Business Strategy Telecommunication Sector Assignment

Business Strategy
Telecommunication Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Pestle model for environment analysis...................................................................................1
2. Ansoff's growth vector matrix.................................................................................................3
TASK 2............................................................................................................................................4
3. VRIO model............................................................................................................................4
4. Strengths and weakness of organisation.................................................................................6
TASK 3............................................................................................................................................7
5. Porters five forces model........................................................................................................7
TASK 4............................................................................................................................................8
6. Strategic management plan with Bowman's strategy clock model.........................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Business strategy refers to step by step actions planned by the organisation according to
external environment and their strengths & capabilities with the aim of attaining competitive
advantage over others (Definition of Business Strategy, 2018). For this report, Vodafone group
plc is taken for consideration which is one of the largest telecommunication company whose
headquarter is in London, UK. In this report, company's external environment would be analysed
with the help of Pestle framework. Beside this, Ansoff matrix will also implement on the
company so that they can make their business strategy accordingly. To analyse the company’s
strengths VRIO model would be discussed by considering industry analysis as well. At last
strategic plan would be elaborated with the help of bowman clock model.
TASK 1
1. Pestle model for environment analysis
It is essential for every company to analyse the environment in which they are working as
company have to modify their strategies accordingly. There are two different types of
environment in which Vodafone works i.e., external and internal environment. Internal can be
modified and controlled by the company but it does not work in the external environment as it
cannot be controlled by organisations and based on demand and supply of the industry (Scholes,
2015). To analyse Vodafone external environment, Pestle analysis would be use with the aim of
finding the opportunity and threats of the market which is described below:
 Political environment: This factor is related with the environment made in the country
due to political parties like political stability, tax rates, dumping duties etc. In the current
time, Vodafone has been negatively affected by the government decision as roaming
charges in EU act has been abolished due to which chances of decrease in business and
revenue is higher. As according to ETNO, Euro telecommunication group would have
lost their 7 billion by 2020 (European telecoms brace for losses as roaming charges end,
2019) But on the other side, Vodafone relationship with the government is been
favourable since starting as company assist UK country to grow due to large amount of
corporate taxes. So it can be said that current situation of UK has not been favourable for
telecommunication industry specially for Vodafone due to increase in complex
legislations and Brexit.
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