Business Strategy Telecommunication Sector Report - Virgin group

Business strategy:
Telecommunication sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact of macro environment on Virgin and its business strategies .........................................1
PESTLE analysis.........................................................................................................................1
Ans off matrix ............................................................................................................................2
TASK 2...........................................................................................................................................3
Strategic capability......................................................................................................................3
TASK 3............................................................................................................................................5
Evaluating the competitiveness of the telecommunication sector..............................................5
TASK 4............................................................................................................................................7
Analyzing the strategic direction and options for Virgin............................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...................................................................................................................10

INTRODUCTION
Business strategy is considered as a roper and structured plan that is being made by the
company in order to achieve all the objectives in a very efficient way. It involves various
different aspects that can be involved by the company (Pucciarelli and Kaplan, 2016,
Competition and strategy in higher education: Managing complexity and uncertainty). Also,
there has been a huge demand in the mobile telecommunication sector, so various new
techniques and strategies can be adopted for achieving the competitive advantage, thus focusing
on achieving all the objectives and targets. The report is about discussing about the various
internal as well as external factors throwing an impact on the objectives of the Virgin group.
Various conceptual frameworks can be used for making a better analysis of the factors affecting
the operations in the Virgin group.
TASK 1
Impact of macro environment on Virgin and its business strategies
There has been an enormous number of macro environmental factors that throws some
sort of impact on the operations and services of Virgin. Use of PESTLE analysis can actually
help in analysing its influence on the mobile network company. The framework and its analysis
is discussed as under :
PESTLE analysis
Political factors
Political factors refers to all the policies and procedures which Virgin has to follow as
well. It can b either the rate of intervention or its impact on the economy. There are various ways
that can be involved by Virgin in order to promote their network but the fact they should ensure
is that he policies have been made in a way that it is achieving and following all the terms and
conditions of the government because if it does not involve the governmental rules, then it can be
barred at the same time. A very common example of this can be considered as the pre paid
customers service by Virgin. The regulation was implemented by the Virgin group and it
remained successful enough in achieving a higher rate of popularity as well as productivity.
Economic factors
The macro environmental factors includes the existing condition of the market and some
very well known and common examples of it includes interest rate, exchange rate, income of the
customers and employees etc., Virgin group can focus on analysis each of these factors so that
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they can be able to evaluate whether they are some factors in which they have to make the
specific improvements. Although the company involved a low tariff structure to its customers
and it went well enough to attract a huge number of customers.
Social factors
There is a small relationship between the macro environmental factors and the social
environmental and cultural factors. Some very popular examples of it includes ethics, beliefs,
behaviour etc. Virgin had an efficient decision making with all the other employee and some of
its customers and on the basis of that, they started the GSM mobile handsets. The sale of the
following went rapid enough as the customers seem to be very attracted towards it. It improved
the convergence of the technology (Omar, Leach and March, 2014, Collaboration between non
profit and business sectors). Also, the Virgin mobile operator joined with the niche markets so
that they can be able to analyse the requirements of the customers well, and thus can focus on the
same. This however helped the Virgin group to achieve higher popularity as well as productivity.
Technological factors
The technological factors are considered as those factors that helps in analysing various
different changes that have been made in the technical operations and requirements of the
service. So, for achieving this, Virgin mobile can focus on the present needs and other
technologies that have been used by the other mobile networks in order to attract the customers.
So, the same can be used by them as well so that they can be able enough to attract a higher rate
of customers thus providing them an efficient set of services that seem reliable and affordable
enough to have.
Ans off matrix
Also, Ans off matrix can be used as well for analysing the influence of different macro
environmental factors on the Virgin group. It is considered as one of the essential tools that can
help in providing a sort of direction to the authorities etc. in order to provide a balanced path for
managing the operations and functions in an efficient and appropriate way. Different aspects of
the model that can help in analysing the same are discussed as under :
Market development
Virgin group can target various other markets as well. It means that the company can
think of expanding its operations in other various countries as well. Also, it is considered as one
of the leading companies, so its reputation can help them in a better expansion.
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