Strategic Analysis of Vodafone Australia: Pestle and Porter's Five Forces

Executive summary
Vodafone Australia is a third largest network service provider in Australia. This report
focuses upon the strategic analysis that will be done on the basis of Pestle model and porter’s
five force model that further provides insight about the telecom industry’s future prospects. The
strategic analysis also helps to gather information about company related threats, opportunities,
strength and weaknesses that will also help make strategic decisions. This will also include
strategic direction and strategic objective on the basis of vision and mission of the company. It
will further analyze the ethical position of the company and stakeholder’s position.

Table of Contents
1
.Introduction................................................................................................................................................3
2. Strategic Analysis....................................................................................................................................3
2.1 External Environment Analysis.........................................................................................................3
2.1.1. General Environment.................................................................................................................3
2.1.2.Specific Environment.................................................................................................................6
2.1.3.Conclusion on external environment threats and opportunities...................................................7
2.2.Internal and Competitive Analysis.....................................................................................................7
2.2.1.Core Competencies.....................................................................................................................7
2.2.2.SCA............................................................................................................................................7
2.2.3.Internal Weaknesses...................................................................................................................8
2.2.4.Conclusion internal strength and weaknesses.............................................................................8
2.2.3.Conclusion about organization’s competitive position in its market...............................................8
3. Strategic Directions and Strategic Objectives..........................................................................................8
3.1.Vision................................................................................................................................................9
3.2.Mission Statement.............................................................................................................................9
3.2.Strategic Objectives...............................................................................................................................9
3.2.1.Ethics Matrix..................................................................................................................................9
3.2.2.Stakeholders Analysis and Table..................................................................................................10
3.3 Conclusion.......................................................................................................................................11
References.................................................................................................................................................12

1. Introduction
Vodafone Hutchison Australia (VHA) also known as Vodafone Australia is a mobile
telecommunication and fixed broadband service provider based in North Sydney, Australia.
VHA came into existence after the 50:50 joint venture between Hutchison Telecommunications
(Australia) Limited (a subsidiary of CK Hutchison Holdings) and Vodafone Group Plc. in 2009.
After this venture, the company is tasked to conduct all operations related to the Vodafone
Company throughout Australian market. VHA offers calling, text, voice, mobile broadband and
international roaming services.
Moreover, it also serves customers through online services and through its more than 120 retail
stores across the country (Vodafone.com, 2019). With the help of its innovative programs,
company is continuously building a competitive advantage throughout the world (Bloomberg,
2019). The purpose of this report is to analyze the strategic framework of the company in order
to provide a clear picture about the strategies adopted by the Vodafone, shared vision and
mission of organization’s future and how it helped business in accomplishing desired goals
related to the organization (Papadakis & Barwise, 2012).
2. Strategic Analysis
2.1. External Environment Analysis
External environment analysis refers to the study of macroeconomic factors, industry analysis
and competitor analysis that can impact organizational growth.
2.1.1. General Environment
Pestel model has been used to assess the factors affecting general environment of the company. It
also helps to evaluate the megatrends of the Australian market, which are most relevant to VHA
over the next 5 years.

Source: (50Minutes.com, 2015)
Political and Legal Factors
The telecommunication policies comes under current regulatory regime with the passage of
Telecommunication Act 1997 and major amendments takes place under the Trade Practices Act
1974 (TPA). Telecommunication Act, section 4 contains the outline of regulatory policy, which
states that telecommunication in Australia must be regulated in manner that intends to promote
the practical use of industry self-regulation. Section 6 of this act encourages related bodies in
order to develop voluntary and mandatory code of practices (Parliament of Australia, 2019).
Economic Factors
The 60% of Australian economy is mainly driven by the consumer spending and business and
government spending contributes to other part of the economy. As per the estimates, GDP per
capita is going to increase in the near future as well as unemployment rate is showing a
significant decrease (IMF, 2018). As telecommunication industry comes under the service sector
indicates that this sector has huge scope of investment in terms of domestic and FDIs.