Strategic Management: Evaluating Vodafone's Competitive Advantage and External Environment

STRATEGIC MANAGEMENT

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Evaluate value of clear purpose, vision, mission objectives in setting strategic direction of chosen
organization.............................................................................................................................................3
Examine competitive advantage of company using VRIO analysis.........................................................4
Using Pestle analysis analyze external environment in which company operate.....................................7
Porter’s five forces model........................................................................................................................9
Review organizational strategy..............................................................................................................11
CONCLUSION.........................................................................................................................................11

INTRODUCTION
Strategic management refers to a process of setting goals, objectives in order to make
organization more competitive so that it will sustain in the market for long time period. It
provides all direction to business by developing policies and norms for attain objectives
effectively. Strategic management is an ongoing process that demonstrates bundle of decisions
that manager undertakes which is useful to decide result of firm performance (Ansoff and et. al.,
2018). To complete this project Vodafone Telecommunication Company is to be undertaken that
is a leading British multinational company headquartered in England, UK. Vodafone mainly
operates their services in Asia, Africa, Oceania, Europe etc. due to this they highly emphasis on
maintaining their market position in marketplace. This report includes value, purpose, vision,
mission of Vodafone that helps in setting strategic direction. Further it elucidates competitive
advantage using VRIO analysis and also demonstrate PESTLE analysis for evaluate external
environment. This also involves porters five forces model that is crucial to understand the
industry attractiveness so that company develops their strategy in effective and efficient manner.
MAIN BODY
Evaluate value of clear purpose, vision, mission objectives in setting strategic direction of
chosen organization
Company overview
Vodafone is a leading British telecommunication company since 1991. Its headquartered
in Newbury, Berkshire, England, UK and company serve their services on global platform. The
firm offer several products such as Mobile phone, Broadband, fixed line telephone, internet
television, IPTV, Internet of things, Digital television (Dzwigol, 2020). Therefore, in Vodafone
around 93000 employees are working in all over the world. Vodafone operate their networks in
around 22 countries and with partner network in 48 further countries. It is essential to understand
the organization vision, mission and values because it helps in setting strategic direction for
winning the high market position. Vodafone purpose, vision, mission etc. are presented below:
Clear purpose or Vision

The main purpose of Vodafone is to connect people of world for their better future and
for this company experts and scale gives unique opportunities to drive positive change in society.
The main vision of company is to built network to keep family, friends, government connected
that play a crucial role in economy running and functioning of sectors like healthcare and
education sectors (Barney and Hesterly, 2019).
Mission
Vodafone mission is to become a most loved brand by raising bar in delivering simple,
meaningful and delightful experience by using new age advanced technology. Be an
inspirational, agile organizational that challenge status quo by offering excellence customer
service.
Objectives in setting strategic direction of Vodafone
The main objective of Vodafone is to grow business by geographic expansion,
acquisition of new customers, increasing usage through innovation in technology, retention of
existing customers. On the basis of these objectives Vodafone prepares strategic direction that
helps in long term sustainability in marketplace. Become a converged communication
technology leader that enables the digital community. The company focused on achieving the
customer engagement and improves asset utilization.
Examine competitive advantage of company using VRIO analysis
VRIO analysis
VRIO framework was first proposed by Jay B Barney. Therefore this aspect evaluates the
relative importance of resources to business organization (Andreeva and et. al., 2019). It is a type
of resource focused strategic tool that is mainly used to develop sustainable competitive
advantage by effectively understands the role of resources within Vodafone. In context of
Vodafone, VRIO analysis is conducted by manager to assess the competitive advantage within
marketplace. It involves four aspects such as valuable, rare, imitable and organized. These
aspects are presented below in context of Vodafone:
 Capital Access- Vodafone, UK is highly able to get required capital from its parent
corporation in a very easy and effective manner. Therefore Vodafone enjoy free cash