Business Strategy: Telecommunication Sector

Business Strategy:
Telecommunication Sector (UK)

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Influence of external environment on Vodafone's business strategy................................1
Ansoff Matrix.........................................................................................................................4
TASK 2............................................................................................................................................5
P2 Vodafone's internal environment and its capabilities........................................................5
Strategic capabilities using VRIO model ..............................................................................6
TASK 3 ...........................................................................................................................................8
P.3 Competitiveness of UK's telecommunication sector by using Porter's Five Force model8
TASK 4..........................................................................................................................................10
P4 Strategic directions and alternatives for Vodafone ........................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Telecommunication is one of the fastest growing industry within global business market,
it is a major source of communication or interaction that helps to people to connect and transfer
important information among themselves. The present report is in context to a leading
telecommunication company Vodafone that operates its business in various countries all around
the world. The assignment will include analysis of internal and external environment using
various analytical tools, the various strategic capabilities will be also determined in the following
report. In addition to this the analysis of competitiveness of UK's telecommunication sector will
be also included in this assignment. Furthermore, the report will also include understanding and
interpretation of strategic direction with regards to Vodafone.
TASK 1
P1 Influence of external environment on Vodafone's business strategy
External or macro environment greatly influences the business strategies of organisation.
In order to sustain in market environment of United Kingdom, management of Vodafone has
devised effective strategies and implemented it in efficient manner so that company's growth and
development can be made (Munandar, 2017). External environment factors include political,
social, economic, environmental, technological and legal factors. In order to analyse the
influence of macro environment factors PESTLE analysis tool will be used which is described
below:
PESTLE analysis
1

PESTLE stands for Political, Economic, Social, Technological, Legal and Environment.
It is considered as one of the optimum framework to assess the influence of external factors on
business strategies. Political Factors: Political factors includes the policies formulated by governments
regarding business practices, funding, grants and initiatives, elections and political trends,
internal political issues, etc (Alghazi, Shen and Fosso, 2017). The major political factors
influencing Vodafone in UK includes the Roaming Regulation which aims to reduce
charges for usage of mobile phones abroad by 70 per cent. Furthermore, transformation
2
Illustration 1: PESTLE Analysis (Source: Pestle analysis – Vodafone, 2017)