swot analysis vdf

5/23/2018 SWOT Analysis Vdf

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Strengths

Geographically Diverse Business

Geographically diverse business and revenue should help shield the business from shocks in any one

part of their business. Different countries or locations around the world have different characteristics.

Those characteristics do not always match, therefore, a company can lower their risk by investing in partof the world with low correlations. The lower the risk, the better. This lowers risk and increases the value

of the business over the long-term. "Geographically Diverse Business" has a significant impact, so an

analyst should put more weight into it. This statement will lead to an increase in profits for this

entity. "Geographically Diverse Business" is an easily defendable qualitative factor, so competing

institutions will have a difficult time overcoming it.

International Reach

Companies with international reach have a big advantage over rivals especially when there clientsconduct a lot of business in different countries. For instance, if a business traveler needs to access theymoney in another country, they can either bank with a company that has branches in that country, or

they'll have to work with a third party, which will increase they fees and lower their productivity. Havinginternational reach also works for businesses like McDonald's, which serves food in nearly every countryin the world. Global access means that a consumer from one country can feel comfortable eating at anyMcDonald's around the world.Non global companies can't match these advantages, therefore, international companies have strong

advantages over rivals. "International Reach" has a significant impact, so an analyst should put more

weight into it. "International Reach" will have a long-term positive impact on the this entity, which adds to

its value. This statements will have a short-term positive impact on this entity, which adds to its value.

This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for

this entity. "International Reach" is a difficult qualitative factor to defend, so competing institutions will

have an easy time overcoming it.

Solid balance sheet

A stable balance sheet can help a company to overcome difficult financial times. It also allows a company

to make investments into their future when prices are lower during recessions. Risk measures are also

lower, because investors have more confidence in the companies ability to avoid bankruptcy. "Solid

Balance Sheet" has a significant impact, so an analyst should put more weight into it. This statements will

have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead toa decrease in costs. This statement will lead to an increase in profits for this entity. "Solid Balance

Sheet" is a difficult qualitative factor to defend, so competing institutions will have an easy time

overcoming it.
http://www.wikiwealth.com/swot-strength:geographically-diverse-businesshttp://www.wikiwealth.com/swot-strength:geographically-diverse-businesshttp://www.wikiwealth.com/swot-strength:geographically-diverse-business


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Opportunities

The increase in 3G and 4G coveragewill increase the number and sophistication of the services offered

by wireless companies. New services can bring in new customers, which increase sales and profits.

"Increasing 3G And 4G Coverage" has a significant impact, so an analyst should put more weight into

it. "Increasing 3G And 4G Coverage" will have a long-term positive impact on the this entity, which adds

to its value. This statements will have a short-term positive impact on this entity, which adds to its value.This qualitative factor will lead to a decrease in costs. This statement will lead to an increase in profits for

this entity.

Rapidly Growing Middle Class In India

"The two groups that make up the middle class are the seekers, earning between 200,000 and 500,000rupees ($4,376- $10,941), and strivers, with incomes of between 500,000 and 1 million rupees ($10,941-$21,882). While their incomes would place them below the poverty line in the United States, things aremuch cheaper in India. When the local cost of living is taken into account, the income of the seekers andstrivers looks more like $23,000 to $118,000, which is middle class by most developed-country standards.Seekers range from young college graduates to mid-level government officials, traders and businesspeople. They enjoy a lifestyle that most of the world would recognize as middle class and typically own a

television, a refrigerator, a mobile phone and perhaps even a scooter or a car. Although their budgets arestretched, they scrimp and save for their children's education and their own retirement.Strivers, the upper end of the middle class, tend to be senior government officials, managers of large

businesses, professionals and rich farmers. Successful and upwardly mobile, they are highly brand-

conscious, buying the latest foreign-made cars and electronic gadgets. They are likely to have air

conditioning, and can indulge in an annual vacation, usually somewhere in India."

Sources:

http://www.mckinsey.com/mgi/mginews/bigspenders.asp "Rapidly Growing Middle Class In India" has

a significant impact, so an analyst should put more weight into it. "Rapidly Growing Middle Class In

India" will have a long-term positive impact on the this entity, which adds to its value. This statements will

have a short-term positive impact on this entity, which adds to its value. This qualitative factor will lead toa decrease in costs. This statement will lead to an increase in profits for this entity. "Rapidly Growing

Middle Class In India" is a difficult qualitative factor to defend, so competing institutions will have an easy

time overcoming it.

Reduced competitionfrom an economic slowdown and competitor bankruptcies should increase the

profit margins of all firm who avoid bankruptcy. Less competition means higher prices and more money

for remaining competitors. "Reduced Competition" will have a long-term positive impact on the this

entity, which adds to its value. This statements will have a short-term positive impact on this entity, which

adds to its value. This qualitative factor will lead to a decrease in costs. This statement will lead to an

increase in profits for this entity. "Reduced Competition" is a difficult qualitative factor to defend, so

competing institutions will have an easy time overcoming it.
http://www.mckinsey.com/mgi/mginews/bigspenders.asphttp://www.mckinsey.com/mgi/mginews/bigspenders.asphttp://www.mckinsey.com/mgi/mginews/bigspenders.asp


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An emerging marketis a country that has some characteristics of a developed market but is not yet

a developed market. This includes countries that may be developed markets in the future or were in

the past.[1]It may be a nation with social or business activity in the process of

rapidgrowthandindustrialization.The economies ofChina(excludingHong KongandMacau,as

both are developed) andIndiaare considered to be the largest.[2]According toThe Economist,many

people find the term outdated, but no new term has gained traction .[3]

Emerging market hedge fundcapital reached a record new level in the first quarter of 2011 of $121 billion.[4]The four largest

emerging and developing economies by eithernominalorPPP-adjusted GDPare

theBRICcountries (Brazil,Russia,IndiaandChina). The next four largest markets

areMIKT(Mexico,Indonesia,South KoreaandTurkey), although South Korea is not considered as

an emerging market by some sources.Iranis also considered as an emerging market.[5]

Weaknesess

Weak in fixed network

Customers are increasingly demanding the same experience whatever is the nature of the network used.

In most of the countries, Vodafone operate a mobile business and does not have a fixed network offering,

limiting their capabilities to be a true convergent service provider. "Weak In Fixed Network" has a

significant impact, so an analyst should put more weight into it. "Weak In Fixed Network" will have a long-

term negative impact on this entity, which subtracts from the entity's value. This statements will have a

short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to

an increase in costs. This statement will lead to a decrease in profits. "Weak In Fixed Network" is an easy

qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this

issue.

Lack of Rural Network Wireless Access

The lack of rural access for limits Vodafone's ability to offer a complete service to its customers. If a

customer ventures from an urban area to a rural one, they may lose signal strength or a connection, ingeneral.
http://en.wikipedia.org/wiki/Emerging_markets#cite_note-1http://en.wikipedia.org/wiki/Emerging_markets#cite_note-1http://en.wikipedia.org/wiki/Emerging_markets#cite_note-1http://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Industrializationhttp://en.wikipedia.org/wiki/Industrializationhttp://en.wikipedia.org/wiki/Industrializationhttp://en.wikipedia.org/wiki/Economy_of_Chinahttp://en.wikipedia.org/wiki/Economy_of_Chinahttp://en.wikipedia.org/wiki/Economy_of_Chinahttp://en.wikipedia.org/wiki/Economy_of_Hong_Konghttp://en.wikipedia.org/wiki/Economy_of_Hong_Konghttp://en.wikipedia.org/wiki/Economy_of_Hong_Konghttp://en.wikipedia.org/wiki/Economy_of_Macauhttp://en.wikipedia.org/wiki/Economy_of_Macauhttp://en.wikipedia.org/wiki/Economy_of_Macauhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Emerging_markets#cite_note-2http://en.wikipedia.org/wiki/Emerging_markets#cite_note-2http://en.wikipedia.org/wiki/Emerging_markets#cite_note-2http://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/Emerging_markets#cite_note-3http://en.wikipedia.org/wiki/Emerging_markets#cite_note-3http://en.wikipedia.org/wiki/Emerging_markets#cite_note-3http://en.wikipedia.org/wiki/Emerging_markets#cite_note-4http://en.wikipedia.org/wiki/Emerging_markets#cite_note-4http://en.wikipedia.org/wiki/Emerging_markets#cite_note-4http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/BRIChttp://en.wikipedia.org/wiki/BRIChttp://en.wikipedia.org/wiki/BRIChttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/MIKThttp://en.wikipedia.org/wiki/MIKThttp://en.wikipedia.org/wiki/MIKThttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Economy_of_Iranhttp://en.wikipedia.org/wiki/Economy_of_Iranhttp://en.wikipedia.org/wiki/Economy_of_Iranhttp://en.wikipedia.org/wiki/Emerging_markets#cite_note-5http://en.wikipedia.org/wiki/Emerging_markets#cite_note-5http://en.wikipedia.org/wiki/Emerging_markets#cite_note-5http://en.wikipedia.org/wiki/Emerging_markets#cite_note-5http://en.wikipedia.org/wiki/Economy_of_Iranhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/MIKThttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/BRIChttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Emerging_markets#cite_note-4http://en.wikipedia.org/wiki/Emerging_markets#cite_note-3http://en.wikipedia.org/wiki/The_Economisthttp://en.wikipedia.org/wiki/Emerging_markets#cite_note-2http://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Macauhttp://en.wikipedia.org/wiki/Economy_of_Hong_Konghttp://en.wikipedia.org/wiki/Economy_of_Chinahttp://en.wikipedia.org/wiki/Industrializationhttp://en.wikipedia.org/wiki/Economic_growthhttp://en.wikipedia.org/wiki/Emerging_markets#cite_note-1


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Weak US presence

US business not nearly as strong as European/rest of the world operations. May slowdown their

international economies of scale. "Weak US Presence" will have a long-term negative impact on this

entity, which subtracts from the entity's value. This statements will have a short-term negative impact on

this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This

statement will lead to a decrease in profits.

Geographically concentrated assets

When assets are geographically concentrated, they are subjected to additional risk that those locations

may be under political duress or natural disasters. Many companies rely on the United States for the

majority of their revenue. "Geographically Concentrated Assets" has a significant impact, so an analyst

should put more weight into it. "Geographically Concentrated Assets" will have a long-term negative

impact on this entity, which subtracts from the entity's value. This statements will have a short-termnegative impact on this entity, which subtracts from its value. This qualitative factor will lead to an

increase in costs. This statement will lead to a decrease in profits. "Geographically Concentrated

Assets" is an easy qualitative factor to overcome, so the investment wil l not have to spend much time

trying to overcome this issue.

Threats

Monetize mobile data growth

The rapid adoption of smartphones leads to a strong demand of bandwidth to access content such as

emails, social networks or videos. The risk for service providers is that they cannot match the demand

and do not charge appropriately customers for what they consume, threatening the profitability of the

business. "Monetize Mobile Data Growth" will have a long-term negative impact on this entity, which

subtracts from the entity's value. This statements will have a short-term negative impact on this entity,

which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will

lead to a decrease in profits. "Monetize Mobile Data Growth" is an easy qualitative factor to overcome, so

the investment will not have to spend much time trying to overcome this issue.

Cross border wireless regulations in europe

European Union regulation on cross-border cell phone usage by customers. Any type of government

regulation across borders is bad for business, however, if prices are artificially high because of

government regulation, this may help increase profits over the short term. "Cross Border Wireless

Regulations In Europe" has a significant impact, so an analyst should put more weight into it. "Cross

Border Wireless Regulations In Europe" will have a long-term negative impact on this entity, which

subtracts from the entity's value. This statements will have a short-term negative impact on this entity,


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which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will

lead to a decrease in profits. "Cross Border Wireless Regulations In Europe" is a difficult qualitative factor

to overcome, so the investment will have to spend a lot of time trying to overcome this issue.

Tehnology advancement

Competition from advanced technology such as WiMax and internet applications for telephone service willimpact revenue growth and earnings. This will have a negative impact in wireline services done bytraditional telephone companies.Technology advancement will also affect wireless carriers if they don't adapt to new technologies like WiFi

calling, where consumers with WiFI phones can call anyone in the world for free. "Technology

Advancement" has a significant impact, so an analyst should put more weight into it."Technology

Advancement" will have a long-term negative impact on this entity, which subtracts from the entity's value.

This statements will have a short-term negative impact on this entity, which subtracts from its value. This

qualitative factor will lead to an increase in costs. This statement will lead to a decrease in

profits. "Technology Advancement" is a difficult qualitative factor to overcome, so the investment will have

to spend a lot of time trying to overcome this issue.

Government interventionGovt intervention could put downside pressure on the stock. Possible government intervention increasesrisk, because the government is a big customer and has a history of making adverse changes to theoperating ability of companies in every industry. A government regulated industry increases political risk,because government actions may not be in the best interest of citizen of that particular country.Governments are usually inefficient with spending money.Regulations are meant to protect the environmental and consumers. They take the form of permits,

package, etc. "Government Intervention"has a significant impact, so an analyst should put more weightinto it. "Government Intervention" will have a long-term negative impact on this entity, which subtracts

from the entity's value. This statements will have a short-term negative impact on this entity, which

subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to

a decrease in profits.

SWOT Conclusion

Strengths + Opportunities = 7

Threats + Weaknesses = 8

A history of overcoming weaknesses makes it difficult for other firms to exploit their difficulties. The

ability to capitalize on opportunities get rewarded with higher profits and lower costs. A good defense

against threats lowers the risks that profits will decrease. Maintaining strengths can help maintain high

profits and low costs.


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