Business Strategy : Telecommunication Sector (UK)

Business Strategy:
Telecommunication Sector
(UK)

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1- The External Environment...............................................................................................3
PESTLE Model for environment analysis..................................................................................3
Ansoff's growth vector matrix for analysing organization's strategic positioning......................4
TASK 2- The Internal Environment and Organization's Capabilities.............................................5
Application of VRIO model in order to analyse strategic capabilities of Virgin........................5
Strength and weakness of Virgin media......................................................................................6
TASK 3- Analysing Telecommunication Sector.............................................................................8
Porter's five forces model............................................................................................................8
Stakeholder Analysis...................................................................................................................8
TASK 4- Understanding and Interpreting Strategic Directions.....................................................10
Strategic Management Plan for the Virgin Mobile...................................................................10
CONCLUSION..............................................................................................................................14
References......................................................................................................................................16

INTRODUCTION
Business strategy refers to the set of competitive actions and moves which business
organizations uses for attracting customers, strengthening the performance level, competing in
successful way and also accomplishing overall goals and objectives. It leads to outline how
business organization need to be carried out for achieving desired goals. This report is based on
the mobile telecommunication sector which is growing on a rapid pace across the worldwide.
Chosen telecommunication organization for present report is Virgin Mobile and it is
mobile phone service provider company that operates in UK. This company was launched by the
Virgin Group in the year 1999 and it is the first Mobile Virtual Network Operator (MVNO).
Report will discuss various kinds of strategies which can be used in the tactical, operational and
strategic role for the company. The report will also include wide range of models, theories and
concepts which helps and supports the organization's strategic directions and choice. PESTLE,
Ansoff's growth vector matrix, VRIO/VRIN model, Porter's five force model, Ansoff's
product/market matrix and various other models are applied in the report.

TASK 1- The External Environment
PESTLE Model for environment analysis
The strategic management decision may get influenced and affected due to various
factors which are present in the external business environment (Desai, 2019). PESTLE analysis
can be used by Virgin Mobile for analysing the macro environment and to identify how the
future trends within political, economic, technological, environmental, social and legal factors
impacts the organization and its strategic decisions.
Political Factors: Virgin Mobile also faces political challenges and issues as because it
is spread into various foreign countries and it has to follow strict regulations and rules. The
operations of company get affected due to licensing bureaucracies laid by foreign governments,
increased control and regulations on company, political instability, high rate of tariff, etc.
Environmental Factors: There are dramatic alternations in the climatic conditions due
to the planetary heating and pollution, therefore this is a cardinal factor which needs to be
considered by the business organizations (Cuppen, 2016). For example, the strategic decision
and business operations gets influenced due as the Virgin Mobile focus on sponsoring assorted
programmes and events for the environmental causes.
Social Factors: The education level, beliefs, culture and demographics of populations of
UK may lead to bring influences and affects on the operations and activities of Virgin Mobile.
For example, company's advertisement is focused on young population and employed advanced
thoughts so that it can portion common ideas and beliefs, this leads to bring great benefits and
positive impacts on the operations.
Technological Factors: These are related with increased rate of the technological
changes, automation in the manufacturing operations, cost for acquiring new technologies and
acquisition of advance equipments and machinery. The negative side of technological factors can
be that company have to spend high rates for the technological inventions and innovations.
Legal Factors: This includes influences from the side of government, its rules,
regulations and policies on the telecommunication industry. For example, safety and wellness
jurisprudence was being enforced in the 2004 by the government, and it prevented the use of
nomadic phones when driving (Widya Yudha, Tjahjono and Kolios, 2018). This change led to
bring great impacts on the Virgin mobile and it also led to increase the gross revenues of
Bluetooth headsets.