Business Strategy Report: Vodafone's Internal and External Analysis

This report provides a comprehensive business strategy analysis of Vodafone, a leading telecom firm. It begins with an introduction to business strategy and then delves into Vodafone's internal and external environments. The analysis employs several key models, including PESTLE to assess the macro-environmental factors, Ansoff Growth Vector Matrix to evaluate strategic positioning, and VRIO to analyze strategic capabilities. The report also examines Vodafone's strengths and weaknesses, applies Porter's Five Forces to model the competitive forces in the market, and utilizes Bowman's strategy clock model. The report concludes with insights on Vodafone's strategic direction. The report is a detailed examination of Vodafone's strategic choices and market position, offering valuable insights into its operations and competitive landscape, and strategic positioning.

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1. PESTLE model for environmental analysis:...........................................................................2
2. Ansoff Growth Vector Matrix to analyse the organisation’s strategic positioning.................5
TASK 2............................................................................................................................................8
1. VIRO model to analysis strategic capabilities.........................................................................8
2.strength and weakness of the organisation...............................................................................9
TASK 3..........................................................................................................................................11
P3. Applying Porter’s Five Forces to model evaluate competitive forces of a given market
sector for an organisation...........................................................................................................11
Bowman’s strategy clock model................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Strategy can be defined as such a strategy in which, the top level authorities of
the company, take such actions or decisions that help the organisation in the achievement of that
particular goal/task (Scholes, 2015). This assignment report is made on Vodafone - a telecom
firm. It focuses on the internal and external environment factors of company with the help of
different models like:- VRIO; PESTLE and Ansoff matrix by analysing strategic positioning of
organisation and also doing the SWOT analysis of company. Also, this project report further
focus on the competitive advantage that, an organisation will have on others. That would be set
by this company in front of others by using different strategies and doing something innovative
with the product. The assignment tells about the significance and understanding of strategic plan
which is made on the concepts of different management models like:- Bowman's Strategic Clock
Model; Porters Generic and Hybrid Strategies etc.
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TASK 1
P1. Environmental Analysis by PESTLE Model
Pestle analysis is a systematic tool which can analyse different factors of macro
environment that have direct or indirect impact on the organization. It stands for- Political,
Economical, Social, Environmental, Technological and Legal factors that impact the macro
environment of Vodafone UK Ltd.
Figure 1: Pestle Analysis
Source: (Pestle analysis, 2013.)
Political factor:
Political factor have an important role in analysing the factors that can affect the
organisation's profitability which is of long term in particular country or market. The way of
progress is influence by Political factor of companies. For example, The political scenario of UK
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make an impact on Vodafone, and it depend on the scenario. Vodafone UK can closely analyse
the following factors if they want to enter or invest in certain market:
 Importance of wireless communication sector and Political stability.
 Level of corruption
 Legal framework for contract enforcement
 Anti trust laws related to Wireless Communication
 Trade regulations & tariffs related to Technology.
Thus, political and government intervention is not feasible for Vodafone and it can
damage the long term plans (Peng, 2017). In order to overcome these barriers, the company need
to maintain favourable relation with the governments. Laws like anti-trust make the wireless
communication sector more powerful to serve as best as they can to the consumer.
Economical factor:
This factor can impact the organization in direct or indirect way, accordingly consumer's
purchasing power affect by this. The demand or supply model could be change of consumers. If
the GDP is strong which means that the income of people is high and they are more prone in to
trying or adapting the in trend or latest technology. By this the profit of Vodafone will increase.
And organization will strongly position to expand internationally (Galbraith, 2014).
Weak and unstable economies are risky and can harm the business. The economic factor
such as wireless communication growth rate, foreign exchange rate etc. can be used by Vodafone
to forecast the growth of the company.
Social factor:
These factor is based on local culture and beliefs of people. This is basically a
demographic and cultural aspects of the market environment. It can influence the need or want
of consumer and the market size. The impact depends on:
 Skill level or Ability of the population
 Attitude towards the product
 Behaviour of consumer
 Power and class of the people in society
 Level of Education and Training
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 Brand preferences
 Consumer opinions
Consumer's wants and preferences depends on social factors, and it decides the market
size of the company. After analysing the factors company should make plans accordingly, it will
lead to the company's success and can meet to the needs of consumer (Galbraith, 2014).
Technological Factor:
These factor is concerned with the technological innovation by an organization, which
can affect the overall operations of the company and the market, it can be in favour or not.
Vodafone producing mostly technological products. So it is suggested to the company to keep
this factor in mind. Technological analysis involves:
 Recent technological developments by Vodafone
 Level of research and development activities
 Rate of technological diffusion
Environmental factor:
Vodafone is highly dynamic company in nature. The consumers always expect from the
brand to be socially responsible. As company's motive is not just earning but it is more
concerned about fulfilling consumer's need (Strategy, 2014). The following external, as well as
internal factors which impact Vodafone are:
 Environmental issues
 Staff attitudes
 Management style
 Consumer values
 Environmental regulations
Companies operation and the products offer by them is affected by the changing climate,
and it increase the practises involvement by the company or push forward to increase their
involvement.
Legal factors:
Vodafone is a global company which has many rivals. The legal factor have some kind of
similarities and relation of overlap with political factors with some specific laws like antitrust
law, discrimination law, laws related to employment, consumer protection law, copyright and
patent related law, and safety and health laws . So company have to know about legal and illegal
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things for trading successfully in order of ethics and discipline (Milanez and Pereira dos Santos,
2018). It is recommended is to have a legal advisor or attorney to help them with legal kind of
things. The laws are helpful to company's protection as well as consumer protection. Legal
factors ensure that the service or product which are providing is legal or not.
2. Ansoff Growth Vector Matrix to analyse the organisation’s strategic positioning
Ansoff Growth Vector Matrix is a strategic planning tool implemented by the top level
authority managers to devise the effective strategies to them for the effective and smooth
working of company with perspective of future growth. This effective planning tool was
introduced by the Russian American Igor Ansoff (Aithal, Shailashree and Kumar, 2015).
According to Ansoff, Growh Strategy of a product are divided in following four alternatives:-
Market Penetration
This is such a strategy of organisation, where the organisation tries to grow in the
competitive market by offering existing products and services to the customer. Main motive is to
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Illustration 1: Ansoff Matrix
(Source: Expanding Your Markets and Products, 2015)

survive/exist in the market. Vodafone - A telecom company of UK, is practicing same strategy
so as to remain stable in the competitive market. Now, this strategy can be followed in the
following manner (Poniatowska-jaksch and pakulska, 2015).
 By lessen down the price of product.
 By making some changes in the existing product like:- changing the packaging;
changing the shape/size of product.
 Promoting the product more and more in different ways and at different place.
Market Development
Previous strategy was focusing on the sustainability of company in the market. Here,
Vodafone is focusing on the new schemes that, it can launch for its consumers. Now, when the
sustainability is ensured, the company start making market share as its target. Company, tries to
capture a big share in the market (Lai, Chou and Chen, 2015). Now, it can be done in following
ways:-
 By making the products available to its ultimate consumer with either low price or at par.
 Here, company makes different segments of its products on basis of needs and demands
of its ultimate consumer.
 Ensuring the reach of its products in different areas of world.
This strategy, could be more successful in case where:-
11 New market is not a big deal for the company.11 Company is getting benefit from the economy, if it increases its
production (Goffee and Scase, 2015).
Product Development:-
It is such a strategy of company, in which when the company has achieved market share
in respect of growth of its products, then, it focuses on the development of new products so as to
satisfy the needs and wants of its targeted customers. It includes extending the range of products
in each and every segment which is currently, existing in the market. It could be effectively
achieved by:
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 Research And Development:- Every company who wants its growth to be different
from its competitors has to invest in doing the research and development so as to
know, where, the organisation can launch its products (Maurborgne and Kim, 2015).
Vodafone, has invested in research and development with the motive of knowing,
where the company has scope of growth.
 Acquisition:- It means by acquiring some brand and then, having the right to produce
the product's of that particular brand. Vodafone is not practicing any such thing.
 Joint Development:- It refers to work with the ownership of any other company, who
is actually in need of access to the distribution channels or brands of that firm
(Mohelska and Sokolova, 2016).
Diversification:-
Here, the organisation tries to grow its market share by introducing new products in the
market in a different segment. Now, a company, do the diversification on dual basis, i.e.
company has to keep in mind the product development as well as the market development. Now,
this could be typically done in two ways:- Related Diversification and Unrelated Diversification.
 Related Diversification:- In this case, there is a relationship between the firms in the
existing business (Lawton, 2017). Here, the firm tries to expand existing market of its
product. the company in this case is having te advantage of knowing, the threats and
opportunities of business, reason being, many acquisitions are there, that fail to offer the
predicted benefits.
 Unrelated Diversification:- It's the case, when a business/firm adds new product lines.
For Eg:- Vodafone a telecom company is trying to enter in household products. So, it's
not directly fit with existing business.
After, the complete analysis, on basis of Ansoff Matrix, company should opt for product
development (Scholes, 2015).
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TASK 2
1. VIRO model to analysis strategic capabilities
 Vodafone company process that any organization goes through apply with objectives and
vision statement. And in company process of two types of analysis. Like internal
analysis and external analysis. In company two types of strategies level. First level is
business and second level is corporate. Or strategic implement. VIRO analysis the first
step of apply for internal analysis of the procedure but it's used to work in evaluation all
capability and all resources of a company. Vodafone company of viro model analysis
manage in evaluation for the company. like as a competitors: there are four types of
factors in a company. First is value, second is rareness,third is Imitability and last one is
organization.
 1.Value:
 In the Vodafone company described to main models of valuation and calculation.
and including the approaches. There are using to company details and full description.
Vodafone company thesis's are all about information available on the firm. Many types of
various resources using in the industry and the macroeconomic development in the world
economy. Viro model looks like very good way of best way of growth. First priority try
to understand products and models then developed these models. Vodafone company to
extends its value of market. And where's financial position of market.(Galbraith, 2014).
Including connectivity, value and services, sensors and devices, installation and
applications but excluding the connected objects its self for e.g. Vodafone estimated more
then 20 percent viro. key role in the internet the things e co-system. Enablers..
connectivity option for virtually all new models.
 2.Rareness:
 The Vodafone company in secondly term in resources are very rare. one few
companies are considered to be rare case. some companies are acquired to be rare. the
company valuable resources processing in large amount of players in the organisation.
the players have a ability and capability to exploit sources the same way, there are gives
common strategies by implementation non of competitive advantage. These situations
are indicated competitive equality and competitive strategies. The company of process
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applying to large amount resources. there are valuable and rare in the case. the company
have to least of temporary competitive advantages.(Strategy, 2014). RARE resources are
those held by few or no others competitors. The company help to rare resources engage
in the strategies.
 3.Imitability:
 Data base in the company human capital management is very costly and difficult
for the future. these are differentiate. They have build to company's software and
investment in training . New technology and strategic management higher on the HR
staff. They are selected in best technology in the organization. In case of competitors are
not duplicate copy another company.
 4.organization:
 These are last factors in list of the company. And last question of the organisation.
The company structure way of able to applying exploit and all advantages. They have
been first three points to discovered. By looking at this point Vodafone can be able to
find out working efficiency of the business and can find ways to manage its resources
well. Vodafone has capability to manage its resources, that is why its employees are
working in organisation for longer duration. Furthermore, entity has strong fund
management tactics that assist in increasing return over investment. All these things
support the company in increasing competitive advantage and market duration is very
longer. Sustainable economic terms longer in the market.
1. 2.strength and weakness of the organisation
 Strength of the Vodafone.
 Vodafone company is one of the best company in the world. This is good popular
cellular. The company is good service provided by customers. Vodafone company
maintain a position in the market. The company have carefully analysis and review for
the firm using swot analysis. The company using analysis identify two types of strategies
factors of swot analysis. First is internal factor. In this factor two terms of company such
as-strength and weaknesses. And second is external factor. In this factor also two terms of
company as well as-opportunities and threats.(Lai, Chou and Chen, 2015). Its lead to a
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2/2 matrix . Also called swot matrix. The main aim of swot matrix is identically strategic
management. And that the company can utilize outside opportunities, counter threats,
and Vodafone strength and weakness of growth on company.
 Global brand: Vodafone has over 1000+000 employee globally. Vodafone ads very
famous of made by strong advertising. In company high level of customer satisfaction
among good equity ,good brand, among the best and loyal customers. Vodafone company
strategies highly successful in market for this product. Nowadays company in present 155
counties and services more than 460 above customers. This cellular Vodafone company
tied up with the international sports like Formula one (Goffee and scase, 2015).

 Skill , training and development : Vodafone company are very successful company.
These are through good and best skill of training and program. Vodafone company is
high skill of developing. There are many employee work hard. Most of popular work that
company is investing resources for training and development. In company process of
apply training and development accordingly change behaviour and nature. The firm of
realize value of corporate training.

 Product development strategies: Vodafone company main purpose of developing new
products and services. These company developing more than countries across in the
world. These company build on new products expand in the market and successful area's.
There are strong network of the company. Its very faster. Like jio digital company. In
company using new ideology made by network. There are in rural market of many
capable players.(Poniatowska-jaksch and pakulska, 2015). many types of company
through highly website and online payments , provided movies ,recharges, music and
network services. So Vodafone company also through many types of application.
 Weaknesses of Vodafone
 Vodafone company is very popular company but this telecom company and
mobile services provider so that is most longest weaknesses because these company are
cellular company that is weaknesses. The company against most of more than companies
are compete fight. Vodafone company has due to price war with other company.
Vodafone can change strategy and improve better. these are making decision good
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