Professor: DR. Huang
Group members:汪欣樺 許哲維 莫瑞娜
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SWOT
CPM
SPACE
O2 SWOT analysis
Strengths-S
Weaknesses-W
1.Wide service coverage
2.Customer centricity
3.Low churn rate
1.Decreasing ARPU
2.Complains of high prices
Opportunities-O
SO Strategies
WO Strategies
1.Inelastic demand
2.Booming market in 3G and 4G
3.Bargaining power
2&3 Advertisement(Increase the
value of company)
1&3 Sigh contracts(Year as unit)
1&1 Increase price(Increase ARPU)
3&2 Total revenue increase since
demand is inelastic
Threats-T
ST Strategies
WT Strategies
1.New competitors
2.Over competitive market
1&3 VIP programs(Offer bonus)
2&1 Keep up with competitors by
doing survey regularly.
2&1 Diversification (economics of
scope)
1&2 Low cost (Hire lower wages
labours abroad )
In modern socity,more and more people not
just consider price or profit,with an eye to
sustainable use
they pay attation to environment,hope do harm
to it as less as possible,o2 also put their idea
into their industry,this is unique to their
compepitor,02 is also Multi-nations
corporations,they can bring their idea
wordwide.changing more people.saving bad
environment situation about earth.
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Solving by low cost strategy,this is in the
poor time of economic cycle,people prefer
low price, we can save cost by innovative
method,use labor as less as
possible.increasing ARPU .
O2
CSF
EE
Vodafone
WT(%)
Rating
Wt’d score
Rating
Wt’d score
Rating
Wt’d score
Growth of Ecommerce
0.15
2
0.3
4
0.6
2
0.3
Increasing
demand for
mobile services
0.4
3
1.2
4
1.6
4
1.6
Europe debt crisis
0.3
2
0.6
3
0.9
1
0.3
New competitors
0.15
3
0.45
2
0.3
4
0.6
Total
1
O2
2.55
EE
3.4
Vodafone
2.8
EFE
O2
CSF
EE
Vodafone
WT(%)
Rating
Wt’d score
Rating
Wt’d score
Rating
Wt’d score
Customer
base
0.25
2
0.5
4
1
4
1
Decline in
ARPU
0.15
1
0.15
1
0.15
2
0.3
Market share
0.15
3
0.45
4
0.6
2
0.3
Crosscountries
development
0.15
2
0.3
2
0.3
2
0.3
Total
1
O2
2.6
EE
3.25
Vodafone
3.1
IFE
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In 2012, Telefónica UK had high commercial
activity,
Thanks to the ongoing success of its “On&On”
smartphone rates. This has led to a solid net
add in contract customers, and keep churn
rate extremely low.
INTERNAL STRATEGIC POSITION
EXTERNAL STRATEGIC POSITION
FINANCIAL STRENGTH FS
ENVIRONMENTAL STABILITY ES

Return on Investment

Leverage

Liquidity

ARPU

Working capital

Cash flow
Total average score:
4
3
4
5
3
4
3.8

Technological changes

Rate of inflation

Price range of competing products

Barriers to entry

Competitive pressure

Price elasticity of demand

Risk involved in business
Total average score:
INDUSTRY STRENGTH IS
-1
-2
-3
-6
-6
-1
-5
-3.4
-3
-2
-3
-1
-2
-2.2

Growth potential

Profit potential

Financial stability

Technological know-how

Resource utilization

Ease of entry into market

Productivity, capacity utilization
Total average score:
+3
+3
+4
+4
+4
+2
+4
3.4
COMPETITIVE ADVANTAGE CA

Market share

Product quality

Product life cycle

Customer loyalty

Technological know-how
Total average score:
•FS Average is +23 ÷ 6 = +3.83
•ES Average is -24 ÷ 7 = -3.4
•CA Average is -11 ÷ 5 = -2.2
•IS Average is +24 ÷ 7 = +3.4
•Directional Vector Coordinates:
x-axis: = =3.4 – 2.2= +1.2
y-axis: 3.83 – 3.4 = +0.43
O2 should pursue AGGRESSIVE strategies
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The diagram above shows a not too strong
but favorable position in all four dimensions
and therefore O2 can follow an aggressive
strategy.
Mobile accesses account for 86% of all
revenue: product development for mobile
services, attract new customers with
innovative deals for mobile contracts.
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Sale of Fixed-line telephony and Broadband:
opportunity to focus on mobile internet
service, expansion of 4G service.
Strong position in environmental stability: O2
can use its financial strength to finance
growth strategies.
Expand market share: explore into foreign
markets to increase market share.
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O2 financial report 2012