Business Strategy Analysis Vodafone

Business strategy

TABLE OF CONTENTS

INTRODUCTION
Business strategy is context of organisation is analysed as an essential process of
developing plans and policies with an intent to accomplish business objectives. Policies have
been made to perform various important business functions and activities which tend to provide
major requirements of individuals at workplace (Ghezzi, 2013). Telecommunication sector in the
UK is continuously moving towards direction of transformation and accelerating development of
growth opportunities. By developing effective business strategies, telecommunication
organisations such as EE, Vodafone, BT, Giff-Gaff, Virgin and BT have achieved high
profitability and growth in the market. Present report is based on analysis of Vodafone which is
the fastest growing telecommunication sector enterprise having its global market presence. It’s
current target is to be the world's largest top five brands and expand its global presence by the
way of dual branding practices with more than 30 companies which provide support in
achievement of growth and recognition in market. Present report is based on analysis of
influence of macro environment factors on Vodafone along with their strategic business
positioning in market. Further, strategic capabilities of company have been determined through
application of VRIN analysis model along with strengths and weaknesses. At last, Bowman's
strategy clock have also been applied to determine strategic direction and option of growth
available for Vodafone in telecommunication sector.
TASK 1
P1. Influence of macro environment on Vodafone and its business strategies
Business enterprise in telecommunication sector continuously analyses their market
trends and requirements of customers in order to make strategic decisions for development of
new products and services (Okyere, Agyapong and Nyarku, 2011). Vodafone is identified as
market pioneer in industry which has continuously adopted various policies and plans to
dominate its market. Macro environment of business is analysed as combination of internal and
external factors which directly influence revenue and profitability of organisation. In the present
context, Vodafone has been directly affected by macro business environment due to continuous
fluctuations in economy and requirements of people. Below given point will determine
implications provided by macro environment on business and strategies of Vodafone such as:

PESTLE analysis
 Political: These factors are identified as influential in direction of progress of
organisation like Vodafone because it has developed infrastructure of organisation in
order to be operational in particular area. It involves various factors like government
policies and provisions related to telecommunication sector has provided influence on
revenue and profitability of enterprise (Ghezzi, Cortimiglia and Frank, 2015). Further,
Brexit has almost cut down its relationship with supplier in European countries and
imposed restriction of business in European countries. Growth rate of company has also
declined after the announcement of Brexit. In addition, regulation communication charges
and tariff plans have also increased the challenges for organisation to sustain its business
in politically unstable countries. For example: Vodafone's profitability of current
financial year is declined by 10% from previous year.
 Economic: It involves factors like fluctuations in currency exchange rates, burden of
taxes and inflation within economy which has provided a wide influence on business
operations. This major requirements have directly influenced operating cost of Vodafone
and reduced their profitability. Apart from this, sales graph of telecommunication sector
has been increased due to economic growth of country. Growth in economy refers to rise
in the purchase of people within industry.
 Social: These common social factors associated with telecommunication industry
involves are all about changing customer’s preferences, attitude and safety ( Klettner,
Clarke and Boersma, 2014). With continuous, requirements of clients in
telecommunication sector have also upheld which is a challenge for organisation to meet
customer requirement. For example: more than half (53%) of 16-75-year-olds in the UK
use their smartphones and for this, they need the fastest networking service which needs
to be provided by Vodafone at competitive prices.
 Technology: Emergence of new technological factors such as use of social media
application, sales of smartphones, digital communication and use of internet service have
also raised requirement of fast network that will meet the requirement of customers. In
the present context, Vodafone has developed the fastest network for accomplishment of
customers’ requirements and organisation clients. For example: Vodafone has also started
its 4G plans at low rate with high speed and free data to meet requirement of customers.
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