But so far we have considered only advantages. Where does Vodafone have the best opportunities for establishing competitive advantage? These are presumably those which offer the best prospects of growth, where competitive pressures are not too strong, and where the regulatory environment is relatively benign.
Lack of agility The potential synergies from product diversification may be greater than those from geographical diversification.
Major brands are exploiting the price sensitivity of customers and in this way they are building a stronger image and presence in the market. It can offer International roaming facility more than any network in the world. It gave Vodafone an easy way to expand to North America with low barriers to entry since Air Touch was already the leader in that market.
This combined with the upcoming European legislative measures is expected to limit further the tariffs the network providers imposing further need for price cuts which could harm the bottom line profitability of the company.
Vodafone wanted to strengthen its standing in continental Europe, a geographically significant area where they had low market share.