Telecommunication Industry Analysis and Strategic Planning

The provided document is an in-depth analysis of the telecommunication industry, covering various aspects such as business model renewal, ambidexterity, and strategic planning. It also examines the impact of intellectual capital on business performance in Kuwaiti telecommunications and the bundling of telecom offerings in Turkish markets. The assignment utilizes tools like Ansoff Matrix, Bowman Strategy Clock, and PESTLE analysis to provide a comprehensive understanding of the industry's dynamics and future directions.

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BUSINESS STRATEGY
(TELECOMMUNICATION
SECTOR UK)
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Table of Contents
INTRODUCTION..............................................................................................................3
TASK 1.............................................................................................................................3
P1 Impact and influence of macro environment on EE Limited and its strategies........3
TASK 2.............................................................................................................................7
P2 Analysis of internal environment and capabilities of given organisation using
various types of frameworks ........................................................................................7
TASK 3........................................................................................................................... 10
P3 Applying porters five forces model to evaluate the competitive forces of a given
market sector..............................................................................................................10
TASK 4........................................................................................................................... 11
P4 Interpret and devise strategic planning for a given organisation by applying range
of theories and models .............................................................................................. 11
CONCLUSION............................................................................................................... 14
REFERENCES...............................................................................................................15
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INTRODUCTION
In the telecommunication sector, there are several companies included that make
effective communication at global environment. In this regard, different elements are
included which create impact to operate functions at global environment. Further, it also
takes attention in recent years that create broadband usage of mobile communication
and internet (Ghezzi, Cortimiglia and Frank, 2015).
Present study based on the EE limited which is British mobile network operator
company. They provide different types of internet services which assists to establish
division in several areas of the world.
For gaining insight information of the present report, it covers PESTLE analysis to
conduct environment assessment of UK. Furthermore, in respect to assess internal
environment VRIO model also implement to find strategic capabilities that possessed by
the enterprise. At last, report produce strategic management plan which assists to show
clear strategic direction and availability in the enterprise.
TASK 1
P1 Impact and influence of macro environment on EE Limited and its strategies
1. PESTLE analysis
EE Limited is one of the biggest players in term of mobile sector of UK market.
They target several people such as customers, companies and government those helps
to develop significant advantages at workplace (Khanagha, Volberd and Oshri, 2014).
Political factors: In UK, there are different rules, regulations and norms that
create major issues on telecommunication industry. Government has no appropriate
involvement in this sector but people possess different ideas so it can be interpreted
that basic human right must be accomplish for development of the people. There are
different rules and regulations determined by the government to regulate accurate
functioning in telecom industry. Therefore, it is essential to look upon basic development
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of people with providing them education, career, etc. (Üner, Güven and Cavusgil, 2015).
Hence, EE limited need to look for this to increase online experience and serve
essential things with following rules and regulations of government. On the other hand,
there are several elements exists which create impact on the EE limited in negative
manner. In UK, there is lack of encouragement to innovative ideas so that the chosen
enterprise get effect due to this. This is because, as per each country, the chosen
enterprise need to regulate their functions. If they operate in new place they must cope
up with their norms and culture.
Economic factors: EE limited is also impacted by different elements of
economic factors such as interest rates, inflation, taxes, etc. This is because expenses
affect to the pricing strategy for per plan that is offered to customers. It is very
expensive to build towers and resources to promote telecommunication in rural areas in
successful manner. Recession of 2009 created negative impact on the results so it is
essential to focus on the increasing in GDP which develop significant advantages at
chosen workplace (Sharabati, Shamari and Moghrabi, 2016). In order to regulate
successful operations, it is essential to look upon consumption of the mobile services
that continuously increasing in the telecom sector.
Social factors: EE limited consider horizontal growth which is limited.
Specifically, it is difficult to expand operations in rural areas. Therefore, customers are
left with less than handful options to take services of telecommunication. They possess
monopolies so that they charge for internet and mobile career. Customers look for these
packages that can be successfully communicate with friends, social media challenges,
etc. (Jiang, Peng and Mutlu, 2015). Young generation has different demand and
requirements so that it also create negative impact on the results. Therefore, in
smartphone the selected enterprise need to focus on their needs and requirements.
Technological factors: Telecommunication factors considers needs and
requirements for telecom services that are advancing. Telephone companies also stable
in UK so that EE limited has opportunities to expand their operations in different areas
with new concepts. Basic needs of the customers also accomplish with smartphone,
voicemail, caller ID, etc. New people also encourages with implement this concept
(Arasa and Githinji, 2014). EE limited has goal to provide appropriate services that
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assists to focus on the analysis requirements of the customers with using technological
aspects.
Environmental factors: There are different types of environmental elements
exists that create impact on the EE limited. For instance, climate change, global
warming, etc. In respect to make employment development and more customer
attraction, it is important to focus on create better services that assists to make
necessary changes to become redundant for environment. Within this industry, there
are several elements exists that consider in positive aspect when the cited firm focus on
maintain environmental aspects. For instance, infrastructure development, better
services that are related with constraints within the particular field (Bahri-Ammari and
Bilgihan, 2017).
Legal factors: EE limited also impacted by the legislations issues. Therefore,
particular issues are also existing with government, customers and monopolies. Industry
also allow importing and exporting telecom products in different areas of the world.
Therefore, more development in telecom tech devices (Cortimiglia, Ghezzi and Frank,
2016). As per UK government rules and regulations, EE limited need to work through
follow all legal regulations as data security, so that they can easily develop their
significant advantages at workplace.
2. Ansoff matrix to analyze the organisation strategic positioning
In order to determines strategic positioning, it is essential to implement Ansoff
Matrix which is successful communication tool. It assists to look towards growth
strategies for the enterprise. As a result, EE limited can easily develop market
penetration in the UK market (Kane, Palmer and Buckley, 2015). They are as follows:
 Market penetration: Market penetration defines that extent in which products
recognised and bought by customers in particular market. It is one of the
important element of Ansoff Matrix which consist penetration in the market. EE
limited consider this strategy when existing products of the market require to
develop with growth strategy in the market. In the telecom industry, it is one of
the best aspect that can be adopted by the organisation and develop their
effective results. It is useful for EE Limited for beating the existing competition of
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the market in successful manner (Ghanbari, Alonso-Zarate and Markendahl,
2017). Market development: Market development is the second market strategy that
consider and used to target new market with existing products. In EE limited,
they have option to diversify their business in different IT sector operations. They
can expand market in global areas with using brands in their products and
services which is the perfect method to develop significant advantages. This
strategy entails to expand from current market to another market (Kungl and
Geels, 2018). Product development: Product development is one of the important element of
Ansoff matrix which refers to EE limited and it is considered as good market
share in existing market. Therefore, it requires to introduce new products for
expansion. It is needed when company has good base of customer and existing
products has reached saturation point. Hence, market penetration strategy is not
practical and product development is better approach for the industry. Along with
this, the company can also include their operations with innovative and luxury
services (Arora and Malik, 2015). This is because, recently they provide very
cheapest products and services which create negative impact on the customers.
Therefore, it is essential to focus on the increment in products to make changes
in the organisation.
 Diversification: Diversification strategy is the one of the important strategy of
Ansoff matrix which applies when product is completely new and introduced into
the new market. Diversification of EE limited can be made in new areas such as
insurance sector, retail sector, fashion industry, etc. Furthermore, the company
can also make their development with diversification strategy in systematic
manner with market assessment and research (Keskin and Kennedy, 2015).
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Figure 1 Ansoff Market for expansion
(Source: Ansoff Matrix, 2018)
TASK 2
P2 Analysis of internal environment and capabilities of given organisation using various
types of frameworks
1. VRIO model to analysis strategic capabilities possessed by the organisation
VRIO framework determines capabilities that possessed by EE limited and
regulate operations in effective manner. It plays an important role in the
telecommunication strategy. In this regard, following elements included that assists to
analysis strategic capabilities that are possessed by organisation:
 Organised capture value.
 Competitive advantages.
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 Cost to imitate.
Value: It is defined as the capability of a firm which is enough and exploit
opportunity towards external threat with availability of resources and skills. EE limited
has value to create their successful operations that are useful to focus on available
opportunity. It helps to expand creativity and effectiveness to regulate desired results
(Hacklin, Björkdahl and Wallin, 2018).
Rarity: It is control of the resources and skills that are relatively few in front of EE
limited. It creates negative impact on the results because, efficiency and brand image
diminish die to rarity of the things. With the help of the new opportunity, they can
regulate different functions and operations that assists to meet with the effectiveness
and outcomes (McKelvey and Bagchi-Sen, 2015).
Imitability: It is very difficult to imitate and consider cost which is the disadvantage
to the chosen firm to acquire, develop and replicable with appropriate resource and
skills. In this regard, EE limited requires to consider different aspects that assists to
meet with the effectiveness and focus on the development of the organisation
(Osabutey and Okoro, 2015).
Organisation: When the firm organised, they are ready and able to exploit their
resources that assists to exploit resources and skills. In this regard, EE limited can
easily capture value that are available to measure scale on the different perspective.
They are as follows:
Resource Value Rarity Cost to
imitate
Organise
d to
capture
value
Competitiv
e
implicatio
n
Strength/
weakness
Technolog
ical
aspects
High Moderat
e
High Moderate Temporary
competitive
advantages
Strength
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License of
spectrum
Low Low Moderat
e
High Competitiv
e party
Weakness
Customer
relationshi
p
High High Low Low Sustained
competitive
advantage
Temporary
strength
Manageria
l expertise
Moderat
e
High High Moderate Temporary
competitive
advantage
Distinct
competence
Service
level of EE
limited
High Moderat
e
Low Low Competitiv
e party
Strength distinct
competence
2. Strength and weaknesses of the organisation
EE limited provides the cheapest 4G mobile phone in UK so that it assists to attract
several customers from different areas of the world. In this regard, there are several
customers have not brand interest because cheaper products and services creates
negative impact on the results (Evens and Donders, 2016). Following are certain
strength and weakness of the different products and services on EE limited:
Strength: There are several strengths of the company which are as follows:
 Largest coverage areas: EE limited consider the largest coverage areas in the
UK. Therefore, they have maximum level of customers in all over the market. It
assists to gain maximum profits and revenue in positive manner. With this
regard, network is distributed in all over the market in successful manner that is
positive consideration for the organisation (Sharabati, Shamari and Moghrabi,
2016).
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 Biggest 3G network across the UK: Furthermore, EE limited is also consider
biggest 3G network in the UK market so that it helps to focus on the maximum
number of the customers’ requirements. In this regard, different customers’
needs accomplish by the organisation (Ghanbari, Alonso-Zarate and
Markendahl, 2017).
 High level of customer satisfaction: The chosen company is dedicated
towards positive customer relationship management. Therefore, several
customers are satisfying with using different program that launched by the EE
limited to attract them. In this regard, they can also regulate different
effectiveness at workplace (Evens and Donders, 2016).
 Strong free cash flow: In the selected firm, there is high amount in free cash
flow because they continue regulate their functions and operations to expand in
the new product’s and services. It assists to gather more relevant information that
is useful to cater desired results efficiency (Ghezzi, Cortimiglia and Frank, 2015).
Weaknesses:
 Brand image and profitability: Due to cheapest products and services, EE
limited has low brand image and profits in front of customers. It is one of the
major weakness towards the organisation which need to be solved to focus on
the appropriate management of the organisation. It assists to develop brand
image in the market in successful manner (Üner, Güven and Cavusgil, 2015).
 High attrition rate in workforce: As compare to the other organisation, EE
limited has high attrition rate which spend more training and development
program activities in different areas of the world. With this consideration, it can be
stated that the selected firm need to spend more on their employees training and
development program (McKelvey and Bagchi-Sen, 2015).
 Not highly successful: EE limited is not highly successful business because
different market has distinctive work culture. It integrating in small business so
that share of merger can be failure several times. As result, it impacts negative
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on the desired results to gain more effective functioning in the organisation
(Osabutey and Okoro, 2015).
 More investment requires: The chosen organisation continuous gain reduction
in their profits and revenue. Therefore, high investment requires in research and
development program which is useful to gather more effective functions and
operations in successful manner (EE SWOT Analysis / Matrix, 2018). Without
investment, they are unable to gain higher market share.
TASK 3
P3 Applying porters five forces model to evaluate the competitive forces of a given
market sector
1. Competitiveness of UK’s telecommunication with devise with Porter five forces model
With respect to assess competitiveness in UK, EE limited device porter five forces
model that assists to focus on the competition. They are as follows:
Threat of new entry (Low risk): Telecom industry also create attraction of the
several customers that assists to make profitable results in positive manner. Therefore,
there is low risk of new entry in the UK market which is beneficial for EE limited. Along
with this, there are several businesses already established in this sector which create
positive impact on the outcomes. For example, Vodafone, O2, BT, etc. Furthermore,
these firms already established with loyal customers base and attractive products'
differentiation (Keskin and Kennedy, 2015). It would be highly unlikely because the new
operator cannot be easily enter in the market and compete with this firm.
Bargaining power of buyers (Moderate risk): Competition in the telecom industry
is more intensified which considers fact for customers who have right to change network
operate. As a result, it is essential to look upon the introduce of the new service and
products that assists to attract mobile users. It assists to raising customer loyalty.
Beside this, number portability is not easy so that EE limited has moderate risk of
bargaining power of customer (Kane, Palmer and Buckley, 2015). This is because,
several verifications requires which create medium risk. It creates inconvenience for the
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buyers to regulate functions because bargaining power is quite low that impact
negatively.
Bargaining power of suppliers (High risk): EE limited is the main player of
telecom industry so they face intense competition of the market. Therefore, it is
essential to look upon maintain relations with suppliers. This is because, when suppliers
provide raw material, the selected business can deal with the customer demand and
requirements easily. In addition to this, in UK there are fewer suppliers’ availability
which create negative impact on the functions and operations. As a result, it can be
stated that bargaining power of suppliers is high (Kungl and Geels, 2018).
Threat of substitute (Moderate risk): Mobile network operator provides different
kinds of services in telecom operations. In this regard, EE limited determines services in
telecom products which also provided by the other competitor. Therefore, it is essential
to include effective products and services which assists to focus on the customers
needs and requirements. In the enterprise, the largest threat due to other competitors
who regulate in different apps such as Skype, etc. (Jiang, Peng and Mutlu, 2015).
Competitive rivalry (High risk): In UK, there are several businesses operate in
telecommunication sector so it creates high risk on the business performances of EE
limited. In this regard, it is essential to look upon new functions and operations which
regulated by the chosen business. For instance, Virgin, Vodafone, O2, etc. are major
competitors of EE. The whole market saturated from the different enterprises that
consider operations and functions on different basis such as brand, luxury, 4G network,
etc. However, EE limited ranked first on the basis of network quality. Therefore, it is
essential perform functions on the basis of brand performances. It is useful strategy that
regulate in term of customer services which create significant impact on customer
satisfaction (Üner, Güven and Cavusgil, 2015).
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TASK 4
P4 Interpret and devise strategic planning for a given organisation by applying range of
theories and models
1. Strategic management plan with Bowman strategy clock model
In order to consider strategic management plan, Bowman strategy lock model has
been implemented that assists to focus on the effective results and outcomes of EE
limited. They are as follows:
 Low price and low added value: For EE limited it is not the most competitive
position as per Bowman strategy. Product and services of the chosen
organisation is not differentiated as per customer value. Therefore, it impacts
negative on the operations and functions of the company. Low price keeping is
only competitive method of the organisation which can be use to compete with
other suppliers (Evens and Donders, 2016).
 Low price: EE limited at this situation need to offer their products at very large
quantities. Products and services of the enterprise are valued. Products can be
sold at low price which leads to the low profit margin so that it is essential to
develop high volume of output which generate more effectiveness. This position
regard cheaper market leaders can focus on the cost minimisation. Cheap and
fast production can be using on the basis of economies of scale (Bahri-Ammari
and Bilgihan, 2017).
 Hybrid: Beside this, this position includes EE limited in which they use products
differentiation. As a result, products are highly valued in successful manner. They
can focus on the low price so that customer can convince with good added value
to add several benefits (Hacklin, Björkdahl and Wallin, 2018). It I the most
effective strategy for the Bowman strategy with consistently and well-planned
offers.
 Differentiation: The chosen organisation using this strategy to make their
products differentiate from other businesses. As a result, they develop the best
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offers as high possible quality at average price. They have wish to offer their
customers with highest level perceived value. They not only focus on product
quality but also develop branding that assists to meet with desired level
efficiency. Customers are remaining sensitive towards very high-quality products
of well-known brand. Therefore, they select these products (Ghanbari, Alonso-
Zarate and Markendahl, 2017). They are prepared to pay more attention to
develop effective results in the different areas of the UK market.
 Focused differentiation: It is one of the important concern in which EE limited
consider positioning strategy in which luxury and exclusive brands. High quality
products are also developed at high price which assists to focus on the business
development program. EE limited consider this strategy for targeted
segmentation, promotion and distribution which assists to lead with higher profit
margin. Their competitors are main segment so that they keep other prices high
(Khanagha, Volberd and Oshri, 2014).
 Risky high margins: The selected business using this strategy which charging
high prices on products and services. In this regard, customer perceived value. In
long term consideration which reduce significant risks at this position. Ultimately,
customers also cut their losses and look towards better quality products which
contain same price range on similar products (Bahri-Ammari and Bilgihan, 2017).
 Monopoly pricing: Monopoly pricing is the strength of EE limited enterprise.
According to this position, they only offer different products in the segment.
Therefore, they have not fear of competition to determine successful pricing. As
per the choice of customers, they regulate functions and operations. Customers
is basically dependent on goods for monopolist offers. In most of the nations, it
considers increasing price for offering faulty products (Ghanbari, Alonso-Zarate
and Markendahl, 2017).
 Loss of market share: It is not enviable position for EE limited. It means that the
enterprise is not able to consider goods that are perceived with customer value.
In addition to this, high prices create negative impact on the business as they
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move towards other enterprises Therefore, it can be stated that the selected
business loss their market share (Hacklin, Björkdahl and Wallin, 2018).
As per the Bowman strategy, it can be stated that different position of the company
develops successfully in the market. In this regard, EE limited concern with the
customer perceive value that assists to focus on the desired results. It would be better
consideration that is possible to make desired level significant advantages with
competitor’s development (Bahri-Ammari and Bilgihan, 2017).
Figure 2 Bowman strategy
(Source: Bowman Strategy Clock, 2018)
CONCLUSION
From the above report, it can be stated that business strategy that assists to focus
on the development of the desired level efficiency. In this consideration, report
determines discussion on PESTLE analysis which create major impact on EE limited
due to different regulations and norms. In this regard, political and social factors majorly
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impact on the business. This is because, the chosen business need to focus on the
customer demand and government regulations as well. Therefore, they are able to deal
with the latest trends.
Moreover, it summarised about the strength and weakness of the EE limited which
assists to identify major consideration of the business in different areas of the world.
Therefore, it regulates several functioning to make desired results at workplace. With
this regard, porter fiver forces also explained through competitive environment position
assess at in UK.
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