Vodafone Business Strategy: A Comprehensive Analysis

B
usiness
Strategy
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Table of Contents
Introduction.........................................................................................................................................2
Task 1...................................................................................................................................................3
P1. To analyse the impact and influence the macro environment has on your chosen
organisation and its business strategies..........................................................................................3
Task 2...................................................................................................................................................8
P2: Continuing with your chosen organisation, conduct an assessment of the organisation’s
internal environment and its capabilities.......................................................................................8
Task 3.................................................................................................................................................11
P3: Evaluate the competitiveness of UKs telecommunication’s sector using Porter’s Five
Forces Model..................................................................................................................................11
Task 4.................................................................................................................................................13
P4: Using Bowman’s strategy clock model, analyse the strategic direction and options
available for your chosen organisation........................................................................................13
Conclusion..........................................................................................................................................15
References..........................................................................................................................................16
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Introduction
Business Strategy deals with the strategic management as well as the market and resources
analysis which are required by the organisation in order to manage its services and products
and the strategy required by them to develop the plans so as to meet the organisational
objectives. It also deals with the analysis of the strong and weak points so as to make
improvements in order to stay ahead of the competitors. The following assignment is based
on the Business Strategy of Vodafone. Vodafone is the leading telecommunication service
provider of UK which is also one of the largest mobile phone organisation of the world.
Currently, the organisation is serving millions of customers in UK by providing its high
quality services and products. The organisation is currently growing by continuously
introducing innovative services and products by adopting different strategies. In the following
assignment, we will discuss the influence of the external environment on the operations of the
organisation using PESTLE analysis. Also, the various strategic directions available for
Vodafone will be discussed based on Bowman’s clock model in the following assignment.
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Task 1
P1. To analyse the impact and influence the macro environment has on your chosen
organisation and its business strategies.
PESTLE Analysis of Vodafone: The strategy as well as the market performance of an
organisation depends on many external factors. In the similar way, Vodafone, the leading
telecommunication organisation in UK, is affected by the following factors:
Political: The rules and regulations made by the government of UK have a significant impact
on the services of the Vodafone organisation. The company is dependent on the political
stability as well as the government of UK for the success of its business operations. Vodafone
requires the permission of government of UK in order to develop its infrastructure and
network in the local as well as the national areas of UK. However, the current political
instability has affected the business operations of the company in UK. In such a situation, the
development of infrastructure becomes a difficult task for the business organisation
(Dudovskiy, 2012).
Economic: Economic conditions are one of the most important dimension in the growth of
the telecommunication market. The expansion and growth of the business depends on the
development of economy of country. Among the economic conditions, inflation rates are the
most affecting factor for Vodafone as it decides the allocation of funds for the development
of various marketing activities as well as the infrastructure of the Vodafone. Besides this, the
Vodafone services are also affected by the currency exchange rates. The growth of the
company depends on the GDP of the country as well.
Social: The Company gets affected by the local beliefs and the culture of the people of UK.
However, most of the population of UK is educated which helps the company in offering the
high quality services to its customers. This helps the Vodafone in getting the competitive
advantage over its rivals. The marketing strategies as well as advertising activities of
Vodafone are in according to the social beliefs of people of UK which helps the company in
attracting more and more customers (Dunne, et. al., 2013).
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