Distribution Strategies in the Telecommunication Industry [A Case Study of Vodafone]
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Date
2012-06-24
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Abstract
The formulation and implementation of appropriate distribution strategies is a major key to success, in terms of maximizing sales and profit for product-focused companies. Unfortunately, many of these companies often fail to establish or maintain the most effective distribution strategies which in most cases militate against their business fortunes. In today’s highly competitive business environment, especially, in the telecommunication industry, the more available your offering are, to the reach and convenience of your customers, the likelihood of gaining competitive advantage. The study sought to identify the distribution strategies being pursued by Vodafone, the challenges associated with the strategies and how effective and sustainable those strategies practiced by Vodafone have impacted on their corporate performance. The sources of data for the study were both primary and secondary. Primary data was collected by the use of structured questionnaires and the secondary data were extracted from relevant reports/articles, bulletins and documents published by Vodafone and National Communication Authority. The target population was estimated at 5,250 with a sample size of 100 selected for the study. The study established that, Vodafone is using different distribution strategies to reach its customers. These strategies are either by direct method or indirect method. The direct distribution is used to acquire new customers unto their network and the indirect method is used to sell airtime credit through distributors to the retailers and to the final consumer. It is therefore recommended that Vodafone sets up more mobile offices to address customers complains on the streets and with the open markets to improve customer service delivery in order to increase company’s market share.
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A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the Degree of
COMMONWEALTH EXECUTIVE MASTERS OF BUSINESS ADMINISTRATION,2012