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Vodacom SWOT & PESTLE Analysis

ID : 52933053| May 2021| 21 pages

COMPANY PROFILE -Vodacom

Business Sector :Telecommunication Services

Operating Geography :South Africa, Africa

About Vodacom :

Vodacom Group Limited is a leading African communications company providing a wide range of communication services, including mobile voice, messaging data, financial and converged services to over 117 million customers. It was founded in 1994 by Alan Knott-Craig. The company is headquartered in Johannesburg, South Africa. It offers business managed services to enterprises in 50 countries through its Vodacom Business Africa (VBA). Its core services are voice, messaging and data, which are all available on either contract or prepaid. Contract gives the convenience of paying for services after it is used by the customer via monthly debit order, whereas prepaid lets them control how much they want to spend upfront without being locked into a contact. Vodacom provides connectivity as well as internet and virtual private network services to its customers over a variety of wireless, fixed-line, satellite, mobile and converged technologies. In 2020, Vodacom launched Africa’s first live 5G network which supports both mobile and fixed wireless services. The company received the Business Social Investment Award 2019.
Vodacom’s mission statement reads, “We are a caring company that strives to enhance people’s lives and empower through advanced telecommunications through innovative yet sensible means.” Vodacom’s vision statement reads, “To be a leading digital company that empowers a connected society, delivering on our core purpose of we connect for a better future.” The unique selling proposition or USP of Vodacom lies in being the leading cellular network provider in South Africa with an estimated market share of 58% and more than 103 million customers across Africa.

Vodacom Revenue :


R 90.7 billion - FY ending 31st March 2020 (y-o-y growth 4.8%)
R 86.6 billion - FY ending 31st March 2019

Competitive Analysis of Vodacom

SWOT
PESTLE

The SWOT analysis for Vodacom is presented below in a matrix followed by the detailed analysis report:

StrengthsWeaknesses
1. 4G coverage over 370 sites in rural areas
2. Obtained 4G licenses and Spectrum in all international operations
3. Leading African communications company providing a wide range of services
4. Airtime Services to prepaid customers
5. Contribution from new services gaining momentum
6. Established 5G connectivity in Lesotho, first in Africa
1. Consecutively decreasing cost of data affecting net profit of Vodacom
2. Limited 4G footprint due to spectrum constraints
OpportunitiesThreats
1. Building a developed cyber security network.
2. Expand 5G connectivity to entire Africa
3. Unlocking of OTT services to drive digital platform growth
4. Leveraging digital connectivity to combat Covid-19
1. Frequent load shedding in South Africa
2. Tough regulatory and policy environment across African markets
3. Slow market share growth due to intense competition
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Vodacom

Strength

1. 4G coverage over 370 sites in rural areas: Vodacom is striving hard to provide telecom services and data connectivity to as many regions as possible. With a special focus on rural areas, they are consecutively expanding deep rural coverage every year. In South Africa, they managed to provide 4G connectivity to 90% of the South African population. Further it was able to add 137 more rural sites to those areas who never had coverage before in 2020 making it to a total of 377 sites across South Africa.

2. Obtained 4G licenses and Spectrum in all international operations: In April 2020, the telecom regulatory body of South Africa, ICASA has granted an emergency spectrum to many of the telecom companies of South Africa to tackle the sudden spike in demand for network and internet connectivity during the lockdown window due to COVID19. In 2019, Vodacom was also awarded a 4G license in the DRC. They also unified and renewed licenses for 20 years and obtained additional spectrum. In a city called Tanzania, Vodacom obtained additional 4G spectrum which helped in enhancing data capabilities. The total costs of these spectrum acquisitions were US$65.0 million across their operations.

The remaining section under "Strength"is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Cell C
  • Telkom
  • MTN Group
  • Internet Solutions
  • Umoya,
  • SEACOM,
  • Neotel,
  • Econet,
  • Teraco
  • Ethio Telecom

Major Brands :

  • Zoopy
  • XLink Communications (Pty) Ltd.
  • IoT.nxt Pty Ltd
  • Nexio
  • Vodafone Kenya Limited
  • Mirambo Limited
  • GS Telecom (Pty) Ltd.
  • Vodacom Business Africa (Nigeria) Limited
SWOT & PESTLE (combined)
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References used in Vodacom SWOT & PESTLE Analysis Report

1. Integrated report for the year ended 31 March 2019 - http://vodacom-reports.co.za/integrated-reports/ir-2019/documents/downloads/Integrated-report-2019.pdf
2. Integrated report for the year ended 31 March 2020 - http://vodacom-reports.co.za/integrated-reports/ir-2020/documents/integrated-annual-report-2020-hires.pdf
3. Vodacom Group For the year ended 31 March 2020 - https://www.vodacom.com/pdf/investor/annual-results/2020/presentation.pdf
4. Data prices fall after Competition Commission, Vodacom reach agreement - https://www.thesouthafrican.com/news/data-prices-fall-vodacom-mtn-how-much-cost-2020/
5. Load-shedding contributing to spike in battery theft, costing telecom firms millions - https://www.timeslive.co.za/news/south-africa/2020-02-17-load-shedding-contributing-to-spike-in-battery-theft-costing-telecom-firms-millions/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Vodacom SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/vodacom/ [Accessed 13 Jun, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

Vodacom SWOT and PESTLE analysis has been conducted by Anjali Ladwal and reviewed by senior analysts from Barakaat Consulting.

Copyright of Vodacom SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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