INTRODUCTION Strategies play significant role in the success of business unit. Effective strategies support the firm in gaining success and sustaining in the market for longer duration. Present study is based on Vodafone which is operating in the mobile telecommunication field. Company is growing well in the international market (Ghezzi, Cortimiglia and Frank, 2015). It offers quality telecommunication services to consumers across the world. Present report will discus external environment of the industry. It will apply Ansoff's growth vector matrix in respect to Vodafone. Furthermore, study will explain strategic capabilities and VRIO model. Porter's five force model will be applied in the company context. In addition, assignment will use Bowman's strategy clock model for identifying options available to the business. TASK 1 1. PESTLE model Vodafone is the fastest growing telecommunication company. It is operating its business across the world. It offers telecommunication services globally. Recently it is operating in more than 30 countries (Heracleous and Werres, 2016). It considered external market situation and accordingly expand its business into the new locations. That helps the organization in gaining success in the market. There are various external factors that impact on its overall performance and business strategies. These are explained as below: Political factor It is the most effective element that influence overall operational aspect of the firm. Vodafone always look at the political stability of the country and accordingly makes decision to run its business in particular region. UK is the place where government is stable and government has makes laws for enhancing telecommunication services, network of the company. This has helped the firm in running its business in the country smoothly (Haaker and et.al, 2017). Due to political stability Vodafone has become able to conduct operations in India, England, Newbury etc. many locations. Economic factor It is another essential macro environmental factor that impact on overall performance of the firm. It is essential for dimension of the business unit. If there are unstable economic condition then it will not be able to run its business smooth. UK is the country where GDP rate is high, people have adequate income sources (Fasan, 2015). These people are able to buy products 1
and services of Vodafone easily. This helps the entity in enhancing its profit. But there are many other countries where economic position is not sound in such condition firm has to face difficulty because it fails to generate revenues in these nations. If there is uncertainty in the economic condition then Vodafone makes changes in its strategies (Galperina and Klen, 2017). Social factor It is another essential element that impact on business performance significantly. Life style of people, belief, culture etc. affect overall choice of consumers. If entity is able to meet with their expectation then people will buy its products. Vodafone always consider needs of consumers and provide them products and services accordingly.That is why it has become the leading telecommunication firm in this market (Rafiq, 2016). Company always consider social aspects of different people those who live different location and accordingly makes strategy to conduct operation in the nation. Hat helps the entity in gaining success in the market. Technological factor Vodafone always consider innovation and implements new ideas so that it can enhance satisfaction level of the consumer and can improve business performance. Vodafone recently has started providing 4G services that attracts many people towards the brand. It spends huge money in technologies and makes changes in its system if new technology come into the market (Harlow, 2016). That has supported the firm in gaining high profit and gaining competitive advantage in the market. Legal factor As Vodafone is operating its business globally. It is very important for company that to follow legislation of each nation. Legal issue can create complication for the business in running its operation smoothly. If employment laws of particular nation are different from hone country then company has to follow these regulations otherwise it may create issue in retaining staff in the workplace for longer duration (Zeschky, Winterhalter and Gassmann, 2014). Environmental factors It is another external factor that influence performance of entire telecommunication industry. Vodafone always create positive working condition for employees that attract people towards the Vodafone family. It takes into consideration to the aforementioned facts that helps in gaining success in the global market (Florczyk, 2016). 2
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