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Vodacom Group Limited
Integrated report for the year ended 31 March 2016
10
Spectrum, network and IT infrastructure
01
Most of our communication services depend on accessing spectrum, which we strive to secure at a competitive
price though proactive engagement with government and regulators. Securing access to spectrum is a
particular priority in South Africa. We are building on our substantial investment in network infrastructure and IT
systems by expanding into fixed broadband assets, and investing in IT services relating to data centres, security,
customer relationship capability, billing, mobile finance and online resources.
Brand and reputation management
05
We communicate our service offerings and maintain our strong brand presence through our focused marketing
and brand strategy. The iconic Vodacom brand is an important driver of purchasing decisions for consumers
and enterprise customers. External reputation surveys show Vodacom is one of the most recognised and
trusted brands across our footprint.
Sales, distribution and customer services
04
We use various distribution channels, including wholesale distributors, retailers, franchise stores, direct sales
partners, street vendors and informal resellers. Through container shops and informal traders we provide
important opportunities for entrepreneurial businesses. Recently, we transformed 80% of our branded stores
from transactional to experiential models to deliver an enhanced customer experience. Our aftersales value
chain of Vodacom repair centres and regional repair hubs has positioned us as market leaders in the aftersales
community. We are increasingly using online channels (such as the Vodacom online portal and MyVodacom
App) to further enhance customer support service efficiency.
Procurement activities
02
We manage a significant supplier landscape with total procurement spend in 2016 of R30.4 billion. We leverage
off the global purchasing power and responsible procurement practices of the Vodafone Procurement Company,
enabling the purchase of responsibly manufactured network equipment and handsets on favourable terms. We
balance the benefits of global purchasing with our commitment to promoting economic opportunities in our
host countries and driving Black Economic Empowerment in South Africa.
Product and service development
03
To maintain revenue growth, ensure revenue diversity and drive market share, we constantly seek opportunities
to develop new products, services and pricing models. We are driving a segmented customer approach to
ensure that we cater for all customer needs. We strive to provide for customer concerns relating to privacy, and
to mitigate the risk of data theft or loss. In developing our products and services, we recognise the importance
of developing a company culture that fosters innovation and a ‘customer first’ attitude.
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What we do
We secure access to spectrum, invest in mobile and fixed telecommunications networks, develop and
distribute tailored products and services, and run a strong customer care and brand programme, enabling us
to ensure revenue growth and cash generation which is used to reinvest in the resources and relationships
(page 16) we rely on to do business. This virtuous circle of investment, revenue growth, cash conversion
and reinvestment generates value across our stakeholder groups and regions of operation.
Our value chain activities