Essay on Business Strategy Vodafone

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. PESTLE model...................................................................................................................1
2. Ansoff's growth matrix.......................................................................................................3
TASK 2............................................................................................................................................4
1. Strategic capability.............................................................................................................4
2. VRIO/ VRIN model...........................................................................................................5
3. Strength and weakness of Vodafone..................................................................................6
TASK 3............................................................................................................................................7
Porter's five forces model.......................................................................................................7
TASK 4............................................................................................................................................9
Bowman's strategy clock model.............................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

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
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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).
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