Analysis of Digital Business Strategy and its Impact

The provided assignment involves analyzing digital business strategy, including its integration into business strategies, and examining various research studies and papers on the subject. The studies cover topics such as the impact of information technology on business-level strategy, the relationship between business strategy and socially responsible supply chain management, and more. The assignment aims to provide a comprehensive understanding of digital business strategy and its effects on businesses.

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) PESTLE Model for environment analysis...............................................................................3
b) Ansoff's growth vector matrix to analyze organisation's strategic positioning.......................5
TASK 2............................................................................................................................................6
a) Applying VRIO model to analyze strategic capabilities possessed by organisation...............6
b) Strengths and weaknesses of organisation..............................................................................8
TASK 3............................................................................................................................................9
a) Strategies to improve organisation's competitive edge............................................................9
TASK 4..........................................................................................................................................11
a) Strategic Management Plan for organisation.........................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is defined as the modern approach which helps business organisation
take addition advantage from the market by attracting the number of customers. It is one of that
strategy which helps to enhance the business by achieving the organizational goals. Business
strategy helps to find what are the strength and weakness of any of the organisation through
which working condition becomes much easier. In this assignment, the report will be based on
Vodafone which is one of the oldest telecommunication service provider company in UK. At
present it almost deals across 29 different countries and it is among one of the leading service
provider company. Here, in this file number of models and theories are explained which is
helpful in achieving the targets and goals. The complete report will be based on
telecommunication sector which is one of fastest developing sector.
TASK 1
a) PESTLE Model for environment analysis
PESTLE is defined as the marketing tool which helps to determine the external factors that
affects day to day working activity of an organisation. Almost every association uses this model
to find the factors which shows their impact on organisation. Even the manager of Vodafone uses
this factos to find the factors that is affecting the working policy of the company. It is described
below:
Political Factor: It is one of the factor which show the impact of political factor and all
other relevant policies of government due to which any of the business has to suffer. The major
government policies which effect on business are trade policies, internal political issues,
government policies and many more (PESTEL Analysis of Telecommunication Industry, 2018).
In terms of Vodafone, it is necessary for them to change their policies as per the laws and
regulations which are commenced by ruling government parties. It is important for Vodafone
that they perform their business activities as per the latest regulation of political party. Overall,
the government of UK is stable due to which Vodafone have to not face different problem and
that has the positive impact on their business organisation.
Economical Factor: The factor which is related with the economic structure and policies
that affect the working condition of an organisation is known as economical factor. The area

which are included in economic factor are interest rate, inflation and many more. While talking
about telecommunication industry, economic factor has the huge impact on day to day activity.
Vodafone is required to dealt with the situation where interest rate is high because due to this
customer are directly affected from which company might have to suffer from various kind of
losses. Vodafone is required to work as per the situation of market and market investment so that
organisation can get better working condition. In addition, this factor has a negative impact on
company as their overall profit has reduces because of economic factor.
Social Factor: Social factor is always related with the believes, norms values, culture
and attitudes of people as that have the biggest potential for impacting on business policies.
Everyday demands and wants do increase of human being so it is necessary for Vodafone that
how they can maintain this. In this, opportunity can be developed by the Vodafone if they can be
able to deliver the best services to customers which includes better data services, cheaper call
rates and many more. This is one of the factor that has a positive impact on the working policies
of a company because Vodafone tries to update their plans and policies on regular interval.
Technological Factor: Here, the main focus of market is on innovation, ideas and
incentives because that can have a huge impact on working policies of an organisation.
Technological factor mainly includes latest information, research on specific topic and
technology legislation (PESTLE Analysis of the Telecommunication Industry, 2019). As modern
society wants changes and growth, it is necessary that changes should be introduced in the
market so the targets can be achieved. In context of Vodafone, they must try to think that how
they can be able to deliver the best services to the customers with latest technology can be used
and which can be introduced at a low price. Here, Vodafone can try to bring the new technology
like providing GPS and Wi-fi facilities even in backward area through which customers can be
attracted. Introduction to this plans will increase the customer but still it will required huge
amount of capital to be invested which will reduce the profit of a company.
Legal Factor: This factor focuses on law, policies and regulation which are enforced by
the Parliament House which is one of the supreme body of United Kingdom. This laws and
regulation do have the major impact on any of the business organisation (Amran and et. al.,
2016) These laws and polices do have the impact on Vodafone because it doesn’t allow to utilize
most of the area due to which company is unable to deliver their best. If Vodafone can be able to

perform their task as per the requirement of law they there is huge chances that company can
perform better in future. Here, Vodafone follows some of the law like employment wages act to
distribute salary to employee where they they uses equality act so that non of the employee's will
be discriminated within the organisation.
Environmental Factor: It is among one of those factor which can effect on ecological
aspects of the society and because of that demand of products can be reduced or even increased
also. Environmental Factor mainly focuses on weather, ecological system, environmental
regulations and many more. In order to take growth in the market Vodafone is required to work
as per the need and wants of local people and for that is necessary that they must take the advice
of other additional opinion of people. Vodafone should try that how they can consider the global
warming and other climatically changes so that they can sustain the telecommunication market
(Barberá and et. al., 2012). Even company should try to find the way through which they can
provide the services to the general public at a reasonable price. Environmental factor will have
the positive impact on company it will help to attract more number of users towards the
company.
b) Ansoff's growth vector matrix to analyze organisation's strategic positioning
Ansoff’s matrix is one the most important marketing tool which is helpful in providing
the framework to senior member of an organisation i.e., manger, executives and marketers. The
concept of this framework was developed by one of the greater researcher known as Igor Ansoff
for the purpose of providing additional advantage to the organisation (Bharadwaj and et. al.,
2013). Under this model four different types of strategic positioning are explained which is
summarized below:
Market Penetration: Under market penetration, Vodafone do have the option to achieve
their targets within the existing market where they perform their day to day activity. It is always
less risk in context of the company because they are not required to put additional efforts for
selling their product. It is also one of the cheaper means of selling the product because company
doesn’t require to do any kind of promotion to sell their product because market is well known
about the product and services. Vodafone can easy perform their daily basis activity under
market penetration.

Market Development: Whenever company tries to enter into the new market with
existing product then they are required to adopt Market Development process. It is one of the
plan and policies which might be risky sometimes but most of the time it becomes successful
because market have the option to take the review from its previous customers. If Vodafone try
to follow the concept of market development, then they are required to do proper marketing.
Product Development: It is one of the types of strategy where company tries to develop
new introduce new product and in the existing market so that product can get good response
(Blackburn, Hart and Wainwright, 2013). In context of Vodafone, they have the option to launch
new product in the existing market so that company have to not suffer from losses. This types of
strategy can be risky for Vodafone in some of the cases because it is not sure that every time
customers will like the product which has been introduce in front of them. There are very less
chances to increase the market share in this category.
Diversification: It is one of the most challenging situation because under this company
have to introduce their new product in new market due to which additional charges have to be
paid. It is the riskiest strategy for any of the company. In context of Vodafone, if they want to
use diversification then they are required to have more research on any of the specific area so
that benefits can be taken.
In the end of the topic, it can be understood that Vodafone is required to adopt
Diversification strategy because it is said that where there is risk there is reward too. If company
can get success in this, then they will be able to expand their business very easily. Here,
Vodafone should try to introduce themselves in new market such as television, mobile, fixed line
and many more through which various kinds of benefits can be obtained. But, the main thing
which is required to be focused is that how company can provide best services through which
customers satisfaction level can be increased.
TASK 2
a) Applying VRIO model to analyze strategic capabilities possessed by organisation
Strategic Capabilities
It can be explained as the business ability where capabilities, available resources and
skills are checked in order to take competitive advantage within the market place (STRATEGIC

CAPABILITIES, 2019). Strategic Capabilities includes creativity, analytical thinking, learning
development and strategic focus and many more.
VRIO MODEL
It is one of the most advanced business analysis tool which is helpful for any of the
organisation. Under this, company is required to go under vision statement, internal and external
analysis as it is helpful in attaining the organizational goal. VRIO mainly focus on the internal
analysis which helps to evaluate the available resources through which organisation is required
to perform their task and duties (Drnevich and Croson, 2013). In context of Vodafone this can be
one those model through which they can easily know about their resources and capabilities. The
available resources of Vodafone is written down in the table where they have been evaluated by
four elements.
Resources Valuable Rare Inimitable Organised
Phone Phone - - -
Networking
System
Networking
System
Networking
System
- -
Spectrum Spectrum Spectrum Spectrum -
Accessibility Accessibility Accessibility Accessibility Accessibility
(Source: VRIO Model, 2019)
Valuable: The first thing which is considered in this model is valuable. It is considered as
valuable if all the imposed strategy can help to improve the effectiveness and efficiency of the
association through finding available opportunities and threads. In context of Vodafone, there are
different resources which is available with them such as phone, networking system, spectrum
and accessibility (Ghezzi, 2013.
Rareness: It is very important that company’s resources should be rare so that company
can take additional advantage of it. In context of Vodafone their number of resources which is
rare in the market and which cannot be easily copied. The networking system which is available

with Vodafone is very rare in the market. Even technologies which is being used in spectrum and
accessibility is also rare because company has invested huge amount of money in it and even it is
not that easy to copy.
Imitable: The situation were rivalries companies do have the option to copy the resources
is known as imitable condition. In context of Vodafone, hey should try to make themselves
available that the resources which they use should not be imitable in nature because if that will
happen then it will not be easy for organisation to compete in the market.
Organisation: It is necessary for organisation that they use all the resources in best
effective and efficient manner. The things which are required for better organisation system are
reporting structure, strategic planning, budgeting system and more. While talking about
Vodafone, if they want to take lead in the market then should be able to manage everything in a
systematic manner.
In short, it is understandable that Vodafone is still required to work in some of the area so
that they can perform better in future. The first target that they must try to achieve is that how
they can make their product and services from other so that they can perform better within the
market. Also, they need to ensure that the technologies which they uses will not be able to copy
in future by any of the organisation.
b) Strengths and weaknesses of organisation
Whenever organisation wants to know about their internal condition of the company then
they are required to know about their strength and weaknesses (Grover and Kohli, 2013). Some
of the strength and weaknesses of Vodafone is described below:
Strength: It is necessary for any of the organisation to know about their strength because
that can help them to achieve their targets very easily. There are number of strength which is
available in Vodafone company which is helping them to sustain in the market. The promotional
strategy is one of their major strength as their have done sponsorship in lots of area. Their
innovating technique makes them different from other which is also one of the positive sign for
the company. The way of tackling the customer is very essential for any company and in context
of Vodafone they are able to do that because they provide appropriate training to their each and
every staffs so that they can easily handle the customer to connect themselves with the company.

Even company has the policy where their main motto is to deliver the best customer services
which makes Vodafone different from other organisation.
Weaknesses: Whenever organisation works in the market for the longer period of time it
is mostly found that some of the weakness do come across due to which they are unable to grab
the market position. If company can be able to find their weaknesses, then they can easily
improve themselves and even enhance their result (Hoejmose, Brammer and Millington, 2013).
Some of the major weaknesses of Vodafone is that they are unable to utilize the fund in
appropriate manner due to which overall expenses of the company increases automatically. The
marketing team is not able to work in effective manner due to which is not able to hold their
customer for longer period of time. When it comes to research and development, it is one of the
essential thing for further growth in the market but Vodafone do lack that also. Also, training
period of staff is very lengthy and expensive due to which turnover ratio of the company is high.
In addition, Vodafone is required to focus that how they can continue working on the
area where they have better strength as compared to rivalries. Where as weaknesses will be
major area where they are required to still work because that is the only things which has been
creating problem for them. They need to introduce new plans and policies through which their
working efficiency can increase and that will directly improve the performance of a company.
TASK 3
a) Strategies to improve organisation's competitive edge
Competitive Edge
It is the situation where companies try to perform at its best to take maximum advantage
from the market so that competitors can be suffered in the market. The resources which are
required for taking competitive advantages is high skilled worker, high entry barriers and many
more. Here, organsation has the option to improve their marketing strategy to so that targets can
be achieved and for that different tools can be used by Vodafone. The major tool that can be
taken by Vodafone is Porter’s Five Forces model.

Porter’s Five Forces model on Vodafone
This is among one of those model through which organisation can easily analyze and
evaluate the competition level in the market for the purpose of operating its daily basis activity.
This model is mainly helpful in developing and making strategy and plans in efficient way due to
which company can be able to take advantage in the market (Köseoglu and et. al., 2013). This
model is even helpful to find out the factors which have the impact on daily basis business
activity. There are five things that need to be consider in this model which is explained below:
Bargaining power of supplier: It is the condition that is connected with capability of
supplier on bargaining power. Here, supplier has the option to demand higher amount of money
of the services which they provide to the customers and even there is the option where company
can demand high and supply low quality (Li and Tan, 2013). In term of Vodafone, they do have
high bargaining power in the market and for that their marketing team plays the vital role
because they help to maintain better relation in the marketplace. There are number of suppliers
available which helps Vodafone to purchase the products at very low price.
Bargaining Power of buyer: It mainly refers to the situation where buyer have the option
to demand better quality of product and services at a very cheap price. Here, most of the
company do get influenced because whenever organisation wants to deliver the services at low
price they are also required to reduce the quality but in this case they are not allowed to do so. In
case of Vodafone, buying power of their customer is very low because rivalries firm do provide
the same service at very high price. Also, company is able to deliver the best services at a
reasonable price where they provide number of offers to the customers. This is one of the reason
that company is performing well with in the market.
Threat of entry: This is the situation where organisation do have the fear of other
company who enters in the similar market. While taking about Vodafone, they do not have much
and more tension about this problem because huge amount of capital required with additional
time due to which it is not easy for anyone to enter into telecommunication industry. In short, it
is said that threat of new entry is low for Vodafone and because of that they can easily conduct
their business activities.

Threats of substitutes: It is one of the most difficult situation for any of the company
because there are number of association available which can provide better services in the
market. Here, similar nature of product can create lots of problem and issue for firm. In context
of Vodafone, there are numbers of companies within United Kingdom which is dealing in the
same market which is one of the problem for company because if other can be able to provide the
same services at a low price then it will be easy for customer to switch to another company
(Maté, Trujillo and Mylopoulos, 2012). As, company is able to deliver the best services at a
reasonable price it will not be easy for customer to have a look at alternates. The threats of
substitutes is high for Vodafone as there number of similar company which can provide better
service.
Competitive Rivalries: It is among one of the most important factor because it helps to
find out the strength and weaknesses of rivalries firm from which company can be able to
prepare their plans and policies. It is one those strategies which helps to take competitive
advantage in the market. In context of Vodafone, there are number of telecommunication
companies in UK such as EE, O2 and many more which is working in the same market but
Vodafone is able to know their strength and weaknesses due to which they are able to sustain
themselves in the market.
TASK 4
a) Strategic Management Plan for organisation
Strategic Management Plan (SMP) is one of the way through which communication process
becomes easier where organisation is capable of setting the priorities and focus on energy. It tries
to ensure that company and their employees are working in the same direction in order to achieve
their targets and goals (Murthy, 2012). There are number of tools that can be used in SMP and
among them Vodafone also uses one of them so that results can be found and achieved. Below,
Bowman’s strategic clock is explained which will help to clear the doubts.
Bowman's Strategic Clock
It is among one of the model which is used for finding the strategic position through
which company can know that how they are required to give tough competition in the market so
that advantage can be taken. There are altogether eight different position in this model which has
been explained below:

Low price and low Value Added: The price which is charged in this is not suitable for
Vodafone because prices which is charged is very less and even value added is also low.
Low Price: If Vodafone wants to take competitive advantage within the market they are
required to charge very less amount of price for the services which they are delivering to the
customers.
Hybrid: It is known as the mixture of low price and product differentiation. It is one of
the strategy which can be adopted by Vodafone for taking advantage in the market (Scholes,
2015).
Differentiation: The main target of this position is to find that how they can deliver the
best services to their customers. Here, Vodafone has the option that their brand image can help
them to take advantage in the market.
Focused Differentiation: Here, product and services are delivered at a very high price
because company only focuses on delivering the best services to its customers. If Vodafone
wants to increase their overall profit margin, then they can use this strategy.
Risky High Margins: It is one of the strategy which can backfire the company because
high prices are demanded and there is not surety that every time customer will pay for it.
Vodafone should be careful regarding this thing.
Monopoly Pricing: If there is the single supplier then only is possible to play with
monopoly else it is not that easy to do monopoly. In context of Vodafone, they will not be able to
do monopoly pricing the market (Verbeke, 2013).
Loss of Market Share: It is disaster for the company because similar company charges
the high amount of money for the similar product and services.
In short, Vodafone should try to adopt Hybrid position for their company if they want to
perform better in the market. Here, they will have the option to perform as per the situation of
market due to which their productivity will not be affected and even desire goal will also be
achieved.

Porter generic strategies
It is a strategy adopted by business to gain competitive advantage in comparison to its
competitors. This is used to identify the firms relative position in the industry In reference to
Vodafone, the company should adopt this to know the overall strength of the company and to
determine whether the firms profitability is above or below the industry average. It can focus on
three factors such as cost-leadership,focus and differentiation.
Cost-leadership :This generic strategy calls for being low cost producer. If Vodafone
adopt this strategy they can cover the large market share by keeping prices below the average
industry prices. So that they company can enhance its working by proper utilisation of all those
scare resource and leads towards the growth by beating its competitors.
Focus : This strategy of porter generic mainly focuses on niche markets and fosters cost
leadership in the targeted market segment . If the company, Vodafone focuses on covering the
narrow market segment at first they can become the leader of market by gaining the competitive
advantages and can further shift at covering the large market share.
Differentiation : This strategy focuses on diversification, innovation and uniqueness of
products. Vodafone can adopt this strategy and cover large share in the targeted segments by
providing unique products and services demanded by customers through which the customer
base loyalty and customer retention will be maintained.
CONCLUSION
It is concluded from the file that business strategy has a huge role in context of any of the
organisation because it tells that how company deal in the market for enhancing their business. It
is helpful during the evaluation of internal and external factor so that competition can be given in
the market. PESTLE can help to know that external factor that can affect the organisation were
as SWOT does it for internal factor. There are other models also which is helpful for company to
take any of the business decisions.

REFERENCES
Books and Journals
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Bharadwaj, A. and et. al., 2013. Digital business strategy: toward a next generation of
insights. MIS quarterly. pp.471-482.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
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Drnevich, P. L. and Croson, D. C., 2013. Information technology and business-level strategy:
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Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision. 51(7).
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Grover, V. and Kohli, R., 2013. Revealing your hand: caveats in implementing digital business
strategy. Mis Quarterly, pp.655-662.
Hoejmose, S., Brammer, S. and Millington, A., 2013. An empirical examination of the
relationship between business strategy and socially responsible supply chain
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Köseoglu, M. A. and et. al., 2013. Linkages among business strategy, uncertainty and
performance in the hospitality industry: Evidence from an emerging
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Li, Y. and Tan, C. H., 2013. Matching business strategy and CIO characteristics: The impact on
organizational performance. Journal of Business Research. 66(2). pp.248-259.
Maté, A., Trujillo, J. and Mylopoulos, J., 2012, November. Conceptualizing and specifying key
performance indicators in business strategy models. In Proceedings of the 2012
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IBM Corp..
Murthy, V. P., 2012. Integrating corporate sustainability and strategy for business
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Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
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Online
PESTEL Analysis of Telecommunication Industry. 2018. [Online]. Available through:
<https://www.bestessayservices.com/blog/pestel-analysis-of-telecommunication-
industry/>.
PESTLE Analysis of the Telecommunication Industry. 2019. [Online]. Available through:
<https://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/>.
STRATEGIC CAPABILITIES. 2019. [Online]. Available through:
<https://managingresearchlibrary.org/glossary/strategic-capabilities>.