Business Administration Group 8881 Transilvania University

1.INTRODUCTION ...... 3

1.1 History ...... 3

1.2 Orange Romania ...... 4

2. MISSION, VALUES, VISION, OBJECTIVES...... 4

2.1 Mission ...... 4

2.2 Values ...... 5

2.3 Vision ...... 5

Objectives ...... 5

4. PEST ANALYSIS OF ORANGE ...... 7

4.1 Political ...... 7

4.2 Economical ...... 7

4.3 Social ...... 8

4.4 Technological ...... 8

5. THE FIVE FORCES MODEL ...... 8

5.1 The threat of entry ...... 8

5.2 Bargaining Power of Suppliers ...... 8

5.3 Bargaining Power of Buyers ...... 9

5.4 Threat of Substitute Products ...... 9

5.5 Intensity of Rivalry among Competitors ...... 9

6. FINANCES AND MANAGEMENT ...... 10

6.1 Management team ...... 10

6.2 Finances ...... 10

7. INTERNAL ENVIRONMENT ...... 13

7.1 Tangible Resources ...... 13

2 7.2 Intangible Resources ...... 13

8. ORANGE INNOVATION ...... 14

8.2 Orange Romania future projects ...... 15

9. CORPORATE SOCIAL RESPONSIBILITY ...... 15

...... 16

10. REFERENCES ...... 17

1.Introduction

Worldwide there are over 4 billion people that are separated by distance, who speak different languages and have different lifestyles.But they all chose the same thing: to communicate as they feel, to look with optimism to the future.All of them are close to each other thanks to Orange, one of the biggest communications companies worldwide. Orange is the key brand of France Telecom, one of the world's leading telecommunications operators. With more than 131 million customers, the Orange brand covers internet, television and mobile services in the majority of countries where the Group operates. At the end of 2009, France Telecom had sales of 44.8 billion euros (33.7 billion euros for the first nine months of 2010). At 30 September 2010, the Group had a total customer base of 203 million customers in 32 countries. These include 144.5 million mobile customers and 13.3 million broadband internet (ADSL, FTTH) customers worldwide. Orange is one of the main European operators for mobile and broadband internet services and, under the brand Orange Business Services, is one of the world leaders in providing telecommunication services to multinational companies.

1.1 History

Orange is the brand used by France Télécom for its mobile network operator and internet service providers subsdiaries. It is the seventhlargest telecom operator in the world, with over 189 million customers as of 2009. The brand was created in 1994 for Hutchison Telecom's UK mobile phone network, which was acquired by France Télécom in August 2000. In 2006, the company's ISP operations, previously Wanadoo, were also rebranded Orange. Orange is now the unique commercial façade of almost all France Telecom services. Orange France was incorporated in 2005 and has its headquarters in Arcueil, France. Microtel Communications Ltd. was formed in April 1990 as a consortium comprising Pactel Corporation, British Aerospace, Millicom and French company Matra (British Aerospace soon acquired full control of the company). In 1991 Microtel was awarded a license to develop a mobile network in the UK, and in July 1991 Hutchison Telecommunications (UK) Ltd acquired Microtel from BAe. BAe was paid in Hutchison Telecommunications (UK) Ltd. shares, giving the company a 30% share. Hutchison Whampoa held 65% and Barclays Bank the remaining 5%. Microtel was renamed Orange Personal Communications Services Ltd. in 1994. The Orange brand was created by an internal

3 team at Microtel headed by Chris Moss (Marketing Director) and supported by Martin Keogh, Rob Furness and Ian Pond. The brand consultancy Wolff Olins was charged with designing the brand values and logo and advertising agency WCRS created the Orange slogan "The Future's bright, the Future's Orange" along with the now famous advertising. The logo is square because it was felt that the word orange could be seen as a fruit and it needed to be strong in the business world rather like American Express and Hertz. It was also important to establish it as the colour Orange, which is seen as a strong Feng Shui colour. The Orange network was launched on 28 April 1994.

1.2 Orange Romania

Orange Romania is the largest GSM operator in Romania . By April 2002 ,Orange operated under the brand dialogue. In February 2006 , Orange Romania had over 7,000,000 customers, which gave him a share of 56.95%. Orange's success in Romania is attractive not only because they are mobile, but also the quality of network, services and brand. With a population coverage of 96.6%, Orange Romania offers each person in Romania the posibility of choosing between flexible subscription plans that can be customized, and PrePay. Orange is in direct competition with Vodafone for the 13.7 million mobile users in Romania.Orange Exceeded Vodafone (then Connex) in the number of customers in September 2004 . Orange introduced in early 2005 the EDGE technology in four Romanian cities ( Bucharest , Cluj-Napoca , Timisoara and Brasov ), a transition to 3G technology. Orange Romania is the Romanian subsidiary of the global mobile operator Orange SA , the mobile telecommunications arm of France Telecom . Orange Romania is 96.8% owned by France Telecom By November 2007 , Orange has invested about 1.4 billion euros, from entering the Romanian market. Main competitors in the mobile market in Romania are: Vodafone Romania , Cosmote Romania , Zapp Mobile ( CDMA ) and the newer RCS & RDS . Orange Romania also controls 4.33% of the current operator Moldovan Orange Moldova (former Voxtel).In December 2008 , Orange had 101 shops, 1,100 partner stores and approximately 35,000 points of sale of prepaid cards, with the largest distribution network of a mobile telecommunications operator in Romania.

2. Mission, values, vision, objectives.

2.1 Mission

Orange believes in the future. Orange makes a difference in people's lives by creating simple and innovative services that help people communicate and interact better.

4 2.2 Values

The values promoted by Orange through products, services, promotions are creativity, courage, dynamism, attention to detail, consistency and courage.

2.3 Vision

A clear future, without connecting cables. (A Wirefree and bright future.) This vision is based on the simple premise that people communicate with people and not places. In the future, people will not be tied to landlines and will be able to communicate anywhere and anytime. When launched in the UK, in April 1994, Orange was new and different, eliminating the confusion that exists on the mobile market and transforming the process of buying a cell phone in one simple and clear. “In the future, people will think it strange that voices ever travelled down wires.”) – This was the launching advertise in the ul,april1994

Orange Romania will launch a new brand vision

Orange Romania will launch a communication campaign of the new brand vision, part of Orange's largest integrated global campaigns. "Since the global launch in 1994, Orange has evolved and become more than a mobile telecommunications company in the contemporary context of the new digital world. “Together we can do more" is the new slogan that expresses our confidence in the power of people to accomplish more together” said Richard Moat, CEO Orange Romania. The new vision is according with the Orange brand values: simple, open, surprisingly, dynamic and honest. The consistency and continuity in communication are assured also by the graphic brand identity that remains unchanged. Since taking the leading position of the telecommunications market in Romania in December 2004 and until now, Orange has doubled the number of customers and the annual value of proceeds. These achievements are due to customer orientation, the massive investments in network development services, the expansion of distribution network and thanks to launch innovative products and services. „Our goal is to maintain the high quality of our services and to diversify the range of innovative communication solutions Orange, "said Richard Moat. The new brand campaign, created by Publicis, will start in Romania with executions on TV, in newspapers, online, outdoor and Orange stores.

Objectives

As medium term objectives Orange aims:

 EDGE = 70% coverage of the Orange coverage;

5  Attracting new customers;  To continue the acquisition of new customers;  Improving the network quality and improve the quality of Customer Service; STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

 Strong brand  Many  Increasing 3G  Intensifying equity and customers in pre- network coverage in competition & recognition in paid zone the Romania; consolidation in the Romania; Romanian market  First to introduce (Vodafone,  Well established It s difficult to Google-based phone Cosmote) 3G network base in control a big in the Romania Europe; company. (Android)  Economic slowdown in the  Steadily growing  Website not so Positive feedback European Union customer base; interactive from the customers  European Union Has a good  First to introduce regulation on cross- image gained over IOS phone in the border cell phone time Romania(Apple usage by customers Iphone) Lower prices  Rising inflation.

Intense  Very tight communication and competition advertising strategies Unfair competition

 Maintaining and developing the notion of a “strong brand”;

 Developing new services;

3. Swot analysis

6 4. Pest analysis of Orange

The PEST framework provides a comprehensive list of influences on the possible success or failure of particular strategies.

4.1 Political

Concerning the political context, the governamental and legal issues affects how the company operates by: Regulations Infrastructure

The euro instability rate also affects Orange Romania because the higher the euro rate in Romania, the more Orange earns.

4.2 Economical

For the economical aspect, the shares owned by the State in France Telecom (Orange’s subsidiary) represent 27.4%. So the state can be really considered as a great economic support. We have also to point out the presence in Europe of new telecommunication thanks to the freedom of circulation. In other words, it is the emergence of new countries: Eastern countries start to develop on this market.

7 4.3 Social

Concerning the social aspect, we know that now more and more people consume new technology products. Internet has become a real working tool; people use Internet at home, at work. We have also to underline the frequent use of telecommunication in the professional and private sphere. Moreover, the firms are searching for secure and reliable information systems. This increasing need can be explained by the fact that these companies want to be more profitable to face fierce competition. Finally, not only do the professionals but also private individuals need to communicate quickly

4.4 Technological

To explain the technological aspect, we have to point out the fact that consumers face now more and more technologies and frequent innovations. As a matter o fact, after launching the 3G innovation, groups as Orange launched the EDGE revolution. Indeed, the 3G is characterized by a technology’s standard of mobile phone that is accessible to consumers since 2002. Thus, the EDGE revolution permits to complete the 3G innovation in 2005. The debit can reach 384 Kbit/s: this innovation has a real impact on the strategy of Orange and other companies who want to use new technologies to obtain new market shares.

5. The five forces model

5.1 The threat of entry

Identifying new competitors it s often difficult, that is not the case in the mobile phone industry. Because the mobile phone operators must compete for spectrum licenses, they can easily identify their competitors in the individual markets. he threat of new entrants bringing additional production capacity should be downplayed in this industry, because technology should assumed to be similar and thus new entrants do not necessarily bring additional production capacity, nor does their entry hold consumer cost down. he fixed-line operators do however present a risk to mobile phone operators, because they will certainly provide extra production capacity and lower the consumer costs as a result of this competition.

5.2 Bargaining Power of Suppliers

Mobile phone manufacturers are the primary supplier to the mobile phone operator market. These manufacturers were dominated by Ericsson, Nokia, and Motorola with 61 percent of the market. Because the mobile phone manufacturing brands were more important to consumers than the mobile phone operators themselves, bargaining power of suppliers was high.Industry firms are not a significant customer for the supplier group because the suppliers

8 operate in far more international locations and markets than the mobile phone operators. Suppliers’ goods are critical to buyers' marketplace success. Mobile phone manufacturers could integrate forward into the industry. These suppliers were credible, having substantial resource and provide a highly diferentiated product.

5.3 Bargaining Power of Buyers

There was very little differentiation among mobile phone operators, and the switching costs are low. Accordingly, the industry firms battle for higher quality, greater levels of service, and lower prices than their competitors, and the consumers benefit. Mobile phone customers purchase the entire portion of the mobile phone operator's industry output. The sales of the mobile phone service account for the entire amount of the seller's annual revenues.The mobile phone customers could switch to another mobile phone operator at little, if any, cost. he mobile phone industry's products are undifferentiated and standardized. The buyers do not pose a credible threat of backward integration because of the high capital requirements.

5.4 Threat of Substitute Products

Substitute products for the mobile phone industry could be considered fixed-line phone products if convergence is not considered to exist. This substitute product’s price is not lower, and its quality and performance capabilities are negligible compared to mobile phone products. Switching costs are low but the advantage goes to the mobile phone industry because there is a greater chance of switching to mobile phones from fixed-line phones than the other way around.

5.5 Intensity of Rivalry among Competitors a) Numerous or Equally Balanced Competitors

There are many equally balanced competitors in the mobile phone industry, and industries with these characteristics tend to have strong rivalries. b) Slow Industry Growth

Because the mobile phone market is undoubtedly growing, there is little pressure to take customers from competitors. c)High Fixed Costs or High Storage Costs - High

9 Mobile phone operators have high fixed costs due to spectrum licensing and the establishment of wireless network points of access. As a result, these mobile phone companies try to maximize their productive capacity, which leads to excess capacity and intense rivalry

If we had to do a summary of this industry we can say that is an industry who has low entry barriers, the competitive threats from product substitutes are strong ,strong bargaining positions of the suppliers and buyers and intense rivalry among competitors. The mobile telephone industry has high entry barriers and a low threat of product substitutes but overall it s an unattractive industry. Finances and management

6. Finances and Management

6.1 Management team

This is the management team of Orange:

Stéphane Richard Chief Executive Officer

Pierre Louette Executive Vice President

Gervais Pellissier Deputy Chief Executive Officer

Jean-Philippe Vanot Deputy Chief Executive Officer

Christine Albanel Executive Vice President

6.2 Finances

10