MSc Management: Strategic Planning and Analysis for Venus Mobiles

This report provides a comprehensive strategic analysis of Venus Mobiles, examining both its external and internal environments. The analysis begins with an introduction to the importance of strategic innovation and planning, followed by an in-depth assessment of the external environment using PESTLE analysis, which considers political, economic, social, technological, legal, and environmental factors influencing the business. The report then delves into Porter's Five Forces to evaluate competitive pressures within the mobile industry, including buyer and supplier power, competitive rivalry, and the threat of new entrants and substitutes. The internal environment is assessed through a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. Based on these analyses, the report identifies potential strategic opportunities and concludes with strategic recommendations aimed at enhancing Venus Mobiles' competitive position and achieving its organizational objectives. The report also considers stakeholder perspectives and provides references to support its findings.

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MSc Management with
Streams

Venus Mobile
Contents
Part-1.....................................................................................................................................................2
Introduction...........................................................................................................................................2
External environment analysis..............................................................................................................3
PESTLE analysis......................................................................................................................................3
Porter’s forces.......................................................................................................................................5
Internal environment analysis...............................................................................................................7
SWOT analysis.......................................................................................................................................7
Possible strategic opportunities............................................................................................................8
Strategic recommendation....................................................................................................................9
Part 2.....................................................................................................................................................9
Stakeholders..........................................................................................................................................9
References...........................................................................................................................................12
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Venus Mobile
Part-1
Introduction
Innovation or strategic formulation is significant in assessing an organization’s business
scenario. It is a concern of a fresh business or current one wherein the superiors have the
obligation to maintain fresh strategies so that they can attract sufficient amount of income.
Moreover, a mobile company like Venus Mobile may also intend to alter its strategies in
terms of competitive pressures or external forces. Hence, it is significant to sustain a quality
evaluation that comprise of both external and internal resources. With the help of this report,
the perspectives of strategic innovation will be taken into due consideration. Besides, on the
other hand, strategic planning must also maintain enhanced strength to substitute the current
plan. All these perspectives prove effectiveness of a new plan. Further, the problem statement
of such study is to evaluate current situations of a mobile business and thereafter, offer
recommendations of strategic planning that can assist in attainment of organizational
objectives. Overall, both external and internal forces are to be accounted for to make an
effective strategic planning for Venus Mobiles.
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Venus Mobile
External environment analysis
A business affair is influenced by various factors and the most crucial are the external forces.
Further, it is only a matter of encountering financial concerns or requirements of customers
but consecutively it is also vital for consider present competitors prevalent in the market.
Moreover, accounting for such external forces is relevant to implement an efficient strategic
planning. In addition, the UK competitive market has makes additional business forces that
plays a role in dealing with usual products. In the case of mobile phones, people required
quality items that can offer them great features and therefore, Venus must follow these
perspectives to initiate an efficient strategic planning within its framework.
PESTLE analysis
There are various forces that can be utilized by an organization to function its affairs.
Moreover, it is implied that such organization must tackle financial, legal, political, and
technological forces to manage its business interactions. Hence, future planning must
accommodate all such forces. Therefore, if Venus cannot tackle these forces, its possibilities
for success will diminish.
Political force
Every mobile manufacturing business must target a maximum number of middle class people
because a costly phone may not attract huge customers. In relation to this, UK’s political
affairs has greatly influenced its current strategies and the same perspective is crucial for
future developments. Besides, the enhancing rate of VAT from 17% to 20% has also
influenced a vast number of customers. Hence, Venus Mobiles must account for these
expectations of usual customers.
Moreover, the point of conflict between the US and China has entered into a trade war. The
situation has enhanced further where both the countries have increased the tariff to $25 on
routes from USA to Asia and back. The increment in tariff together with the shipping cost
brings the cost of moving a phone between the USA and Asia to approx $41. There is
increased interest when it pertains to Environmental, Sustainability and Governance policies
of every company. Such factors influences the overall performance of Venus that pertain to
internal and supply chains.
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Nevertheless, as a matter of fact, targeted customers are also worried on their expenses and
the increasing measures of taxation have played a prime role in influencing mobile costing
(Goodstein, 2011). Hence, Venus must implement a cost leadership strategy so that it can
chase more challenges in relation to political forces, thereby facilitating in outperforming its
competitors.
Economical force
Venus Mobiles can obtain massive inspiration from the increasing trend of financial
prosperity. As a matter of fact, it is implied that financial crisis in many areas have influenced
the present strategies of several retailers and mobile manufacturers. In relation to this, the
respective devices of the company have been proved as an essential item of daily life. Hence,
a positive development on financial support can assist Venus to increase its manufacturing
rate based on economic prosperity. Moreover, it cannot be assumed that a specific business
can alter or frame strategies based only on economic prosperities but it must be known that
present resources together with possible threats must be accounted for by Venus. It needs to
stress on the manufacturing part to attain a favorable position in the market and to have a
strong financial position. It has 15 plants in the USA and 9 in Asia however when it comes to
round 6 there was no production at all. Further, there were 2 plants in USA that were under
construction in Asia and round 8 it will have 17 US plants and 11 Asia plants. The deficiency
in the utilization of plant is not sustainable and needs urgent action.
Social force
In order to design a new generation, social forces are very common and therefore, taste of
choosing products and services encounter a major challenge. Moreover, there was a scenario
when people chose items based on trends and availabilities. Therefore, Venus Ltd must adopt
the same strategies for manufacturing its products (Gagnier, 2010). Nevertheless, youth
generation often tend to rely upon social customers in relation to interactions and design
while selecting a product. The accessibility trend is also another perspective when people
desire faster affairs. Therefore, Venus can attract a vast number of customers by accounting
for such strategies to manufacture a new item. The best strategy that can be accounted in this
regard is that of new technology that will help in attracting customers. Product differentiation
is the key that helps in new product features in terms of color screen, design cover, mobile
games, etc.
Technological forces
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Venus Mobile
It is a major necessity that all technological forces are accounted for by regular businesses
like Venus. This sheds light on the fact that absence of consideration of such forces can
create various negative issues. In contrast to this, few customer groups can also encounter
negative issues in tackling such scenarios that a branded and advanced item is not equipped
with advanced technology. Nonetheless, it may be an IT matter or a mobile phone and hence,
technology implementation is of the same significance in this regard. Moreover, Venus can
also adhere to such technology matters to enhance its organizational efficiency. Besides,
advanced youth often tend to encounter advanced features like accessibility to social media
while accessing a smartphone. Hence, a strategic plan must accommodate these technology
innovations to design a fresh strategy for the success of businesses.
Network coverage is a vital component in ascertaining the device demand in new
technologies. The attractiveness of every technology resides on the market area. The market
outlook in terms of technology can provide a competitive outlook and complete the decision.
Legal forces
Communication is regarded as a private matter as it can result in major issues in the
emergence of communication loopholes. Hence, Venus must account for legal guidelines and
principles prior to adoption of a new strategy. This perspective also comprises of significance
of engaging attributes and privacy restrictions of a mobile device. Further, if a specific brand
cannot offer relevant satisfaction on privacy issues, a vast number of customers will not be
interested in buying or choosing such product (Fraser, 2011). Moreover, it must also be
observed that adherence to legal concerns must not pave a path for diminishing the quality of
a product. In contrast to this, an efficient strategy of innovation must also accommodate
grievances on the part of customers (Gordon, 2011). An electronic item can tackle issues
owing to technological matters and therefore, Venus must comply with Consumer Protection
Act to address such legal obligations. It needs to be noted that demand for technology varies
according to region. The manufacturers of phone do not sell in direct to the consumers they
needs to depend on a number of challenges for the product distribution hence, legal
guidelines needs to be adopted appropriately.
Environmental forces
There are various legal perspectives of environmental matters that an organization must
account to satisfy individuals and regulatory authorities. Moreover, a mobile device has its
own output and restrictions respectively. However, it is a technical concern and expertise
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Venus Mobile
level that can enhance the productivity of a device to make it less harmful for environmental
sustainability (Edward & Moutchnik, 2013). Hence, Venus must adopt a strategy that allows
it to focus above profitability issues so that it can easily enhance its brand in the entire
industry. Further, a green environmental strategy must be adopted by the company through
inclusion of all items and services while serving the government of UK and the society as a
whole. There was a strong increment when it comes to policies pertaining to environmental,
sustainability and governance that impact all the Big 7 including Venus. It will be highly
important for companies to enhance the performance. There was a speculation regarding the
fact that Apple Inc will storm the market with an innovative device however the same was
discarded by Apple. The Chief Executive of Mercury pin pointed that Apple cannot provide
the features of the present, as well as expected handsets of Big 7.
Porter’s forces
This analysis is associated with both external and internal factors of a specific business.
Moreover, Venus Mobiles must account for all these so that a new strategy can be adopted in
relation to both profitability and stakeholders’ participation.
Buyer’s threat
When a specific item has more market availability, buyers can attain extra support for
product negotiation. Further, it is feasible that a buyer can get a same item from another
brand and hence, Venus must account for extra attributes in their product in addition to cost
leadership. Besides, the UK’s highly competitive market has raised such possibilities of
buyer’s threat that the company cannot mitigate such perspectives to initiate a future strategic
planning for enhanced business productivity (Douma & Hein, 2013). There are chances that
Apple can enter into the market with new innovation that might pose a threat to Venus.
Moreover, there are chances that other competitor might enter into the market.
Supplier’s threat
When a brand focuses on quality, selection of an effective supplier is vital in such scenario.
Moreover, in relation to manufacturing of mobiles, maintenance of quality is significant
because UK market relies on quality rather than prices. These quality measures must
comprise of product sustainability and addition of extra features is also crucial. All these
aspects are adequate to enhance the threat from suppliers. Besides, Venus has their own
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Venus Mobile
obligations to account for claims and requirements of manufacturers and suppliers as issues
in attributes or quality can result in negative issues (Harrison & Colle, 2010).
Competitive rivalry
UK’s market condition is extremely competitive and the influence of same can be observable
upon business interactions and distribution of products. If an item encounters least
competitive forces, necessities of new marketing operations or strategies will not be required
but there are various constraints in relation to mobile phones. This is because a mobile target
all its groups of customers, thereby facilitating in attraction of competitive rivalries. It must
stress upon global capacity and global demand. Additional production capacity can be
attained by outsourcing to contract the manufacturing firms with capabilities of special
interest and plants that will attribute to the manufacture of phone.
The table provides an indication that the utilization of outsourcing by every company during Round
6, the overall volume equals to 33 manufacturing plants. Hence, Venus Mobile Ltd must account
for such prospective to prepare a new strategic plan.
Threats from new players
This perspective is ascertained by business availability and market demand opportunities. If
any item is needed by most communities, there are indefinite businesses that are attracted
towards attainment of profitability. Moreover, in relation to mobile phones, this perspective is
equivalent throughout UK. This is because a new business can introduce a fresh pricing
measure and at the same time, there is a major possibility of new items. Hence, it is crucial to
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accommodate these attributes in order to frame effective strategies, thereby resulting in
keeping space for replacement in relation to threats of new players.
Threats of substitution
This aspect is also another significant in relation to mobile phone manufacturing. Specific
buyers may alter their attitudes while purchasing a new item. However, such buyer is also
attaining sufficient choices to enjoy profitability in relation to price and quality. If the
company fails to undertake such measures, threats of substitution cannot be mitigated or
avoided (Hemmer & Labro, 2008). Moreover, companies like Apple are also encountering
same issues as other companies can offer enhanced customer satisfaction. Therefore, Venus
must be more cautions while implementing a new strategic policy. It must specifically look
into the concept of product differentiation that will provide a better scope in the market. To
eliminate the threat of substitution it needs to concentrate on the aspect of new product
features that will lead to ample benefits. When the markets will mature, it will do a world of
good to Venus in terms of reach and availability.
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Venus Mobile
Internal environment analysis
For making a proper strategic policy, a business organization must account for present
resources. Moreover, in the absence of organizational and stakeholders’ assistance, business
planning cannot be properly facilitated. Further, internal environment comprises of regular
affairs together with participation from stakeholders that allows a business to decide newer
strategies (Siraj et. al, 2011). Therefore, in relation to Venus Mobiles, since the company is
functioning in a mobile phone business since many years, after few concerns in business
perspectives and stakeholders’ participation, it will become easier to specify weaknesses,
strengths, and new opportunities.
SWOT analysis
Strength
An organization’s strength relies on expertise and availability of employees. In relation to
this, Venus can design fresh strategies for attainment of organizational purposes. Moreover,
if a manufacturing company cannot ensure such strategies, success feasibilities will be at
stake. In the current scenario, Venus has maintained its IRT expertise and effective supply
chain for distribution of products. Further, capacity is also another significant factor in
relation to a competitive market (Connelley, 2012). Therefore, among all plants present in the
UK, all groups of employees face effectiveness in terms of manufacturing. Such perspectives
can be ascertained as strength of market to target newer markets.
Weakness
Loyalty of brand is also another viewpoint of generating product value but Venus has been
lagging in this regard. Hence, for making a new strategy, the business must account for its
weaknesses. It is also required to focus on crucial places wherein mobile phones does not
have a higher demand, else such weakness can transform into a drastic scenario (Kerin,
2012). Venus Mobile has also poor strategies for its future developments. The global profit of
Venus has declined and is in a negative zone while the other Big 6 are in the positive zone.
The negative figure of $516,865 indicates the losses that the company incurred. Nevertheless,
stakeholders can encounter wrong paths in relation to thinking new strategies and
implementations.
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Venus Mobile
Threats
In relation to the previously mentioned analysis, fewer threats are already provided and
observable throughout the UK and therefore, Venus must account for such perspectives
effectively. Moreover, because of scattered situation of manufacturing units and product
distribution, it is feasible that all new strategies are not acceptable by every group of
stakeholders. In contrast to this, it is also significant to maintain strategies of sufficient risks
and hazard management so that investment drawbacks in future can be avoided. Nonetheless,
retail items are usual requirements and at the same time, there is a higher market demand
(Koichi, 2014). Hence, there are infinite perspectives that customers may account for and
avoiding these are the major threats for business firms in relation to implementation of new
strategies.
Opportunities
It is relevant to account for technological opportunities for IT organizations so that loopholes
and gaps in the present scenario can be identified. Further, it is also observable that Venus
has not adopted sufficient support of advancements in technologies because of inappropriate
brand loyalty in the market. Nevertheless, the company must better use technological
opportunities to maximize quality of products and customer satisfaction to enhance sales
respectively (Leisyte & Westerheijden, 2014). Another significant opportunity for the
company can be regarded as targeting external areas of the UK market. Further, the missing
link is in terms of manufacturing and hence, if the manufacturing can be outsourced it would
lead to more sales and better projection. The company is failing owing to manufacturing and
hence needs to focus on various standards of selling and manufacturing. Overall, Venus can
procure these practices to design a new strategy.
Strength
 Maintenance of
IRT expertise
 effective supply
chain for
distribution of
products
Weakness
 Loyalty of
brand
 Decline of
global profits
 poor
strategies for
its future
developments
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Venus Mobile
Opportunities
 targeting
external areas of
the UK market
 focus on various
standards of
selling and
manufacturing
Threats
 scattered
situation of
manufacturin
g units and
product
distribution.
 infinite
perspectives
that
customers
may account
for and avoid
the products
Possible strategic opportunities
In relation to the previously mentioned forces and opportunities, Venus Mobile has been
practicing few strategic opportunities. Based on the recent corporate scenario, the company
has been attaining attention of a single customer group. Furthermore, pursuing a reputation of
marginal brand, the company need not worry about losing its reputation. Nevertheless, it is
feasible to comply with a cost leadership approach that can decrease expenses regarding
adoption of innovative technologies and marginal marketing cost (Bredeson, 2011).
Moreover, market of mobile phone has also been segregated into various aspects. These are
based on attributes, accessibility, and price. The company has complied with the target
individual classes apart from restricted within the market of smartphones. Such attempt has
played a role in targeting a particular market in the UK. Moreover, the company can also
assess individual tastes to initiate implementations in relation to new market opportunities
and quality respectively. The company has also followed a restricted approach by being
practical amongst its competitors like Apple and Samsung that are highly reputed in the
market. Moreover, to chase these brands, the cost leadership approach of Venus has played a
role in offering dual benefits to it. Firstly, the company is attaining reactions from general
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