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Business Strategy Assignment Solved - Vodafone organisation

   

Added on  2020-10-22

18 Pages4871 Words348 Views
Business Strategy[Student Name][Student University][Author Note]

Introduction:2Background:2Company:2Market:3Task 1- The external environment:3PESTLE:3ANSOFF’s Growth Vector Matrix:5Task 2- Internal environment & Capabilities:7Strategic capability:7VRIO/VRIN model:8Strength & Weakness:10Task 3- Analysing the industry:11Porter’s five forces model:11Task 4- Strategic direction:12Bowman’s strategy clock model:12Conclusion:14References:15Appendix:161

Introduction:The high growth rate of mobile telecommunication sector in this globe has included the UKsignificantly. In this context, some major predictions of Deloitte are significant. According to theDeloitte survey, the UK smartphone users are equivalent to 22 million people including all theage groups. Moreover, the younger consumers are increasing the usage proportion significantlyand the revenue generation from this telecommunication sector is 3.8 billion pounds. Thehighly competitive structure of the market considers the future innovation practices likesensors, software connection for more integrated networking in the industrial sector (Ghezzi etal, 2015). There are some major mobile network operators and they are EE, B2, O2, Vodafone,Virgin, Giffgaff etc. Considering the business and positional challenges in the domestic andinternational markets this report has selected Vodafone for macro and microenvironmentanalysis. The first task describes the impact and influence of macro environment for Vodafoneusing PESTLE and Ansoff Vector matrix while the second task describes the internalenvironment using the definition of strategic capabilities and analysis of VRIO/VRIN model aswell as the organizational advantages and challenges. In case of the third task, thetelecommunication sector is described using Porter's five forces while the final task interpretsthe strategic direction of Vodafone using Bowman's clock model.Background:Company:According to the historical data, Vodafone is formed by the successful merging of RacalElectronics and Millicom in the year 1982. The company or telecom service provider is wellknown as the first cell caller in the UK. Although the journey of this telecom giant has started inthe year 1982 but the name Vodafone group has popularised in the year 1991. In case of UK,the major services of this company include Voda data, fax, text, Vodapage as well as Globalstar2

(satellite phone service). Apart from the 3G service in the year 2001 the company introduces‘speaking phone' service for visually challenged people. Moreover, the innovation in themarketing strategy has helped the company receive the 2010 ‘national retailer of the year' tagwith best networker tag. In case of authenticity the company has consolidated the resourceswith O2 and today it is considered as one of the top telecom service providers in the UK(Klettner et al, 2014). Apart from this, its high visibility in Europe, USA, India and Middle Eastwith major subsidiaries and joint ventures reflects the strong networking features. Its largesttelecommunication network has identified the third position in the FTSE 100 while providingservice for 40 different economies.Market:From the traditional point of view, the telecom sector used to be a state-operated industry inmajor countries. However, the recent privatization trend has changed the situation drastically.As the major service providers are either private or government shareholders, therefore, theUK telecommunication market structure has the oligopolistic attributes. That means there arelots of new companies in the market who are trying to enter the competitive environment interms of income licenses and customer attractive features (Mena et al, 2018). The merging andmarket share policies are therefore strong and innovative for the major players like Vodafone,EE, BT etc. The major market survival policies include cost-effective networking and service coststandardization. Moreover, the emerging technologies, 4G networking, sensors indicate thatreliable data plans for major operators are going to be the significant drivers of business in thefuture. Task 1- The external environment:PESTLE:This business analysis tool helps the business planning considering the external businessfactors. For Vodafone the factors are discussed below:3

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