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Business Strategy : Virgin Mobile

   

Added on  2020-10-23

20 Pages5725 Words76 Views
BUSINESS STRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Macro environmental factors determining the decision making............................................3PESTLE MODEL..............................................................................................................3ANSOFF's GROWTH VECTOR MATRIX.....................................................................5TASK 2............................................................................................................................................6Internal environment and organization capabilities...............................................................6VRIO analysis....................................................................................................................7STRENGTHS AND WEAKNESSES...............................................................................8TASK 3............................................................................................................................................9Analyse the telecommunications sector.................................................................................9PORTER FIVE FORCES MODEL.................................................................................10TASK 4..........................................................................................................................................11Understanding and Interpreting strategic decision...............................................................11BOWMAN'S STRATEGY CLOCK MODEL ...............................................................12PORTER'S STRATEGIC AND HYBRID STRATEGIES.............................................14CONCLUSION .............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTIONToday, telecommunications industry has taken over the world on a mass scale. Businessstrategies are used by an organization in order to achieve desired growth in its operations andmaintaining organizational efficiency. The below report identifies the business strategy of UnitedKingdom's one of the biggest telecommunication company Virgin Mobile UK. The companywas launched by Virgin Group in 1999 and its headquarters are situated in Swansea, UnitedKingdom. The organization is having an employee base of 1700. The below report makes use ofa number of models such as PESTLE, Ansoff's growth vector matrix, VRIO model, etc toidentify the strategic decision making of the organization. Along with it, both internal andexternal capabilities of the organization are identified in the report to understand the working ofthe organization and its core functioning (Scholes, 2015).TASK 1Macro environmental factors determining the decision makingThe macro environmental factors play a major role in an organization's growth anddevelopment. Also, these factors influence the decisions making of overall organization'smanagement including its strategic decision making. Below explained are the PESTLE modeland Ansoff's growth vector matrix analyzing the macro environment of Virgin Mobiles:PESTLE MODELPoliticalChanging policies with new government is one of the core political factor thatimpacts the decision making of Virgin Mobile UK. The organization has tomake its decisions carefully while there is a change in government and itspolicies (Higgins, Omer, and Phillips). The management of the organization hasto carefully examine each and every policy and have to understand the needsand demands of the changed government. As per these changes andrequirements the strategies are prepared and related decisions are made.Forexample, the recent situation of the Brexit in the United Kingdom has made thetelecommunications company to stop their services in its neighboring countries.This has made the large organizations to face terrible losses. This is one of the

major threats which is failing Virgin Mobiles to incorporate new strategies inorder to grow its market share. EconomicalInflation and exchange rates are one of the major economic factors impactingthe strategic decision making of the organization. For example, the priceinflation occurred due to the trade war happened between China and Americamade it hard for the organization to keep the prices of its services same. VirginMobiles has to change the prices of its services more often and it made theorganization face huge losses. In case, if the trade war appears again it canmake the organization stop its services for a long period and both its profits andgrowth can suffer. SocialFactors such as access to essential services is one of the major social factorsthat impacts the organizations decision making. Consumers of the VirginMobile UK seeks change in services as per their personal needs and demandsand the organization has to take these things into consideration before makingany required decisions. Also, while deploying appropriate strategies theorganization needs to make sure that people's needs and demands are taken careof. For example, the telecommunication's industry's horizontal growth islimited. Its difficult and expensive for the companies to grow its products andservices in rural regions. These customers are left with handful of options whilebuying mobile, internet and television packages. This is an opportunity forVirgin Mobiles where it can grow its products and services to get a maximumservice advantage.TechnologicalOrganizations management has to make its decisions as per the arrived updatesin the technology and new technological changes. These changes needs to beconsidered while preparing any required strategy for the organization's growthand development. For example, the arrival of Artificial Intelligence in thetelecommunication's industry has made the industry's services faster andeffective. Today, most of the industry's work is being done with the help ofrobots. It is important for the organization to make sure that this opportunitycan be used to smooth its operations. Virgin mobiles can make use ofdevelopment where artificial intelligence is a core part of the organizations

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