Business Strategy Assignment Solved - Vodafone group
Added on - 23 Nov 2020
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INTRODUCTIONBusiness strategy basically means the strategy which is used by all the business in order to take all thedecisions and performing action in order to achieve the goals and objective of the organization. It issimply means as a long term planning that give better result. To understand the strategy in the betterway the report will take Vodafone group for the further study and research. As Vodafone provide manyservices such as 3G 4G, fiber broadcasting etc. Services to its customers. It mainly base in UK. This reportwill cover PESTEL analysis to understand the impact of macro environment on the business strategies ofthe company. Further the report will talk about internal environment of the company and it will useVRIO model to analyzing the strategy capabilities and also it will cover the strength and weakness of thecompany. As moving further the report will conduct the external analysis of competitive market by usingporter’s five forces model which will base on five model such as new entrances, threat of competitor ,bargaining power of supplier and buyer and the industry analysis. At last the report will depict theanalysis of strategic direction and option for the organization by using Porter’s generic model.TASK 1Impact and influence of macro environment on organization and its business strategiesThe PESTEL analysis model is a business tool which helps the company in assessing monitoringthe entire external marketing environment factor which impact Vodafone to a large extent. As it is veryimportant to control all the factors that impact the company. As Vodafone being a telecommunicationindustry has to face many competitive and marketing challenges as it is very important to tackle them inthe right and proper manner in order to smooth working of the organization.PESTEL AnalysisPolitical factor – it is the first factor which impact the company to a large extent. As it include manypolicies of the government. As for the telecom sector , political risk play a major role as it is related tothe regulation , radio spectrum , licensing of networking etc. As by the help of political factorgovernment interference the functioning and operation of telecom industry. As it influence the companyto a large extent as the various policies made by the government put many restriction as it may relatedto tariffs , production of mobile phones, technology adaptation etc . Which impact to the working of theVodafone (Mathooko and Ogutu, 2015).Economic factor – it is the most important factor that impact the company directly. As it include GDP,inflation rate , income level , interest rate which Vodafone company has to face and all these expensesaffect the pricing strategies of the organization. As if the income level is low than it directly affects thesales and profitability of the company. The company also gets affected with the phase of recession as itscustomers started cutting down their landline connection. And if the inflation rate is high then it directlyimpacts the long term profitability of the business(Yang, 2015).
Social factor – the other factor is social factor which directly impact the company. As it include attitude,belief, taste , preferences , education of the customers. As the entire factor affect the growth ofVodafone. As social factor impact the growth opportunities in the rural areas of the country.Technology factor – the other factor that is technological factor as technology is growing very fast dayby day. As the main business operation of Vodafone is based on use of new technology, mobile networkplays a great impact on the growth of the business. It is very important to innovate the product as toattract large number of audiences. The customers across the world are facilitated with more changes inthe information. As there are many technological factor such as introduction of cloud computing,tablets, 5G which has created more competition between telecommunication industries.Legal factor - Many legal compliances, issues and regulations has impact over the functioning ofEE Company in long run. Company has to comply with all the changes taking place in laws,broadcasting and licensing requirements from time to time so as to remain competitive in themarket(Wieland, 2017).Environment factor – Vodafone company services can be affected by many environmental factors suchthat climatic changes, global warming, bad weather, heavy rainfall etc. These factors can hamper thefacilities which are provided by any telecom company to its customers across the nation such as mobilenetworks, signals, national radio spectrum etc. Customers have to face the issues of bad and poormobile networks, no signals availability etc. Because of the many environmental factors, which indirectlyaffects the profitability of Vodafone Company as well if company is not able to resolve these isAnsoff matrixVodafone Company will use the Ansoff matrix which is division of but group to see the impact ofbusiness strategies on the company. it is a tool that will help the company to analyze and plan strategieswhich will lead to potential growth for the company . This Ansoff matrix uses 4 strategies, marketpenetration is considered to be less risky whereas diversification is the riskiest.Market penetration –The company focuses on increasing sales of existing product in the already existing product in thealready existing market under this . the company makes the strategy to increase market share of thecompany . the Vodafone company operates in 700 retail stores in uk and to increase its market sharethe company decreases its prices to attract new customers and can aquire a competitor in the samemarket place so that the competition of the company can be eliminated and company can increaseits ,market share .Product development –