EE Company Business Strategy Analysis

The provided document is an in-depth analysis of EE Company's business strategy using various internal and external factors such as PESTLE and SWOT analysis, and Porter's Five Forces Model. The report identifies the company's strengths, weaknesses, opportunities, and threats, and suggests strategic decisions to achieve a competitive advantage.

BUSINESS STRATEGY

EXECUTIVE SUMMARY
Report on Business Strategy explained the macro and micro environmental factors that
affects decision making and organizational structure of EE Company, UK. PESTLE, SWOT
analysis, Porter’s Five Forces Model were conducted to identify the strengths, weaknesses,
capabilities and outcomes of EE Company. This report also discussed SMART objectives,
mission, vision, tactical and strategic decisions, business objectives and levels of strategy of EE
Company.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Frameworks to analyze the impact of macro environment on EE Company and its business
strategies......................................................................................................................................3
P2. Analysis of Internal environment and capabilities of EE Company.....................................5
P3. Porter’s Five Forces Model to evaluate the competitive forces for EE Company................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business strategy is the determinant, pattern or common thread of actions, resource
allocation and decisions about how an organization achieves its goals, missions or objectives
which can be long or short term. The report on Business strategy deals with the analysis of
internal and external environment of Everything Everywhere (EE) Company which is a UK
based Telecommunications service provider. The study is conducted to analyze and evaluate
internal and external environment of organization to identify the strengths, weaknesses,
capabilities, competitive outcomes that might affect firm’s business and strategic decision.
Research will also develop and suggest various strategies, tactical decisions and objectives for
EE Company to attain competitive edge and market position.
TASK 1
P1. Frameworks to analyze the impact of macro environment on EE Company and its business
strategies
Impact of Macro environment on business organization and its strategies
Organizations are depended on the external environment where they exist from which it
utilizes resources and attracts customers to supply goods and services thereby conduct business
operations successfully. Good planning which is a necessary part for EE Company for which a
good knowledge of external environment and factors that can hinder its business and strategies
are also required (Astrachan, 2010). Analysis of these elements, challenges and trends would
benefit the firm in identifying threats and opportunities in an efficient manner and shorten time
taken to react those jeopardies. External environment consists of three elements; Physical, Social
and Competitive environment which are uncontrollable and influences the business strategies
and decision making process. The political and social environments are further divided into
PESTLE factors which are external influences that are beyond the control of business that can
have a positive as well as negative impacts.
Macro environment analysis to determine and inform strategic management decisions
PESTLE Analysis of EE Company to identify external environmental factors
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Political Economic
The strict government regulations that are
changing frequently affects stability and
nature of EE Company. Political risks with
relation to national security and human rights
is another pressure for EE Company (Elliot,
2011). Taxation and social welfare attitudes
of government are also some other challenges
that affects EE Company.
National and economic trends of UK’s
economy after Brexit is drastic which has a
bad effect on EE Company and
telecommunication sector. Current economy
is a favorable for EE Company as business
and GDP of UK is raising after its decision to
leave European Union. Due to sudden down
fall in the economy and international trade
activities of UK EE Company’s business
cycles might be affected.
Social Technological
Increased investment in digital technologies
and spending of teenagers and young people
for education and entertainment in UK can
benefit EE Company in a great manner. It has
become the lifestyle of UK’s people and they
spend heavily on such innovations to enjoy
their work and leisure.
Government and Telecommunication industry
of UK are supporting the technology where its
spends highly in R&D to bring innovative
developments with low rates of technology
transfer.
Legal Environmental
Legal complications are also rising globally
and the government of UK are also following
strict regulations regarding license, product
and safety, health and safety for the benefit of
people. Complex laws and broadcasting
regulations by government related to
telemarketing, employment laws and privacy
can have a huge effect on EE Company’s
business and practices.
Changing attitudes and legislations of UK
government regarding environmental
protection and waste disposal is a big concern
for EE Company (Ghezzi, 2013).
Telecommunication providers are investing in
reduced carbon intensity to minimize
environmental issues by following e-waste,
recycling programs.
Strategic and tactical decisions
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 Rapid adaptation of mobile phones and high use of internet can assist the firm in
transforming lives of people into a new technological phase.The use of mobile
computing, internet has grown largely in people of UK which proves a favorable
condition for EE Company (Naidoo, 2010).
 Unemployment remains a consistent factor in UK’s economy that can impact negatively
on consumer services. EE Company may recruit talented individuals who are in job
search which can generate employment in economy.
P2. Analysis of Internal environment and capabilities of EE Company
Evaluation of Internal environment to assess strengths, weaknesses, Capabilities, structure
and skill sets of EE Company
Evaluation and analysis of internal environment of EE Company is conducted using
SWOT analysis which are as follows:
Strengths Weaknesses
 More than 27 million customers and
operations of more than 570 stores
located on high streets and shopping
malls (Oltra and Luisa Flor, 2010).
 Largest coverage, biggest 3G and
access to 4G network across UK
launched before rivals
 Strong customer service and wide
spectrum of products and services
 Highly targets business segments that
can lose individual customers
 Low brand recalling
 Largely depended on UK markets with
less presence in Asia pacific regions
Opportunities Threats
 Great B2B platform for business
growth with broad 4G services
 Increased smartphone and internet use
of people in UK
 Exclusive broadcasting rights to
European Football can increase
expansion of customers
 Intense competition and less
profitability due to competitor
offerings (Parnell, 2010)
 Impact of Brexit and devaluation can
affect profitability of EE company.
 Frequent changes in government
regulations and licenses.
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 Future growth potential of 4G services
might lead to intense competition
which can affect EE company’s
market position and competitive
advantage
Strategic and tactical decisions
 EE Company might utilize its large customer base to advertise and launch innovative
products which can attract new potential clients and investors.
P3. Porter’s Five Forces Model to evaluate the competitive forces for EE Company
Evaluation and application of outcomes of analysis using Porter’s Five Forces Model to
Telecommunications sector
Threat of new entrants
Entering to telecommunication industry requires massive investments of capital resources
and appropriate technology that is not a huge threat to EE Company as they are already equipped
latest advancements (Peña and Villasalero, 2010). Several other barriers are causing new entrants
find it difficult to enter UK’s telecom sector which are:
 Product differentiation
 Government policy
 Switching costs
 Access to distribution channels
 Economies of scale
Rivalry among existing firms
Competition among existing service providers is causing EE Company an added benefit
as they are offering latest technology safely to its customers that is supported with a healthy
rivalry. But intense number of competitors, products and services offered, fixed costs and
diversity in UK economy affects the organization’s business and strategies to some extent.
Threat of substitute products or services
Substitute products and services available in UK’s economy is not affecting EE company
in large as they are offering advance technology 4G services and products that rivals have not yet
been developed (Verreynne and Meyer, 2010).
Bargaining power of suppliers
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The supplier industry of telecommunications in UK is dominant due to lesser availability
of sellers, unique products and services and high switching costs. Forward integration and direct
competition is an added advantage of EE Company to engage and interact with existing huge
customer base (Peng, 2017).
Bargaining power of Buyers
UK’s people are reluctant to be away from technology and internet as they are spending
heavily on telecom services to meet their business and entertainment activities. EE Company is
benefitted with its large proportion of customers and sales where customer earns less profits.
Strategies to improve competitive edge and market position
EE Company is following an STP strategy to attain a competitive advantage and secure
its market position in UK’s economy.
Segmenting
EE Company uses a psychographic and behavioral segmentation to segment the fixed
line, mobile telephony and broadband customers in the country to offer their highly advance
technologies.
Targeting
EE Company targets the business professionals, entrepreneurs and large organizations or
businesses to
Positioning
EE company positions itself as UK’s biggest 4G network and leads market which is a
first move ever by a telecom company in the country (Schrader, Freimann, and Seuring, 2012).
Corporate level
 EE Company with advantage of implementing additional green energy can cope up with
environmental issues and adopt programs and practices to provide an ecofriendly service
Business level strategy
 Introduction and launching of brand in Asia Pacific regions and other rural areas to target
individual customers.
Functional level strategy
 EE Company needs to adapt laws and regulations laid down by government related to
network, broadcasting, employment and health safety to exist in market.
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 Privatization and deregulation decisions by the UK government is a benefit for EE
Company as its helps in firm’s independency in globalization and international trade.
Objectives, Strategic and tactical decisions based on the information and data by applying
environmental competitive analysis
Mission and Vision
“Best network, best service and customer trust”
Vision of EE Company is to build a new digital face for UK by delivering outstanding
service to customers and provide a personalized experience for clients from products and
services offered and way of selling them
SMART objectives
Specific: Building new digital phase for UK to become country’s most trusted
telecommunication company to build trust of people which is the core responsibility (We want to
be the UK’s most trusted communications company, 2018). And also to actively manage impact
on environment and help customers follow the same
Measurable: Delivering best service and products to customers through stores, online
and support to provide care for local communities and support them through volunteering and
fundraising activities (Woerner and Wixom, 2015).
Achievable: Ensure customer satisfaction and make them receive the most out of mobile
devices safely. Commitment towards building trust and sharing connectivity power with
everyone in UK.
Realistic: Commitment to work responsibly with suppliers and stakeholders and to
reward customers, live safe and reward digital lives.
Time bound: EE company is planning to launch their green energy conservation plan by
2020 to become independent with sustainable practices to deliver safe and best network
experience in a safe and responsible manner.
CONCLUSION
Report on Business strategy analyzed and explained various internal and external factors
that might hinder EE Company’s business strategies by conducting PESTLE and SWOT
analysis. Porter’s Five Forces Model were applied to examine the telecommunications market
outcomes that might affect EE company’s business. Objectives, tactical and strategical decisions
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that EE company need to be implemented for attaining competitive advantage and market
position is also being suggested in the case study.
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REFERENCES
Books and journals
Astrachan, J.H., 2010. Strategy in family business: Toward a multidimensional research
agenda. Journal of Family Business Strategy, 1(1), pp.6-14.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly, 35(1), pp.197-236.
Ghezzi, A., 2013. Revisiting business strategy under discontinuity. Management Decision, 51(7),
pp.1326-1358.
Naidoo, V., 2010. Firm survival through a crisis: The influence of market orientation, marketing
innovation and business strategy. Industrial marketing management, 39(8), pp.1311-
1320.
Oltra, M.J. and Luisa Flor, M., 2010. The moderating effect of business strategy on the
relationship between operations strategy and firms' results. International Journal of
Operations & Production Management, 30(6), pp.612-638.
Parnell, J.A., 2010. Strategic clarity, business strategy and performance. Journal of Strategy and
Management, 3(4), pp.304-324.
Peña, I. and Villasalero, M., 2010. Business strategy, human resource systems, and
organizational performance in the Spanish banking industry. The International Journal of
Human Resource Management, 21(15), pp.2864-2888.
Peng, M.W., 2017. Cultures, institutions, and strategic choices: Toward an institutional
perspective on business strategy. The Blackwell handbook of cross‐cultural management,
pp.52-66.
Schrader, C., Freimann, J. and Seuring, S., 2012. Business strategy at the base of the
pyramid. Business Strategy and the environment, 21(5), pp.281-298.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range
planning, 43(2-3), pp.172-194.
Verreynne, M.L. and Meyer, D., 2010. Small business strategy and the industry life cycle. Small
Business Economics, 35(4), pp.399-416.
Woerner, S.L. and Wixom, B.H., 2015. Big data: extending the business strategy
toolbox. Journal of Information Technology, 30(1), pp.60-62.
Online
[Online]. Available through: We want to be the UK’s most trusted communications company.
2018. <https://ee.co.uk/our-company/corporate-responsibility/building-trust>
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