Competitors are getting more similar and identical in their demand for service quality and offerings, which makes it difficult for the brand to sustain its loyalty with customers. In such markets, the customers have less reason to consider options as the few options are similar in their service. This makes Vodafone more prone to stagnation in terms of market share and will stabilise its revenue without much significant movement in profit generation.
Competitors are gearing up for providing better services at all times and it is here when the brand equity and the global image of Vodafone will come into play. When customers have less reason to differentiate it is the best chance for Vodafone to display and capitalise on its global image and the work they do worldwide to enforce a more distinct brand image in the New Zealand market. This can help it to retain its loyal customers and also acquire new ones gradually.
Technology adoption is faster in urban New Zealand and it makes a case in point where Vodafone has much to gain from the spread of and infusion of technology based products and services in rural regions of the country. The service quality of voice over data calls is improving along with the improvement of the smartphone market. The service provision is better enhanced and polished with the addition of new technology in each year and this has helped the market to sustain its charm. Otherwise, a market with stagnant products will have no takers for a while and they will be forced to disrupt it with a new invention. Thus, extreme measures of differentiation along with offering excellent services or opting for disrupting the market can be seen as a possible adoptive strategy by most competitors.
Regulations are more stable for the New Zealand market as it gears up for expanding the connectivity of all rural households through a special national RBI program. This support system by the government is conducive to the growth of the industry and the players’ competitiveness quotient. The perceived regulatory changes may come in when there is a consolidation phase and large players tend to come together to dominate the market through mergers and acquisition leading to monopoly formation. The market is different to Europe where the Competition Commission restricts any firm to garner a market share of more than 25%; it is termed as anti-competitive and hurting the sustenance of a healthy competition. New Zealand has smooth law functions and the enforcement is good which makes the market more adaptive to change.