Business Strategy Report

This report analyzes Vodafone's business strategy, examining the influence of macro-environmental factors, internal capabilities, and competitive positioning. It utilizes frameworks like Porter's Five Forces and Bowman's Strategy Clock to assess Vodafone's strengths, weaknesses, and strategic options for improving market position and achieving sustainable growth. Desklib provides past papers and solved assignments for students.

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysing the influence of macro environmental factors.................................................1
M1 Critical analysis of macro environmental factors............................................................4
TASK 2............................................................................................................................................4
P2 Assessing the internal capabilities of Vodafone...............................................................4
1. Strategic capability of Vodafone........................................................................................4
2. Applying the VRIO model for analysing the strategic capabilities of Vodafone...............5
3. Strengths and weakness of Vodafone.................................................................................6
M2 Critically evaluation of strengths and weakness .............................................................7
TASK 3............................................................................................................................................7
P3 Evaluating the competitiveness of Vodafone....................................................................7
M3 Devising appropriate strategies for improving market position......................................9
TASK 4............................................................................................................................................9
P4 Analyze the strategic and options available for Vodafone. ..............................................9
M4.........................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is considered is a plan that an organisation can imply in order to
achieve all the objectives and targets in an efficient and appropriate way (Grant, 2016). It can be
classified as a combination of all the techniques, tactics etc. that can actually help in speeding the
overall rate of the processes and operations. Involving an appropriate set of business strategies
can actually help the organisation to achieve a competitive advantage and thus achieving a higher
rate of productivity as well. The report is about analysing the impact of the macro environmental
factors on Vodafone. A proper analysis has also been made on the strategic capabilities using a
proper framework. The competitiveness of Vodafone can also be discussed using a proper
framework. The strategic direction of Vodafone along with a proper strategic management plan
have also been included in the report.
TASK 1
P1 Analysing the influence of macro environmental factors
Macro environmental factors also play a huge role in defining the objectives of
Vodafone, so these throw an influence on the processes as well. Discussing the factors with their
impact as below :
Political
Political factors play a major role in influencing the operations of an organisation. So, in
Vodafone as well, various political factors can throw an influence. Some well known and basic
examples of this can be termed as trade regulations, taxations, risks of invasion, tariffs etc. It
means if Vodafone expands in some new area, they have to follow all the rules and legislations
of that particular state. Whether it is about the tariffs or about the tax amount, they have to ensure
making their policies on that basis only. So, it can vary on the rules and regulations of different
states etc. Therefore, by these ways, political factors can actually throw an influence on the
processes and operations.
Economical
Economic factors involves various factors that are associated with the overall rate of
processing such as inflation rate, GDP, interest rate etc. It means if Vodafone expand in more
countries and areas, it will surely help in increasing the inflation rate of Vodafone. Also, some
aspects may have an impact on the expansion such as labour costs, education rate there, skills
etc. So, the macro environmental factors that can be considered here is the inflation rate etc.
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whereas the micro environmental factors can be termed as spending rate of consumer. It is
because if Vodafone focuses on keeping the range affordable enough, there is a higher possibility
that more consumers will tend to buy the products, thus increasing their overall productivity rate
as well. Therefore, by these ways, economic factors can throw an impact on the processing of the
products and services.
Social factors
Social factors can also throw an impact on the processes and operations of Vodafone. The
behavioural factors can also be included in the category of social factor. Some other well known
examples can be termed as culture, interests of individuals etc. There are various competitors of
Vodafone PLC and they are also making involvement of various new strategies and factors in
order to meet the requirements of the people. So, Vodafone can also make sure to involve a
range of factors that can be efficient enough to cope with the requirements and needs according
to the new, changed and advanced patterns (Rothaermel, 2015). This will help Vodafone to
satisfy their requirements and needs at a much faster rate. Modifying preferences as per the
requirements of the people can help Vodafone to achieve all the outcomes and targets at much
faster rate because involving the products and services according to the requirements of the
customers can act as a very efficient tool to attract the customers.
Technological
As it is obvious that Vodafone is one of the leading mobile operators, so there are various
rivals of Vodafone as well. They are making involvement of enormous number of ways and
techniques that can prove beneficial enough in attracting the interest of the customers. So, their
competitors have involved various technologies in order to achieve the competitiveness in the
market. So, Vodafone can also make sure to involve some of these technologies so that they can
be able to cope with the competitors in the market place and also can be able to achieve their
objectives and targets. It is because there are various factors associated with it such as speed,
data rate etc. Customers have a higher focus on these factors because there has been various
advancements in the technological sectors these days. So, Vodafone should ensure developing
new and advanced technological features so that they can be able to cope with the current needs
and requirements of the people. This will also help Vodafone to gain a higher rate of satisfied
customers, thus an increased rate of popularity as well as productivity. Involvement of the latest
trends in Vodafone can prove very beneficial for Vodafone.
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Legal
The legal factors may include various different aspects such as copyright, employment,
security etc. It is important enough because while expanding in some other country or area,
Vodafone should ensure the policies and legislations properly because these can actually impact
the functions. These factors may include the employment rights, data security, equality laws etc.
(Teece, Peteraf and Leih, 2016). It is because Vodafone should ensure following the policies
such as maintaining the security concerns and also make sure to tell the rights of the employees
to them such as total working hours, wages etc. It is because if in case, it has been found that
Vodafone is not following the regulations of the specific country, they may have to pay a huge
amount of penalty and also, their license there can also be cancelled. So, in this case, it is very
important that Vodafone should ensure following all these rules and legislations.
Environmental
Environmental factors may include climatic changes etc. A very well known and
common example of this can be termed as the factor that if in case of climatic changes, the
Vodafone should ensure that they are delivering a proper connectivity even in case of wind or
rain as well because at such peak times, there is often this issue that the customers do not be able
to talk and use internet properly and this causes disappointment in the customers. The rivals and
the competitors often try to make involvement of factors so that they can be able to provide an
efficient network service to the customers. So, for coping with this issue, Vodafone can also
ensure to provide their customers an efficiency in their network rate even if there are some
climatic or weather changes.
Also, Ans off's growth matrix can be used to make an appropriate analysis of the strategic
positioning of Vodafone and these are discussed as under :
Market development
Vodafone can ensure to expand their services in various other countries because there is a
wide demand of efficient services of mobile network. BY involving a variety of sales channels,
Vodafone can also focus on the same.
Diversification
Although diversification is considered as a quite complicated strategy because this is
quite risky but it can also help Vodafone to achieve a higher rate of economic stability so
Vodafone can also ensure to implement the same for achieving all the objectives and targets.
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Market Penetration
Vodafone can also implement market penetration by various means such as implementing
a loyalty scheme, by involving a variety of offers and discounts for customers etc. so that the
customers can get satisfied on a higher extent. It can term efficient because this will help
Vodafone to gain a wide range of satisfied customers.
Product development
In this phase, Vodafone can either create new products according to the interests of the
customers or can also make modifications in their already existing products. For this, they can
take feedbacks from the customers whether what changes they want to be included in the
products so that their requirements can be fulfilled. This can also prove beneficial enough for
Vodafone in achieve higher productivity.
M1 Critical analysis of macro environmental factors
Macro environmental factors can throw an impact as because of political changes
Vodafone may have to make modifications in their policies etc. Also, as the technological
requirements have been increasing as well. So, Vodafone can also ensure bringing up required
technological factors that can cope with the requirements of the customers. Also, Vodafone can
ensure involving all the environmental factors so that the customers do not have to face
challenges or barriers while using the network. This will help Vodafone in gaining the trust of
the customers.
TASK 2
P2 Assessing the internal capabilities of Vodafone
1. Strategic capability of Vodafone
Strategic capability can be considered as the ability of Vodafone to make involvement of
ways and techniques that can help them to achieve a higher rate of competitiveness and also will
help in maintaining that for an efficient amount of time (Teece, Peteraf and Leih, 2016). There
are some aspects of strategic capabilities that needs to be considered by Vodafone and these
involve change, complexity, culture etc. So, Vodafone can ensure all these factors in order to
achieve a higher rate of strategic capability that can help their business operations to achieve a
higher rate of success and also will help in maintaining the competitiveness to cope with
different complex and complicated measures of the market place. Strategic capability is
considered as one of the major aspect of an organisation. For maintaining an appropriate rate of
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strategic capability, Vodafone can ensure to involve a set of strategies, ways and techniques that
can prove beneficial for Vodafone to cope with different strategies of the competitors in the
market place. So, it can actually help Vodafone to achieve all their targets and goals at much
faster time.
2. Applying the VRIO model for analysing the strategic capabilities of Vodafone
VRIO model can be considered as a framework that can help in analysing the resources
and services of Vodafone in a way that whether they are capable enough to help the company to
achieve competitive advantage or not. After the analysis has been made, if any elements have
been found that may act as a challenge or barrier for a better functioning of the company, then
the same can be replaced by Vodafone as soon as possible so that the company can have a
suitable range of factors that can only tend towards achieving the targets. Discussing different
aspects of VRIO as under :
Value
Vodafone can ensure that the resources they have involved and are using are valuable
enough or not. It means here they can check that their products and services are capable enough
of completing the requirements of the customers or not (Akter, Wamba and Childe, 2016). If
they are acting capable enough that the needs of the customers are being fulfilled, in that case, it
can be termed that their products and services are valuable enough to help Vodafone to achieve
an efficient competitive advantage.
Rare
Also, being rare is another essential aspect. Vodafone can ensure that they make
involvement of some products or services that are rare. It means it should be quite different from
the other mobile operators because something different from the other network operators and
competitors, can act capable enough to gain the interest of the customers. So, this can attract a
wide range of customers. So, Vodafone can ensure involving some rare products or services so
that it will help company to achieve the competitive advantage to cope with the competitors in
the market place.
Imitable
This can also be termed as an effective source but is classified as quite temporary. It
means that Vodafone should involve the processing of the operations in a way that for other
competitors, it can be quite hard to imitate the same. This can guarantee Vodafone that their
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resources etc. are not being easy enough to get copied etc. This can be considered temporary but
can provide some sort of benefits to the company.
Organisation
It is very important that all the resources including the products and services of Vodafone
have been managed in a way that it can act capable enough to achieve all the objectives and
targets. So, all the specific arrangements and procedures that have been made by Vodafone and
are using can be analysed in this phase that they are managed in a way that it can be able enough
to cope with the current requirements of the market place.
3. Strengths and weakness of Vodafone
AS there are various factors that can be considered as strengths of Vodafone but on the
other side, there are some weaknesses as well. Both are discussed as under :
Strengths
 Vodafone has a wide market coverage as it is one of the leading companies of the world
dealing with enormous number of processes dealing with the factors and operations in
order to satisfy the requirements and needs of the customers (Wheelen, Hunger and
Bamford, 2017). That is the reason, a wide range of the customers are satisfied with the
operations of the company. Therefore, because of many satisfied customers, Vodafone
has been successfully covered a massive coverage.
 As per the statistics as well, Vodafone has achieved a higher rate of revenues, which
means increasing the popularity of the brand along with the overall ranking. This also
maximizes the rate of expectations of the customers and Vodafone has been successful
enough in satisfying their requirements and needs. This can also be considered as a
strengthening factor of the same. To cope with the market penetration rate from the competitors, Vodafone is also focusing
as by making differentiations in their strategies so that their customers do not have to face
any issue. As various mobile operators for getting the attraction of the customers are
making changes in their plans, so Vodafone is also active enough to make changes in a
way that they can be able to satisfy their customers. So, this can also be termed as one of
the strength of Vodafone that it focuses on maintaining the satisfaction rate of the
customers by making changes in plans and strategies according to the present
requirements and needs.
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Weaknesses
 One of the major weakness of Vodafone is that the competition is increasing day by day
and that too at a higher rate, so this is somewhere affecting the operations of Vodafone.
Although they are active enough in making modifications in their strategies and plans but
this also slows down the overall processing. Changing the strategies and making
modifications needs some time and doing it on a regular basis can actually slow down the
processing rate (Teece, Peteraf and Leih, 2016). Thus, this can be termed as a weakness
of the same.
 Vodafone has been expanded in enormous number of countries, but some countries are
facing economic issues and this has thrown a huge impact on the operations of Vodafone
there. It is because this has lowered the overall rate of customers in these areas or
countries. Thus, it has minimized the overall rate of productivity of Vodafone, so this can
be termed as a weak factor of Vodafone.
M2 Critically evaluation of strengths and weakness
As the competitors of Vodafone are including various ways to achieve customer
satisfaction such as changing strategies and making changes in plans etc., Vodafone is also
ensuring to stay active enough but this can throw an impact on the overall speed and rate of the
operations. Therefore, making effective strategies can help Vodafone to have an increased rate of
productivity and popularity as well.
TASK 3
P3 Evaluating the competitiveness of Vodafone
The competitiveness of Vodafone can be easily analysed using the Porter's five force
model and the aspects are discussed as under :
Bargaining power of buyers
It is obvious enough that there is a very huge amount of competition in the market, so
because of this, the overall bargaining power of the buyers have been increased on a higher
extent. Also, this can reduce the rate as well (Helfat and Peteraf, 2015). But as Vodafone delivers
an efficient quality of services, so this has helped Vodafone to make higher rate of profits as
compared to its rivals and competitors.
Bargaining power of suppliers
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The bargaining power of suppliers depends on a variety of factors. The more number of
suppliers, less is the bargaining power but a less number of suppliers makes a large bargaining
power of the suppliers. It is because this is obvious when the suppliers will be low, they will be
in demand, so the company have to accept their bargaining rate in order to process their
operations. Vodafone is one of the leading mobile network operators, so for them, it is easy
enough for Vodafone to achieve a lower bargaining rate from suppliers, thus it helps them in
making higher profits.
Threats of new entrants
As there is a wide competition in the telecommunication industry, so there are various
brands that are trying to enter in this industry by getting involved in providing network services
to the customers. Therefore, the entry of new entrants can attract customers as well. Therefore,
this can also act as a sort of threat to Vodafone because a large number of customers having
interest in the operations of new entrants can decrease the productivity of Vodafone. So,
Vodafone can ensure involving preventive measures, strategies to cope with the same.
Threat of substitutes
Often the competitors can involve the strategy of making products that can act as the
substitute of the products that are being served by Vodafone. This can be a strategy of the
competitors to gain the attention of the customers (Johnson, 2016). So, this can also throw an
impact on the customer base of Vodafone. Therefore, Vodafone can ensure to make involvement
of the processes in a way that the rivals cannot be able to imitate the same. This can help
Vodafone to stay prevented from any sort of threat from the substitutes of their products or
services by the competitors.
Rivalry within the market
Vodafone is considered as one of the leading companies in the market that has an
excellent structure for providing mobile network services to a wide range of customers. So, this
has developed a wide range of competitors as well. So, there is a possibility that the competitors
can make involvement of some strategies and ways so that they can put down the status of
Vodafone to a higher rate. Therefore, Vodafone can ensure to develop a wide range of strategies
and ways so that they can be able enough to deal with the competitive factors of the rivals in
order to cope with their strategies and techniques in the market place. This can help Vodafone to
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maintain an efficient rate of competitive advantage, thus having an increased rate of popularity
as well as productivity.
M3 Devising appropriate strategies for improving market position
Vodafone can ensure involving understanding the needs and requirements of the
customers so that they can process on the basis of that. This will prove beneficial enough in
achieving the satisfaction rate of the customers. Also, they can involve an efficient set of
strategies and ways so that they can easily and efficiently deal with the competitive factors and
strategies from the competitors end in the market place. This can further help Vodafone in
improving the overall competitive edge along with the market position as well.
TASK 4
P4 Analyze the strategic and options available for Vodafone.
Strategic planning is the process that helps to define the productive strategic making
performance and better objectives and goals. This also helps to manage the strategic position of
the company in the market (Bentley-Goode And et.al., 2017). It helps to implement the resources
in better manner. It is necessary for all the organizations that are working into industry and
implementing all resources into more efficient manner. This is essential for every organization to
implement all required resources such as finance, human resource to be implemented into proper
manner. There are different models and strategies which could be used by the company that
helps them to get better resources and most advantageous growth in the market. Porters 5 forces
and Bowman’s strategy clock model are some of the examples. There are explaining the model
of Bowman’s to make the better strategic position for Vodafone.
Bowman’s strategy clock model:
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Illustration: Bowman’s Strategy Clock Model
[Source: Bowman's Strategy Clock Model, 2018]
This model of Bowman’s are refers to the strategic decision making approach. That helps to
compare the product and services with the competitors. Under this major strategies of Porter’s
been elaborated so that these could be used into comparison with others into same markets (Chen
and Jermias, 2014). Under this model it explains the 8 possible and important strategies that are
divided into 4 quadrants stating to as price and perceived value. This model clears the vision or
helps to analyze the completive advantage of any company. Here are the explanations of the
eight models
Position 1: In this first model of the Bowman’s strategies is that under which company which
added low value to the services and sell them into low prices. Vodafone would never want to
come up with this position and getting low prices (Dessart, 2018). Apart from that, this situation
might be come out when they are putting effective cost selling volume and attracting more
number of customers.
Position 2: Low Price: this is the again situation in which company adopt low prices due to cost
and having low profit margins in the business. For overcome from this situation Vodafone
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increase their sells volume which helps to maintain the profit margin growth. This position might
be given high market growth to the companies.
Position 3: Hybrid (Moderate price and moderate differentiation): this situation is majorly a
very important situation into the life of company on which they are selling low priced products
and situation. Under which prices are to be low but value or quality of the services are high.
Vodafone incorporating this strategy when it possible that they are give some offers and
discounts for maintaining the same quality and image (Du Plessis and et.al., 2015).
Position 4: Differentiation: it is the most required and important for company to adopt the
differentiation among product and services. This gives company uniqueness in their services.
Like now Vodafone company also connects network in TV as well as a Broadband service. Apart
from that, this also provides various services for their potential customers.
Position 5: Focused different ion: it is another model that having value with higher price of
those product of company. Those products are most core products for the company; those
products are generally easily affordable for the customers. This situation has occurred when
company growing very good market position in the market (Du Plessis and et.al., 2015). Those
products are the main products of the company.
Position 6: Increased price and standard product: this is the strategic when company without
adding new value or any kind of new product and services still they high the prices. Company
needs to be very careful while raising the pricing of the product and services. This might be
would affect on the customers of the products. Vodafone raising their prices of the products
without increasing any product quality or feature having fear of market failure.
Position 7: High Price and low value: this situation occurred when market facing the situation
of monopoly into the market. If the company having high price which could be providing low
value of customers. At the time of monopoly Situation Company has chance to take the high
advantage from the market and dominating the market with their high quality of services and
products. Under this market position company facing low customer attraction and having low
profit margin as well.
Position 8: Low value and standard price: in this policy of time period any of the company who
would get this strategy and making good services and growth. Apart from that, it would also
need to perform good task oriented work and services. But if this strategy adopted by the
Vodafone. They would definitely get low market value and low productivity level of growth
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(times new roman). Apart from that, it also applying the best approachable services and growth
in order to meet the needs of the organization.
M4
Vodafone Company can use any of the strategy for gaining the market position. It helps
to gaining the competitive advantage over the others into market place. It is required for the
company to acquire strategic management plan through which they can get better market or
customer satisfaction. It is required to be essential that they are using strategic management plan
through which they are been able to provide more clear insights of their competitors and
customers.
CONCLUSION
From the above section it can be concluded that, overall assignment based on the
business strategies and approaches for gaining competitive advantage. For that, Vodafone
company has been taken into consider. Moreover, present study covered all important aspects of
the business strategies and growth in the market. To present or maintaining the good growth
study also explains the strategy of Porter’s five forces model that helps to take the corrective
action plan and better objectives and growth. To analyze the won competetence level SWOT
analysis model also used by the study.
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REFERENCES
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Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
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