Vodafone UK: Business Strategy in the Telecommunications Sector

Business Strategy: Telecommunication Sector (UK)
Page | 1

Table of Contents
Introduction................................................................................................................................3
Task 1 – The external environment............................................................................................4
Task 2 – The internal environment and organisation capabilities............................................10
Task 3 – Analysing the telecommunications sector.................................................................14
Task 4 – Understanding and interpreting strategic direction...................................................16
Conclusion................................................................................................................................19
Reference List..........................................................................................................................20
Page | 2

Introduction
This assignment briefs about the various kinds of strategy adapted by an organization. These
strategies are used in operational, tactical and strategic role for an organization to increase its
standards. While dealing with the strategies, micro and macro environment has immense
impact in determining the products and services demands in relation to some external factors.
Business strategies help in creating opportunities and increases competitiveness with other
organization. Business strategy incorporates a plan taken by the organization to frame certain
objectives and estimate a period of achieving those goals with various processes. Firms and
companies apply strategy to compete with the entry of new threats and develop its own
weaknesses. Implementing strategy in a business helps in obtaining the objectives through
various actions taken by the organization. Strategies are formed to gain customer satisfaction
for the services provided by the company. Vodafone in UK occupies a brand name in UK
telecommunication sector. Vodafone with its strong communication network has led an
increase to the market share. With the help of the stakeholders and the partners, Vodafone has
been able to expand its business globally.
Page | 3

Task 1 – The external environment
1.1)Analyse the impact and influence the macro environment has on your chosen
organisation and its business strategies.
UK's telecommunication networks have a major contribution to the Critical National
Infrastructure. Vodafone has contributed to UK telecommunication sector immensely in
giving shape to the wireless industry of UK. Vodafone UK is now on the verge of developing
its company and network globally. Vodafone, as a telecommunication company has acquired
the brand name of being the best networking communication. Globally the company is
aiming to expand its business. Vodafone has adapted certain strategic goals to develop its
networking sector in UK and globally.
Objectives: The Company aims at actively managing the company's portfolio to increase its
value of returns. The company is striving to reduce the cost of production in Europe. As
customers helps in increasing the demand for the company, Vodafone has an objective in
delivering the best customer’s needs in telecommunication.
Vision: The Company has created a vision with its employees to serve the customer’s needs
and be the leader in communication sector globally.
Mission: The Company’s mission is to create innovative services for the customers with the
help of the power of the mobiles. Being globally situated, the company has spread its
telecommunication sector almost in 26 countries with its marketing strategies. Through the
micro and macro strategies, the company establishes certain goals in achieving success over
the competitors.
a) PESTLE model for environmental analysis
Political  Vodafone as a multinational
telecommunication company operates
in almost 26 countries, attracting 444
million customers
 Political factors of a country affect
the customers to a great extent. The
Page | 4

political crisis like the Brexit has
impacted not only the customers but
also the companies in UK. The
customer's confidence has faced a
negative jerk. Customers are less
attracted in purchasing the services
from Vodafone.
 A cordial collaboration exists
between the UK government and
telecom communication. With the
help of this collaboration, the
government has taken many several
initiatives for improving the standards
of the telecom industry. Vodafone has
taken the initiative to shift from GSM
cards to wireless communication.
Economic  UK has maintained the record of
being the 5th highest country in GDP.
Vodafone contributes largely to the
GDP of the country.
 Any changes in the economy of the
country, is the consequence of the
profit of the company. With the
provision of high standards of
income, the customers have the
opportunity to purchase the services
of Vodafone. With better economic
condition of the country comes the
increase in the profit of the
organization.
 However, recession in the year 2008
and rate of inflation has adversely
affected the profit of the company.
Page | 5

Vodafone suffered a loss due to
recession has led it reducing potential
customers and employees (Linge and
Sutton, 2016).
Social  Customers behaviour and belonging
to different cultures determines the
service type and pricing of the
products. Vodafone has the young
generation as the customer segment.
As the younger generation does not
have a high earning as they lack in the
source of earning, they are unable to
purchase high price commodities.
Vodafone to overcome this barrier
should implement cheap cost
available products or reduce in the
cost of the product.
 Due to globalization, the customers’
demands vary with the choice of the
products. Vodafone to avoid
customers being bored of the service
has developed wireless
communications and latest features in
the mobile. Vodafone has adapted this
strategy of implementing latest
technology has helped to attract the
targeted customers.
Technology  Vodafone being one of the biggest
telecommunication companies
definitely depends on the
technological advancement.
 However, telecommunication
company are in itself are a gift of
Page | 6