Porter's Five Forces Analysis Guidelines

This assignment focuses on Porter's Five Forces framework, a key tool for analyzing the competitive landscape of an industry. It provides guidelines on applying this framework, including identifying relevant factors, assessing their impact, and formulating strategies based on the analysis. The assignment also highlights case studies showcasing successful implementation of Porter's Five Forces in various business contexts.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analyse the impact and influence of macro environment on organisation and its business
strategies......................................................................................................................................1
TASK 2............................................................................................................................................3
P2 Assessment of organisational internals environment and its capabilities..............................3
TASK 3............................................................................................................................................5
P3 Evaluate the competitiveness of telecommunication sector through porter's five force
model...........................................................................................................................................5
TASK 4............................................................................................................................................6
P4 Analyse strategic directions by using Bowman's strategy clock model................................6
CONCLUSION................................................................................................................................8
REFRENCES...................................................................................................................................8

INTRODUCTION
Business strategy may be considered as the high level of plan for achieving specific goals
or objectives of the organisation in an appropriate manner. Organisations formulate strategies for
developing the business, accomplish set targets because these are essential, and lead to growth of
the firm, strong positions in the market. It is necessary to make appropriate strategies and prepare
action plans so that financial performance can be improved (Ackermann, 2013). This is essential
for organisation which provide various opportunities to improve their strengths and people
development so that productivity can be increased in more appropriate manner. This report is
based on EE limited which is a leading British mobile network operator and division of BT
Group in the UK. This firm provides number of services in the market regarding networking and
internet service provider. This assignment will analyse PESTEL analysis and Ansoff's growth for
organisation's strategy. It will apply VRIO/ VRIN model for determining strategic capabilities
and identify strengths or weaknesses. This will evaluate the competitiveness of
telecommunication sector through Porter's Five Forces Model and analyse Bowman's Clock
Model for this firm.
TASK 1
P1. Analyse the impact and influence of macro environment on organisation and its business
strategies
Every organisations focus on formulating strategies and action plan for achieving
competitive advantages in an appropriate manner. These strategies generally depend on
environmental factors that can affect on business operations. In this included various factors such
as micro and macro which have major impact on the organisation and its strategies. These forces
are generally beyond the control (Audretsch, 2013). so it is the duty of manager to formulate
strategies and manage those factors in more effective manner.
EE Limited, which is a British mobile network operators provide several internet
services to the customers. It is a division of BT Group and established in the year of 2010. it is
the largest mobile network operators in the UK. It has around 30 million customers and is also
the largest 4G service provider in Europe. This firm is focusing on providing better internet
solutions and mobile networking so that customers can be satisfied and prefer this brand for
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getting more services as well. This firm provide number of products or services such as fixed
line telephone, broadband internet and digital televisions and many more in the market place.
It deals with various countries and there are number of factors which can affect on the
business operations and depends on the environmental elements (Alsoboa, 2013). Therefore, it is
necessary to identify and understand the atmosphere in appropriate manner so that better
strategies can be formulated.
Here are some ways for analysing the impact and influence of macro environment on an
organisation and its business strategies such as PESTEL Analysis.
1. PESTEL Analysis for environmental analysis:
There are number of factors involved which have direct impact on the business and its
functions. These forces are generally due to change in the climate, as it has worse impact so
organisations focus on identifying those forces so that better strategies can be formulated for
achieving set targets or objectives in the competitive environment. In this, several elements are
included such as political, economical, environmental, technological and legal factors which are
beyond the control and manager are required to manage those by adopting best strategy as well
as plan for the organisation. There can be analysed that environmental forces which affect on
business in both way as positive and negative and it is depends on situations and nature of the EE
limited.
There is PESTEL analysis for better understanding of environmental issues such as:
Political Factor: It generally refers to various political issues or problems within the
country because it is a major factor that has a direct impact on the business operations and its
decisions Here several elements are considered such as tax policies, employment legislation,
rules and regulations, laws or code of conduct and the government stability (Aldehayyat, 2013).
This must be undertaken by the organisation while making business decisions regarding
adaptation of strategies and tools or techniques so that they can survive in the competitive world
in an effective way.
EE limited is one the best mobile network operators that cover wide areas of UK as they
focus on political factors in reducing negative impact to achieve predetermine goals or
objectives.
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There are different kinds of political issues such as:
 Corruption level is increasing day by day.
 Government stability within the country
 Rules and regulations regarding intellectual property for proper protection
 Set code of conduct to formulate the pricing policies.
 Provisions regarding relaxation of tax rates and inflation in economy
 Laws of minimum wage rates
 Employment benefits
Therefore, these all are considered by the EE limited, so that they can make appropriate
strategies for accomplishing targets or goals
Economical factors: It is another important factor that can affect on the financial
performance of the firm. It can impact on the business growth as well as its profitability in
several ways (Bentley and Omer, 2013). As in this included various factors such as saving rates,
interest rates, inflation and deflation, foreign exchange rates cash flow, income status of the
people within country and many more etc. Therefore, all these are major factors that can affects
on profit of the firm in several ways. EE limited undertake those for formulating best strategies
for telecommunication and considered infrastructure, skilled as well as educated employees and
workforce team, growth or sustainability and many more for developing the business and achieve
competitive advantages.
Social factors: It is related with society and their culture that have direct impacts on
attaining set targets and business goals. In this included number of forces such as attitudes, age,
gender or sex, culture, language, caste, religion, customs and values and many more that has
impacts on the business performance and organisational culture. Therefore, EE limited always
try to understand the choice of behaviours of customers as well as their needs, demands and
desired expectations regarding telecommunication so that they can provide better services to
them (Sharp, 2013). They provide number of services such as internet solutions, mobile networks
and many more to the customers.
Technological factors: There are number of factors which included in the technologies
such as advancement of new methods, techniques, technologies and many more which can
affects on the manufacturing or production departments and also operations to create better
quality of products or services. therefore, EE limited consider this force and always bring
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changes as per the requirements and try to provide best facilities or services regarding internet to
the customers so that they can be attracted towards firm.
Legal Forces: There are different legislation defined in the country which is related with
government laws, rules or regulations and policies. These legislation must be followed by every
firm so that they can achieve accomplish set targets (Cadle, 2010). EE limited consider various
legislation and laws due to telecommunication industry such as discrimination acts, consumer
protection act, employment acts and minimum wage acts etc. these must be undertakes by EE
firm so that they can meet with employees trust and satisfied society needs or demands.
Environmental: This is an important aspects of macro environment factor which is
required to protect climate by company. It has negative impact on the firm and also their
operations. In this included damage natural resources, wastages of water, pollute air and harm
greenery due to producing products and services. main problems of environmental factor is
carbon emissions so that EE limited is taking actions for reducing it and renewable energy as
well.
2. Ansoff's Growth vector matrix
Strategic position may be defined as the place or position that must be occupied in the
future time period. In this included strengths and weaknesses of the firm which should be
determines for creating better position in the market so that organisation can beat with
competitors and achieve competitive advantages in more efficient manner. Ansoff's growth
vector matrix support in understanding and formulating business strategies such as:
Different steps of Ansoff's matrix
Market Penetration: It is defined as the most important component that organisations are
adopted for the purpose of expanding business at several countries in very effective manner
(Paul, 2010). In this included several procedure where more production consider and provide
various items as well as sell in the market place for satisfying their customers and desired
expectations. EE limited formulate strategies so that number of clients can be attracted and
improve market share in more appropriate way.
Market development: It also related with market penetration as in this included various
procedures to expand the business at several countries and provide their products or services at
their so that huge audiences can be targeted in an effective manner. Organisation only focus on
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customers target and cover wide range of people by providing various products or services to
them. Therefore, EE limited is expanding its business at global level.
Product development: In this defined a set of procedure which helps in creating and
developing a new product so that more customers can be attracted towards firm in well manner.
EE limited is always concentrate on adopting new technologies and innovative ideas so that
better services can be provided to the customers regarding internet services providing, mobile
networks and various solutions to targeted audiences as 4G and 5G services and many more.
Diversification: In this businesses are diversified in other field or areas and produce new
items and enter into complete new market for development (Curwen, 2011). This strategy is
helpful in expanding business at various country in an effective manner.
TASK 2
P2 Assessment of organisational internals environment and its capabilities
It is generally refers to the organisational strengths and weaknesses that must be
identified for making better strategies and actions plans in an appropriate manner. It is necessary
to identify internal environment factors that can affects on the business and its functions. In this
included several aspects such as culture, capacity, employees relations, financial conditions,
skills and and efficiency of the management within the firm. Internal factors can be controllable
as these can be control by the company by managing entire business activities and allocate
available resources among process for getting better outcomes (D'Aveni, and Dagnino, 2010). It
is very beneficial for the organisation as it provide various advantages such as increasing market
shares, achieve competitive advantages, generate more profits or revenues and many more so
that company can develop in an efficient manner.
Here are defined some positive and negative impacts of the internal environment factors that can
affects on the organisational capabilities such as:
1. Strategic capabilities:
It is an essential for business as they can implement their plans and strategies in
appropriate manner by increasing capabilities so that organisation can achieve long term growth
as well as sustainability in the market place in more efficient way. For improving the business
performance, it is necessary to allocate available resources among various functions or activities
so that maximum outcomes can be achieved in well manner. Therefore, EE limited concentrate
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on increasing its capabilities by providing several aspects such as assets, proper funds, various
resources, market positions and appropriate strategies for organisational development. In this
required better or favourable decision regarding strategy adoption so that company can survive in
the competitive environment in an effective manner.
EE limited always consider different tools or techniques as well as appropriate strategies
for creating demand in the market and attracts number of customers towards telecommunication
sectors and organisation.
2. VRIO/ VRIN model:
This is very beneficial and effective tool which are using by EE limited company. It also
helpful in proper managing of people as well as human resource for the purpose of achieving
competitive advantages and sustainability in the market place (Smith, 2010). EE limited always
consider the employees performance and their contribution towards organisations for achieving
business goals and objectives in an effective ways. It is supportive tool that helps in attaining
competitive advantages so it is necessary for this firm as improve the strengths abilities by
considering several aspects and tools or techniques as well. These are as following:
Valuable: in this provide more emphases which are beneficial for the firm in achieving
business goals or get succeed. Therefore, for every organisation, appropriate resources are
required which will support in reducing delays as well as remove various threats for promoting
particular business in an effective manner. There should be proper management within the firm
as allocate available resources and minimise wastage so that better results can be get in the
organisation.
Rare: In this considered that there are rare chances to have available resources within the
organisation for their customers so it is necessary to provide better products and services to the
potential buyers for satisfy their desired needs or wants (Dobbs, 2014). It can be seen that there
is high competition in the market regarding telecommunication sector so they need to formulate
proper actions plan to achieve set targets or goals.
Imitability: It is generally concern with those resources that can be available within the
firm and also no one can copy or steal. Therefore, EE limited provide better quality of internet
solutions and network solutions to the customers by using resources in an effective way.
Organisation: EE limited is best and famous organisation so it has strong image in the
market place. They are focusing on building good image and create better relations among
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people as internally and externally so that organisation can achieve long term benefits in more
appropriate manner.
3. Organisation's Strengths and weaknesses:
SWOT analysis is one of the best tool and techniques that support in identifying
particular strengths and weaknesses of the firm (Firnkorn, 2012). EE limited can formulate better
strategy for the organisation by analysing its strengths and weaknesses such as:
Strengths: Strong market image and huge customers base: EE limited is largest mobile network
operators in the UK as it provide number of services or facilities including internet
solutions and many more.
 Delivers best solutions to the customers for maximum satisfaction: This is also essential
and major strength of the EE limited as they can cover wide area of the market by
providing best quality of products or services.
Weaknesses: Depend on the UK market: EE limited is providing better services regarding mobile and
internet solutions so that number of customers can be satisfied but they are serving only
in UK market not other countries.
 Poor reputation in the global market: It is the major weak point of this firm that it has
poor market image among the competitors at the international market. Therefore, it is
difficult to attract huge audience towards firm and achieve competitive advantages as
well.
TASK 3
P3 Evaluate the competitiveness of telecommunication sector through porter's five force model
This is an essential that support in analysing about competition in the market so that
company can formulate its strategies in well manner (Müller, 2012). Therefore, porter's five
forces are considered in the EE limited for evaluating the competitiveness in the sector of
telecommunication and find the way to compete with strong competitors in an appropriate
manner and it can be possible through better strategies and actions plan as well. Competitive rivalry: It is defined as the procedures where company identify strong
competitors and their strengths in the telecommunication field. There are number of
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competitors which are available in the market place such as Vodafone, Virgin and O2
and many more who are dealing in telecommunication sector as well as providing
mobile networks to the people. Threats of new entries: EE limited company is providing various products and services
such as broadband, internet solution and mobile networking in the market place.
Therefore, there are various threats of the competitors in the market because new
organisations are entering with bringing same products or services and focusing on
capturing market so it is necessary to consider those new competitors and try to manage
brand image in the market (Grover, 2013). Their main aim is to provide best solution to
the customers so that they can be attracted towards organisation. It will help in
achieving set targets or goals in well manner. Bargaining power of customers: It is most important component of the porter's five
forces as buyers have rights and power to bargain during purchasing any goods and
services from the market place. They generally compare the quality and price with other
competitors and then take decisions regarding buying any item for satisfying their needs
or wants in an effective way. Supplier power: It is another factor that can be affects on the production departments
and also delivering the products and services in the right market place. Therefore, EE
limited has built its strong network and relations with supply chain so that production
process can not be stopped.
 Threats of substitution: This is also a major factors that can affects on the business due
to high substitutes products and services in the market. EE limited has less substitution
because it is UK's largest company who provide better quality of products such as
internet solutions, mobile networks, telecommunication services and broad band to the
customers for satisfying their need or wants.
TASK 4
P4 Analyse strategic directions by using Bowman's strategy clock model
For every business organisation, it is necessary to formulate better strategies and action
plan so that they can survive in the competitive environment (Kohli, 2013). Generally, company
focus on occupying effective position in the market. With the help of this model, businesses can
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determine number of options that are available and can be used for achieving set targets or goals
in an effective way. It is very supportive for EE limited because this will provide dimensions
such as price and perceived value as well. There are defined some positions which is based on
strategies such as:
Positions 1: Low price and low value added: It is an important aspect that support in finding
competitive position in the market place. EE limited which is the division of BT Group provide
various services with low prices. So customers are thinking that company is selling less value
added services in the market (Johnson, 2016). Therefore, it is necessary to formulate price and
make effective charges over products or services so that company can compete with strong
competitors in an appropriate manner.
Position 2. Low price: In this determine that there should be required to minimise costs and
expenses in more efficient manner so that organisation can be get succeed in well manner. EE
limited is providing number of products or services in the market so they charge minimums price
over their networks and internet solutions so that customers can afford and ready to take those
services in well manner. It will support in increasing profitability as well as productivity of the
organisation in better ways.
Position 3. Hybrid: It is defined as the combination of two aspects which helps in formulating
strategies such as lower prices as well as differentiation in products or services in an appropriate
way. EE limited is considering the Hybrid for creating more customers and win their trust in well
manner. They also add some values and additional features in their existing product so that target
audiences can be achieved.
Position 4. Differentiation: This is an essential for company to develop the business and achieve
set targets in more appropriate manner. The major aim of organisation is to provide best quality
of products or services by formulating best strategies and attracts higher range of customers
through added more values in more appropriate manner (Kernbach, 2015). It is required to have
strong brand image in the market which play vital role in attracting number of people towards EE
limited.
Position 5. Focused differentiation: In this considered that there are number of products and
services which have taken place higher position in the market due to high prices. More customers
are get ready to take those services for receiving high value and get maximum satisfaction in an
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effective manner. Company is focusing on providing luxury services that associated with profit
margins.
Position 6. Risky high margins: In this defined that there can be risk ins providing high prices of
services without adding any values so customers may be prefer those products due to higher
value or charges (Eppler and Bresciani, 2015). There must be required adequate strategies for
removing risk factor.
Positions 7. Monopoly pricing: In this defined that business can be developed by formulating
effective strategies and planning. They want to get monopoly for serving best product in the
market so that price can be set.
Position 8. Loss of market share: It is very beneficial ins bringing changes in the market.
Organisation set their pricing strategies with low value so that number of customers can be
attracted towards firm among competitors.
CONCLUSION
From the above report, it has been concluded that business can be developed by
considering appropriate strategies and action plan so that long term benefits can be achieved in
well manner. It is also helpful component to attain sustainability in the market so that company
can accomplish their set targets or goals in better ways. This report defined about EE limited that
deals in telecommunication sector and also determined various factors that can affects on the
business operations for the purpose of improving the work efficiency as well as level of
performance.
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Online
Porter’s Five Forces of Competitive Position Analysis, 2018. [Online]. Available through :
<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>./
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