Introduction
In an unstable business circumstances, which has turned out to be a standard nowadays, it has ended up vital for each business organization to investigate how they can influence their competitive advantage. In this exertion, it is critical for organizations to make each activity to keep its clients happy and satisfied, with the goal that they can earn profits and development in their businesses. Vodafone Group India (VGI) is no special case where it contends with such a large number of different contenders who give similar services.
Vodafone, a wholly owned subsidiary of Vodafone Group, is one of the largest telecommunications company in the world. In May 2007, Vodafone acquired Hutchinson Essar, which led to the establishment of Vodafone brand in September 2007 in India. The company offers devices and phones to businesses and provides various telecom services, including voice, data, and messaging services across mobile and fixed networks. It also offers audio conferencing, enterprise web solutions, hosted business solutions, and wireless services, and machine to machine solutions. With over 31 million customers operating from a single operational base, Vodafone offer its services to over 180 million customers in 22 telecom circles across the country.
According to information provided by the nation's telecom controller, Telephone Regulatory Authority of India (TRAI), India's cell phone subscriber base accomplished the 1 billion client mark. India and China are the main two nations on the planet with over a billion people. China crossed the 1 billion mobile user historic levels in 2012. There were 306 million mobile web / internet clients in India in December 2015, of which 219 million users are from urban India, recording a year-on-year development of 71%, while the customer base in rural India has increased by 93% from December 2014, to reach 87 million users in December 2015 (Rai, 2016).
The present dissertation is an attempt to study the effect of internal service quality at Vodafone on the profitability and growth of the company using different theories like Service-Profit Chain. In general, the Service Profit Chain builds up a relationship among different variables, such as loyalty, employee satisfaction, profitability, productivity, and customer loyalty. Growth and profits of an organization are basically fortified by consumer loyalty. Generally, loyalty is an immediate after effect of consumer satisfaction. Satisfaction, to a great extent, is determined by the value of services that a company provides to its customers. Value is built by loyal, and productive and satisfied employees. Employees of an organization primarily gets satisfied with the job, by seeing the policies and support services provided by the company, which enable them to render better services to its customers. The service profit chain dismembers the levers that transform the services offered by a company into profitability. The result of measuring and empathizing these levers for the organizations that have done it is an expanded concentrate on empowering an organization's employees (Heskett, Jones, Loveman, Sasser, & Schlesinger, 2008).
Research Scope
The present research will determine how the internal service quality influences the company’s profit and growth. The research aims to collect data from employees in Vodafone GI in Punjab, with the help of secondary data. The data will be collected for the past year. The research aims to prepare a questionnaire to collect data from around 150 employees working in Vodafone Group India. The research will also collect data from different secondary sources like journals, text books, newspapers and internet.
Motivation of the Study
According to Indian Brand Equity Federation (2016), India is currently the second-largest player in the telecommunications market registering a strong growth in the last 15 years. Key players in the market include Airtel, Idea, Vodafone, Aircel and Reliance Communications. The Indian telecom sector is likely to grow around 10 per cent year-on-year to reach over 100 billion by 2020. Mobile telephony market is confronting an enormous pressure more than ever, with the entry of Reliance Jio offering free calls and data, post the merger declaration of Reliance Infocomm and Aircel, making the consolidated passage the third largest network in India. With the expanding rivalry, the clients are turning out to more demanding and the telecom area has now turned into a buyers’ market. After the announcement of mobile number portability (MNP), customers now have the opportunity to change from one service provider to other service provider, without changing the current cell phone number, which is prone to have an impact on competition. In light of these, the service providers need to give careful consideration to service quality apart from high pricing and giving additional value added services (VAS) for ensuring their prosperity. Henceforth, the present study entitled 'A study of the effect of internal service quality on the profit and growth of Vodafone Group India' was chosen to resolve the aforementioned issues for Vodafone.
Research Objectives
1. To measure the internal service quality of Vodafone Group India employees for the year 2015
2. To identify and evaluate the effect of internal service quality on the profit and growth of Vodafone Group India.
Outline of Dissertation
- The first chapter introduces Vodafone and the growth of Mobile Telephony Sector. This chapter covers the brief introduction to the growth of telecom sector in India, services of Vodafone Group India, need of the study, research objectives, research questions and the importance of service quality in the telecom sector.
- The second chapter consists of Review of Literature covering various research objectives. This unit explores the research conducted by different researchers related to internal service quality. It provides a conceptual understanding of the Employee’ Perception towards Service Quality and the impact of the same on the profitability and growth of telecom companies.
- The third chapter Research Methodology presents the formulation and identification of current research problem, research design, data collection sources, development of research instrument, sampling design and sample size, statistical tools and techniques used for analysis.
- The fourth chapter deals with the Analysis and Interpretation of the data concerning employees’ perception on the factors that influence the internal service quality at Vodafone. It also includes the study on impact of internal service quality on the profitability and growth of the company.
- The last chapter being the concluding chapter summarizes the major findings of the present research work. Various suggestions are offered to solve the issues in internal service quality at Vodafone and improving the financial performance of the company. In this final chapter, certain areas are identified and recommended for future study.
Summary
Finally, the present research is an attempt to contribute to theoretically available literature while also proposing suggestions for mobile service providers that can be used for monitoring and improving the service quality which is directly related to the profitability of the company. It is hoped that the present study would stimulate future research focusing on service quality and its impact on competitiveness for telecom companies.
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