(Solution) Business Strategy Assignment
Added on 2020-10-05
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BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. PESTLE model for environment analysis...............................................................................12. Ansoff growth strategy............................................................................................................3TASK 2............................................................................................................................................41. VRIO model to assess strategic capabilities...........................................................................42. Strength and weaknesses of the enterprise..............................................................................6TASK 3............................................................................................................................................81. Porter five forces ....................................................................................................................8TASK 4..........................................................................................................................................111. Porter generic strategy...........................................................................................................11CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................17
INTRODUCTIONBusiness strategy can be defined as strategic statements in which summary includes toaccomplish goals and objectives. In order to meet with expectations, customers attracted atworkplace to sustain competitive advantages (Anaya, Dulaimi and Abdallah, 2015).Furthermore, it acts as a planning and organisational tool that assists to develop long term growthand development. In two primary aspect, it can be measure to attain overall goals. In the present study, Virgin telecommunication organisation has been selected thatincorporated with different types of products and services. Generally it is wirelesscommunications brand which is used to deal with different aspects that are independently workthrough create network. For gaining insight information of the present study, it includes PESTLE model whichhelps to conduct environment analysis. Furthermore, it demonstrates Ansoff matrix for growthstrategy in the business. Moreover, it determines VRIO model that helps to assess strategiccapabilities in the business. Along with this, it discusses about porter five forces that helps todemonstrate competitive advantages in Virgin. At last, porter generic strategy has been followedto show strategic direction and options available in front of the enterprise. TASK 11. PESTLE model for environment analysisPESTLE analysis is strategy which is used to conduct environment analysis and evaluatedifferent aspects of surrounding the enterprise. Therefore, business may affect activities andoperations in the Virgin Mobile. Following are different elements of PESTLE analysis thatinfluence to the organisation:Political factors: Political factors considered examination and influence of governmentwith its policies, rules and regulations in particular industry. In the business, differentpolitical factors impact on Virgin Mobile such as labour laws, taxation policies, traderestrictions, etc. There are different types of political changes occur which highly impacton the chosen enterprise (Anaya, Dulaimi and Abdallah, 2015). Furthermore, politicalstability also assists to deal with government transactions and employment laws. Forinstance, it is complied with employment law such as non-discrimination of workers,payment of minimum wages, etc. 1
Economic factors: Economic factors also deals with different elements that affect towhole economy of the country. There are different types of economic factors elementsthat create impact on the business such as inflation rates, price of goods and services,interest rates, etc. (Chen and Yang, 2015). In addition to this, there are some other aspectsthat impact on Virgin Mobile such as economic growth, capital & investment, etc. Thiscompany face stiff competition due to existence of several businesses' existence intelecommunication sector such as O2, British Communication, Vodafone, etc.Furthermore, high rates of unemployment resulted into decreased purchasing power ofconsumers so that it reduced sales volume of the company. Social factors: Telecommunication industry consist with horizontal growth which islimited. Specifically, it is difficult to expand in rural regions. In this consideration,different kinds of offers impact as social media challenges to Virgin Mobile. Customersare generally focused on these packages to communicate with friends, influence of socialmedia, etc. As a result, it is important to deal with daily and vastly to grow rapidly. Thecompany aim at targeting on the basis of demographic characteristics which helps infocusing on needs of different type of buyers. For example, Virgin mobile launchesschemes on the basis of youth expectation, elderly people, organisation communication,etc. However, the focus of firm is on targeting individual demographics in order tomanage user satisfaction. Apart from this, focus of group is meeting lifestyle needs ofpeople which helps in managing satisfaction and changes in services as perchangingcustomer trends. The lifestyle changes occur due to global innovation, festivals, cudifferent cultural groups, generation, etc. For example, initial use of flip phones led togrowth for Virgin mobile but with emergence of touch screens preferences of consumershifted drastically. Technological factors: Technological factors assess different factors that are related withtechnological advancement. In this consideration, automation of manufacturing systems,increased rate of technological change, R&D activities, cost acquiring for newtechnologies, etc. included that helps to Virgin Mobile deal in qualitative products andservices. Improvement in infrastructure of information communication technology (ICT)enabled Virgin Group to cut its communications costs which led to decrease inoperational expenses. Further, implication of advanced equipment scan helps virgin2
group in improving quality and competitive services to its customers (Shabbir, 2016). Asa result, it enabled with Virgin Mobile to cut its communication costs and declineoperational expenses. It is essential for the organisation to deal in advance activities sothat it assists to gain competitive advantages at workplace. Legal factors: In Virgin Mobile, legal factors are also influencing due to certainlegislation issues. Particularly issues are related with government, monopolies andcustomers. Industry allowed importing and exporting of telecom products which impacton international smartphones such as development of telecom tech devices. Furthermore,the chosen business need to maintain legal safety through focusing on all regulations. Environmental factors: Climate changes and global warming can also affect to VirginMobile. In terms of employment, advancing technology, employees need to adapt thesechanges. Customers demand and telecom companies are expected to deliver. With needsin telecom industry, changing often and it is guaranteed to stay advanced and discarded. 2. Ansoff growth strategyAnsoff matrix used to considered successful planning initiatives which assists todetermine possible growth strategies in the organisation. It is simply determined selling ofproducts to existing customers in the country with using different strategies (Pearson, 2015). Inthis regard, Virgin Mobile determine their significant participation towards accomplishment ofgoals and objectives. As a result, it includes following elements:Market penetration: In this aspect, Virgin Mobile determined their work to increase saleswith existing products in existing market. For instance, the chosen company entered inbroadband and fixed phone line market. In case of wide competition, it is suitablestrategy that assists to grow and increase market share. It helps to cater the whole marketwith using Product development: Furthermore, this strategy considered development of theorganisation with existing products in new market. As a result, Virgin Mobile entered innew areas of UK where it is not dealing. It helps to capture larger market share fromdifferent areas of the world. With the help of entering in international market, the selectedenterprise will easily get their product development (Chen and Yang, 2015). According togood customer base, existing market is better approach which helps to attain overall goalsand objectives. 3
Market development: Market development strategy consist with product developmentwith existing market through introduce new product. Therefore, Virgin Mobiledetermined their new products in different areas of London, UK. It helps to increaseproduct line of the company and regulate with different functions. Diversification: It is totally new concept which demonstrate new product in new marketwith using different sources (Slusarczyk and Golnik, 2015). In this consideration, it canbe stated that Virgin Mobile increase products and services such as online delivery ofdifferent aspects to increase business expansion in different areas. 4
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