Vodafone Case Study

Inorder to prevail in a mature market, smart organizations are forcedto take on new strategies and technology to succeed. This is the mainreason that a mature market cannot increase its profit margins byselling huge supplies to new customers. In a mature market, productawareness is universal, and thus promotion of brand loyalty is acrucial element. This paper will analyze how Vodafone New Zealand Ltddecided to reconsider its strategy after the profit margins stagnatedand the market conditions changed.


Themain challenge faced by Vodafone New Zealand Ltd include how to makehigher profit margins, how to generate extra revenue from theircustomers, and to find ways of retaining their customers. Inaddition, the company had weak customer knowledge and lacked a systemto monitor and make a decision in a real-time environment. In ahighly competitive business environment, real-time information isconsidered an advantage and key to success.


Torespond to the above- listed issues Vodafone New Zealand Ltd hadfirst to set up a customer knowledge and analysis department chargedwith developing competitive intelligence, market research, modelingand analyzing. This strategy was utilized in order to improvecustomer satisfaction by identifying any gap between the servicesthey receive from the company and their needs and expectations.Moreover, in this era where the business environment is highlycompetitive, customer knowledge is a critical resource. On the otherhand, customer satisfaction as well as knowledge management is acrucial process that helps with the understanding of customers’needs and come up with ways to meet their need, while at the sametime maximizing profitability.

Inaddition a single centralized database, enterprise data warehouse(EDW) platform was created in order to integrate the entireorganizations database into a single view. A single system issignificant and enables employees to find and share customer’s datain real-time as well as generate ad-hoc queries and reports. Theorganization also solved its challenges by hiring additional modelingspecialists in order to increase the analytical team working in thedata warehouse.


TheTeradata application (EDW) implemented by Vodafone New Zealand Ltdwas combined with other software tools essential for putting upmodels, and also produce customer insights. Other software toolsinclude SPSS, SAS, and KXEN applications. Systematic collection andanalysis of customer information in the marketplace is crucial andhelp to improve on strategic decisions since the consumer environmentis well understood, and assessed. On the other hand, chances andthreats can be provided by acquisition of competitive marketingintelligence.


Thebenefits derived from this initiative include, increased customerknowledge. This was derived from the centralized EDW application thatplays a key role of concentrating all information into a singleplatform. Integrating data is significant and comes with benefitssuch as online analytical processing, query and model performance,multi-variate analysis, predesigned models and an incorporateddatabase that help to generate reports and customer segmentation.Another new platform brought by this initiative was a trigger-basedmarketing campaign. When compared with the manual system used before,marketing campaign became more efficient and effective. Therefore,the organization would initiate marketing offer to customersautomatically. Additionally, customer target was increased since itwas mainly based on the recent activity of a customer. Most importantis the ability of decision makers to come up with better and informeddecisions.


Thiscase study shows that integrated and real-time applications help tomake timely, dynamic and right decisions regarding the changingsituations. Real-time applications help to improve the quality ofservice offered to customers as well as satisfaction while at thesame time minimizing operational errors. For this reason, decisionmakers with the right information can predict future situations, andthis can help a firm to prepare beforehand. Additionally, advancementtools help to assess and analyze different solutions to a givenproblem. In the current environment, other requirements necessary forcompetitive advantage include keeping your customer informed. The keything in this competitive environment is to integrated customerinsights with business intelligence. On the other hand, anotherlesson learnt from this case is that capturing the shared expertiseas well as intelligence in a company is significant and helps tofoster innovation.

Inconclusion, Vodafone New Zealand Ltd experienced many benefits as aresult of using enterprise data warehouse (EDW) platform. From thisstudy, we discover that customer knowledge allows a company to learnand acquire facts that can improve internal operations, and thisincludes innovation. Innovation plays a significant role in valuecreation as well as profitable growth. On the other hand, anorganization that gathers and apply deep customer insights obtainbenefits such as sustainable advantage and make their productprofitable and sustainable. Alternatively, using customer knowledgeacquired, an organization can improve its products and services, andthis help to improve functionality to customers. Therefore, VodafoneNew Zealand Ltd used enterprise data warehouse (EDW) platform toacquire customer knowledge, and this allowed the enhancement ofcustomer-oriented businesses activities.


Krivda,C. D. (Mar, 2008). Dialingup Growth in a Mature Market.TeradataMagazine,1-3.