Business Strategy of Vodafone: A Comprehensive Analysis

Business Strategy of Vodafone

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
The External Environment of Vodafone..........................................................................................4
Critical Analysis of macro environment (P1, M1)..........................................................................4
Task 2...............................................................................................................................................9
The internal environment and organization capabilities..................................................................9
iii. Critical Evaluation of Strength and Weakness of Vodafone (P2, M2)....................................10
Task 3.............................................................................................................................................12
Analyzing the telecommunication sector.......................................................................................12
(P3, M3) Porter’s Five Forces Analysis........................................................................................12
Task 4.............................................................................................................................................13
Understanding and Interpretation of Strategic Direction of Vodafone (P4, M4)..........................13
Conclusion.....................................................................................................................................15
Reference list.................................................................................................................................16

Introduction
The term telecommunication can be defined as the process of communication over distance that
can be conducted through the use of cable, telephone, telegraph and broadcasting etc. Mobile
telecommunication is a rapidly growing industry it is growing up into the worldwide market. In
the UK market majority of the people uses smart phones. According to the case scenario, 53% of
the 16-75years old users use their smart phones which stand for around 22 million people. In the
UK market different brands are providing the telecommunication services like EE, Vodafone,
O2, Giff-gaff, Virgin, Three and BT etc. In this particular context Vodafone has been chosen by
the learner because of its high number of customer base, extensive level of expansion which has
created a keen interest in the learner to analyses the strategic approaches of Vodafone.
In this particular context, the external environment of Vodafone has been analysed by using
PESTEL analysis model and Ansoff’s matrix that will provide the data about the impact of
different factors on Vodafone Company like political, economical, social, technological,
environmental and legal. Again in the next section the strength and weakness of the chosen
organization has been analysed. In the critical evaluation of the internal environmental factors it
is necessary to understand the strategic capabilities of the organization for which VRIO model
has been used. In the third section of this context, the analysis of the telecommunication sector
has been done based on the Porter’s Five Forces analysis. The last section of this context has
focused on the interpretation of the strategic management plan of Vodafone that indicates both
the tangible and tactical strategic priorities and objectives.

Task 1
The External Environment of Vodafone
To understand the environmental influence on an organization, it is important to analyze both its
external and internal environmental factors (Battistella, 2014). A critical evaluation of the
microenvironment can be done through the use of PESTEL model that highly focuses on the
influential impact of political, economical, social, technological, environmental and legal factors
on an organization (Olle and Cai, 2014). This model is specifically used to analyze the external
marketing environment of the organization and the result of this analysis helps to understand the
strength and weakness analysis (Dudovskiy, 2018).
On the other hand, the Ansoff’s growth matrix helps in analyzing the risk factors that are
associated with the applied strategies used by the organization.
In this particular context both the PESTEL model and the Ansoff’s growth vector matrix have
been used for critically analysed the external environment or the macro environment of the
organization.
Critical Analysis of macro environment (P1, M1)
i. PESTEL Model of Environmental Analysis
Figure 1: PESTEL Model for external environment analysis
(Source: Dudovskiy, 2018)