Essay Unit 5 - International Business ( Vodafone and innocent business )
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Course
Unit 5 - International Business
Institution
PEARSON (PEARSON)
unit 5 international business assignment 1 on two international business which are Vodafone and innocent drinks. This essay has got grade distinction and covers all the criteria which you need to achieve your desire grade. P1,P2,P3,P4,M1,M2,D1
For this report, I have decided to do two internationally based companies which are Vodafone and
the famous innocent (drinks). I will be writing with lots of details about how and why these
companies operate internationally
P1
Vodafone introduction
Vodafone is a UK-based telecommunication service provider and is the world’s second-largest
mobile phone company. The company first started in 1985 in London and was discovered by Gerry
whent and Ernest Harrison who also opened their headquarters in Berkshire (England). The company
has been running successfully for more than 35 years and one of the reasons for this success could
be that in 1993 they got licenses to trade outside of the UK so they took this opportunity and they
are now successfully operating services in 5 continents (Europe, Asia, Africa, united states, and
Oceania) and in more than 27 countries. Vodafone’s organizational structure is a geographic
structure where the people will be organized in based on their physical location. Some of the
Services and products that Vodafone provides are SIMs, phones and broadband
Vodafone had given clearly on its website what its vision statement is which is “ is to supply
connection and cutting-edge services to its consumers while upholding its stakeholder’s loyalty by
acting morally and responsibly everywhere it operates” after analysing this statement I can
confidently infer that one of the reasons for Vodafone expanding their business internationally was
to grow their market share and gain more profit and also to offering their services in new geographic
areas. As of now, you can clearly see that Vodafone has not only accomplished its goals but has also
taken the lead in the global telecommunication market.
Gaining a competitive edge over rivals was another justification for Vodafone to go global. Due to
the firm's global reach, it can provide 48 countries with no traveling costs, allowing for unrestricted
travel without the stress of exorbitant rates. Another reason Vodafone is a popular choice and
successful for people is that it offers one of the cheapest international rates for international calls
which is a great option for people who have family and friends living overseas and want to stay
connected to them.
To accomplish the goals, Vodafone chose to concentrate on developing and emerging markets such
as the rapidly expanding Italian mobile market. The reason that they chose this market was that
there is less rivalry and much more business prospects due to the massive potential magnitude of
the market. By employing this technique, the business expanded a lot and gained a lot of
international recognition which is why there are one of the top market leaders.
Innocent (drinks) introduction
Innocent drinks is a company that sells smoothies and juices in a supermarket and it was first
discovered in 1998 by some Cambridge students Adam Balon and Richard Reed at a music festival.
Innocent drinks are one of the healthiest drinks currently on the market because it is 100% made of
fresh fruit and that is why they received a rating of 13/20 in a recent survey. Another good deed
innocent drinks do is that they give 10% of sales to a charitable organization. Many individuals wish
to invest in this organization because of its wonderful ideology as well as its incredible taste. In 2009
, coca cola decided to buy the innocent company so they fully took the ownership of innocent. Coca
cola wanted to take a risk and so it decided it wanted to expand the innocent drinks internationally
in the very first year it decided to sell the drinks in the European market and by the conclusion of the
fiscal year, the corporation had significantly increased its earnings by 95%. Presently, the innocent
drinks business now supplies smoothies to all parts of the globe and has taken the position of
number one smoothie brand in Europe. Coca-Cola decided to bring innocents into the global market
for several reasons. The most crucial factor was that brand development began to stagnate in the UK
as there was no growth and profit. Coca-Cola did their investigation and discovered there was not a
highly recognizable smoothie brand in the developing European countries, giving them the benefit of
being the first to market so they opted to launch their items in the market. Innocent drinks have got
the rewards of being first in every way by operating in developing European countries, would have
no rivals, and customers would have no choice but to become highly familiar with their brand. The
company was urgently in need of more customers and coca cola found them overseas in developing
countries. Among the reasons Innocent became a widely trusted brand was because becoming
worldwide boosted the company's reputation and convinced consumers that foreign companies may
be trusted and now, they are a very successful smoothie brand and are known worldwide. The
structure of the company is a hierarchy structure.
Why do Vodafone and innocent (drinks) want to trade internationally?
Access to new markets = both brands want to get into many new markets in the future as
one of the advantages of doing this is that it increases sales and develops new products and
services also if there is a gap in the market of a particular country, they can easily take the
opportunity to launch their business and become the market leaders.
Growth = both companies has grown not only nationally but internationally but they will not
stop here they want to grow more in different countries because it is a chance for the
company to grow more which will improve their brand exposure.
Market leadership = Vodafone had taken the market leadership in india and innocent has
taken the market lead in European countries but they still want to take more market
leadership in their business sector which could bring an advantage over their competitors
because of their unique selling products. Having market leadership in a country also gives
you a opportunity to increase the product prices because you don’t have any other
competitors
Fiscal benefits = both brands can get a reduction of tax they own which brings benefit for the
country’s development.
Market share = if you increase your market share it allows the company to have a larger
piece of the market which means you can compete with your competitors more effectively.
Vodafone and innocent could stay longer in the business if they have a larger market share.
Brand exploitation = brand exploitation gives the company a better reputation in the market
so if Vodafone and innocent can get good better reputation internationally with their goods
and services it means they could have more public demands from other countries to have
their business operations there.
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