Industry Dynamics And Strategic Positioning In The Wireless Communications Industry : The Case Of Vodafone Group Plc

Abstract

This work is an attempt to examine firm strategic positioning and industry dynamics in the wireless telecommunications industry, and the relationship between the two. The study tracks how a firm adjusts resources and capabilities over time to cope with the shifts affecting its industry. Such an analysis can help us to understand the future strategies of firms within a given industry and the implications of industry evolution for current resources and capabilities. Some insights are also offered on what factors drive collaboration of telecommunication firms across industrial borders. The study is based on data on the collaborative relationships of Vodafone Group Plc over a three-year period. An examination of the motivation, resource contribution and partner industry of Vodafone’s collaborative relationships is provided to illustrate the complexity of firm strategic responses to the processes shaping the industry. The paper investigates the key motives and resource needs that have driven Vodafone in its collaborative agreements, and how the company has repositioned itself for the changing environmental demands. The relative importance of a set of collaborative motives is identified and analyzed in relation to partner industry and resources contributed to the relationships. The analysis is then extended in an attempt to forecast the future direction of development of the wireless telecommunications industry. The findings demonstrate that wireless communications firms are forced to build competitive advantage reaching beyond their core capabilities and business activities and entering new market segments of the information technology industries associated with future growth.