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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 part
of 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 clients
conduct a lot of business in different countries. For instance, if a business traveler needs to access they
money 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. Having
international reach also works for businesses like McDonald's, which serves food in nearly every country
in the world. Global access means that a consumer from one country can feel comfortable eating at any
McDonald'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 to
a 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.


Opportunities
The increase in 3G and 4G coverage will 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 500,000
rupees ($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 are
much cheaper in India. When the local cost of living is taken into account, the income of the seekers and
strivers 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 business
people. 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 are
stretched, 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 to
a 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 competition from 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.


An emerging market is 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
rapid growthand industrialization. The economies of China (excluding Hong Kong and Macau, as
both are developed) and India are considered to be the largest.
[2]
According to The Economist, many
people find the term outdated, but no new term has gained traction.
[3]
Emerging market hedge fund
capital reached a record new level in the first quarter of 2011 of $121 billion.
[4]
The four largest
emerging and developing economies by either nominal or PPP-adjusted GDP are
the BRIC countries (Brazil,Russia, India and China). The next four largest markets
are MIKT (Mexico, Indonesia, South Koreaand Turkey), 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, in
general.





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-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" is an easy qualitative factor to overcome, so the investment will 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,
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 will
impact revenue growth and earnings. This will have a negative impact in wireline services done by
traditional 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 intervention
Govt intervention could put downside pressure on the stock. Possible government intervention increases
risk, because the government is a big customer and has a history of making adverse changes to the
operating 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 weight
into 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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