Business Strategy Assignment- Virgin Telecom

Business
Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse the Impact and influence macro environment of chosen companies..................3
(ii) Ansoff's growth vector matrix to analyses organisations strategic. ................................5
M1...........................................................................................................................................6
TASK 2............................................................................................................................................6
P2 Explain what strategic capabilities' means .......................................................................6
M2...........................................................................................................................................8
TASK 3............................................................................................................................................9
P3 Evaluate the competitiveness of UK telecommunication sector using Porters five forces
model .....................................................................................................................................9
M3.........................................................................................................................................11
TASK 4..........................................................................................................................................11
P4 Bowman's strategy clock model analyse the strategic direction and options available
organisations. .......................................................................................................................11
M4.........................................................................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is the technique or business idea through which big multinational
companies beat each other. This approach takes company from bottom to top. For that, it is very
important to target their market customers on the basis of which organisations set their business
strategy. Present report will be based on business strategy in telecommunication industry. For
that Virgin telecom group will be taken into action. It is the British telecommunication and
internet service provider operating which founded in 3rd March 2003. it provides 3G and 4G
services through its own network infrastructure Furthermore, report will elucidate the impact of
macro environment which explains the factors that effect on the telecommunication sector.
Likewise, it will also look upon strategic capabilities or internal environment through which
organisation coop up with threats and challenges. Moreover, it will also discuss five forces which
impact on telecommunication companies.
TASK 1
P1 Analyse the Impact and influence macro environment of chosen companies
Marketing strategies: Marketing strategies enhance the overall development of the
company which helps to influence the better opportunity and growth. Along with that, it will be
the more advancing process to promote the company services or products. It is the goal achieving
part through marketing manager achieve the target goals. Marketing activities of Virgin should
be capable and strong in order to get the best customer attraction.
Business strategies: business strategies are the very much essential and growth full
target market strategies. Besides, business opportunities are the major goal oriented target of
business strategy. Business strategies gives more power to understand the business requirement
to achieve overall objectives.
Characteristics of strategic decision:
 Strategic decision are likely to affect the long term direction of an organisation.
 Strategic decision helps to full fill the strategic planning.
 It helps to remove the unwanted activities.
 Strategic decision more likely to affect operational decisions.
External analysis by PESTLE Model
Political: Regulations imposed by the government and changes in policies may affect the
telecommunication industry (Armstrong, Kotler, Harker and Brennan, 2015). This affects the

prices of the services and customer choices. Due to changes in rates or policies in government, it
will increase or decrease the prices of the services of Virgin. They all are competitors of each
other. On the basis of political environment, they need to implement their own prices and polices
in order to fascinate the customer attraction. Wi-Fi and internet are the essential part of the life
these days, without which people cannot survive. Today's internet and network services are gives
many benefits and advantages to people. Business strategies of all the companies must be
according to the needs of customers.
Economic: Interest rates, inflation as well as taxes affect the company business strategies
and they need to adopt all those changes. This gives heavy impact on the customer’s choices.
Expenses affect the prices of the telecommunication plans. It affects the customer demands and
preferences which impact negatively on the profit level of companies. Telecommunication needs
are very high especially in rural areas where network problem is the big issue. Virgin is the
world’s largest communication company whose operations are spread in more over 180 countries
(Buckley and Ghauri, eds., 2015). Fixed line, mobile. Broadband and mobile services. Through
which customer can easily attract towards those organisations which plans are low and network
is on high quality. Business strategies of Virgin is to adopt all strategic business and adopt
productive techniques to build telecommunication network and company image. Growing in
telecommunication industry, they also provide large part of new job openings and employment
opportunities which gives positive impact on economic developmental. In terms of company
environment, economic changes give positive as well as negative impact on the company
behaviour (Buckley, Burton and Mirza, eds., 2016).
Social: Social factor is another significant factor which effect on the company
atmosphere. This also influences the company policies and structure. In terms of
telecommunication company, horizontal growth is limited and restricted. However, in terms of
competition, they need to adopt all kinds of plans which are beneficial for the organisations. In
terms of Virgin they adopt strategy and target well educated people who understand plans and
policies. In terms of rapid changes in lifestyle and enhancement in people standards. This gives
positive growth to company. Social factors influence company to adopt new creative plans and
higher network services in order to sustain the customer expectations. In terms of developing
new techniques, these features also effect Virgin strategy and customer level.