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Corporate Strategies - Assignment Example

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With its vision of enabling its customers to make the most of their world and possibilities though the services it offers, O2 plc (O2) accomplishes its commitment of providing mobile communication services in Europe. The business organisation also profits from its leading mobile internet portal business. Armed with its values of being bold, trusted, open, and clear, O2 continues its quest to become the telecommunication industry's market leader.
The creation of O2 in the 1990s can be traced backed to the decision of British Telecommunication to "demerge its mobile phone business" in order to strengthen the financial position of the latter. From its beginning, the firm is currently a major player in the various nations where it operates including the United Kingdom, Republic of Ireland, Germany, the Isle of Man, and Asia. As the business organisation is focused on satisfying consumer needs, O2 strategic business units are classified according to their geographic locations. It should be noted that the products being offered varies in each region (O2 Plc 2006).
The major products of O2 are mobile telecommunication equipments which are either paid through installment plans or pre-paid. With its thrust to provide the market with higher quality products, the company offers complementary services like third generation telephony (3G), O2 Active, I Mode, and O2 Online. O2 also ensures the satisfaction of customers by offering product features like entertainment through its sponsorship of the England Rugby Team and Arsenal FC and partnership with Anschutz Entertainment Group (O2 Plc 2006).
III. Competitive Position in the Industry Environment
As stated above, O2 Plc operates in different geographic locations, battling head-on with various competitors. Table 1 shows the geographical locations of firm's business activities alongside with its competitors in each region. It can be deduced that O2's direct competitors are Orange SA (Orange), T-Mobile, 3, Vodafone Group Plc (Vodafone), Virgin Mobile Ltd. (Virgin Mobile), Meteor Mobile Communications Limited (Meteor), and e-plus.
Table 1. Geographical Location of O2 and its Main Competitors
Geographical Region
Major Competitors
United Kingdom
Orange, T-Mobile, 3, Vodafone
Vodafone, Meteor, 3
T-Mobile, Vodafone, e-plus
Czech Republic
T-Mobile, Vodafone
T-Mobile, Orange
In order to look at the relative position of O2 Plc relative to its competitors in the United Kingdom, this report will look each business organisation in terms of market scope, number of customers, financial performance, market growth, products and services sold, and factors affecting business well-being. The main findings including the data for O2 are tabulated in Table 2.
Among all the players in the global mobile communication industry, Vodafone holds the largest market share at 26.8%. The business organization is recognized as the largest mobile telecommunication company in the world with a market value of 65 billion (Vodafone 2006). It is estimated that the market leader approximately has 186.8 million subscribers in the 27 countries where it conducts its ...Show more
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O2 Plc is the largest mobile service provider in UK in terms of number of subscriber. Though the company leads in the UK market, it lags behind its competitors including Vodafone, T-Mobile, Orange, and 3 in terms of financial performance. The company capitalizes on its capability to offer add-on services and features through its strategic alliances and innovativeness…
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