Analyzing Mobile Phone Industry Performance in Global Context

This report provides a comparative analysis of the mobile phone industries in Russia and the UK, focusing on the performance of selected companies in each country. It examines the market shares of MegaFon and Mobile TeleSystems (MTS) in Russia, and Bullitt Group Ltd. and Vodafone Group PLC in the UK, using data from 2010 to 2018. The report delves into the potential reasons behind the varying performances of these companies, utilizing PESTEL factors, and compares the impact of the business environment on their operations in both nations. Furthermore, it offers recommendations regarding potential business expansion in either or both countries, concluding with a summary of the key findings and insights derived from the analysis.

Business in a Global
Context

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to 2 companies in mobile phone industry of Russia..........................................3
Introduction to 2 companies in mobile phone industry of UK...............................................4
Business performance (market shares) of two companies in each of the chosen industries in
both the countries with relevant data between 2010 and 2018...............................................4
Market share in Russia ..........................................................................................................4
Market share in UK ...............................................................................................................6
Potential reasons behind the different performances (based on 2 of PESTEL aspects).........7
Comparison of impact of business environment on their performance between these two
countries.................................................................................................................................8
Recommendation with regards to whether or not expansion should be made in one or both of
the nations or not....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the modern era, businesses operating in the global context need to take into
consideration a number of business environment factors as they impact upon its functioning as
well as performance. Such factors may be internal or external, however it is recognised that
external factors have a greater influence on the business operations of a company (Crane, Matten
and Spence, 2019). These external factors are acknowledged to be political, economic, social,
technological, international trade etc. These aspects tend to cause a difference in the performance
of businesses across the different nations.
The present business report is based upon the comparative analysis of 2 companies
operating within mobile phone industry in Russia and UK each in terms of their market share.
The selected British organisations are Bullitt Group Ltd. and Vodafone Group PLC while the
Russian companies are MegaFon and Mobile TeleSystems (MTS). Also, the project takes into
account two factors which have resulted in differences between their performances over the
course of time. Besides this, the report contains comparison of the influence of business
environment on UK and Russia. At last, recommendation is provided in relation to whether or
not entry should be made in any or both of the nations.
Introduction to 2 companies in mobile phone industry of Russia
MegaFon:
This is recognised to be the 2nd biggest mobile phone operator together with standing on the 3rd
position in terms of biggest telecom operators of Russia. This entity functions within the GSM,
UMTS and LTE standard (Bartoli, Guerrero and Hermel, 2019). The primary rival firms of this
market leading organisation are acknowledged to be MTS, VimpelCom (Beeline), Tele2
(Rostelecom) and Interregional TransitTelekom.
Mobile TeleSystems (MTS):
MTS is acknowledged to be a mobile network operator carrying out its operations within
the confines of Russia, Armenia, Ukraine and Belarus. This organisation has more than 106.5
million subscribers within the confines of these 4 nations. As per the reports of 2017, this
company had the biggest marketplace share of 31% within the confines of Russia and was also
the biggest mobile network operator within the respective nation having a base of 104.7 million
subscribers (Guo and Jiang, 2019).

Introduction to 2 companies in mobile phone industry of UK
Bullitt Group Ltd.:
This is recognised to be an international firm which is conducting its business operations
within the confines of mobile phone and consumer electronics sectors. This entity was found in
the year 2009. This enterprise is engaged in designing, production, marketing and sale of
consumer electronic devices by leveraging its partnership with a range of international brands.
This company runs as a licensee of Caterpillar Inc. for rugged mobile phones as well as
associated accessories (Tura and et. al., 2019).
Vodafone Group PLC
This is recognised to be a multinational conglomerate which is headquartered within the
confines of London and Newbury in Berkshire. This entity functioning within the confines of
mobile phone industry majorly operates in regions such as Africa, Asia, Europe and Oceania. It
has been acknowledged that among the large number of mobile phone operator groups
functioning across the globe, this group stands at position 4 in terms of quantum of customers,
having a base of 313 million in accordance with the reports of 2018 (Kahiya, 2019). This entity
carried out operations within 25 nations as of 2018 and had partnership network within 47 other
nations.
Business performance (market shares) of two companies in each of the chosen industries in both
the countries with relevant data between 2010 and 2018
Market share in Russia
Mega Fon
This is a Russian owned company started by
Oligarch Alisher Usmanov and TeliaSonera.
This organisation provides 2G(GSM) and
3G(W-CDMA) mobile phone services. This
company was one of the service providers
which started providing 4 G services in April
2012. this company had 55.7 million
subscribers in Russia i.e. 27% market share.
This company has not developed operations
outside Russia. It has always focused on

residential broadband services.
Mobile Telesystems
This company's 51% is owned by AFK
Sistema and this provides phone services. This
uses 2G Gsm technology, 3G services by using
W-CDMA technology. This provides fixed
broadband services and fixed line telephony
services. MTS was the biggest operator in the
year 2013. There were around 69.6 million
subscribers of this company in Russia which is
equivalent to 31% market share (García-
Mariñoso, and Suárez, 2019). In the year
2015, MTS had 2.1 million residential fixed
broadband subscribers. It has 940,000
subscribers in Moscow which is equivalent to
27% of the market share.

Market share in UK
Bullitt Group Ltd.
This company opened an international
operations in the year 2010 and in the USA in
year 2012. this company established first
license with JCB mobile devices in 2012
(Olayinka, Olukemi, and Chukwuemeka,
2019). Bullit group became the global licensee
for Ministry of Sound in 2015.
Vodafone Group PLC
According to the statistics, it is analysed that
market share of Vodafone in main market of
operation in the year 2018. Within this year,
Vodafone held a 22.4% of mobile market in
UK. The market value of Vodafone in market
has substantially decreased.

Potential reasons behind the different performances (based on 2 of PESTEL aspects)
Business performance of all the four companies in Russia and UK market is described in
above paragraph (Lee, H., 2016). There is reason for this type of business performance within
marketplace. According to any two of the factors of PESTLE, the reasons for the four companies
is described below -
Technological Economical
Mega Fon
This company is the biggest
mobile internet in Russia. This
is possible because Russia has
used latest technology.
Megafon has used new
techniques for providing
mobile services to customers.
There were around 200 milion
unique mobile subscribers in
Russia, Ukraine and
Uzbekistan. There is an
accelerating shift in to mobile
broadband. The Russian
mobile service operators are
facing high profits as there is
launch of 4G and 5G services.
Mobile Telesystems
Same is case with the mobile
telesystems. The technological
advancement of the country as
well as within the company
has helped a lot in increasing
market share of this company
in Russia.
Similarly, due to the increased
demand of 5G as well as 4G
service of mobile operating
services, there is increase in
market share of Mobile
Telesystems within Russia.
Bullitt Group Ltd.
Bullitt Group Ltd. Was started
in the year 2009 by Colin Batt,
David Floyd and Richard
Wharton (Matinmikko-Blue,
and Latva-aho, 2017). This
company provides products in
more than 75 countries. This
After Brexit, market of UK
was affected badly. There were
changes in trading taxes. This
has created problem for
various mobile service
operators too. In context of
Bullitt Group, it is concluded

company has incredible global
growth and the reason for this
is strong technological
advancement used within the
organisation.
that this company has faced
problem while providing
service to customers.
Vodafone Group PLC
There was decline in the
market share of this company
in UK in 2016. by using the
technological advancement,
Vodafone is able to become
UK mobile operator for
turning on 5G network.
Mobile service operators in
UK are facing great threat.
This is due to shift from 3G
services to the 4G or 5G
service connections (.
Hikmawati, 2016). It is
essential for the mobile service
operators to adopt latest
technologies and work
effectively.
Comparison of impact of business environment on their performance between these two
countries
The Russian Telecom market is largest in Europe and it consists of 144 million users.
Various telecommunication and mobile service operators including MegaFon and Mobile
Telesystems (MTS). Government of Russia is investing a lot of money in telecom and mobile
industry (Midkiff, AT&T Intellectual Property I LP, 2019.). Russia is a country which has
become the fastest growing markets for fibre based broadband.
There is strong growth in market of mobile connections and advancement in product
design have supported the demands of consumers. The service operators faced challenges by
heightened competition from external retailers. There is shift from consumer purchasing trends
and increased saturation of the mobile service operating companies. Within UK, there is high

competition and different companies have to work effectively for making them,selves
competitive from other competitors.
It is analysed that both the countries have good business environment which is suitable
for mobile service providers like Mega Fon Mobile Telesystems Bullitt Group Ltd. And
Vodafone Group PLC. In context of all service operators it is concluded that technological
advancement in the industry accelerates the functioning of these companies.
Recommendation with regards to whether or not expansion should be made in one or both of the
nations or not
Both the companies UK and Russia have various potential customers. Both the companies have
stable political conditions. Thus, these companies can expand their business in these markets.
The technological advancement in these countries within the mobile and service provider is
essential for making profitable business. On the other hand, companies must have good
marketing strategies that will lead in capturing more potential customers.
CONCLUSION
On the basis of above discussion, it has been discovered that businesses operating within
a global context are impacted by a number of external environmental factors such as political,
economic, technological, social and international trade. Further, it has been determined that
political and economical factors play the most important role in creating a difference between the
business performances of companies within 2 nations. In addition to this, it is acknowledged that
business environment as whole impacts upon the business functioning in countries, thus acting as
a supporting or hindering factor in their growth and success within the global context.

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