(Doc) PESTLE Analysis of Vodafone

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PESTLE Analysis of Vodafone...................................................................................................1
Ansoff growth vector matrix........................................................................................................3
TASK 2............................................................................................................................................4
VRIO Model of Vodafone ..........................................................................................................4
Strengths and Weaknesses of Vodafone mobile..........................................................................7
TASK 3............................................................................................................................................8
Porter's five forces model on Vodafone.......................................................................................8
Balance score card for Vodafone.................................................................................................9
TASK 4..........................................................................................................................................10
Cost leadership strategy.............................................................................................................10
Differentiation strategy..............................................................................................................11
Focus strategy............................................................................................................................11
Application of Bowman's strategy Clock..................................................................................12
Better strategy out of all the strategies.......................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is a working plan of a business in achievement of their vision,
objectives, market competition and stability in financial performance with their model of
business (McAlister, and et.al., 2016). It involves implementation as well as formulation of
major initiatives and goals that are taken by management of an organization on behalf of owner.
The report will cover business strategies of Telecommunication Company that is Vodafone is
chosen of this report. The Vodafone group is a multinational telecommunications conglomerate
in Britain. The company operates their services in Africa, Asia, Oceania and Europe. This report
will cover PESTLE Analysis of Vodafone and Ansoff matrix for the same. The report will also
discuss VRIO model in order to analyze capability of Vodafone. The Strength and Weakness of
Vodafone will also be determined in the report. The porter's five forces model and balance score
card will also be covered to determine appropriate business strategy of Vodafone in the report.
Different strategies such as cost leadership, differentiation strategy and focus strategy will be
also explained in the report.
TASK 1
PESTLE Analysis of Vodafone
 Political Analysis
Political factors is all about government interference in economy. It includes government policy,
foreign trade policy, labour policies, political stability, etc.
EU roaming regulations gives a positive impact as the government of Europe in order to
decrease charges for phone usage aims to regulate roaming regulations which helps the
customers level increases within Europe and charges for mobile phone usage declines by 70% as
well whereas the Negative impact on the company Vodafone that is political instability will
directly impact companies operations (Huarng, and Mas-Tur, 2015). This area becomes war
prone and this affects functionality of the company. The company affects a lot by recent conflicts
in Europe.
 Economic Analysis
An economic analysis are concerned about business operation and their profitability. It includes
interest rates, inflation, economic growth, disposable income of businesses as well as consumers,
etc.
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The positive impact of economic analysis is that the unemployment level of Europe will decline
by this the company supply jobs and also the companies hire workers at lower wage and this
saves Total cost of Vodafone. Also, there is a negative impact on International investors, as the
rate of exchange in which company operates impacts Vodafone's profitability and this make
currency unstable. The unstable currency is the reason which discourages international investors
to invest in Vodafone group plc.
 Socio cultural Analysis
These factors are focuses on attitude and belief of the population. This includes age distribution,
career attitude, population growth, health consciousness, etc.
The Vodafone faces difficulty while drawing attention from target market. As the marketers and
target market lacks by different educational background between them. This is a negative impact
which affects company by loosing connections in target market's priorities and interest. The
positive impact of socio cultural analysis is that they promote their products to different class of
society that is from lower to upper class.
 Technological Analysis
A technological analysis is all about technological adaptation in an organisation and their impact.
This factors includes technological advancement, new ways in producing and distributing goods,
new ways in communicating with market, etc.
In the field of mobile technology, The Vodafone enhances their technology by introducing
Android Smart phones of their range this improves their customer base. This is the positive
impact on the company as they are following the trend which affects their sales and customer
base as well. Also, technological analysis have some negative impact too, like technological
changes are very frequent in nature. So, the competitors rivalries of Vodafone in order to gain
competitive advantage update and innovate their research and development department. This
impacts overall cost of the company and enhance competition with the other companies. Also,
any new technology in other competitors' rivalry will lead to shift of customer base towards
them.
 Legal Analysis
This analysis is concerned about laws which is formulated by government and their impact on
business entities. It includes advertising standards, health and safety act, employment law,
product safety, consumer right and related laws, etc.
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