Vodafone Group Plc Essay Example | Topics and Well Written Essays - 2000 words

Vodafone Group Plc - Essay Example The availability of the cheap credit made it very easy for people to finance car loans. Thus people ended up spending much more than they were earning. This led to an over flow of cars on the road. The increased demand also forced manufacturers to spend more on capital expansions. However as the world saw this demand was not real demand but in fact only an inflated market. The financial hit to these automobile manufacturers was therefore very severe. The developments in the financial sector also directly affected another industry. The real estate sector was without doubt the most affected in the recent economic crisis. The large amount of were mortgages taken out on properties which were worth much less than, led to a terrible crash in the housing market. When the market corrected itself and reached equilibrium it was a bit too late for the financial gurus who had missed the apparent signs of what was to follow. The telecommunication industry was another industry which was severely i njured by the financial crunch. The affects on the telecommunication industry however were relatively different as compared to the other two sectors discussed above. This is because the affect on the telecom sector was not a direct affect but rather a trickle down affect. The industry suffered from a general slowdown in business and lack of available credit to sustain the capital costs the industry had incurred in the periods of growth. The reduced consumer spending due to lack of jobs and increased competition from competitors also results in major setbacks to the telecommunications industry. Therefore we can say that the telecommunication industry was a victim to its own fast growth. The increased competition amongst the industry led to reduced profit taking opportunities for players and thus lower profits. Telecommunication Industry The telecom industry for the year 2010 was steady even if there was no great growth. The industry was suffering from limited consumer base in the las t couple of years. However new niches have appeared in the market which can be targeted by smaller players. Moreover the turmoil in the market which was very common in 2009 was slightly reduced. Many smaller companies were being closed down or were being bought off. This trend was greatly reduced in the last year. This does not only show that there is still demand for new telecom products but in fact the market is more diverse than ever before. Therefore opportunities are present from large networks with long reach and smaller networks with specialized products. Another reason to this revival is the reduced emphasis of the industry on replacing older technology with newer versions. This is also in part due to the sluggish market conditions. A very good example is of the NT6X21AC line card. To predict the future of the telecom industry is right no not possible. This is because more than economics factors this is actually mostly dependent on technological factors. The recent progress brought about in the telecom industry by gadgets such as iphone and android can be a life saver for the telecommunication industry. This is because the telecommunication industry is finally getting consumer’s money for using the internet services. If this trend continues, the smart phones would turn out to be the laptops of tomorrow. This would however depend