Strategic Management Essay

Strategic Management

ESSAY
INTRODUCTION
Strategic management is considered as one of the most important
aspects business management that has significant impact on success and
growth of business entity. In the process of strategic management, every
organization develops wide range of strategic plans associated with business
expansion, marketing, joint ventures, mergers etc. as per the distinct
business needs (Lowson, 2004). Apart from that it is analysed that the
success of an organization is greatly depending on its strategic planning
process that has direct effect on efficiency and productive of management.
This report is going to discuss various strategic issues which are faced
by an organization in strategic management process. The present
assessment is carried out with reference to strategic planning process of
Vodafone Group Plc. It is a British multinational company which is offering
wide range range of tell-communication services in various overseas issues.
The essay is going analysis various theoretical models associated with strategic
management process that assists management while taking various
strategic management related issues.
MAIN BODY
Industry overview
The UK’s telecom market is identified as one of the largest service
sector industry in Europe which is characterised by fierce competition in the
mobile and broadband sectors. In order to increase market share, various
companies formulates different innovative services which has pioneered
business models for distributing digital content (Hubbard, 2014). As a result,
mobile and broadband penetration is comfortably ahead of the European
average. Consumer prices across the board have fallen steadily due to
increase in competition level. On the other hand, network capabilities have
been greatly expanded with the help of recent investments by British

Telecom and Virgin Media in Next Generation Networks. Furthermore, there
is significant downfall addressed in revenue of companies associated with
UK's telecommunication sector.
Environmental analysis of UK telecommunication sector
 Consumer and brand switching: The emergence of globalization
has led significant impact on success and growth of various companies
during overseas business operations. It has enhanced importance of
strategic management process.In this process, companies like
Vodafone is facing several issues during the strategic planning process
(Carlos, 2014). Therefore, consumers are addressed as a key market
player on telecommunication sector of UK. In order to manage distinct
needs of consumers, companies are applying different tools and
strategies to attract consumers towards their products.
Telecommunication industry is one of the industries which possess
high rates of brand switching (Baker, 2007). This is because intense
competition in telecommunication industry so as customers of mobile
service provider companies often switch their service providers brands
which provide extra benefits to them In 2015 the market value of
telecommunication sectors will reach at £40.7 billion.
 Growth in internet based communication tools: Increment in
number of smartphone users has created significant impact on growth
of mobile telecommunication sector. It includes communication
through internet tools such as Skype, What's up, Hike etc. have
significantly influenced the demand high speed communication. It
influences companies like Vodafone for developing of new business
strategies and services along with facilitation of high speed network as
per the current market trends.
 Introduction of new technologies: As per the current market
trends, the growth in number of smartphone users has increased the

demand of high speed telecommunication service. This thing
influences several companies for development and promotion of next
generation network system system such as 4G services (Stensaker,
2014). Therefore, various companies in UK makes efforts in order to
expand high speed network. In addition to that companies are also
focusing low cost telecommunication of services.
 Public legislation: The public authority of UK has developed various
legislations in order to control telecommunication sector. In this
regard, Communication Act, 2003 has played important role for
development and growth of telecommunication sector as well as safety
of service users. As per current business strategies of Vodafone, this
act helps organization for introduction of high speed 4G network
(Carlos, 2014). The term 4G refers to the fourth generation of mobile
communications standards. Therefore, independent regulator and
competition authority for the UK communications industries have
auctioned and awarded radio spectrum licences for 4G mobile
communications in the 800 MHz and 2.6 GHz bands. In addition to that
public authority has determined various new legislation for safety of
consumer's rights.
 Fluctuations in domestic and international capital market: In
the strategic management process, an organisation is also facing
issues related to capital markets and institutional relationship. During
overseas business expansion, the management of Vodafone
determines various policies for managing the interaction of finance and
strategy (Hubbard, 2014). In this process, business entity faces several
issues in formulation and conduct of strategy due to fluctuations
occurred in domestic as well as international capital market. In addition
to that differences in institutional relationships among various
international trading partners of Vodafone influences strategic