Vodafone Business Strategy Doc

Added on - Nov 2020

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BUSINESS STRATEGY
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Impact and Influence of Macro environmental factors on Vodafone, UK.............................1
TASK 2............................................................................................................................................4
Internal environment and capabilities of Vodafone...............................................................4
TASK 3............................................................................................................................................6
Porter's five force analysis......................................................................................................6
TASK 4............................................................................................................................................8
P4 Bowman strategic clock model.........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
INTRODUCTION
Vodafone in one the best telecommunication service provider business operating from
UK. It has business in India, Europe and many other regions effectively. Vodafone has made its
place in the global market. The headquarter is located in Newbury, England.Business strategy is
very important for business in order to enhance profitability and production which also help to
gain competitive advantage effectively. It is analysed that Vodafone Group Plc has total
£139,576 million of assets in year 2012. It has 14,000 stores and 238,000 base stations
worldwide effectively. The report will cover impact and influence of Macro environmental
factors on Vodafone, UK. In addition to this, Internal environment and capabilities of Vodafone
and Porter's five force analysis to determine competition, threat of new entrance, bargaining
power of suppliers and buyers, threat of substitute products and finally the rivalry among
competitors in the business effectively. Finally, the report will demonstrate bowmen strategic
clock model to explore options for strategic positioning and also how should products and
services offered by business.
TASK 1
Impact and Influence of Macro environmental factors on Vodafone, UK
Vodafone, UK:It can be said that Vodafone in one the best telecommunication service provider
business operating from UK. It has business in India, Europe and many other regions effectively.
Vodafone has made its place in the global market. The headquarter is located in Newbury,
England. The market value is also very effective and around on hundred billion pounds which is
a very large number. Vodafone has business in more than thirty countries and expanding more
with the developing growth. The business and operational activities are affected by some factors
which are described below:
PESTLE ANLYSIS OF VODAFONE BUSINESS
Political:Political factors are the main influencers on business operational activities. It can be
said that the firm is dependent on political factors in which country it is operating. In order to
establish the infrastructure of business, Vodafone requires permission from government and
regulative body effectively. This will affect the operational activities in terms of time and money.
Political factors such as inflation and tax rates for a particular nation also affect business
profitability and production.
1
Economical:There are some economical factors such as rise in inflation rates, economy affect
on business process, price and products, changes in supply and demand, interest rates, foreign
exchange rates and economic growth pattern affect Vodafone operational activities. Such
changes create issues for business in terms of making regular changes in operations and prices
accordingly and effectively.
Social:Social factors are crucial for the firm in order to manage and control that it helps to
enhance production and profitability. Social factors such as population analysis, demographics,
cultural trends and buying trends of people are different in every nation. It can be said that
people have their own choices and preferences which affect demand and supply procedure of
business. The firm should manage social factors such as in countries like UK where the demand
is high during the holiday sessions.
Technological:Technological factors also affect business that innovation in technology is
improving day by day. Technological factors such as research and development, automation,
latest machineries and equipments and amount of technological awareness that Vodafone market
possesses affect business and operational activities. The firm should try to adopt latest innovation
in the market which will help to provide better services to customers and lead towards business
success.
Environmental:Environmentalfactorsaredeterminedandevaluatedbysurrounding
environment which influence business operational activities. Environmental factors such as
environment analysis, global changes, climate weather, geographical location and environmental
offsets affect business and its internal environment as well. Vodafone should analyse all the
environmental factors for the particular country in order to manage changes which helps to
increase profitability and production.
Legal:It can be said that legal factors have both internal and external sides. The government
make changes in policies, rules, regulations and legislations in order to manage and control
various businesses accordingly. This will affect the operational activities of Vodafone that it is
operating in various nation with different legislation and law. For an example, health and safety
law, consumer law and labour law. These should be managed by firm in order to run business
smoothly and effectively.
Ansoff's growth vector matrix model
2
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