Vodafone UK Business Strategy Analysis: PESTLE, Ansoff, VRIO/VRIN, Porter's Five Forces, and Bowman's Clock Models

Business strategy
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Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................3
PESTLE model for environmental analysis...............................................................................3
Ansoff’s growth vector matrix to analyse the organisation’s strategic positioning...................6
Task 2.........................................................................................................................................7
Explain what strategic capability means....................................................................................7
Apply the ‘VRIO/VRIN’ model to determine the strategic capabilities possessed by your
chosen organisation....................................................................................................................9
Identify the organisation’s strengths and weaknesses..............................................................10
Task 3.......................................................................................................................................11
Porter’s five forces model........................................................................................................11
Task 4.......................................................................................................................................14
Using Bowman’s strategy clock model, analyse the strategic direction and options available
for your chosen organisation....................................................................................................14
Conclusion (100)......................................................................................................................18
Reference List..........................................................................................................................19
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Introduction
Business strategy is an organizations plan of working in order to achieve its vision,
competing in the market, prioritizing the objectives, and optimizing the financial performance
of the firm with various business models. In this assignment, various business models have
been utilized in order to analyze the environment and develop suitable strategies for
Telecommunication Company in UK. The models that will be used in this assignment for
developing effective business strategy and analyzing the environment are PESTLE, Ansoff
Matrix, VRIO/VRIN, Porter’s Five Forces Model, and Bowman’s Clock Model. The tools
that are going to be used will be analyzing the strategic capabilities of the organization. The
chosen telecommunication company in this assignment is Vodafone.
Task 1
PESTLE model for environmental analysis
The macro environment generally entails the business environment and influences the
organization in long-term. Macro environment is analyzed utilizing the PESTLE (Cipd.co.uk,
2018) analysis to paint a picture of several ways in which macro environment can influence
Vodafone and its business strategies.
Vodafone is one of the largest telecommunication companies in the world and UK. As a
multinational firm Vodafone has more than 9800, retail stores all over the world are
influenced by several global factors. The PESTLE analysis specified is related to United
Kingdom in order to provide efficient details of their activities in the country.
Political
Political structure and stability
The political environment of UK is stable,
which attracts the companies to invest in the
country. Due to stable political environment,
UK has good relation with other countries
that is attractive to the telecom industry of
UK. In terms of political factors, Vodafone
will be able to outsource its processes to
other countries. There will be less fluctuation
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in the policies and it would provide the
company with scope of expansion.
Economic Economical factors consisting of taxes, inflation
and interests rates affect the telecommunication
industry immensely. In terms of economical
aspects, GDP per capita of UK is very high.
Since people have GDP per capita of around
38846 GBP it shows, the standard of living in UK
is quite high. UK is one of the leading nations in
GDP ranking globally. Since the standard of
living is high in UK, it will efficiently increase
the aggregate demands resulting in enhancing the
sales figure and profits of the company. As the
competitors try to cut down the prices of
Vodafone, the company is able to benefit as most
of the services provided by Vodafone are of high
quality and satisfy the needs and wants of
customer in more efficient manner. Therefore,
this kind of macroeconomic circumstance is
beneficial for the company in the form of better
scope and higher demands at profitability of the
company.
Social Social factors generally have a positive impact on
the company and its business operations. The
telecommunication sector is growing rapidly in
UK and the people of country are oriented
towards the use of internet. As per the research
conducted, there has been a increase in usage of
internet in UK, year 2016 witnessed 82.61% and
in year 2018 the percentage increased to 82.73%.
The positivity showed by the people of the
country gives Vodafone an advantage to provide
the customers to increase the sales of the
company to make better profits.
Technological Technological factors have immense impact on
the telecommunication sector of UK. The
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advancing technologies play a vital role for
telecommunication companies to grow
effectively. In terms of technological factors,
technologies of UK are advancing and the use of
Smartphone is increasing day by day. It provides
the company with a strong platform to grow their
business and increase their productivity level.
Vodafone being a telecommunication company
utilizes the technologies and use of Smartphone
effectively to come up with innovative products
and services for the customers. Currently,
Vodafone is working to develop 5G network to
increase their sales and profits. Thus,
technological factors have positive impact on the
company.
Legal Legal factors frequently influence the
telecommunication industry. The legislation of
UK widely affects the telecommunication
companies by incorporating and changing the
rules and regulations frequently. The companies
involved in the telecom industry have to cope up
and follow the rules and regulations implemented
in order to survive in the country. This rules and
regulation composes of data protection act that
includes regarding the safety of peoples data. The
telecom companies must ensure that the
confidential data of the people using their service
must not be breached, as it would have a negative
impact on the company.
Environmental Environmental factors are one of the most vital
aspects that must be considered by the telecom
companies in order to sustain in the market. In
terms of environmental factors, the governmental
policies of UK focus on using renewable
resources rather than non-renewable resources.
The telecom companies must utilize the
renewable resources to save the non-renewable
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resources of the country. Utilization of renewable
resources by Vodafone would create a positive
impact on the company and help them to
maintain the flow of business.
Table 1: PESTLE analysis
Source: (created by learner)
Figure 1: PESTLE analysis
Source: (Encrypted-tbn0.gstatic.com, 2018)
Ansoff’s growth vector matrix to analyse the organisation’s strategic positioning
Ansoff’s growth vector matrix is used by Vodafone to plan the marketing model that helps
the company to determine its market growth strategy and products. It is strategic market
planning tool that helps the company to penetrate in the market (Loredana, 2016). Ansoff’s
matrix consists of four alternative growth strategies that are mentioned below:
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