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Business Strategy of Vodafone : Assignment
14 Pages4150 Words546 Views
Added on 2020-07-23
Business Strategy of Vodafone : Assignment
Added on 2020-07-23
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Business strategy of Vodafone1
Table of ContentsIntroduction......................................................................................................................................4Task 1 the external environment......................................................................................................41.1 PESTLE model for environmental analysis...........................................................................4Task 1.2 Ansoff’s growth vector matrix to analyze the organization’s strategic positioning.....5Task 2 The internal environment and organisation capabilities......................................................6Explain what strategic capability means......................................................................................62.2 Apply the ‘VRIO/VRIN’ model to determine the strategic capabilities possessed byVodafone......................................................................................................................................72.3 Identify the organization’s strengths and weaknesses...........................................................8Task 3 evaluate the competitiveness of UK’s telecommunications sector using Porter’s fiveforces model.....................................................................................................................................9Task 4 Using Bowman’s strategy clock model, analyses the strategic direction and optionsavailable for Vodafone..................................................................................................................10Conclusion.....................................................................................................................................12References......................................................................................................................................142
Introduction Business strategy can be defined as the summary of how the firm will attain the goals followedby meeting up the expectations of consumers so that competitive advantage can be gained in themarket place (Oates, 2017). In this respect, it is very essential to define the business strategy in aclear manner else it will be impossible for the firm to attain growth followed by inability toachieve personal goals as set by the entrepreneur (Rashidirad and et.al., 2017). The present studyhas thus laid emphasis on the business strategy of Vodafone which is a part oftelecommunication sector within UK. Focus of the study will thus be on assessing the external aswell as internal environment followed by the organizational capabilities. There will further be anapplication of Porters five forces model followed by devising appropriate strategies to improvethe competitive position of the firm. Task 1 the external environment1.1 PESTLE model for environmental analysisPolitical Factors – The operations of Vodafone within UK has been affected by large number ofpolitical factors. One such is the brexit crisis which may put an impact if UK leaves EuropeanUnion. Its international employees at UK based headquarters may plan to leave the company aswell. A recent policy reform by UK telecoms regulator being Ofcom announced a three timeshike in license fees paid by mobile operators which may impact the overall costing of Vodafonein a negative manner (Martin, 2015). The government has also placed stringent regulations onaccount of limitations in frequency and usage of spectrum. The policies with respect to networkaccess facilities like Base Transmitter Stations (BTS) is also required to be taken care by thecompany (Arora and et.al., 2017).Economic - Statistics suggest that in terms of GDP growth, UK has grown at a faster rate in lastthree months of 2017 in spite of Brexit crisis. Hence it is a win situation for the company as therewill be no decrease in sales figures. However the disposable income in the hands of people is thelowest since 1970s which is not a positive sign for Vodafone (Bruce, 2017). The economicfactors of UK such as recession, tax and interest rate etc. also affect the operation of Vodafone asit is a high investment business and a large amount of resource is required to be dedicated forupgrading of infrastructure. 3
Technology - Vodafone is required to be in tune with technology by improving infrastructurefacilities as well as tackling the issues related to poor signal and coverage. This is likely to addhuge cost for the company in the coming times. On a positive front, Vodafone has alwaysfollowed the latest trends in technology and has been able to woo people towards its serviceswhich are a good sign (Al-Debei, Al-Lozi and Al-Hujran, 2015). Other than this, technology isalso being followed in mobile for instance invention of iPhone, android as well as Symbianarchitectures has put an impact on the use of older generation phones thereby prompting themanufacturers to adapt with new technology. Social – the operations of Vodafone within UK are most likely to get benefit in the coming years.This is as 92 percent of the adults will have a smartphone in the next five years (Beynon‐Davies, Jones and White, 2016).Environmental – Consumers in present times favor those brands that are socially responsible andwork for overall betterment of society. This is required to be adhered by Vodafone in all possibleaccords. Legal – Vodafone has been facing many legal issues that have affected the overall image of thecompany. These are in form of fine of 4.6 million pounds by Ofcom for not handling consumercomplaints and providing poor services; providing inaccurate bills to consumers; issue ofdisconnected phone call as well as overcharging for upgrades. These are required to be rectifiedby the company soon if it is able to maintain its overall sustainability in UK telecom market(Clarke, Li, and Xu, 2016). There is also a regulation with respect to prohibiting the use ofmobile phones will driving which puts an impact on network usage thereby affecting the revenuefigures of Vodafone within UK. Environment – Vodafone is required to adhere with recycling aspect during the process ofproduct manufacturing. The company has thus adopted phone recycling program by which itcollects used handsets (Menychtas and et.al., 2014). Task 1.2 Ansoff’s growth vector matrix to analyze the organization’s strategic positioningThe overall strategic positioning of Vodafone in UK market can be analyzed through use ofAnsoff matrix. 4
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