Business Strategy: Analysis of Vodafone's Strategic Capabilities and Competitiveness

This report analyzes the impact of macro environment on Vodafone, evaluates its internal and strategic capabilities, and assesses its competitiveness and strategic direction. It also discusses the strengths and weaknesses of Vodafone and applies Porter's five forces model to analyze its market position.

Business strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................1
1. Strategic capability in Vodafone.............................................................................................1
2. VRIO/VRIN model for determining the strategic capabilities...............................................2
3. Strengths and weakness of Vodafone.....................................................................................2
TASK 3............................................................................................................................................3
Porter five forces model on Vodafone........................................................................................3
REFERENCES................................................................................................................................6

INTRODUCTION
Business strategy is considered as a proper planning of including ways and techniques
that can help an organisation in achieving all the objectives at a faster rate. It is being designed in
a way that it can help the company to complete its vision, meeting all the expectations and can
compete with the other competitors in the market place (Klettner, Clarke and Boersma, 2014). In
mobile and Telecommunication sector, as there have been the involvement of various number of
companies, so it has increased the competition as well in the market place. Every single mobile
operator is trying to involve a variety of ways so that they can satisfy the customers to achieve
their objectives. The report is about analysing the impact of macro environment in Vodafone and
also, assessing all the internal and strategic capabilities of the same. The evaluation of the
competitiveness along with the analysis of the strategic direction of Vodafone have also been
included in the report.
TASK 1
THE EXTERNAL ENVIRONMENT
1. Pestle for Environment investigation
At the point when the association work viable capacities, small scale and large scale condition
comprise hazard inside the enterprise. This is on account of; it is exceptionally impacts on
the firm activities because of Vodafone roll out improvements in their business tasks. In
regard to this, the referred to firm need to make mindful on their exercises which they are
tasks in compelling way. With the assistance of mindfulness, the association can easily
run their tasks in deliberate way. Also, the picked firm can make benefit through find out
upper hands at work environment however, it is extremely troublesome oversee upper
hands yet it conveys successful outcomes through working different capacities inside the
business condition. PESTLE examination is utilized to decide affect on the business
results.
Recollecting the genuine goal to amass engaged and creating condition, each business
alliance needs to explore natural factors and evaluate their effect on business advancement and
breaking point. With help of the pestle appear, it can reasonably dissect the outside conditions of
British media transmission. Following are the effect of natural factor's on the British media
transmission works out
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Political factor-This factor assesses plan, authoritative body, and set of models, administrative
acts and genuine approval. Recollecting a definitive target to make due in the business condition
affiliation need to think about this bit (Botha, Kourie and Snyman, 2014). VODAFONE total cell
phone permit are emphatically controlled and its passage to the range is constrained. Government
game-plan displays that it needs the remote business to make modified control in relationship
with content. The law making body correspondingly share open stress over irksome contact and
substance.
Money related factor - This factor joins the expansion and subsidence rate. Affiliation ought to
have picked the costs of thing and association as indicated by the cash related state. This factor in
like way affectVodafonetotal and furthermore economy in different courses, for instance,
headway of GDP and the level of swelling rate in bit of the general business where the affiliation
works
Social and Cultural factor-This factor melds purchaser's decision, taste, inclinations, culture and
normal concern. According to the social case, stores of take up of cell phones has been down to
plan and pal weight. Furthermore, the as appeared by the social need, affiliation need to pass on
associations of remote. Social variables are incorporates taste inclinations and patterns of market
which profoundly affect on the business results. As per clients request, Vodafone need to make
their items. They need to comprise changes ceaselessly to work their exercises and capacities
inside nature. Accordingly, it will create antagonistic effect on the organization results.
Alongside this, the referred to firm offering collect items which can be effectively move by
organization to work their capacities. Subsequently, clients are exceedingly fulfilled and it
creates positive effect on the organization
Imaginative factor-Technological factor, everything considered, impact to the Vodafone total
affiliation. Changing innovative movement impacts the period of firm. The PDA is at first used
to the phone security and it wound up being conceivable to swap data among versatile and other
contraption by techniques for Bluetooth advancement (Galbraith, 2014). Creative headway in
correspondence and rising of elective procedures for correspondence, for example, hurray
conveyance individual and online talking will affect Vodafone bundle structure.
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Biological factor –Vodafone bundle have built up a handset reusing action that animate
purchasers to discard handset or embellishments in an ensured and reliable course by propelling
their entrance programs. Offering motivation to purchaser and by making it simple to return
undesirable telephones through prepaid envelopes or reusing focuses inertial outlets.
Legal factor-VODAFONE assemble worried over the offer of stock act 1974 imparting that
everything must be fit for the reason they are proposed. In this factor solidifies some work a
customer's rights and feline which should considered by British media transmission.
Ansoff's advancement
Ansoff gives a manual for the affiliation in order to create and make, paying little mind to
whether they are going into new market or pushing another thing in publicize (Granger and
Schroeder, 2013). The guide is displayed as a system which contains four phases with the edge
of market and thing being the most crucial part of the frameworks.
The diverse steps of Ansoff's advancement system are said as underneath -
Market entrance – The underlying advance of this system communicates that the association
should put bargain on its present things in the market existing starting at now. The British media
transmission can utilize this displaying approach to upgrade its execution and profitability.
Market passageway can empower British Telecommunication in making strong market to
position by giving existing things and organizations to their clients.
Product Development – Under this thought, of thing change an affiliation develop new things
and organizations inside the present market remembering the true objective to procure effective
points of interest. English Telecommunication needs to develop new organizations and features
nearby the adaptable handsets for securing convincing results or results.
Market development – This is another suitable thought by Ansoff, according to this thought an
association dispatch its present things or organizations in new market (Khan and Quaddus,
2015). English Telecommunication can enter or switch into another market with a particular
ultimate objective to expand high grounds and addition its benefit.
Development – Diversification consolidates moving new things or organizations inside another
market. Upgrade just means to make distinctive sorts of things and organizations to enter or
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switch into another market to attract new clients. This assistance and sponsorships British media
transmission can redesign its bit of the general business and number of clients.
TASK 2
1. Strategic capability in Vodafone
Strategic capability means the ability ofVodafoneto make a successful involvement of the
methods and competitive strategies in a way that it can help in a better processing of the services
and operations of the company. Also, it is not only about involving the strategies etc., but it also
focuses on the fact of making further increments and improvements over time. It keeps its focus
on all the resources of the company that can helpVodafonein maintaining a sort of balance
between different operations in a way that the business ofVodafonecan survive for a long time in
the market place. If Vodafone make sure to involve a proper and efficient business strategy in
their processing, then it can help them to stay competitive enough in the market. An appropriate
business strategy can also help Vodafone in competing with the other rivals and competitors in
the market place, thus also help them to be financially strong as well (Pucciarelli and Kaplan,
2016). Therefore, a proper involvement of the strategic capabilities inVodafonecan help them to
stay competitive enough in the market place, thus they can be able enough to achieve all the
objectives and outcomes at a much faster rate.
2. VRIO/VRIN model for determining the strategic capabilities
The VRIO/ VRIN framework helps in making an analysis of the strategic capabilities in a
much appropriate and efficient way. The same is being discussed as under :
Valuable
IfVodafonewill ensure that they involve products that are actually valuable which means
they are worthy of the cost being provided by the customer, in that case, it can helpVodafoneto
achieve a better competitive advantage.
Rare
Involving products or services that are actually different from the ones that are produced
by the other mobile operators can actually helpVodafoneto gain the interest of the customers,
thus it can actually prove much helpful forVodafoneto gain a higher productivity rate as well.
So,Vodafonecan ensure to make involvement of the products that are quite rare from the other
ones.
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Imitate
The products developed and implemented by theVodafoneshould have been enough
costly to be imitated. It means that it should be developed in a way that the other competitors
who does not have it can find it much harder to copy or duplicate them (Ryan, 2016). For
this,Vodafonecan ensure that the internal processing of the products have been done in a way
that the one trying to copy or duplicate it may find it hard to do so.
Organised to get value
Vodafone should ensure the fact that if the resources are not worthy of receiving the
value, it may throw some impact on the organisation. Therefore, the management ofVodafonecan
make sure that all the operations and processing is going in an appropriate way that the aims of
the company can be achieved. If some factors such as involving rare products that are also not be
able to get imitated etc., can helpVodafonein achieving the competitive advantage. Also, if the
products they involve are valuable which means that they are worthy enough of the amount
being paid by the customers for that, then it can also help in maintaining the ability of the
company and its dealing with the processes.
3. Strengths and weakness of Vodafone
The strengths and weakness of Vodafone are discussed as following :
Strengths
 Vodafone ensures the involvement of a balanced structure which involves all the basic
processing of the operations and ways to implement the same. Also, it is one of the
largest mobile network communication firms, satisfying enormous number of customers
from a long time. Vodafone holds a strong recognition of their brand. Whether it is about their strategies or
services they provide to the customers etc., but they have successfully gained the interest
of a huge amount of people, which have further helped the firm to achieve a higher rate
of popularity as well as of productivity.
Weaknesses
 As the need for the telecommunication is increasing day by day, Vodafone also have to
face a sort of cut throat competition in the market place. One of the biggest competitors
of Vodafone is EE which is also expanding very wide in the market. So, for Vodafone, it
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can act as a threat. Therefore, proper measures can be involved by Vodafone to compete
with them and achieve their targets as well at a faster rate.
 Also, despite of all the operations and processes in an appropriate manner, still Vodafone
lacks in a better service delivery. It is because there are some customers that are facing
issues with the network, but the service delivery of Vodafone is slow enough and that can
actually disappoint the customers. So, for avoiding this, Vodafone should ensure to
provide an appropriate service delivery to the customers before and after the purchase as
well.
TASK 3
Porter five forces model on Vodafone
In respect to consider Porter five force model, competition determines successful and
relative strength with the forces. Therefore, proposed porter assists to identify impact on the
business in competitive environment (Viveros, Sarmiento and Vera, 2017). Following elements
determines intensive results on Vodafone company: Buyers bargaining power (High): In the UK, buyers powers of bargaining in
telecommunication industry consider high. This is because, there is cut throat competition
exit and unique products are not available (Gould and Desjardins, 2015). Strong buyer
power effectively reduce so that company able to keep their reasonable profits which
compared from their competitors easily. Suppliers bargaining power (High): Furthermore, suppliers of Vodafone company has
high bargaining power from when they are operating. It considers greater margin which
could be compare it with competitors. It is the leader of market so that share consider
large aspect which could be easily absorb any price increment from the competitors.
Hence, the chosen company able to maintain their low price from their suppliers and
make profits as well (Johnson, 2014). Threats of substitute (Moderate): In addition to this, Vodafone also face considerable
threat for their products and services. Landing services in CDMA decline continuously
and broadband operations develop regularly (Lokuge, Sedera and Grover, 2016). Hence,
video conferencing, VOPI, Google Talk, Skype, etc. emerged as the substitute for mobile
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service. Due to strong buyer power and effective economy of scale, the company does not
require cost attribute to submission to customers. Threat of entrants (Low): In the UK telecom industry consider low threat of entrants
because telecom industry require more fund to implement functions and operations.
Companies consider their outcomes to enter in the market and pay huge licence fees
which spectrum availability in the market. In addition to this, cost of setting up new
business require more money so that it create changes in technology that is difficult to
new entrants (Viveros, Sarmiento and Vera, 2017). Therefore, Vodafone can cope up
their operations with maintaining high level of efficiently with its services.
 Industry rivalry (High): Further, Vodafone face high rivalry because of major
competitors' existence in the market. They provide products and services at low cost as
compare to Vodafone so that it reduce effectiveness in the country. Similarly, competitors
constantly provide innovative products and services to their customers which mean is to
provide systematically work performance in the business (Lokuge, Sedera and Grover,
2016).
From the above analysis, it can be stated that Vodafone continuously develop their
functions and operations to compete with different competitors in the UK. It will assist to
increase effective performance and ability to make diversity in products and services. They lead
to cope up with industry to make successful results at workplace (Gould and Desjardins, 2015).
In term of financial position, they increase several opportunities and eliminate threats to improve
effective results at workplace. Moreover, the selected business need to includes more added
value services with introduce location based services and diversify broadband network in rural
markets.
TASK 4
Bowman’s strategy clock model
This model is used for making various marketing strategies for analysing its competitive
position with respect to competitors which are present in the market. Following are the eight
strategic positions :
1.Low price/Low value
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In this the company sells those products which does not have high value on low cost. It
can be applied when it wants to sell bulk of products as well as attracting new customers. This is
known as the basement of bargaining where no company wants to exist. By implementing such
strategies companies are not able to win the loyalty but can make itself to survive in the market
economy.
2.Low Price
This is opted when company is potentially is at lower position in the market. Under this
the profit margin for the product is very low but they have to op it so that large volumes of sale
can be done for the product. Walmart is the major example for this strategy as they convince
suppliers for entering into the low price arena with assuring extremely high volumes.
3.Hybrid
In this the company opt for moderate pricing and differentiation where they sell the
product at a moderate rate which have a higher value for the customers as compared to its rivals
who have low cost. Company tries to built an image in the eye of the buyers of having fair
prices.
4.Differentiation
In this company introduces such products which have unique features which are
completely valued by customers. These unique features in their product provide them a
competitive edge. Branding is the main strategy which is adopted for these products to attracts
lots of buyers.
5.Focused Differentiation
In this the companies provides product which has high rate and perceived value. they
target such buyers who does not care for the price and are ready to pay any amount as they
consider the value of these offerings which is very high. It is not necessary that it has real value.
This strategy is adopted for highly targeted market segment and to gain high margins.
6.Increased price and Standard Product
This is very risky strategy for the company as in this the company simply raise the prices
of its respective products without concerning for the increase in value of the product. If this
strategy is accepted by the customers then it gets a huge profit otherwise a huge loss is beard by
the company.
7.High Price/Low value
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This strategy is adopted by a monopolist company who knows that it is the only supplier
of the product in the market. In this the company sells their product at a very huge price and
buyers had to buy these at the given price because no their seller is present in the market. They
do not last for very long time in the market economy.
8.Low value/Standard Price
This strategy is not opted by companies as it lead to lose the market shares. It only
possesses those product or services which has low value and are not preferred by the buyers.
CONCLUSION
(On lata's end)
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REFERENCES
Books and Journals
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Viveros, L.J.H., Sarmiento, D.A.L. and Vera, N.E., 2017. Structuring and Implementing a
Customer Service Center for Telecommunications SMEs in Colombia.
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Strategies Enabled through Information Systems. In Pacific Asia Conference on
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thesis, University of Twente).
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generation. Kogan Page Publishers.
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environment: Knowledge management and knowledge management technology. Elsevier.
Galbraith, J.R., 2014. Designing organizations: Strategy, structure, and process at the business
unit and enterprise levels. John Wiley & Sons.
Granger, M.J. and Schroeder, D.L., 2013. Integrating the Internet into the business
environment. Internet Research.
Khan, E.A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
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