing mobile and data services. Many major companies have started doing this and Orange lags in this regard.
1) Over 4.3 Billion people on the planet who do not have internet access: Most of the people who do not have internet access live in the developing countries. Orange S.A. has presence in Africa but doesn’t have presence in Asia which is a huge market for mobile and data services due to its massive population. The shift of trend towards digitalization in many of these Asian countries gives a massive scope to improve its services over there.
2) To provide services reflecting today’s service lifestyles: There is a great opportunity to provide many different personalized services using mobile applications in various domains like: • Content, which can include Movies, TV series, sport, music, information, video games, live shows and entertainment.
• Payment applications will help Orange to deliver innovative future facing solutions to meet customer demand for financial and payment services on their mobile devices.
• Smart Cities offer great scope for innovation, making life easier for citizens. There is a great scope for Orange to partner with Governments of different countries to build smart cities.
• Digital Education is on an increase worldwide. Having a platform which can connect astute professors in Europe to poor students in Africa can help enrich Orange as well the world.
1) Security and Privacy concerns: Orange S.A. being a major source of corporate communications, security is one of the major concerns. Most of the data is carried by operator networks every day. An increasingly interconnected world has led to an increase in cybercrime worldwide. Users concerns about integrity and confidentiality of personal data needs to be addressed.
2) Growth in telecommunications is quite week in recent years standing at 1%. Developing markets are seeing a stagnancy in growth and there is aggressive competition in these markets. There is a huge competition which might lead to price wars decreasing the income of the company.Orange S.A. SWOT analysis has been conducted by Theegela Subash and reviewed by senior analysts from Barakaat Consulting.
1. Orange S.A. Financial Report 2015 which was presented on 7th June 2016: http://www.orange.com/en/2015IAR/2015IAR
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