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Business Strategy Assignment - Virgin Telecommunication Company

   

Added on  2020-11-12

14 Pages4326 Words469 Views
Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Determine the impact and influence of external environment has on Virgin Company.......1TASK 2............................................................................................................................................3P2. Internal environment and its capabilities of Virgin Company..............................................3TASK 3............................................................................................................................................6P3. Evaluate competitiveness of Virgin telecommunication company.......................................6TASK 4............................................................................................................................................8P4. Using Bowman-strategy-clock Model, evaluate the strategic directions and optionavailable for Virgin.....................................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONBusiness strategy is the summary of how company succeeds and perceives theperceptions the expectations of consumers. Company starts its business for achieving the goalssuccessfully. Making strategy for business makes a good impression with customers. Companymakes many strategies to become unique and best among others, compete for profit,development and growth strategy. It is the most important instrument in the business. Effectivebusiness strategies lead to success. In this assessment, Virgin Telecommunication Company isselected. It was found in year 1999 by Richard Branson. The headquarters of company arelocated in Swansea, Wales and United Kingdom. The net income of Virgin is around £66 millionin 2006. Virgin provides mobile packages, broadband services and prepay mobile services. Thereport will introduce pestle model as well as Ansoff Matrix to analyse the impact of externalenvironment on Virgin. Further, this report will also include VRIO model and SWOT forcompany and Porter's five forces as well. Moreover, assessment will also introduce Bowman-strategy-clock model to understand and interpret the strategic direction of company. TASK 1P1. Impact and influence of external environment on VirginPESTLE ModelPestle analysis is a concept which defined principles of marketing. It is a strategic tool ofcompanies which help in tracking the external environment that influenced an activity ofbusiness (Ostos, Hinderer and Bravo, 2017). When company is going for launching new productsand services in the market. Pestle has six factors which are like political, economic, social,technological, legal and environmental. Political factors- Political factors have a great influence on the business of Virgin.Political factors consist of laws and regulations which come up frequently in the environmentwhich affect the functional activities of Virgin and the taxes or duties imposed on the revenue ofthe company as well. Sometimes, it becomes very difficult for company to handle all theseaffairs. Internet is the day-to-day concern of life. People wishing to make internet as a capitalhuman rights. In the world of modernization, there is need of internet. But there is alwaysconflicts grow among government and service providers. Virgin has ability and has capablenessto overcome all the political factors. 1

Economicfactors- Economic factors have a great influence on the functional activities ofcompany. The performance of economy that directly affects company and have resonant longeffects on the operation of company. The cost of the infrastructure of telecommunication is anexpensive as building towers and furnishing resources in remote and rural areas are very costly.People living in remote and rural areas are largely affected the price of services and products ofcompany which directly influence the purchasing power of customers. For example, rise in therate of inflation in UK affect greatly affect cost of product or services and purchasing power ofcustomer as well. Socialfactor- Social factors have great influence the operation of company as it is veryimportant for each and every sector to work as per the norms and legislation of the country.Virgin is functioning effectively and efficiently in the social environment. In telecommunicationsector there is limited growth in horizontal way as because it difficult and expensive too. Intelecommunication industry there are monopolies in the environment as they are coverage ofboth internet and mobile phones (Galpin, 2018). For average person, telecommunication hasbecome the main need of life. Virgin is encouraging more innovative products in the market inorder to attract more consumers. Technologicalfactors- Inventions and innovation has become the most crucial things fortelecommunication industries to compete and sustain in the market. In the world ofmodernization, people wants more innovative products and services in order to make their lifemore comforts and luxurious. Telecommunication sector has become wireless and smart phoneshas become more compact. Virgin is investing and contributing huge funds on innovations.Virgin is providing internet facility to stations, cafe, airports, hotels and many other places. Legal factor- Legal factors also have huge impact on telecommunication sector as it is largelyaffected the laws and legislation issues. Specially issues with government, monopolies andconsumers (Yuliansyah, Gurd and Mohamed, 2017). Telecommunication industries allowsimport and export of services like smartphones, laptops and many other wireless devices areexporting and importing from countries. Virgin company is also trade with many countries bythat there is immense development and growth of the company. Environmentalfactors- Telecommunication industries are largely affected by theclimatic changes and global warming. It is big state of affairs for Virgin to scope up the networksto its consumers in environmental conditions and climatic changes. Services or goods come and2

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