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.