Telefonica vodafone

Company Overview
The telecommunication industry is a saturated market with only a few main dominant mobile service providers. This industry is highly regulated as there are numerous entry barrierssuch as high capital expenditure and legal conditions especially for the new entrants in the industry. However, companies in this industry are able to gain benefits from economies of scale (EOS) bycapturing significant market share. As customers’ switching cost is low, most companies in the industry emphases on cost differentiation.
In view of the current competitive market situation;independences between mobile network operators and online entertainment provider are inevitable. In order to have an edge over their competitors, the alliances between them are necessary. Consequently, bothoperators would have the synergy benefits such as overall cost reduction, wider range of valued services and acquiring more customers from the partnership. Given that this industry is very competitive,Vodafone and Telefonica should not only maintain their forte but also require updating themselves with new technology and innovative ideas to offer to customers. This would require enhancement in termsof efficiency in their qualities of services plus easy and fast accessibility to other services as mentioned above.
Vodafone has a two-sided platform that is efficient to customers as well as theprovisions of services to upstream service providers through billing, customer relationship management, care services distribution and location. In contrast, Telefonica has a blended Telco subscriptionbusiness model which consist of usage metering; content services; person-mobile person networking wireless services and trust services. Vodafone mainly focuses on four strategies, namely increasingoperational performance through value enhancement and cost reduction, pursuing growth opportunities in total communications through innovation, increasing exposure in emerging markets and increasing...