Vodafone's Business Strategy: SWOT, PESTLE, and Competitive Analysis

This report provides a comprehensive analysis of Vodafone's business strategy, examining both its internal and external environments. It begins with an introduction to business strategy and its importance, followed by an analysis of the macro environment using PESTLE and SWOT frameworks, highlighting the impact of political, economic, social, technological, legal, and environmental factors. The report then delves into Vodafone's internal capabilities, employing the VRIO model to assess its resources and competitive advantages. Furthermore, it evaluates competitive forces using Porter's five forces model and explores various strategic planning models and concepts. The report concludes with a summary of findings and references.

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
PART A...........................................................................................................................................1
TASK 1............................................................................................................................................1
P1. SWOT and PESTLE frameworks highlighting macro environment and their effects on
business ......................................................................................................................................1
TASK 2............................................................................................................................................4
P2 Applying appropriate frameworks evaluate internal environment and capabilities of
company......................................................................................................................................4
PART B ...........................................................................................................................................6
TASK 3............................................................................................................................................6
P3 Porter's five force model and evaluation of competitive forces.............................................6
TASK 4............................................................................................................................................7
P4 Different kind of models, concepts, theories devise strategic planning ...............................7
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Business-strategy is a long term action plan which is design by manager in order to
accomplish particular goals and objectives (Business Strategy, 2015). It is a sequence steps
which is apply by organisation to attain predetermined targets in a limited time period. To
implement effective strategy for company, it is important for business administrator to gather
necessary information and data from different sources (Ackermann and Audretsch, 2013). There
are mainly two factors which is present in the environment such as macro and micro. Both forces
are highly effects on business operations and its performance in a direct way. This report is based
on Vodafone's, it is a multinational organisation that have at least 250 employees. This
assignment describe about PESTLE and SWOT analysis. These are essential for the enterprise to
evaluate their internal and external factor. Porters-five-forces model and evaluation of
competitive factor also determined in this project. Different types of concepts and models are
used in strategic-planning.
PART A
TASK 1
P1. SWOT and PESTLE frameworks highlighting macro environment and their effects on
business
Macro environment: It is identify as a condition that present in the economy as an entire,
rather than a specific region or sector. In other word, it includes inflation, trends in GDP (Gross
domestic product), fiscal and monetary policy, spending and many other. It is closely related to
business cycle as compared to the individual performance. Macro environment is an external
factor that includes PESTLE analysis of the company (Annabi and McGann, 2013). This force
cover six elements such as political, environmental, social, technological, legal and economical.
All these are essential for the enterprise to expand their business operations and functions at
international level. All these are determined as below:
Political: Vodafone's has been recommend due to EC's free exchange statement and have
to minimised sourcing costs. In this higher cost highly effects on company capabilities in
international markets. Vodafone's is known for its effective plan of Customer social
responsibility initiatives. This factor highly impacts on company for achievement of long term
goals and objectives.
1

Economical: Vodafone's is impacted by challenger's discounted pricing strategy. In this
company mainly emphasis on its quality or standard which only show to short term failure and
clients were forced to product quality with value. So this factor also impacted on business
performance and productivity in a direct and indirect way.
Social: Variation in the lifestyle and taste of consumer represent both threats and
opportunities for the sector (Auzair, 2011). Product quality is one of the main and foremost part
of the company success and development in competitive marketplace. This factor highly impact
on business capabilities because, variation in customer taste or preferences reduce demand of the
products.
Technological: Variation is retailing approach such as use of internet as online
purchasing is a specific activity in retailing, it widening the ecommerce scope directly. In the
organisation, there are large number of employees are work with an aim of accomplishing long
term goals and objectives in limited time period. On the other side, some persons are doesn't
know about innovative technology which reduced business performance and image in market.
Legal: Vodafone's follows an omni transmission experience by assigning clients choice
for home delivery services or in shop pickup. This factor also impacted business capabilities
because, there are different rules and regulations which is necessary to follow.
Environmental: It is another factor that effects on business performance and its goodwill
in marketplace. In today environment, there are large number of business that apply
environmental friendly resources and renewable natural in their production (Azar, 2011). It
identify the biggest challenge for an enterprise in order to retain their share in market.
SWOT Analysis: It is another factor which describe business strength, weakness, threats and
opportunities. So it is important for the business entity to accomplish long term goals and
objectives in limited time period. SWOT analysis of Vodafone's which are determined as below:
Strength: Vodafone's offer their all products and services in all over the world which is
biggest strength of the company. They deals in different variety of goods such as financial
services, furniture, clothing, home products and many other foods which develops a large base of
customers. Vodafone's has strong financial image which is important for managing and running
business operations at international level (Bharadwaj and et. al., 2013). It is highly effects on
company to achieve long term goals and success in limited time period.
Weakness: There are various weakness which is faced by Vodafone's are as below:
2

Falling Subscriber Base: Vodafone's subscriber case in mostly dropping and falling out
within four years. It is identified as one of the main problems for company which is not good for
its success.
Failing Brand valuation: It is another and effective factor for fail in Vodafone
subscriber rate. Both of subscriber base and brand valuation are more powerful for the opening
(Bucolo and Matthews, 2011).
Losing market share in United States of America: In USA business entity have economic process
premium in order retain itself. It is another weakness which reduce business performance in
marketplace.
Threats: There are different threats which is face by Vodafone's in their business operations and
functions. These are determined as below:
Legal risks: Revenues of the business is comes from developing and emerging nations
since they have figure of its clients in such market. In rising place however, economic, legal,
regulatory and political systems are few foreseeable.
Maximising Competition: The function growth and success of new clients has been
maximised competitions. It also led maximum in subsidies or grant for handsets.
Delayed Technology: Main success of the business entity has been the new technologies
or system which are given by vendors (Grover and Kohli, 2013). Different groups are creates
essential expenditure or outlay towards setting effective infrastructure and frameworks for
enhanced communication.
Opportunities: There are some opportunities which are faced by the business organisation in an
effective and efficient manner:
Maximising buyers and emerging markets: In last three years, there has been twenty
present growth and success in telecommunication sector. Some emerging market like: Turkey,
China, South Africa and India have been enhancing performance with maximising revenues or
sales which impart to the market.
4G Introduction: It enhanced high speed transmission of data. The first-rate Ultra-Broad
circle will enhanced cyberspace connectivity (Jocovic and et. al., 2014). Business applying its
own infrastructure and base to innovate 4G.
3

M1 Macro environment to determine and inform strategic management decisions
Factors of macro environment highly influence decisions of management. These factors
includes political, social, economical, legal, political and environmental forces. Managers needs
to consider all such factors so that effective plans and policies can be formulated. Consideration
of these factors assists in taking strategic decisions which helps in attaining business objectives.
These are created as per the anticipated schedules or programs that will work to the anticipate of
the marketer or their importance. Strategic management decisions are mainly based on supply
chain management, scheduling, maintenance, human resources and job design. All these the the
part of macro environment which provide important information to the company in order t
accomplish their predetermined objectives and goals in given time duration. Apart from this
Vodafone's conduct research program which help them to analysis basic needs and wants of
customers.
D1 Critique and interpret information and data
Internal and external information about business are interrelated with each other. These
are essential for the organisation to identify their macro and micro factors in marketplace and in
the mid of customers. So that clients are know about business position and tries to attract large
number of the buyers. Internal and external factor both are provide accurate information and
data to the business about its customers, employees, governments and many other whose play
vital role in the success and development of company in limited time duration.
TASK 2
P2 Applying appropriate frameworks evaluate internal environment and capabilities of company
Strategic Capability: It is identify the business capability and capacity to utilise effective
tool in a appropriate manner (Vesalainen and Hakala, 2014). In this business entity enables to
increment and survive after some period of time. Business is constitution of different operations
and activities in which micro and macro environment factor proceeding suitable and appropriate
place. Therefore, management of the business can not construe the macro force by the needed in
order to know the working environment (Kalyani and Sahoo, 2011). Capabilities of the company
needs to identify in proper manner as as to get the global competitors. Workers always
implement working and functioning in order to move towards the direction which focuses in
suitable and better profitability. In this, company apply VRIO model which is important in order
4

to identify business ability (Ferkins and Shilbury, 2015). This model used to applied by company
manager in an accurate manner so that their ability deal in intellectual for competitive benefits:
Basis Meaning Vodafone's O2
Valuable It is identify as a main
consideration which
modify business in
order to exploit the
chances from
marketplace as well
not (Glistau, Schenk
and Machado, 2016).
Thus, these resources
identify as useful
factors and capability
of organisation. This
type of resource give
best advantage to an
enterprise which grab
maximum opportunity.
In the marketplace
reputation of the
Vodafone's is very
good as compare to
other organisation. It is
main strength of the
business entity which
assist in the
achievement of long
term success (Klettner,
Clarke and Boersma,
2014).
It is also famous brand
but trust of the
customers regarding
this product is less as
compare to
Vodafone's. In the
marketplace some
competitors are
present which highly
effects business
goodwill.
Rare There are some
initiatives that become
analysed in rare way.
These could be apply
by some business. So
it is important for the
organisation to
improve their goodwill
in marketplace.
Vodafone's applying
the attractive structure
and resources which is
good for them in order
to maximise their
performance and
profitability as
compare to other
business (Köseoglu
and et. al., 2013).
They deals in different
types of electronic
equipment which is
essential for them but
Vodafone's has strong
position in
international and
national marketplace.
Although, they giving
different another
essential services
5

which not selected and
each and every
business
Imitate It is identify as a copy
which see and assist
company to grow in
competitive
marketplace. It could
be completed by two
parts such as copying
and duplicates by
giving substitute of
them.
Vodafone's has variety
variety in its mobile
and other electronic
items. It is big strength
of the company in
order to survive in
competitive
marketplace in a
systematic and
essential manner.
O2 is another
organisation which
also deals in different
variety of electronic
equipments which
assist in the
achievement of long
term goals and
objectives in allotted
time period.
Organised In this some resources
and initiatives will
state out optimistic
reflection relate to
company and its
business operations
(Barney and Mackey,
2016). If it does not
manage and organised
in proper manner.
There is requirement is
to launch certain
consideration such as
structure, system
policies and many
other.
It is another part of the
VIRO model which
help the business
innovative in order to
organised innovative
products and creative
services (Murano and
et. al., 2011). It assist
them in order to
increase their
capability in a proper
and effective manner.
O2 is one of the
famous and well-
established
organisation which
deals in various kind
of mobile phones and
many other electronic
equipments effectively
and efficiently.
6

Therefore, such kind of model is more significant and valuable for the Vodafone's in
order to maximise their capability in an effective and efficient manner (Oestreicher-Singer and
Zalmanson, 2012).
M2 Internal environment to asses strengths and weaknesses
Internal environment helps an organization in assessing its strengths and weaknesses.
Managers needs to assess internal environment of firm so that effective decisions can be made.
It helps managers in taking decisions that assists in overcoming these weaknesses and achieve
objectives of firm. This framework also help in this achievement of long term growth and
success within the organisation. So that it provide various opportunities to the enterprise in order
to keep long lasting relationship with customers and achieve maximum benefits and advantages
in a proper manner. Internal environment of the company is identify business strength and
weakness which is important for them to maximise their reputation at marketplace. Better image
of the company is show effective and strong position and goodwill of enterprise which is more
essential for the business to maximise their profitability ratio in given time period. In order to
overcome their weakness Vodafone's should try to provide better quality in their electronic
equipments. Thus it benefited business to maximise customer base in the organisation.
PART B
TASK 3
P3 Porter's five force model and evaluation of competitive forces
Porters-five-forces model is an effective tool which is used by the each and every
organisation in order to evaluate competitions of company. This technique is classified into five
parts that highly impact on business ability and its performance in competitive marketplace.
(Schaltegger and Wagner, 2011). There are some parts which are includes in this are determined
as below:
Competitive Rivalry: It is identified as a factor which observed for the different number
challenger's of Vodafone's in United Kingdom. Apart from this, it is essential for the business to
understand that number of challenger's. Further it is identified that types of service and products
which are given by the rivalry and how it good then the business (Scholes, 2015). Vodafone's is a
multinational organisation has different number of the challenger's, there are different of the
buyers and suppliers which has some choice of selecting another good over this.
7

Supplier power: It is another factor that analysed the prices or cost which are maximised
by suppliers in an effective and efficient manner (Dobbs, 2014). Along with them, business
require to numbers of suppliers in their organisation beside with the appealing and uniqueness
forces their service and products have. In the business, there are maximum choice for services
and products, then it get maximum for the buyers to have less alternative.
Buyer Power: It is another factor by which business require to analysis the different
ways, in this product prices can be decreased by the customers. Beside this, business require to
analysis that number of buyers in a systematic manner (Slack, 2015). Along with them, cost will
be determined which is applied for switching from other services and goods to those of
challenger's. When the Vodafone's has to trade with different number of clients then they have
maximum power.
Threat of substitution: It is another part of the Porter's five force model which is
essential for the success and development of organisation in given time period (Dälken, 2014). It
can be develop clearly for example: supplier of business services and product which mostly
determined as an important process, in this customers are suitable and purchase more products
systematically and effectively. Substitution is cheap and easy for creating it more change the
business position.
Threat of New Entry: It is last aspects of Porter's five force model which is valuable and
essential for the company to expand their business operations in international and national
market. In this an organisation come into new place, business position can impacted directly. If
there is lack of fund and activity considered to come up within marketplace as well as compete in
an effective manner (Svee, Giannoulis and Zdravkovic, 2011). On the other had, there is
minimum protection for the advanced technology, it is possessed, then competitors can enter in
new market quickly and weaken business positions.
M3 Appropriate strategies to improve competitive edge
Porters-five-forces model is very essential and important factor which is used by the
company in order to achieve long term goals and objective. Vodafone's is a telecommunication
sector that can be developed by Michael porter by evaluating the different factors in an
appropriate an effective way If in the marketplace there are durable and strong obstacle for the
new concern, then a favourable condition can be crystallised and therefore maximum benefits
and advantages can be achieved in an effective manner. Another important strategy is BCG
8

Matrix which is also helpful for the company because it define the company position and market
share. BCG Model is useful and beneficial for business managers in order to analysis balance in
the company's current portfolio of Cash Cows, Stars, Dogs and Questions Marks. It renders a
base for administration to decide as well as prepare for future actions. It is also important for the
company to gain competitive edge in limited time period.
D1 Interpret information and data, applying environmental and competitive analysis
Data and information both are essential for the company in order to enhance business
performance and profitability in a given time period. Environmental analysis identify the
different factors and tools which are valuable and beneficial for the enterprise to maximise their
profitability and productivity. Porters-five-forces model is one of the best and better tool for the
each and every organisation to identify their future information related to the threats of new
entry, Threat of substitution, Buyer Power, Supplier power and Competitive Rivalry.
TASK 4
P4 Different kind of models, concepts, theories devise strategic planning
Bowman's strategic clock is identified as an effective model which chiefly explores
choices or selection for the strategic positioning, it is a aspects which define the position of
company in competitive marketplace (Svee, Giannoulis and Zdravkovic, 2011). Main aim of
such model is to evaluate different options for orientating a commodity based on the 2 parts
which are perceived value and price (Azar, 2011). There are some parts which are includes in
this model are determined as below:
Low value and price added: In nature, it is not competitive for an organisation as the
service and products are not same along with clients who chiefly perceive some values in enmity
of the costs which are low.
Low price: Position of the company within the marketplace is observed the low cost. It is
required for the cost minimization strategy which are frequently formed with the economy (Azar,
2011). There are profit margin ratio of product is low but sales volume is high which can create
the maximum profits.
Hybrid: It is identified as a position which cover different aspects for the minimum price,
it is linked to the rivalry but there are several differentiation towards the good. The main motive
is to inspire audience for purchasing the product and services. So it is beneficial for the
9