Business Strategy: Telecommunication Sector (U.K) - Vodafone Case Study

This report delves into the business strategy of Vodafone, a leading telecommunication company in the United Kingdom. It analyzes the external environment using PESTLE analysis and Ansoff's matrix, examining factors like political stability, economic growth, social trends, technological advancements, legal regulations, and environmental concerns. The report further explores Vodafone's internal capabilities through VRIO analysis, identifying its valuable, rare, inimitable, and organized resources. A SWOT analysis highlights the company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces model is applied to assess the competitive landscape of the UK telecommunication sector, considering factors like buyer power, supplier power, threat of new entrants, threat of substitutes, and competitive rivalry. Finally, Bowman's Strategy Clock model is used to analyze Vodafone's strategic positioning and potential future directions.

Running head: BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Name of the Student:
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Author Note:

1BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Executive summary
Telecommunication is one of the most important sectors of a nation. In this report, the business
strategy of a telecommunication sector of United Kingdom has been discussed in details.
External environment of Vodafone has been discussed. It is very essential step to do the PETSLE
analysis of Vodafone. In addition, the VRIO analysis has also been done. Telecommunication
sector has been analysed. In this report, the trade planning of Vodafone has been clarified and
grasped.

2BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Table of Contents
Introduction:....................................................................................................................................2
Task1. The outside condition...........................................................................................................3
Task 2: The inside condition and association abilities:...................................................................8
Task 3: Analyzing media transmission sector...............................................................................12
Task-4 Grasping and clarifying the trade planning.......................................................................14
Conclusion:....................................................................................................................................18
References:....................................................................................................................................19

3BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Introduction:
The rise of the versatile business facilitates the way of the media transmission system to bargain
in the market. It has been watched that employments of the cell phones increment significantly
and the young people are the most influenced age gathering of this media transmission and
portable upset. In the wake of propelling the web the significance of the media transmission part
winds up one stage higher. In this paper, the PESTLE investigation and Ansoff's grid
examination will be investigated to comprehend the outer condition action and vital position of
the organization. Likewise, utilizing VRIO and SWOT inside abilities of the organization will
likewise be depicted in a critical way. Doorman's five powers have been utilized to distinguish
the opposition in the market and in conclusion, Bowman's system clock will be displayed to
decide the key choice of the picked organization.
Company background:
The chosen organization for this task is the Vodafone. Headquarter of Vodafone arranged in the
London. It is one of the biggest media transmission specialist co-ops on the planet and working
their administration in various landmasses like Asia, Oceania, Europe, and Africa. In worldwide
conditions, they positioned fifth in gathering income and positioned second in the measure of
association comprehensively. They have in excess of 100,000 representatives everywhere
throughout the world and extended their administrations in 150 nations (Vodafone.co.uk, 2018).

4BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Task1. The outside condition
The outside condition is one of the fundamental factors that can impact the business in various
ways. So as to comprehend the outer factor organization needs to break down the components by
utilizing PESTLE examination. By seeing such components Vodafone will have the capacity to
reason a perfect and clear arrangement where all the bearing of ecological segments can be
defended with the vital choice.
PETSLE:
Factors Description
Political (P) Political components are especially imperative
for the organization like Vodafone in light of the
fact that they work their administrations in
various nations and as they are media
transmission industry they have to fabricate their
own particular foundation (Klauer 2015). A few
controls and standards of the administration in
various states and nations are distinctive which
made a stalemate circumstance for the
organization. Precarious political condition
hampers the development of the organization in
various angles.
Economic (E) Financial factors dependably impact the media
transmission areas and when the dialog is with
respect to Vodafone then the monetary security

5BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
can create stable business development.
Increment GDP rate can bring the business for
the organization and furthermore expands the
purchasing energy of the buyer. Fast information
innovation can be adjusted by Vodafone which
builds their benefit and brand esteem. The world
financial emergency influenced the organization.
Social (S) Social angles are helpful for the Vodafone on the
grounds that they giving their administration
close around 150 nations and they have
noteworthy procedure to help the socio-social
part of the nation (Davis and Higgins 2015).
Furthermore with keeping up CSR rate is high for
Vodafone and they give sum for social
improvement.
Technological (T) Vodafone is profoundly related for their
mechanical plenitude and advancement. They
gave every one of their administrations which are
exceedingly innovative based. They give the
superfast network access in various nations (Al-
Atiqi and Mumen, 2014). Because of tight rivalry
Vodafone should be more mechanical solidness
to support in the market.
Legal (L) Telecommunication industry is an influenced
enterprise by lawful choice of the legislature. As
Vodafone is working in various nations diverse

6BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
lawful activity or tenets influenced their business
clearly.
Environmental (E) Vodafone is a designated organization for their
ecological exercises and they are extremely
dependable towards the general public in
individual nations (Kiprono, 2015).
PESTLE analysis
Source: Created by author
From the above, one might say that political factor and lawful components influenced the
organization contrastingly yet mechanical headway and social-social rationale of the
organization expands the brand esteem development of the business in various landmasses.
Ansoff's framework:
Ansoff's framework is essentially polished to see how every open door can be fitted with the
business targets of the organization. In Ansoff's network, fours components are advertise
infiltration, showcase advancement, items improvement, and broadening (Shaw and Goodrich
2014).

7BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Source: Created by author
1) Market entrance:
Market infiltration essentially indicates the present market with show items. Vodafone Company
gave the rapid association and intrusion free voice brings in each space and nations. Provincial
improvement and framework advancement demonstrated successful in various nations.
2) Market advancement:
Market advancement essentially includes the improvement of the new market by existing items
(Hao and Song, 2016). Vodafone is as of now celebrated for their administration in the standard
area and they encouraged different offers.
3) Product improvement:
Item improvement demonstrates the development of the new items in the present market.
Vodafone is the standout amongst other supplier of the fast web office and they are endeavouring
to use this in the exceptionally precise way to construct the solid impact on the current market.

8BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
4) Diversification:
This is the essential component for growing the business by giving new items in the new market
(Haselwanter et al., 2016). Vodafone is executing the worldwide machine to machine (M2M)
innovation as their new administration to give propelled client benefit office and focal control of
their diverse administrations.
From the Ansoff's development lattice one might say that Vodafone has the vast chance to snatch
the new market by their broad methodology and furthermore has the opportunity to extend their
administration in the rustic region for improvement. Continuous administration and rapid
information innovation can give the entire favourable circumstances and impact their
methodology in a vast way.

9BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Task 2: The inside condition and association abilities:
Key capacities:
Key capacity is the term that infers the total information of utilizing the association’s benefits,
showcase position, assets to get the upper hands in the market. It is essentially honed to
comprehend the conceivable result of the system later on and to make a maintainable technique
for what's to come. For the Vodafone Company, vital capacities will be a noteworthy piece
without bounds on the grounds that the opposition level is genuinely high and Vodafone needs to
make a reasonable technique by utilizing their current assets (Lodge and Wegrich 2014).
Vodafone Company has huge system foundation and permit as a solid asset which assist them
with getting the vital capacities.
VRIO framework:
Value:
Fundamentally, Vodafone is the biggest organization on the planet and has different assets in his
pocket yet the primary asset which empowers them to work their administration in a critical way
is the permit and system framework (Al-Atiqi and Mumen 2014). They have rapid parcel get to
(HSPA) which encourages them to give fast information transmission methods and they likewise
have high velocity downlink bundle get to (HSDPA) which gives 28.8mbps speed. The greater
part of this framework advancement ended up being gainful for the organization and get the
incentive to the market a critical way.
Rareness:

10BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
The assets which Vodafone have are uncommon however in ongoing business sector, a few
contenders or other media transmission arrange supplier dispatches such propelled innovation
and system framework to give continuous administration (Saka-Helmhout and Ibbott 2014).
Vodafone has the permit which is as yet not uncommon in the market on the grounds that other
organizations additionally have that office.
Immutability:
Mimic the assets of the Vodafone isn't simple since it needs extensive money related help and
furthermore administrative hold. A few organizations have the system foundation yet very little
solid as the Vodafone on the grounds that they are knowledgeable about the market and have the
brand and incentive and also the monetary and legislative reinforcement (Saebi et al., 2017).
Organization:
Vodafone can utilize such assets in a huge way and in this manner they are a standout amongst
other specialist co-ops on the planet. Not just that they as of late give rapid web and information
transmission office.
RESOURCE
OR
CAPABILITY
VALUABLE RARE IMITABLE ORGANISED Effect ON
COMPETITIVE
ADVANTAGES
Network
infrastructure
Yes Yes No Yes Rapid
information
transmission and
continuous
administration.

11BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Licence Yes No No Yes Help to extend
their
administration in
better place and
nations.
VRIO framework
Source: Created by author
From the above investigation through VRIO system one might say that system and framework of
the Vodafone organization are extraordinary than other which can give them outrageous upper
hands in the media transmission industry.
Quality and shortcoming
With a specific end goal to recognize the quality and shortcomings, SWOT investigation should
be finished.
Quality:
Worldwide benefit: Vodafone is the biggest specialist organization in the media transmission
industry and extended their administration close around 150 nations (vodafone.co.uk, 2018).
Network framework: arrange foundation of the Vodafone Company is quality as they give the
rapid system through HSDPA and HSUPA innovation.
High mark esteem: Brand estimation of the Vodafone organization is high than other
organization due their total administration.
High quality client benefit: Vodafone is notable for their client benefit.

12BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Shortcomings:
Weak in the US: it is one of the powerless purposes of the Vodafone that they are as yet not
ready to grow their administration legitimately in US.
Price: now and then the cost of their items stay high which causes loss of clients (Stoian et al.,
2016).
Europe and Asia based administration: Vodafone is exceptionally confined in Europe and
Asia uncommonly India. This considered as an earlier shortcoming of the organization. They
have their administration in different nations however very little prominent like Europe and
India.

13BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Task 3: Analyzing media transmission sector
Doorman's five powers will comprehend the aggressiveness in the media transmission trade of
UK. The depiction of five assumptions of Porter is in at beneath:
Dealing energy of purchasers (Big level): Dealing energy of the purchasers in the UK media
transmission industry is at big level since rivalry in the industry is high and there are quantities
of the organization like Virgin, BT and some others (Guido, 2017). Due to the vast accessibility
of the system supplier clients have the opportunity to switch the organization in the event that
they are not happy with the items or administration.
Dealing energy of providers (Low): Dealing energy of providers is low accordingly with the
dealing energy of the clients in light of the fact that every last organization gathered the
tremendous measure of income and they spent the colossal add up to purchase their assets
(Sutherland, 2014). Clearly, providers got the immense measure of request and cash from each
organization. So providers likewise endeavour to keep up the great association with the part for
the extensive stream of cash.
Facing Competition from new company (medium):
In UK business market where the big media transmission companies like Vodafone, BT. EE
working, new passage is clearly intense. Close to this getting client is additionally another factor
that should be considered. However, in media transmission industry clients changed quickly
towards quality items at low cost (Stoian et al., 2017). In the event that new organization can
give quality administration and items at the low cost than goliath organization clearly they can
pull in more clients inside the brief span time frame. Budgetary help and administrative

14BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
reinforcement is another issue that can impede the new section however the legislature has
diverse plan to help the new organization.
Dangers of substitution (high): Threats of substitution is high in the UK telecom industry.
Every last organization is endeavouring to give rapid web access to draw in the clients not just
this because of government control with respect to diminishing the meandering charges
numerous organizations are sans giving wandering office which makes more rivalry in substitute
items.
Contention inside the market (high): competition inside the market is basically high as the
media transmission mark Vodafone, BT, EE, Virgin versatile and considerably more consistently
contending energetically to snatch the market. Consistently new items or administrations are
propelling to draw in more clients (Al-Atiqi and Mumen 2014). In future, it will increment by
contingent upon the innovative upheaval in the UK media transmission industry.

15BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Task-4 Grasping and clarifying the trade planning
The trade planning and path is accessible to analyze the business plan of organization named
Vodafone through the association of Bowman’s strategy clock model.
Bowman’s Strategy clock model has discussed the eight planning positions to elaborate the trade
planning and path of Vodafone:
As a demand is growing everywhere, Vodafone is transforming their business strategy to become
a leading communication brand in the world and to strengthen the service and network they
provide to the customer. Vodafone business strategy is differentiating by different industry
trends.
1) Growing importance of data, voice calls and other areas
2) Increasing demand for communication for both enterprises and consumers.
3) Strong demand from the growing markets
4) Different competitors increasing in the market
5) By improving economic environment in the leading countries.
Position 1: Low Price / Low Added Value
Vodafone successfully spread its business all over the world by the best business strategy but
such plan will only bring loss to the company. Vodafone need to gain the customer to secure a
sustain place in the market. Quality of service will draw more customers to the company (Babin
and Zikmund 2015). Vodafone not just a company to win the certainty of its endorsers yet in
addition plans to maintain its situation in the telecom trade by ensuring that it presents creative

16BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
plans for the clients keeping in mind the end goal to be much in front of the opponents(Kerr and
Patti 2015). .
Position 2: Low Price
An organization like Vodafone always has to keep in mind that their majority users are from the
middle class and lower middle class. They will always have to function under by lowering the
price with minimum possible best service to their customer but they it will reduce the profit
margin of their company but it also important keep the sale rate increasing and slowly capture
the market. Telecom service provider always tries to reduce their all over cost and have plenty of
strategy grounds for the company growths, can successfully get on the market (Johnson, 2016).
If Vodafone do not follow this then there will pricing war between the telecom providers and it
will be difficult for them to stay in the competition for long term.
Position 3: Hybrid (Moderate Price & Moderate Differentiation)
Hybrids are like offering service to the customers at much lesser price compare to the other
telecom service providers but not only lower price will not attract the customer, better service
also needs to draw the sufficient customer to get on the market. A global recognised brand like
Vodafone needs offer best service at best cheap price to create a strong customer base (Reeves et
al. 2015).
Position 4: Differentiation
Telecom providers also tries to differentiate their service from the others which can valued by
the customer such as unmatched customer support,4G plans and broadband plans. Vodafone
needs a plan in order to distinguish their services from the market competitors. It will definitely

17BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
help the company to grow further and keep on the telecom market. Branding also an option for
Vodafone that will allow the organization to develop new strategy to attract new customers and it
will help the organization to become a giant distributor of telecom service to the customers
(Volberda and Heij 2017).
Position 5: Focused Differentiation
Often telecom service providers focused differentiation to offer their service. Vodafone needs to
offer high value service with high pricing. This type of strategy will help the customers to use
such services with reasonable value. It will be only purchased by higher standards customers of
the society but the service must be real worthy. If a subscriber tends to port his or her number to
other operator then it is the job for the present operator to offer him or her valuable service and
minimize their concept about their service. Nowadays many more telecom organization are
entering the market which are convince the small customer base to take their service that are
causing problem to the telecom giants. That’s why Vodafone needs to develop new market or
business strategy to hold their customers (Ceptureanu et al. 2017).
Position 6: Increased Price and Standard Product
Inflation, staffs demand is often caused problem to the organization so that’s why organization
like Vodafone needs increase the price of their service and product. Little increasing in the price
will not affect the customers base and the services should be satisfying to the customers but too
much increase in price will affect the customers base such as they will find the substitute to fulfil
their demand. This strategy will not profitable in long term goals (Sammut‐Bonnici and Galea,
2015).
Position 7: High Price / Low Value

18BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
This strategy will only work in monopoly market where no other competitors are in the market.
But nowadays monopoly market does not exist due to the technology and entrepreneurs with
massive ideas changes the global market that’s why organization like Vodafone has to create
more ideas and plans to become unique service providers in the market in order to enjoy some
monopolistic within their segment (Pintilie and Sykes 2016). .
Position 8: Low Value / Standard Price
If any telecom organization craving to chase that type of plan or strategy then it will definitely
caused them huge loss in the profit market as well as customers base so in order to hold the
customers and attract new customers then they will have to provide quality of service in a fair
price if the organization sell low value service at standard price then customers will not take their
service and they will definitely change their operators to fulfil their demands (Berisha Qehaja et
al. 2017).
Accordingly, one might say that if Vodafone uses the Bowman's Strategy Clock as a layout, at
that point it can easily end up one of the key administration giving association inside the telecom
part.

19BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Conclusion:
So, from the above analysis which is concluded by us that the telecom company Vodafone is one
of the biggest media transmission industries in the United Kingdom. Vodafone uses some great
marketing strategy to keep on the marketing race with other telecom brands. Vodafone uses low
cost advertisement which not only save money but also create a great impact to their customer.
To keep in the market they repeatedly change their plan of action, strategy etc. Identification of
their weak and strong points are essentials and analyzing them to how to improve in these
sections. Lastly they regularly do a market audit to read the market scenario to develop new
plans.

20BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
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