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BUSINESS STRATAGE INTRODUCTION Strategy of Company

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Added on  2021-01-01

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To understand the business strategies better, the report will take UK's one of the leading telecom industry that is Vodafone. Pestle analysis of Vodafone: Political factors – The important role in determining the factors that can impact Vodafone UK are political factors which affects the company and its long-term profitability in the market in which it operates. There are various political factor which can create a negative impact of company such as strict rule laid by the government for telecommunication industry.(Higgins, 2015). The

BUSINESS STRATAGE INTRODUCTION Strategy of Company

   Added on 2021-01-01

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INTRODUCTION Strategy of company is the mix of various decisions taken by company which assist themangers to achieve its objectives. It is the plan that management used to secure its position in themarket to gain competitive advantage and to be ahead of the competition. It helps the companiesin pleasing its customers, carry on its operations smoothly and to achieve goals that were set up bythe company. To understand the business strategies better, the report will take UK's one of theleading telecom industry that is Vodafone. It is headquartered in UK and has millions ofsubscribers. The report for external analysis will do pestle analysis of the company which willshow impact of various political, legal, technological factors in the organization. To understandthe strategic position of the company, it will use matrix which will use four quadrant to showdifferent strategies. Further, the report will include Vrio model which helps the company inanalyzing strategic capabilities and then it will include strength and weaknesses of the company inthe report. At last the report will depict the porter's five force model which can be used to improvecompetitive edge of the company. TASK 1Application of Pestle model in order to analyse the environmental Vodafone is one of the World's largest and UK's third largest telecom company. It has itsbusiness operations working in many countries which helped it in making place in global market.It has great market value and large customer base yet there are certain factors needed for theevaluation of the success of the company.There are certain macro factors that affect the company and to provide information about thatfactors the company need to do pestle analysis. Pestle analysis of Vodafone:Political factors – The important role in determining the factors that can impact VodafoneUK are political factors which affects the company and its long-term profitability in the market inwhich it operates. There are certain things like political instability, peace of the state whichdirectly impacts the company. There are various political factor which can create a negativeimpact of company such as strict rule laid by the government for telecommunication industry.(Higgins, 2015). Some rules laid by the government may prove beneficial for the company alsorules by the government does not always create negative impact on business.
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The market in which Vodafone operates are Europe, Africa, Middle east and Asia.The political stability in this areas affects the profitability of the company. Wiht the increase indemand of technology the government control over various business activities has also beenincreased(Bentley-Goode, 2017). The other political factor which can affect the Vodafone is thetarrifs imposed by different countries. As the company operates in various region therefore it hasto face and pay different tarrifs to different countries. Economic factors – The macro and micro factors constitute economic factors whichincludes saving rate, inflation, business fluctuations, competition norms etc. The use of data andvarious other mobile services have been increased now a days which has resulted in highconsumer demand. The economic condition of countries also plays a huge role in purchasingbehavior of customer. As Vodafone operates in various countries such as Spain, India, UK andItaly the economic condition of these countries are quite well as a result the company is earninggood profit from these countries (Soltanizadeh and et.al., 2016).Brexit has however created a negative impact on the profitability of Vodafone in UK andit is expected that it will be continued like this. Social factors- The social factor affect the company was class structure, and powerstructure of the society. The class in UK is divided into poor, rich and middle class. The companyhas to decide the policies and schemes according to that and it helped the company in growing.(Swot and pestle analysis, 2018). Because of many social factors, many business organizationsengaged in the telecommunication sector get influenced and affects its business operations,profitability and performance level.Technological factor – Now a days telecommunication has not only become restricted tovoice calls but more than that. The advent of network technology has made it easy to share text,images etc. Digital subscriber line is one of the most important technology which almost everytelecom company use. The customers across the world are attracted with more and more changesin the Information technological factors such as introduction of cloud computing, tablets, 5Gnetwork which has created more competition between telecommunication industries. Thesechanges have brought more competitive advantage and improvement in business operations. Vodafone tries to find new ways in order to maintain the existing customers andattract new ones in order to expand their customer base. According to Vodafone they are the
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