Strategic Analysis and Recommendations: Virgin Telecom UK

This report provides a comprehensive analysis of Virgin Telecom's business strategy. It begins with an introduction to business strategy and its importance for firms, particularly in the competitive telecommunications sector. The report then delves into a PESTEL analysis to assess the macro-environmental factors influencing Virgin Telecom, followed by an application of the Ansoff Matrix to explore strategic growth options. An internal environment assessment is conducted, utilizing the VRIO framework to evaluate the company's resources and capabilities. The report also includes an evaluation of the UK telecommunications sector's competitiveness using Porter's Five Forces model. Finally, Bowman's strategy clock model is employed to analyze strategic directions and options available to Virgin Telecom, concluding with a summary of findings and recommendations.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Impact and influence of macro environment on define business and its strategies..........1
TASK 2............................................................................................................................................3
P2 Organise an assessment of internal environment and capabilities ...................................3
TASK 3............................................................................................................................................5
P3 Evaluate the competitiveness of UK’s telecommunications sector using Porter’s five forces
model......................................................................................................................................5
TASK 4............................................................................................................................................7
P4 Bowman’s strategy clock model, analyse the strategic direction and options available for
business...................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
A firm need to evaluate and understand the basic concern of market properly so that
beneficial attribute could be drawn (Ackermann and Audretsch, 2013). A firm need to craft their
strategies better as per the working options so that effectiveness and efficiency in working could
be maintain and manage. Business strategy is a concept which define about importance of
framework to a firm as well as kind of methods which a firm suppose to gain. Thus, every
business organisation have to frame such framework which facilitate and enable them in order to
compete at define market world. This project is based on Virgin Telecommunication whom are
one of a largest telecom service providers not only in UK but also in other parts of the world as
well. Thus, for gaining competitive edge rather than others business need to craft their strategies
properly so that effective and efficient gains could be drawn. For this consideration, external
environment analysis will going to get done so that effective gain could be estimated. Along with
this internal environment abilities will also disseminate properly with suitable porter five forces
analysis.
TASK 1
P1 Impact and influence of macro environment on define business and its strategies
Business environment one of a major function is dynamic nature which clearly shown
that things get changed with every course of moment. A macro environment is one where
business operations used to take place at vast level (Alsoboa and Aldehayyat, 2013). A firm need
to determine about the macro aspects properly so that strategies used to craft in a signified
manner. Thus, a firm need to understand impact of macro environment on an association
working and performance so that effectiveness and efficiency could be promoted in business
working and attribute. Virgin Group have to organise PESTEL and Ansoff Matrix Vector so that
better and determined work could be done: Political: One of a major thing which need to understand by management of a company
is political attribute. A business need to recognise about political stability and instability
properly when they used to operate in any new country or need to craft strategies again in
define region. Virgin group have to evaluate the government stability in UK better so that
they used to maintain their position properly. An unstable government influence negative
attribute towards business which harm overall working efficiency.
1

 Economical: Another thing which have to better understand by business is to determine
economical condition of a country. There is a need to determine the rate of inflation and
depression in better frame so that effectiveness and efficiency could be promoted and
encourage (Bentley, Omer and Sharp, 2013). Virgin group have to evaluate the
economical condition of UK better so that they could maintain and manage their
operations. In case on inflation chances of gaining inappropriate gain tend to rise high.
This aspect required to understand so that goods and services of Virgin Telecom could
deliver on appropriate rate and standard. Social: Local culture, beliefs and values are a core part of business which need to
understand by authority so that beneficial attribute could be drawn (Cadle, Paul and
Turner, 2010). For a successful venture, there is a need to determine social interference
properly through which effective and beneficial gains could be drawn. Virgin Telecom
have to work properly like they need to establish network tower far from city so that
chances of influence on society could be reduce. This support in reducing chances of
radiation reflect through towers. Technological: With change in time duration, technological advancement and
consideration have to evaluate better and in a define frame. Technologies are a core part
which need to understand by managers of Virgin Telecom in a suitable manner. This
facilitate and enable them to provide better services to all their clients. Like invention in
more signified services like 5G, 6G enable and support in bring down revolution in field
of telecommunications sector. Environmental: Telecom sector reflect most of the harm towards an environment. This
factor need to understand by management of Virgin properly so that they could use such
techniques and better utilise all resources so that chances of environment harm could be
reduce. This need to recognise by authority of a company so that beneficial attribute
could be drawn as well as a better reflection on society could be frame.
 Legislation: There are various kind of legislation used to take place in business
environment. These legislation have to align with various aspects of Virgin Telecom
which are related with health and safety, equal wages act etc. All these need to define that
legislation have to consider better so that effective and efficient gain could be drawn.
2

Key position is future position of firm by considering different viewpoints, for example,
inner powers, changing condition and so on qualities and shortcomings of firm characterizes by
situating technique which helps them to distinguish existing requirements of purchasers and
fabricate solid market position (Curwen, 2011). Principle reason for executing methodologies is
to make the exercises of association more viable with the goal that it empowers to contend in
advertise. This will put coordinate effect on efficiency and in addition benefit of organization.
Ansoff grid is one of the critical apparatus that helps with figuring procedures that aids business
advancement. Market penetration: Expansion is one of the way which is embraced by firm so as to
build its productivity. Utilization of this procedure gives a chance to organization to
expanding its piece of the overall industry and keep up their solid position in advertise. Market development: It is likewise an extension procedure in which new market is
produced with existing products and ventures (D'Aveni, Dagnino and Smith, 2010).
Fundamental point of receiving this technique is to build their customer base by growing
all the more new markets. Product development: In this, firm grow new items and administrations so as to fulfill
needs and requests of their potential clients. Firm can done this by the help of executing
new and creative innovation to pull in vast gathering of clients. In this point of view, vital
organization together is made by firm with different organizations to get to 5G
innovation.
 Diversification: In this methodology, everything is new to firm. Here market is new and
also item is likewise new. Firm extend its market by growing new item and bring it into a
totally new market.
TASK 2
P2 Organise an assessment of internal environment and capabilities
Strategic capability of a company define about the abilities of an organisation through
which they become able to gain competitive advantage by employing effective strategies which
facilitate business to survive at market world and in order to sustain properly by increasing value
over a time. Strategies execution need to implement better so that beneficial attribute could be
drawn in order to gain better market share.
3

Thus, a business need to grow and expand their operations properly so that they could
become able to sustain in define market world. An effective formulation and execution of
framework support an organisation to maximise their working better so that effective and
efficient results could be drawn (Dobbs, 2014)). This result in drawing beneficial attribute so that
a company become successful in tenure. This result in higher competitive position so that
effective and efficient results could be drawn. For this context or to enhance inner abilities of a
firm, business required to opt a definite model or framework which assist in drawing beneficial
outcome: Valuable: A business become more able to sustain at market world when they start
determine the value of resources. All resources have certain value which need to
understand by business managers properly so that they could sustain their working better.
With effective valuation of resources, business become able to gain strength and become
competitive in nature (Firnkorn and Müller, 2012). Virgin Telecom have to utilise all
their resources properly whom have certain value and reflection towards business. This
will result management to gain strength so that effective working become done. This
enhance capabilities of a company internally. Rareness: A major thing which facilitate business to become sustainable at market world
through utilising all resources properly. All resources are rare in nature and finished one
day which have to recognise by managers of a company. This enforce an association to
utilise all resources properly just because they are rare in nature. Thus, once they get
finished then chances of utilising them again is not possible. Thus, for gaining
competitive position and reflect strength to a business management need to utilise all rare
resources properly which further enable them to gain competitive edge. Lack of
appropriate utilisation of rare resources enforce business to become weak which not
simplify as better consideration. Virgin Telecom have to determine rareness of all
resources and need to utilise them better so that better and signified gain could become
possible. Imitable: All resources are rare in nature as well as have certain value which required to
understand by managers of a company. Thus, utilising similar resources usually tend to
prevent higher cost but such resources could easily copied down. Imitable of resources
signify copying something which need to recognise by managers of company because it
4

usually cost lower than specified one. Thus, managers of a company required to
understand this attribute properly so that they could gain and reflect strength towards
operations of a company. Virgin Telecom have to determine that their resources would
not get copy by someone else otherwise they have to bear heavy loss which is not
appropriate for business and create hurdle in success of a firm as well. Thus, for gaining
strength towards operations, it is really essential to try to conserve resources by not
getting them imitable in nature of frame so that competitive advantage could gain by
Virgin Telecommunication.
 Organise: Resources are a core part of an organisation whom need to organise better and
in effective manner (Grover and Kohli, 2013). Well organise resources facilitate strength
towards a business so that beneficial attribute could be gain in order to remain
competitive in nature. All resources have a better significance on working so that
appropriate and suitable working abilities could be enhance. If all resources would not get
organise better then chances of wastage tend to rise. This result in lack of effectiveness
and efficiency in operations whose value required to pay off by a company in order to
lose strength from define world. Virgin Telecom have to organise their all resources
properly so that they could become able to remain competitive in nature.
On the basis of all these define determination of inner abilities identification which
clearly simplify about appropriate execution of strategy. A firm need to craft and manage such
strategies which enable them to utilise all resources better so that signified outcome could be
reflected (Johnson, 2016). This will result in order to gain better and suitable results so that
effectiveness and efficiency in operations could be maintain and manage. Hence, for such
attribute, VRIO analysis is appropriate and suitable in nature of frame of reference.= for gaining
competitive edge and position at market area.
TASK 3
P3 Evaluate the competitiveness of UK’s telecommunications sector using Porter’s five forces
model
A business required suitable and appropriate assessment of working through which better
and determine targets get disseminate. For measuring the competitiveness of an industry it is
really essential to draw certain consideration so that better and appropriate strategies used to get
5

drawn down. Whenever any kind of new operations used to take place in certain market world or
any kind of modifications in existing strategies get done, management have to evaluate
competitiveness of concern sector (Kernbach, Eppler and Bresciani, 2015).. With appropriate
understanding chances of drawing better and signified outcome could become possible so that
efficiency could be grown and manage.
A telecommunication industry is not small in nature and have wide spread of working
around the globe. Thus, it is important to determine the competitiveness of telecom sector better
so that Virgin group used to craft a better and definite study in an effective and better manner. In
such aspect, they used to implement Porter Five Force Model so that each and every aspect get
understand in a clear attribute. With effective and better assessment suitable working options get
underpin which further enable in managing things suitable and in determined manner.
Hence,forth, all definite attribute in context with porter five forces model are define as follow:
 Rivalry with Existing Competitors: A business face so much competition while
operating in a business environment (Klettner, Clarke and Boersma, 2014). It is really
essential to determine the rivalry with existing competitors so that beneficial and
supportive results could be drawn. For a company such assessment is essential in order to
analyse competitive position. Virgin telecom working as a one of major service provider
in UK market world whom work as leader in cost marketing. This assist them in made
differ from others so that competitive edge could be gain. This factor required to
implement while crafting business strategies for further expansion.
 Bargaining power of Buyers: Buyers or consumers are the ultimate god of business
whom support an organisation to expand their working in better manner. It is really
important for a firm to evaluate bargaining power of their buyers so that products and
services used to deliver at appropriate rate of level. In Telecom industry, there are
multiple number of buyers used to determine with differ taste and preference as well as
signify a high competition at UK market world. Thus, bargaining power of buyer is high
and more in nature which need to understand by Virgin Telecom so that they could
sustain at define world as well as deliver products on concern price value.
 Bargaining power of Suppliers: As per per the statistics report given by Deloitte, it can
be interpreted that supplier of telecom industry is strong. Bargaining power of suppliers is
strong for the telecommunication sector which simplify and resist Virgin group to operate
6

properly. Although, there are multiple number of large based companies already work
with limited number of suppliers of quality raw material at wider market world. Thus,
Virgin group of telecommunication need to understand and assess this aspect better so
that they could craft effective strategies align with suppliers of a company (Li, Zhou and
Si, 2010). This result in gaining better and effective outcome so that competitive position
at definite world could be maintain and manage in order to asses growth and
development. Thus, understanding of bargaining of suppliers is also essential with
bargaining power of buyers.
 Threat of new entrants: Telecom sector is wide in nature where number of rivalries are
high in frame. But chances of entering in such market world is not that easy which think
by others (Pagani, 2013). There is always a threat if new entry consideration arise in front
of business organisation but for the wide network providers like Virgin Telecom chances
of affecting business through new entries is not possible. This arise due to higher
investment for telecom company which have to understand by management so that better
working option get done.
 Product Substitutes: Virgin Telecom is confronting low risk as item substitute. The
organization picked up ubiquity for its cost administration procedure, subsequently it has
turned out to be much troublesome for rivals as far as contrasting its items and other
contender's items that arrangements in giving comparable sort of item or administrations.
Notwithstanding that, with its solid purchasing power, economies of size of separate
nation has expanded and there is an expansion in their ingestion value that
straightforwardly produce from various provider and that don't go to potential purchasers
or clients.
TASK 4
P4 Bowman’s strategy clock model, analyse the strategic direction and options available for
business
One of an essential thing which have to understand by a firm in order to made their
working effective is strategies. Strategies are a core essential of a firm so that better and
sufficient outcome could be drawn. Thus, at business environment, there are multiple number of
firms competing with each other which required to understand properly so that effective and
7

efficient gain could be drawn. This will result in making a valid consideration through which
effective gains get promoted.
A direction is really important so that all working options get done in a beneficial frame
of reference. Whenever an association used to compete at desire market world they have to better
understand about offerings of their competitors so that suitable and effective working
contribution get done (Porter, 2011). Thus, to manage operations better, suitable and relevant
model required to determine by managers of a company so that strategic direction could be
perform better as well as various options which available for business get estimated. This result
in deriving beneficial attribute so that effective and efficiency in operations get promoted in long
period of course. For this aspect, Bowman Clock Strategy model get evaluated which have
certain number of direction. There are mainly 8 position dimensions get evaluated which have to
better understand by any association in order to determine better and relevant working. All
position of Bowman Clock Strategy are define as follow in terms of Virgin Telecom: Low price: For managing position at desire market world, business used to deliver their
products and services at lower price value. This enable in gaining competitive advantage
so that effectiveness and efficiency could be maintain and manage. Virgin could assess
this thing but not used to adopt this position at define market world. Low price with low value added: Another thing is related with low price with low value
added where resources not getting utilise better (Scholes, 2015). Thus, business deliver
offerings at lower consideration but the values which used to added into that become
possible. Hybrid: In hybrid business used to deliver effective products and services at lower price
value but there are certain number of elements get evaluated in terms of product
differentiation. This relation required to assess better so that appropriate differentiation
could be maintain and manage. Henceforth, hybrid consideration could define as
effective and beneficial for a firm. Virgin sense not reflected that such kind of position is
appropriate and effective in frame. Differentiation: In this relation, products and services describe and become differ from
others or from their current status. Differentiation strategy could define as beneficial for a
company as they used to deal in differ aspects as well. Virgin already deal in
8

differentiation strategy where they could working in some industries as well. This result
in enable them in gaining beneficial attribute so that success could be gain. Focused differentiation: This level of position describe about focused on a certain
aspects while performing or dealing in products and services (Sumer and Bayraktar,
2012). A focused differentiation strategy is beneficial where business start providing
goods and services at highest value where chances to gain maximum customer become
possible. This focused differentiation strategy enable in managing things better so that
Virgin Telecom start getting maximum number of users through which effective gain
become possible. Risky High margin: A business required to focus on such thing where they could
determine high risk and work in such attribute as well (Williams and Figueiredo, 2011).
With higher risk business could become able to manage their working as well as reflect
better gain in tenure. A high risk margin always support business to grow by diversifying
operations. Virgin Telecom used to target such market world where chances of risk are
more which further assist in drawing appropriate outcome. Monopoly pricing: IN this streamline, business already have a define market world
where monopoly are in complete hands in an individual company. This support them to
made differ from others as well as have a better hold on desire market world
(Tavitiyaman, Qu and Zhang, 2011). Thus, monopoly pricing is appropriate and suitable
in nature fir deriving beneficial attribute.
 Loss of market share: This position is a formula for fiasco in any aggressive market.
Setting a centre range or standard cost for an item with low apparent esteem is probably
not going to prevail upon numerous purchasers who will have much better alternatives.
CONCLUSION
According to the previously mentioned report, it has been inferred that business
methodology is a basic device that helps firm in achieving its foreordained objectives and
targets. It is fundamental for chiefs to deliberately evaluate every one of the elements of inner
and outside condition with the goal that successful plans and strategies can be defined keeping in
mind the end goal to limit negative effect of those powers on tasks and exercises of media
transmission business. Ansoff's development grid is utilized as a part of request to assess vital
position of organization. Doorman's five power show is likewise used to examine aggressiveness
9

of media transmission industry in UK. Every one of these helps firm in confining successful
systems that gives it aggressive edge in showcase over their adversaries. It additionally helps
directors in settling on powerful choices with respect to development and accomplishment of
organization. Such strategies enable and support an association to gain better competitive edge
from others.
10