Business Strategy Unit

Business Strategy Unit
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Table of Contents
INTRODUCTION...........................................................................................................................3
Pestle analysis..............................................................................................................................3
Swot analysis of Vodafone..........................................................................................................6
Porter five forces..........................................................................................................................8
Theories, concepts and models, interpret and devise strategic planning...................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business strategy focuses on the decisions and actions that a firm takes in order to
achieve the goals and objectives of the Business. It is considering as long range sketch of the
desired direction, image as well as destination of the firm (Park, and Mithas, 2020). Present
Report focuses on Vodafone which is known as the leading telecom firm alongside operations
mainly within Asia Pacific, Europe, Africa and Middle East. The name of the firm Vodafone
comes from “VOICE”, “DATA’’ and “TELEPHONE’’ chosen by the firm in order to reflect the
provision of data and voice services over the mobile phones. In terms of the mobile consumers it
ranked 4th as it has around 313 million consumers. It is known as the British International
Telecommunication that can operate within 25 plus nations. Report also focuses on External
analysis, internal analysis, porter five forces and Content theories of the firm (Min, Liangwen.
and Yue, 2018).
Pestle analysis
Pestle analysis of Vodafone analyse the several external factors as they highlights the
several scenarios which impact the business. It is a framework that can be imperative for firms
such as Vodafone as it assists to understand the dynamics of market as well as improves the
business growth
Political factors- Over the years Vodafone has faced the increased competition as political
factors plays a vital role within determining the several factors that can footprint Vodafone
Group Plc’s long term Profitability within a nation or a marketplace (Yuan, and et.al., 2020 ).
Firm is a Wireless Communication operating within several nations and also at the same time
exposes itself to the various political environments. Within the Mexican Market telecom license
are very expansive as well as tightly controlled (Weng, 2020). The government of the Mexico
are not easily gives entry as telecom industry have a high growth as according to the NAFTA
( North American Free Trade) cannot allowed to the begins the business within Mexico. In
Mexico they follow very high regulations that are associated to the needs of the consumer as well
as environment. To take entry within Mexican market Vodafone take permission as government
of Mexico also needs a service which is high quality and In addition to this government also
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implemented tight measures in order to reduce the mobile phone usage of children due to their
health issues (Bayo-Moriones, and et.al., 2020). The Vodafone business also decline because
overall lower benefit received from handset financing within UK as because of Covid 19, All
over the world suffered from lock down things so Firm faces a lot of loss because there is late
handset financing within UK and other Nation. Italy who loss his large number of people during
Covid also strictly lockdown and thus performance was decline within earnings in Italy and
Spain Both.
Economic factors- Due to the Pandemic Covid 19, there came an economic crisis that can be
faces by world till today. It has highly impacted on global economy in negative way and there is
a huge loss faced due to Covid 19 (Juliatin, Sadalia, and Habsah, 2020). But firm also takes
advantages within this period through new digital technologies. Due to Pandemic people are not
buying new products as it impacted a lot so the Vodafone managers changes their policy that can
be associated to the pandemic recession and attracting consumers towards buying a new phone,
due to the recession period there is price war among the various telecommunication firm
Vodafone reduces its calling and net charges as it provides more amount of data in the same
prize. The current inflation rate are reduces around 3.60 % as it also impacts the buying
behavior of the consumer. So Firm also decreases its product prize which is comfortable for the
consumer as they can easily buy. As due to pandemic Inflation rates going much high then
people are more inclined towards saving money and in addition to this control their purchasing
so it can also direct impacts the economy of the UK but also all over the World (Park, and
Mithas, 2020)
Social factor- Pandemic changes the life style a lot as people are now remain within their home
and continue their work from home so they need better net connection speed as they are now
organizing their meeting from home so internet plays a vital role (Robiansyah, and et.al., 2020).
Also the growing demand of the internet also increases as it is both for work purpose and
entertainment. Increase demand of the internet has proved that it is beneficial for the firm like
Vodafone as they provide telecommunication services to people to fulfill their needs. Vodafone
is a firm that can be developing by understanding the education, lifestyle, buying preferences and
beliefs of the consumers all over the World as it could help Vodafone to expand its consumers
base through targeting right individuals within right place (Chen, Eshleman.and Soileau, 2017).
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