Business Strategy: A Comprehensive Analysis of EE's Strategic Position in the UK Telecommunications Sector

BUSINESS STRATEGY

TABLE OF CONTENTS
BUSINESS STRATEGY.................................................................................................................1
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................2
P1 Analyze the impact and influence the macro environment has on your chosen organization
and its business strategies............................................................................................................2
M1 critically analysis the macro environment and how it determines your chosen
organization’s strategic management decisions...........................................................................6
LO2..................................................................................................................................................7
P2 Conduct an assessment of the organization’s internal environment and its capabilities........7
M2 critical evaluation of the strengths and weaknesses of an organization’s internal
capabilities, structure and skill set.............................................................................................10
LO3................................................................................................................................................11
P3 Evaluate the competitiveness of UK’s telecommunications sector using Porter’s five forces
model.........................................................................................................................................11
M3 devising appropriate strategies............................................................................................13
LO4................................................................................................................................................14
P4 Using Bowman’s strategy clock model, analyze the strategic direction and options
available for chosen organization..............................................................................................14
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives...................................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

LIST OF FIGURE
Figure 1: PESTLE Analysis.............................................................................................................2
Figure 2: Vector Matrix Analysis....................................................................................................4
Figure 3: Strength and weakness.....................................................................................................8
Figure 4: Industry rivalry...............................................................................................................11
Figure 5: Product position.............................................................................................................14

INTRODUCTION
As globalisation is the first thing which comes in the mind while any one is talking about the
business, it shows that there is huge and intense competition in every sector of business in terms
of growth. Telecommunication sector is also a growing sector because it directly relates with the
technology and technology is advancing every day so this industry has to be careful and more
focused in terms of sustaining and developing its business. Business strategy plays key role for
sustaining and developing the business because strategy is not made with just single factor but it
includes a deep study and analysis of every single aspect of business with the help of various
analysing tools such as PESTLE, SWOT, Ansoff matrix and other analysis tools. This
assignment gives the detail analysis of telecommunication industry in terms of devise a strategy
for chosen organisation and EE has been selected to study.
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LO1
P1 Analyze the impact and influence the macro environment has on your chosen organization
and its business strategies.
Organizational overview: EE is very well known British mobile network provider which was
established in 2010 as an outcome of joint venture between T-Mobile and Orange. This
organization is very first in providing 4G services in UK and also it is the first organization to
offer contactless mobile payments (Wheelen et.al 2017.). EE operates with more than 700 retail
outlets across the UK. It is providing its access to its network to over 29 mobile operators which
services total of 5.7 million customers.
PESTLE analysis for EE
Figure 1: PESTLE Analysis
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Elements of PESTLE collectively represent the macro environment that is very important for any
organisation and analysis of macro environment is known as PESTLE analysis (Grant, 2016.).
Table 1: PESTLE Analysis
PESTLE
Political The government of UK has noticed the coverage problems in rural area and
that is why it has invested almost 150 million pounds into this area (Rural)
as collaboration with O fcom. Before that EE was facing an issue of
customer dissatisfaction because of the coverage problem.
Economical Although UK economy is recovering from 2013 but in 2014 as EU union
demanded for 1.7 billion pounds payment, UK has faced considerable
problems but in 2013 there is also growth in GDP of 1.9% it is good sign as
if income is increased mobile services are also increased.
Social Every customer segment shows different buying power and behaviour,
various studies show that the mobile and telecommunication has grown very
much as youth use phones as part of their life. Chatting, sharing messages,
study purpose and there are so many reasons.
Technological This industry is very much influenced by the technology as every
telecommunication service provider has goal to network coverage
enhancement and technology plays vital role in that as it brings new
capabilities for the customer and industry both (patente et.al 2018)
Legal The regulations focus on consumers as the ability of customers in terms of
terminating their contracts without any penalties, because of specific
situations of price increase without giving notifications within the period of
month.
Environmental Telecom industry has to consider the environmental factors as production of
handset and use of handset and development of infrastructure.
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