Business Strategy Report

This report analyzes Vodafone's business strategy using PESTEL, SWOT, Porter's Five Forces, and Bowman's Strategic Model to understand the company's competitive environment, internal capabilities, and potential strategies for future growth.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Macro environment factors impact on Vodafone..............................................................3
M1...........................................................................................................................................6
TASK 2............................................................................................................................................6
P2 SWOT analysis..................................................................................................................6
M2...........................................................................................................................................8
TASK 3............................................................................................................................................8
P3 Porter's five model.............................................................................................................8
M3.........................................................................................................................................10
TASK 4 .........................................................................................................................................10
P4 Bowman's strategic model...............................................................................................10
M4.........................................................................................................................................12
D1.........................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is a bunch of action and moves that organisation used in competitive
environment, it helps to attract people. Firm used strategies to achieve business goals and
objectives which increase their position in marketplace against its competitors. It is the set of
judgement which help businessman in achieving aims of business goals. Strategy is used for
managing the overall process of management in competitive conditions (Spender, 2014).
Different types of strategies used according to situations which company has to faced in their
business performance.
It increases profitability and productivity in firm, that impact on their business activity.
Vodafone is a British telecommunication company, which is founded in 1982. It established its
headquarter in UK. They provide its best communication services to people, so many customers
are connected with the organisation.
It was the biggest telephone company in the world, 500 million link and across 27
countries clients are linked with them. According to the report it explains the impact of external
factors on business strategy. It defines the various theories that can help in strategic planning
process for organisation. It will also use SWOT to understand the strength and weaknesses about
them.
TASK 1
P1 Macro environment factors impact on Vodafone
Vodafone is one of the best telecom operator organisation in the world. Thus, under this
pressure they need to developed its strategy to beat its competitors in business world within same
services. They want to grow up their internet speed services in UK or other countries. Macro
factors affect their business productivity and strategy (Klauer, 2015). These factors are related
with economic conditions and situations that impact on organisation process of making plans and
strategies by the mangers or leaders. It can have a huge effect on operating strategies and
profitability of Vodafone. PESTEL analysis of company:
11 Political factors: political element impact on firm productivity and growth. This factor
includes the government and trading policies, political and election trends, changes in
government terms etc. Thus, its instability and stability affect Vodafone and its business
strategy. EU roaming regulation is the main political element that impact on company
strategy or plans. According to this rule they decrease 70% roaming charges on calling in

abroad, which attract more customers towards its services. It helps in increasing clients
level more than its competitors in marketplace. Political factor play there role in
determining the element which affect organisation growth and success for long term.
Stability can help in making business profitability, according to this activity by
government, firm can run their performance in production of Wireless communication
services successfully. Thus, making policies by political elements company can work
within legal frameworks as well as they can apply it on their employees or employers.
Instability also make negative impact on business functions of management.
Vodafone need to make their strategies according to the law rules and policies. Company
need to follow legal process made by the government.11 Economic Factors: It includes factors, inflation rate, foreign exchange price and
economic structure which is based on demand and requirement of customers (Song, Sun,
and Jin, 2017). In business world there are many new companies get established its
business within same services that Vodafone has. It will increase the level of competition
in marketplace, economic element impact on overall activity of production of services.
This can impact on firm strategy directly. Vodafone need to supply their services on time
these will affect its business. But on the other side customers increasing demands impact
on their production activity.

Sources: Vodafone Group Plc PESTEL & Environment Analysis. 201811 Social factors: these factors are base on people values, beliefs and their culture. There
are many people who are not interested in using internet or other social sites. Thus, for
this company made their service for those people who need to used social website, this
will impact on Vodafone productivity and profitability. They need to create goods
according to the preference of customers.11 Technological factors: technology impact on business activity and functions. Vodafone
used different techniques and technology which provide customer better satisfaction.
Company need to identify market competitors and market environment to understand
which type of technology can increase its profit in business. Customers need new
techniques that help in communicating with other people's everywhere in the whole
world. So for that company also make changes in making strategies decisions.11 Environmental factors: Environment factors affect Vodafone productivity because of the
changes in environment make barriers in the supply process of internet services. Climate
changes and other activity impact on company growth and profit.
Illustration 1: PESTEL analysis

11 Legal factors: legal factors is based on government policies and rules. Changes in their
policy impact Vodafone work performance in marketplace. Anti trust law made by
government affect their wireless communication service. Company should focused and
measure market before they get started their business against to its competitors. Vodafone
need to follow all the legal processors make by the government. It will impact on its
business strategies which they need to change according to it.
M1
Social and technological factors impact on Vodafone profitability and its business
strategy. Changes in both factors affect the overall process of making decision of achieving firm
objectives and goals. It impacts on negative and positive both sides on organisation. That can
increase or decrease its productivity and services to customers. Marco environment include
political, social, technological, environmental etc. factors which impact on strategic management
department, they need to make their plans and strategies according to the changes which increse
Vodafone profit margin.
TASK 2
P2 SWOT analysis
To
Line Manager Vodafone
Date: 6/12/2018
From: Assistant Manager Vodafone
Subject: analysing the strength, weakness, threat and opportunities of Vodafone.
Strength and weakness is internal factors that impact on business activity. SWOT means
strength, weaknesses, opportunity and threats of organisation (Dockalikova, and Klozikova,
2014). It helps in identifying the inside environment of company and support for improving its
weakness. It is the best way to understand the difficulty and make it better after it. Through
doing SWOT company can identify its environment to get better than now.
Strength of Vodafone: Vodafone is the world biggest telecommunication service
provider organisation. It plays important role through supplying the best internet facility to
society. There are 15000,000 employees are working in the organisation to make business more

successful than its competitors. Firm give mobile telephone, landline, digital tv program etc.
company has followed innovation culture in their production, usually they make innovation in
their services according to customers needs and demands.
Weaknesses of Vodafone: Vodafone weakness is that they do not make flexibility in its
business process because they fix their marketing management plan according to it. Company
only follow their budget margin which might be impact on their position in marketplace against
top its competitors. (Blockeel, and et.al., 2016). Thus, for this they need to make new plans for
managing future critical situation in their business.
Opportunities of Vodafone: they want to expand their online communication service
business in cellular marketplace. Innovation is the best opportunity which can attract customers
more than the other organisation have. Through provide 5G speed service they can grab the
opportunity in business world and make their position better than other organisation has like
MTNL. They need to concentrate on their business production and make it best across the
world.
Threats of Vodafone: the biggest threat of organisation is new entries in business
world. MTNL and BSNL both are its competitors, BSNL offer customers low price service in
calling or using internet facility, that impact on Vodafone profitability. According to low cost
service customer's get attract with them, and decease organisation growth in marketplace. Thus,
for saving their position in business world Vodafone need to make market research for
understanding its competitors strategies that they are using in their production in market areas.
Thus, after that organisation can make their business strategy better than other. Vodafone make
discussion with their management department and senior officer regarding making decision for
applying new plans and strategies to beat its competitor company. Sudden changes in
government law policies and rules is another threat of organisation. According to having this
changes they pressure to modified there overall management structure accordant to it.
M2
Vodafone is the largest telecom company, which run their business within many
employees in their organisation. They make many variations in their services to attract
customer's towards them, it was its biggest strength that help in raising their position higher than

BSNL. Innovation increase their capability more and more, which impact on business growth
and success. But on the other side competitive environment is their weakness.
TASK 3
P3 Porter's five model
Analysing business competition is one of the best way to determine threat and weakness
of organisation. Porter's Five model which analysis the competitors advantages.
 Competitive rivalry: this force identify the current competitive environment in
marketplace, which help for knowing the exact positions of Vodafone competitors and
their activity. Rivalry gets high when both organisations where selling same products
and services to customers. People attract towards those goods who provide good quality
within low cost. This activity can raise competition level more than now. Thus, rising
rivalry in marketplace also impact on overall business management functions. Vodafone
has increase their promotion and advertising process more than its competitors. Rivalry
is just not about the fight for market share or stock but also for profitability and growth.
Vodafone raise their standard through operating many operations in their business.
Mature market and emerging market are on side of Vodafone. They established their
name in marketplace. Organisation made their good image in business world stronger
than its competitors. British telecommunication are the competitors of Vodafone
company, both are giving tough competition to each of them in business world.
 Bargaining power of Suppliers: all the wireless communication companies buy their
service material form many suppliers. In technology filed powerful supplier use their
negotiate power to higher or raise down the rate from organisation in telecommunication
sector. Company can tackle this bargaining power through build effective supplier chain
with many suppliers. Building supply chain with providers can grow the profit in
business.

Source: Bowman's Strategic Clock (Strategic Positioning). 2018
 Bargaining power of customers: Buyers play an important role to fall and raise any
organisation. Customer is demanding a lot of things in telecommunication services.
People want to purchase the best offers which is available at lower price. Customer's
bargaining power will change the whole price structure of Vodafone. Bargaining power
of clients raise the ability to try to increase offers and discounts in telecommunication
work. Through build the huge customers base decrease the bargaining ability and also
give an opportunity to Vodafone to streamline its production and sales process. This is
the best way to tackle the people bargaining powers.
 Threat of new entrants: new entries will always bring their innovation and new ways of
completing task in wireless communication sector. This will pressurise the Vodafone
company to low their pricing plans and strategy, decreasing cost etc. . Company need to
manage all these situations and make their powerful and successful image against to this
competitive environment. Through innovation in their products and service organisation
can tackle the threat environment of new entries.
Illustration 2: Bowman's strategic model

 Threat of substitute products of services: substitute process is not be fit at all the time in
business function. Vodafone provide customer internet services but now they launched
Vodafone mobile products as well. They need to used these goods as a substitute of their
main services. They get affair for launching new things in marketplace.
M3
Porter's five force model help to understand competitors environment in marketplace.
Through making market research Vodafone can get the knowledge of new entrants and power of
customer's in bargaining in telecommunication services and products. Thus, this model helps to
improve organisation position by making new goods which reduce all over threats of people and
suppliers bargaining. They can make new strategies that improve their position and image
against to its competitors. Company provide low cost services within high quality products to the
customers which increase its profitability in business.
TASK 4
P4 Bowman's strategic model
Bowman's strategic model help to identified the competitors' strategy which they used in
competitive environment in businesses. It is the best way to collect the information about
position in marketplace (Bowman, and et.al., 2016). Vodafone can apply this model to know its
situation in business world against to its competitors. Bowman's strategic model have eight
stages that are:
 Low price and low added value: Vodafone need to build their higher position in
marketplace against to its competitors organisation. They give their telecommunication
service to customers within good quality in low price offers. Thus, this strategy attract
customers towards their products and services more than its rival. Company give low cost
service to people but with value that make them happy.
 Low price: Vodafone offers low price products to clients, which attract more people
towards their services. Customers is the base of profitability and growth. Low price will
generate the high profit through connecting with more customers. Company made plans
which is affordable in price that make people comfortable in their choice of Vodafone
service.
 Hybrid: Vodafone provide customer's low cost service within valuable quality and
different offers. They supply 5G internet services which has more speed able than 4G

services. It also helps in building strong supply connection with their customer's, that
generate organisation profitability more than other companies. It is very effective way to
make their position in business world.
 Differentiation: Vodafone used this strategy to give their best offers to people as average
cost as possible value. They wish to give their high level services to people in low cost,
which increase more customers towards the organisation facilities. They focused on
people needs and demands that they want in their goods. Vodafone is a
telecommunication company which give their good quality internet service facility to
every people in the world but with some amazing offers in affordable price, that increase
their standard in marketplace against to its rival.
 Focused differentiation: Vodafone focused the quality of internet service, they need to
concentrate over the process of providing high speed internet service including 4G and
5G. Company want to give the best and fastest internet speed experience to customer's
which any another organisation does not have it. They focused on some additional
activities like promotion of their services and products, is the best way to build good
image in society and business world. More and more people wants to buy their amazing
offers within good quality.
 Risky high margins: Vodafone provide internet service with in high charges. It is a risky
point that directly impact on its profitability and growth. In the starting time it charges
high price on internet service that decrease their customer. It was a huge risk in business
profit and success. But at the time of competition in marketplace they get low down their
services charges against to its competitors.
 Monopoly pricing: Vodafone offers their 5G service to customer's that make their
positions higher than other telecommunication organisation has because BSNL and
MTNL both does not provide 5G internet service to people. It is the monopoly of
Vodafone against to its rival in marketplace.
 Loss of market share: Vodafone is not been able to provide their services and goods that
according to people value and belief. High pricing monopoly reduce range of customer's,
which directly impact on business profit and success. It will decrease their position and
increase loss in market shares. Thus, for this they need to make new pricing structure that
help in developing their market positions better than its competitors.

M4
Vodafone make strategic management plans to build their position in marketplace against
to its rival. Through making this plan they can mange overall activity and process of low pricing
offers within good quality services. They need to make planning, give training to employees to
build strong moral and effective workforce. Vodafone making different strategic plans within
differentiation, they offer valuable services which is highly different from its competitors.
D1
Organisation used may strategies and different techniques to attract customers more than
its competitors in business world. They need to build strong relation with suppliers and
customer's that impact on increasing their profitability margin and process of production. The
main objective of Vodafone is that they need to offer low price services to their customers
according to its low added value.
CONCLUSION
It has been concluded that business strategy is very important in organisation. Through
this process company make their position in marketplace against to their business rival. There are
some models that help in improving their conditions in market. Thus, company used many
techniques that impact on their growth and profitability. Industry focused on making pricing
policies better and different to other company. Macro environment factors impact on firm
production process of firm in two ways negative and positive. Thus, analysing political, social,
technological etc. elements affect organisation business. SWOT is the best way for company to
know their strength, weaknesses, threats and opportunities. This will help in improving their
weakness and reduce their threats of new entries in business world.

REFERENCES
Books and Journals
Blockeel, C., and et.al., 2016. A fresh look at the freeze-all protocol: a SWOT analysis. Human
reproduction. 31(3). pp.491-497.
Bowman, S.R., and et.al., 2016. A fast unified model for parsing and sentence
understanding. arXiv preprint arXiv:1603.06021.
Chu, Y., 2017. SWOT analysis and Countermeasures of India market environment for domestic
mobile phone.
Dockalikova, I. and Klozikova, J., 2014, November. MCDM Methods in Practice: Determining
the Significance of PESTEL Analysis Criteria. In European Conference on
Management, Leadership & Governance (p. 418). Academic Conferences International
Limited.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review. 24(1). pp.32-45.
Ghosh, D., 2016. Promises and Performances of ICTs in Rural India: A SWOT
Analysis. International Journal of Research in Economics and Social Sciences. 6(11).
pp.154-179.
Klauer, T., 2015. Valuation of Vodafone Group.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
incineration industry in China. Renewable and Sustainable Energy Reviews. 80.
pp.276-289.
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise.
Oxford University Press.
Online
Vodafone Group Plc PESTEL & Environment Analysis. 2018.[ONLINE] Available through:
<http://fernfortuniversity.com/term-papers/pestel/nyse4/4028-vodafone-group-plc.php >
Bowman's Strategic Clock (Strategic Positioning). 2018. [ONLINE] Available through: <
https://www.tutor2u.net/business/reference/strategic-positioning-bowmans-strategy-
clock>