Vodafone Company Strategy in the UK and Egypt

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Table of Contents

Introduction
Overview of Factors
Similarities
Contrasts
Culture
Politics
Economic Situation
Government Regulations
Conclusion
Reference List

Introduction

International marketing is a form of marketing that is conducted across borders (Doole & Lowe, 2001, p. 25). This marketing cuts across national boundaries. The principles of marketing used in the home country can be applied in the international marketing with slight adjustments or improvements.

Therefore, international marketing aims at retaining markets in foreign countries besides expanding their markets to gain a competitive edge over their competitors.

In international marketing, it is imperative for multinational companies to put into consideration various environmental factors in executing their marketing strategies (Johansson, 2000, p. 21) because every country has different dynamics that must be observed to survive in the market by remaining competitive.

In this case, Vodafone Company, which is a multinational company, needs to consider these factors in the various countries it operates. The company is one of the fast-growing telecommunication companies. This paper delineates on two countries namely the UK and Egypt where this multinational company operates.

Overview of Factors

There are various environmental factors including culture, politics, economic situation, and government regulations that affect smooth operation of multinational businesses. The factors may affect the marketing management strategy of the company (Cateora & Ghauri, 1999, p. 6). Therefore, the strategy to be adopted to ensure that the company remains competitive in these two countries will be different.

According to Zhilin, Su and Fam (2012), it is important for those firms that manage international marketing to conform to or work as per the local business practices of the countries to gain social acceptance, also called legitimacy (p. 41). The claim is valid because the marketing strategies used face a different institutional environment that requires conformity to the local practices.

Furthermore, Magnus, Katsikeas, and Robson (2011) assert that international marketing allows exportation of products and services in other competitive markets thus helping to cut on expenses while maintaining flexibility of the company at the same time (p. 17).

Therefore, to achieve positive results, putting into consideration these environmental factors is important. Some similarities, as well as differences, will be experienced in the marketing management strategy for the two countries.

Similarities

The marketing management strategy in these two countries will have some similarities in the plan and objectives that the company wants to achieve. The managers in the countries are different though they are headed by one executive manager who overseas the functioning of the company in all countries.

Therefore, because the company is one, it has some set objectives and threshold. The goal that these two marketing managers aspire to achieve is to be competitive in the market place besides recording a high number of customer subscriptions. Even though they might employ different strategies in their plans, the major goal is one: being at the top of the market in their operations

Contrasts

Multinational companies work in different countries, which have different regulations and situations that require adjustment of strategies for the company to succeed in its operations (Krafft, 2007, p. 2). Every multinational company is aiming at expanding its markets.

This effort is the reason behind their opting to go beyond borders to sell their products and services. The fact that Vodafone is operating in different countries means that it has to employ or use different marketing strategies to remain competitive in the market. These differences in marketing strategies cut across almost all environmental factors like culture, for instance.

Culture

The two countries have different cultures. Majority of people and customers in Egypt are Muslims. Therefore, they have their way of communication and associating with one another. On the other hand, most people in the UK are Christians. The difference has to be factored in the marketing strategy to ensure that the needs of the two people are addressed adequately (Zhang, Song & Qu, 2011, p. 40).

For instance, the marketing strategy in Egypt should conform to the cultural dimensions of the Egyptian people. The language and values of the customers should be understood to enable employment of the right marketing strategy to communicate with customers in the best way that they understand.

Likewise, the same case is required in the UK. The people of the UK are English and Christians. Thus, the marketing management strategy should be in complacent with this fact.

Politics

Politics is a very important factor in marketing. Political stability is a key factor in determining the success of a marketing strategy. In these two scenarios, political stability of the UK is stable. Therefore, the stability will give the marketing manager an easy time to convey his/her message to the customers.

On the other hand, marketing in a politically unstable country is very challenging. For instance, during the political instability that was experienced in Egypt last year, it was difficult to market Vodafone products due to conflicts across the country.

Economic Situation

Economic situation is yet another important factor that marketing managers need to consider in marketing Vodafone services in the UK and Egypt. The two countries experience different economic situations. Therefore, this strategy must be different in the two countries. For instance, in the UK, where the economic situation is good, a lot of spending or funds can be channeled to marketing strategies to promote increased use of the Vodafone products.

However, in Egypt, the economic situation is not good. Therefore, the company will have to adapt those marketing strategies that can be accommodated within the available funds. It is also important for marketing managers to consider factors such as inflation in their countries of operation.

Government Regulations

Different countries are governed by different systems of government. These include democracy, dictatorship, and monarchy amongst others. Therefore, every government has its specific regulations that it uses to function or carry on with its activities. In international marketing, it is salient for marketing managers to look at these differences closely before formulating their plans.

Some of these regulations include taxations systems or requirements and foreign trade agreements among many other regulations (Cavusgil, 2012, p. 2012). In this case, the two countries have different governments and trade regulations laws.

Therefore, every country will have to institute marketing strategies that are in tandem with the government regulations. Vodafone Company in the UK will be required to submit its annual taxes as per the requirements of the government of the UK, as well as the company in Egypt.

Conclusion

In conclusion, it is very important for any multinational company to understand the requirements and regulations of a foreign country before deciding to invest in such countries. This understanding is paramount in reaching an amicable decision on whether to invest in the country or not, as revealed by the case of Vodafone Company in the UK and Egypt.

Reference List

Cateora, T., & Ghauri, P. (1999). International Marketing. London: McGraw-Hill Publishing Company, European Edition.

Cavusgil, S. (2012). Reflections on international marketing: Destructive Regeneration And multinational firms, Journal of the Academy of Marketing Science, 40(2):202-217.

Doole, I., & Lowe, R. (2001). International Marketing Strategy – Analysis, Development And Implementation. New York: Thomson Learning.

Johansson, J. (2000). Global Marketing – Foreign Entry, Local Marketing, and Global Management. New York: Johansson, International Edition.

Krafft, M. (2007). International Direct Marketing: Principles, Best Practices, Marketing. Facts, Science & Business Media, 1(1), 1-6.

Magnus, H., Katsikeas, C., & Robson, M. (2011). Export Promotion Strategy and Performance: The Role of International Experience. Journal of International Marketing, 19(4):17-39.

Zhang, C., Song, P., & Qu, Z. (2011). Competitive Action in the Diffusion of Internet Technology Products in Emerging Markets: Implications for Global Marketing Managers. Journal of International Marketing, 19(4), 40-60.

Zhilin, Y., Su, C., & Fam, K. (2012). Dealing with Institutional Distances in International Marketing Channels: Governance Strategies that Engender Legitimacy and Efficiency. Journal of Marketing, 76(3), 41-55.

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