The objective of this research paper is to critically evaluate the market position of Orange Company. The research paper is going to look at the market share of the company, market segmentation, as well as the analysis of the company’s competitors. In addition, the company’s consumers are going to be analyzed and evaluated. The research paper is also going to look at the various strategies the company has adopted in order to remain competitive.
Various research methodologies will be adopted in this research. The major research methods that will be employed include questionnaires, interviews and direct observations.
From the research carried out, it is evident that Orange Company is performing well in terms of its market share. The company is ranked the second largest telecommunications company in the world. Also, the company is performing well in terms of profitability.
Aspire of this report is to conduct a strategic analysis for orange company in the United Kingdom. Orange company in the UK is one of the largest telecommunication companies in the UK. The current report starts by first detailing the methodology that was used to compile the report. It then continues to analyze the telecommunications industry, and the competitors of Orange UK. The report also looks analyzes the behaviors of the consumers in the telecommunications industry.
The report ten concludes by giving a summary of the main issues and challenges the company faces as well as recommendations for the challenges the company faces.
The main methods of data collection that were employed in conducting this research include the following: observation, questionnaires and interviews. Various employees of the company were interviewed and asked to fill in questionnaires. The observation method involved the use of various advertising media which showed the various marketing activities the company was engaged in (Mcdonald, 1995, pg. 17). Questionnaires
The questionnaires that were filled by various employees of the organization sought to find out the various strategies the company is adopting in order to remain competitive in the market. The questionnaires also sought to find out the opinions of the various employees regarding the company’s position in terms of competitors (Mercer, 1998, pg. 26).
The questionnaires were aimed at identifying the strategies being adopted by the company towards continuous improvement.
Types of qualitative research
- Naturalistic observation
- Case sturdy
- The natural undertakings of processes at orange UK.
- The specific activities being done at the company which are also exclusive to the Orange Company.
Sources of secondary data
External sources of data were obtained from various online databases including Google scholar, Mintel, and Emerlad.
Two interviews were conducted in different phases in order to determine the strategic position of the company.
The first interview was conducted among various top managers of the company.
The second interview was conducted among the functional managers in the organization.
The interviews focused on the various marketing and the strategic procedures being undertaken at the company.
3.1 Competitor Analysis
The recent changes being experienced in the information and communications technology creates a favourable conditions for the blossoming of telecommunications (Macleish, 2010, pg.17). In order to reap the benefits of such an opportunity, a company needs to understand the nature and the degree of its competitors. Thus, this research will focus on the analysis of Vodafone and T mobile as the major competitors of Orange Company (Bradley, 2005, pg.37).
Orange Company does not face a lot of unhealthy competition in the market. Globally, Orange Company is ranked the second largest telecommunications company, being second only to China Mobiles. The only major competitor of Orange Company is, therefore, Vodafone Company. Vodafone Company is ranked as the best telecommunications company in terms of service delivery, as well as consumer satisfaction. Their services are of high quality, and most consumers find it cheap to afford most of their services and products (Macleish, 2010, pg 16).
Vodafone has very well-structured current and future objectives. The company has a vision of being the leading telecommunications company in the world by providing the state-of-the-art Edge technology. Hence, the company’s objectives are geared towards achieving the above mentioned vision statement. The company’s current strategies are geared towards innovation and creativity. This has seen the company become the best ranked telecommunication company in terms of innovation and creativity (Fifieid, 2007, pg.20).
How competitors compete with Orange.
The major competitor of the company is Vodafone Company. The major strength of Vodafone is in the call rates the company offers to its customers. The company offers subsidized call rates as well as data rates to its customers. Also, the company has some offers to its customers like selling mobile phones at a subsidized rate. This is a strong point of the Vodafone Company (Fifieid, 2007, pg. 43) .
The other major competitor of Orange Company is T-mobile which also offers mobile services to its customers. The company is a threat to orange company because it is ranked the third telecommunication company in UK. T mobile strength is in the quality of services and products the company provides.
Services offered by the various competitors.
- Sell of mobile phones and the associated accessories.
- Provision of internet services using 4G modems
- Mobile telephony services
- Mobile telephony services
- Sell of mobile phones and associated accessories.
- Provisions of 3G internet connection services.
The company is winning large number of customers through provision of cheap call rates and cheap services
The assumption from the company is that, consumes prefer cheap products and services that they can afford.
The company is capable of investing in large telecommunications infrastructure like fibre optics.
The strategy of the company is in the quality of its services. The company provides high quality services to its consumers.
The assumption of the company is that, consumers prefer quality services as opposed to cheap products and services
The company does not ave enough resources to invest in high cost telecommunication infrastructure like fiber optics.
Orange company has a high capability of re-investing and venturing into other telecommunications domains. Given the capital base of the company, the company can easily venture into data transfers and become the world’s leading internet service provider (Chemev, 2006, pg. 30).
A prediction of Orange company’s future objectives is that the company will venture into the telecommunications infrastructure investments and be the leading ISP. Also, the company has a plan of venturing into the computer world and becoming one the best computer manufacturing companies in the world.
3.2 Industry Analysis
Telecommunications industry has in the recent past been evolving into more sophisticated and efficient ways of communication. From the primitive form of sending and receiving information to more advanced methods that are real time. Changes in the information and communication technology have seen various changes adopted in the telecommunications industry. These major changes are fiber optics, and internet connectivity. Currently, there are more players in the industry who are offering a wide range of products (Paley, 2006, pg. 33).
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- The telecommunication industry grew by 20% in the year 2012. This represents a 5% market growth increment.
- The telecommunication industry is considered to be the most profitable business in the UK. In 2010, the industry was valued at 900 billion pounds, and was the largest contributor to the UK revenues. The industry represented a 45% of the revenue contributed.
The main distribution system is through the dealers.
- The other mode of distribution is though direct sales.
- Company provides services of the highest quality and cheap in price
- The extensive experience the company has gives it a better hand as compared to other companies.
3.4 PEST Analysis
The political factors facing the company include the various legal requirements by various governments. Such stringent legal requirements make it hard for the orange company to invest and expand its business. Also, the other political facto facing the company is the political instability experienced in the countries the company has operations in (Ferrell & Hartline, 2011, pg. 10).
The environmental challenge that is facing the company is the environment under which the company is operating. The Company is operating in highly technological environments; hence the company is finding it hard to accommodate these changes (Ranchhod & Guazente & Tinson, 2004, pg. 45).
The technological challenge the company is facing is the adoption of the emerging technologies. New technologies are emerging each and every other day. In order to embrace these changes, then the organization should have enough capital as well as competent staff to handle the technologies (Mcdannel & Lamb & Hair, 2007, pg. 20)
3. 5 Consumer Analysis and Segmentation
Most of the company’s consumers are from the developed countries who can afford to buy the company’s products. The company’s consumer segmentation is based on the lifestyles of its consumers. While some consumers opt for the most sophisticated products, others prefer low-priced products. (Chemev, 2006, pg. 18).
3.7 Internal Analysis
An internal analysis of the company indicated that Orange Company is well-managed and has various strategies in place in order to sustain good performance. The company is managed by a team of highly-qualified technocrats. The company has also developed a reward-based mechanism of training and motivating its employees. The company also has been recording enormous profits in the recent past, which has seen it re-invest in other corporate social responsibility activities (Mcdannel & Lamb & Hair, 2007, pg 46)
3.6 SWOT Analysis
The SWOT analysis for the company indicates that Orange has various strengths and weaknesses. The company’s major strength is the quality of goods and services they provide. The major weakness the company is facing is the expansion of its market. The company has not expanded its operations into most developing countries and the Arabian countries.
This denies potential consumers in such countries a chance to use the company’s products. The only major threat the company faces is the threat of competition from well-established telecommunications company, as well as new market entrants (Blythe, 2008, pg. 37).
The company has various opportunities that it can invest in. For example, the company can re-invest into fiber optics technologies by offering traffic re-routing to other telecommunications industry. Also, the company can invest in the digital age technologies, venturing into the computer manufacturing business.
Marketing Analysis. Phase Two
Orange Company is one of largest telecommunications companies in the world. It is estimated to have close to over 20 million subscribers worldwide. With this large clientele base, the company can be viewed as having adopted a good marketing strategy. The large clientele base also translates to a high capital base. The large capital base means that the company is able to undertake a state-of-the-art market analysis process.
Orange Telecommunications Company
Orange Telecommunications Company is one of the leading companies in the industry. According to orange.com (2011), Orange is a key brand of France Telecom, which was launched with the aim of shifting from using wired connections to wireless mobile telephony. It is a mobile network and internet service provider that was founded in the United Kingdom. Established in 1994, the company was part of FTSE 100 that was purchased by France Telecom in early 2000.
It was in 2000 when the company adopted the name Orange. This is a brand name that exposed the company to the rest of the world, especially in the developing countries. In addition, the company formed a joint venture after its merger with Deutsche Telekom’s T Mobile UK.
Orange Company has recently been improving its services to be able to compete favorably with other companies. The aim of the company is to improve telecommunication services, especially in the developing countries. The company is highly reputed in the countries it operates. Orange is one of the companies that have helped many developing nations reduce poverty.
2.0 Research Methodology
Methodology can be described as a step-by-step process of conducting research. Research methods are largely determined by the kind of research to be undertaken. There exists a variety of research methods, which include, but not limited to, qualitative and quantitative methods. Qualitative methods are mostly used in social sciences and marketing research. Qualitative methods are designed to identify the cause of a particular outcome or instance or a state of being. For example, qualitative methods can be employed in a study of human behavior. A qualitative research method can be used to analyze a market position of a company by conducting a market analysis (Peters, 1994, pg. 21).
This research is going to employ the qualitative methodology for analyzing the market position of Orange Company. Various data collection methods will be used in order to obtain the required data. The following data collection methods will be used for gathering information about Orange Company:
The three above mentioned methods of data collection were chosen because they will provide first-hand information regarding the market position of Orange Company.
Questionnaires were developed in order to gather some information regarding the market analysis of Orange Company. Questionnaires provide an easier way of gathering information because of their simplicity and clarity. Employees of Orange Company were supposed to fill in a questionnaire and provide some information regarding the various marketing activities the company is engaged in. Also, the employees were to fill in questionnaire to give their views about what they feel needs to be changed or improved in order to increase the company’s market share.
Another advantage of using questionnaire is that questionnaires provide a means through which large amounts of data can be collected at once. Also, questionnaires are cost-effective as compared to conducting face-to- face interviews, thus reducing the costs incurred in data collection methods.
Also, data collected from a questionnaire can be analyzed scientifically and objectively. Such a scientific analysis is important because it allow for creation of new theories that can be used to make generalized conclusions. The scientific analysis of data may involve the use of software packages, such as like SPPS or STATA, which are more reliable and convenient.
Interviews may be described as a conversation between two people, whereby one person asks questions and the other persons responds to the questions. Interviews can also be described as a formal arrangement between two or more individuals, which is aimed at obtaining information for analyzing a condition.
Interviews are the most convenient ways of data collection because there is a guarantee of immediate feedback.
The following are the advantages of using interviews as a method of data collection (Kotler, 1984, pg 68):
- In case the respondent does not have extensive reading skills, the interviewer can interpret the information.
- Interviews provide a guarantee of immediate feedback, since there is a direct contact between the interviewer and the interviewee.
- Interviews also provide a high response rate, hence an individual can decide on the next plan of action, depending on the nature of response.
- Interviews provide a chance for the interviewer to probe deep and obtain relevant information.
Senior staff, as well middle-level employees of Orange Company, were interviewed. The top managers were interviewed to obtain required information about the company’s marketing strategies. The top managers can always provide information on the long-term objectives and strategic positioning of the company for the next 20 years. The top managers were also interviewed because they are the individuals who are concerned with long-term policies and strategies of the company.
Middle-level employees were interviewed to get their own views regarding the company’s market position. They were interviewed because they too are affected by the various marketing policies and strategies the company undertakes (Blythe, 2005, pg.82).
Observation is another method of data collection which involves the use of direct observation. The company’s marketing strategies were observed through various media, such as newspapers and television among others. Also, the company’s involvement in sponsorship activities was observed and analyzed.
This data collection technique is essential, if a comparison is to be done at all. The data collected using the observation technique was analyzed and compared against the data observed in other companies.
This section will describe the various findings that were obtained from the research conducted. The research was aimed at finding out the various market aspects of Orange Company, such as:
- Marketing Objectives
- Market targeting and positioning
- Strategies for growth
- Determination of a competitive advantage
- Marketing Mix
3.1 Marketing Objectives
Orange Company has various marketing strategies put in place to help it be at the forefront in marketing its products and services. The following are the various objectives of Orange Company in relation to the company’s marketing strategies:
- To increase the company product awareness among the targeted consumers by 40% within the next year.
- To reduce the customers resistance to buying the company’s products, which will increase the company’s sales by 30% in less than eight months
- To increase the sales target by 60% in the next two years by informing the targeted consumers about the competitive advantage and benefits of our products.
3.2 Market Targeting and Positioning
Orange Company uses the differentiated marketing strategy where it combines the best attributes of concentrated and undifferentiated marketing strategies. The differentiated marketing strategy involves the process whereby a company sales strategy targets a specific market niche with specific products or services (Farese &. Kimbrell &Woloszyk, 2002, pg 66)
This is evident in the manner Orange Company strategizes and markets itself in the countries it operates. From the research carried out, it is evident that Orange Company has several marketing strategies in various market niches around the world. For example, the company has different call rates in the different countries the company is operating. Such different call tariffs are geared towards creating and sustaining a market in that country.
The company is strategically placed to overcome some of the external forces and threats it may face. Having started its operation in the early 1990s,Orange Company has succeeded in obtaining the relevant experience in the telecommunication industry. The company’s products and services have also contributed to the growth and strategic placement of the business. The company has been at the forefront of competition by improving its services and products. One of the latest improvements has been the launch of 26.8Mbs 3.0 G+ internet modem which allows for faster internet connections speeds. 3.3 Growth Strategies
The growth strategies of a company define which strategies it is going to undertake in order to grow in terms of market and profit base. The various growth strategies that the company has adopted include, in particular, the expansion of its market. Orange Company seeks to expand its services in the developing countries. The expansion is aimed at increasing the presence of Orange Company in the developing countries (Dibb & Simkin 2009, pg. 54).
As part of its growth strategy, the company is at the forefront of product and service development. The company has been fostering continuous improvement of its products and services. Also, the company is fostering market diversification by venturing into various lucrative investments, such as sponsoring sports events and providing internet connectivity and data services.
3.4 Strategies for Improving Performance in Declining Markets
Orange Company is facing various challenges that eventually lead to declining markets. Declining of markets is mainly caused by the fall in demand for the company’s products and services. The fall is due to the changing trends in the demand for the company’s products and services. The changing trends in information technology affect the demand for such products because most consumers prefer buying products that are more sophisticated (Kirkpatrick & Dahlquist, 2011, pg. 39).
Also, changes in government policies affect the market share of the company. Various governments have various policies, which have affected the market share of Orange Company. Such stringent government policies will limit the operation the company can engage in.
3.5 Competitive Advantage
Competitive advantage will always define how a company is strategically placed in order to outperform its competitors. In order to achieve a sustained competitive advantage, the company has developed certain mechanisms that will enable it to remain in the market. The major competitive advantage strategy the company has adopted is the merging strategy, whereby the company is merging with key players in order to strengthen its activities (Evans & Berman & Wellington, 1998, pg.40).
3.6 Promotion Strategy
The company conducts various promotions, which are geared towards increasing awareness of the company’s products and services on a global scale. Such activities include, for example, giving discounts on data and voice calls. These discounts are given in particular situations, especially during some holidays. Customers get to enjoy the company’s services and products at subsidized fees (Dibb & Simkin, 2009, pg.12).
The company uses other promotions methods, such as sponsoring various sports events. The company is a well-known sponsor of various sporting activities, including, but not limited to, the following activities: football, rugby and hockey. For example, the company was the major sponsor of the recently concluded Africa Cup of Nations football tournament. By sponsoring the tornament the company aimed to increase the product and services awareness in the developing countries (Paley, 2006, pg. 71).
The reflective overview will provide an in-depth analysis of the entire experience I have had during my module undertaking. This section is going to evaluate the following areas:
- What I have learnt and how I have learnt it.
- My overall progress in the learning of the module.
- The extent to which I have been able to achieve the module’s objectives.
The above mentioned areas will be analyzed and evaluated with regard to the module’s outcome.
The course has been of great importance to me because of the various concepts I have learnt from it. I have been able to learn various concepts from my classroom experience, as well as my interaction with my lecturers.
Initially, I thought that marketing is just a simple concept that can be understood in its primitive form as the process of creating product awareness. Throughout my classroom experience, I have come to learn that marketing is a complex and multifaceted dimension that requires extensive knowledge.
I have learnt that marketers are faced with a daunting task of conducting a market research, in order to guarantee the sustenance of the business. The success of the organization will largely depend on the strategies that will be adopted based on a marketing research. Hence, marketers are the key individuals who will determine whether a business will succeed or not.
Through the various sessions conducted in class, I have been able to learn about the various marketing dimensions. I came to learn that market analysis involves various aspects of market segmentation, competitor analysis, as well as the study of promotion and competitive advantage. I have been able to learn all these concepts through practical and theoretical sessions, as well as various researches conducted in class.
My learning progression has been very impressive. Since I started learning this module, I have been able to learn various concepts that I was not aware of when I started the module. During my first days of attending the module, I had no formal knowledge about marketing. Each stage of the module has helped me appreciate the various skills and concepts of marketing. I would describe my learning progression as having been systematic and of great importance.
This progression has been largely nurtured by my lecturers who made sure that I had grasped any slight concept in the module. My learning progression has been at a very fast rate, a factor that I largely owe to my academic mentors and lecturers. They always ensured that they impart the correct knowledge in a simple manner. Most of my lecturers have applied various teaching techniques in the entire learning process.
For example, they have been teaching simple things to complex things, general knowledge to specific knowledge, and known knowledge to unknown knowledge.
Such a teaching strategy has been effective and ensured that the learners are not faced with various learning difficulties. The coherence in the delivery of the knowledge has helped me understand complex things about marketing.
At the beginning of the module, I did not comprehend facts properly because I did not have extensive knowledge about marketing. But as the module progressed, I was able to comprehend the various facts and concepts in the module.
To a large extent, I have been able to achieve the module’s outcomes. The module was aimed at equipping students with diverse and extensive knowledge of the marketing field. I should say, I have been able to obtain the above knowledge and concepts because I now fully understand what marketing is, as well as its scope and application. Such knowledge could not have been obtained from any other module.
The extent to which I have attained the module’s objectives can be described in such a way: I have been performing very well in the module’s assessments and I have been able to grasp the various concepts from the module.
Also, my undertaking of a research in the same module provides further evidence to the extent of my learning outcomes. Conducting a research in the module requires an individual to be well-equipped with knowledge about the module. The extensive knowledge I gained from the module has helped me conduct research in an effective and professional manner.
Also, my presentations also provide a testimony to the extent to which I have attained the module’s objectives. My presentations in class have been ranked and graded as the best presentations in the class. I have been able to gain high scores for such presentations, which testifies to my deeper understanding of the concept. Also, I have been able to get some positive feedback from my lectures, which means that they have been impressed with my progress in the module. It also means that I have been able to grasp almost all of the concepts from the module.
I owe my success to my lectures who have given me the academic support I required. Without their support, I would not have gained and learnt any skills and knowledge from the module.
In general, undertaking the module has been a fantastic and insightful experience. I have been able to learn various concepts and apply them in the real life scenarios. The entire module was absolutely fascinating, especially the way the module’s ideas and concepts are put into practice. The module’s concepts are very practical, and applying them to real problems was a highly enriching experience.
4.0 Conclusion and Recommendations
In conclusion, Orange Company is performing well and has the second largest market share in the world. Though the company is performing well, there are a number of issues that pose a threat to the company. For instance, the company faces great competition from new entrants, as well as new technological advances.
As a recommendation, the company should embrace the challenge of competition positively and seek ways of improving their services. The company should also be well-prepared to adopt new technologies to avoid most of its services being rendered obsolete.