Strategic Management Report: Vodafone's Business Strategy Analysis

This report presents a comprehensive strategic management analysis of Vodafone, a global telecommunications company. It begins with an introduction to strategic management, outlining its importance in organizational planning, organizing, directing, and controlling. The report delves into Vodafone's strategic decisions over the past five years, categorizing them into competitive, cooperative, and business strategies. It then reviews Vodafone's external environment using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors. Furthermore, the report identifies Vodafone's competitive advantages, such as its wireless communication services, quality network, and customer care. The analysis extends to assessing strategic drift, aligning mission and vision statements with market demands, and evaluating strategic capabilities. A Business Model Canvas is employed to describe how Vodafone creates, delivers, and captures value. The report concludes with a discussion of potential strategies to defend Vodafone's core business and the resource implications of selected strategies.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main body........................................................................................................................................1
Task 1...............................................................................................................................................1
Strategies decision that the company has followed in last five years and strategies company
have developed............................................................................................................................1
Task 2...............................................................................................................................................4
By Using the appropriate model and review the external environment of the company............4
Competitive advantages of Vodafone.........................................................................................5
TASK 3............................................................................................................................................7
 The extent to which the company is facing strategic drift......................................................7
 Whether their mission and vision statement are aligned to the demand of the marketplace.. 7
 The company strategic capabilities ........................................................................................8
 Use the Business Canvass Model to portray and describe the rationale and core logic of
how the company creates, delivers and captures value within its industry/market to its clients 8
TASK 4............................................................................................................................................9
Discuss the possible strategies that the company could follow to defend its core business. .....9
TASK 5............................................................................................................................................1
Resource implications of selected strategy ................................................................................1
Conclusion.......................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Strategic management is the way in which company identifies and describes there strategic to
implement them and improve the performance of an organisation, which can help organisation in
Planning, organising, directing, and controlling function of an organisation. Strategic manager
helps the organisation in forming different policies which can help the organisation in achieving
there objectives and goals (Netting and et.al., 2016). The strategic are affected by mainly two
factors internal and external environment that has being discussed in present report. In this report
the mission and vision statement of Vodafone company will be discussed in detail. Also,
competitive advantage of Vodafone will be discussed in the report. Moreover, problems that the
company is facing in the exiting market will be discussed in this report. Vodafone is a British
multinational telecommunication company which serve telecom serves all over the world. In
addition to this current report strategies that the company could follow to defend its core
business will be discussed here (Laudon and Laudon, 2016). Further, all the relevant models and
concepts of company will be discussed in this report and also, competitive drivers and its impact
on the company position will be considered over here.
Main body
Task 1
Strategies decision that the company has followed in last five years and strategies company have
developed
Concept of strategic management is that process which formulates, implement and
evaluates the strategies to achieve organisation goals and objectives (Sanghi, 2016). Strategic
management is very importance for every organisation and is needed by every organisation in
every step of working. This management function also deal with future planning and directing
the organisation for future development in the organisation and also helps in achieving
objectives, mission and vision of the organisation. They mainly focus on achieving long term
goals of the organisation. There are various types of strategies which are as following.
Competitive strategies : In this strategic of management plan to combine internal factor along
with external factor to gain competitive advantage in the market over there competitor (Yang,
2015). They plan that how to attracted the customer by making different strategies so that they
can performance better than there competitor in the market and also bring some unique idea to
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there marketplace. Therefore, to satisfy the need and wants of there customers and to
performance better than there competitor.
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Cooperative strategies : according to this strategic all the decision are mainly taken by top level
management and strategic is also formulated by top level management. This strategic mainly
focus on long term objective of the organisation and seen overall cooperative strategic of the
organisation (Amran, Ooi and Devi,2015).
Business strategies : this strategic is combination of both strategies competitive and cooperative
strategies. In this they mainly focus on company's competitive position of product and services.
They formulate there strategic by considering cooperative strategies. This strategic mainly focus
on product development and bring innovation in the product.
Vodafone company was officially launched on 1 January 1985. The company in last five years
has show strong telecommunication serves. In 2007, company joined title sponsorship with
McLare formula deemed the entity and they ended in 2013. In may 2011 company purchased the
remaining share of Essar Group Ltd (Adar and et.al., 2016). This formulated the new unified
communications and collaboration practices by this they implemented key strategies and solution
to cloud computation, which helped in professional serving offering. In 2012 Vodafone acquired
cable and wireless serves worldwide, which help them to permit over unified communication
solution to larger enterprises. The company has created history by selling its 45% stake in
verizon wireless to there combination for $130 billion and till today Vodafone is remains the
worlds the largest leading mobile communication server provider company. This company has
operations in 26 countries and partnership with networking companies is in more than 55
counties. Vodafone truly has a great history and this providing the best product to its customer
Vodafone company is using cooperate strategic to entry into international market. They offer
wide range of product and serves to its customers by providing voice message servers, data and
fixed line services (Galinsky and et.al.,2015). so that communication needs of customer can be
filled faster and the company can enjoy competitive advantages over there other competitors.
Vodafone has strong communication severs all over the world and competitors has to face tough
competition in the market. The company is also emerging with international European
companies to build its network strong. So that can provided strong communication services to its
users all over the world and can be one of the top telecommunication company in the world.
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Task 2
By Using the appropriate model and review the external environment of the company
Business environment can be defined as internal and external factors with affects the
functioning of an organisation and influence the business. It helps an organisation in fulfil its
mission, vision and objective to achieve its goals and can get better result. This is known as
business environment (Haas, Natter and Vezzoli,2016). Internal factors are that which arises
within the organisational. The strength and weakness of the organisation are analysed in it and
helps to improve the weakness and fulfil the objectives of the organisation. External factors are
those factors which arises outside the organisation and affect the goals and objective of the firm.
It involves PESTLE analysis, this factors are not in the control of the company but by knowing
that factors can help in risk minimization.
Political factor: This factor of PESTLE analysis influence Vodafone company in many ways. If
there is instability in government of that country then it will also affect companies of that
country, so stability should be there in there government. Due to instability good infrastructure
of the company can not be developed and it becomes very difficult task for the organisation. For
example Vodafone company is facing problem, due to conflicts in Europe the company is being
affected greatly by it. For the better work in the organisation, its very importance to overcome its
political factors or find some solution to it. So the company can achieve there objectives (Chen,
Delmas and Lieberman,2015).
Economic factor: This factor is very importance has it helps the organisation like Vodafone to
expand and open new units in developed zone. The economic play a very vital role in the
development of company. If countries economic is good and has increasing GDP rate then it
helps in the growth of the organisation as well. In recent time the world is facing economic crisis
which direct impact to companies like Vodafone. Due to this impact company has to change
there strategies very frequently. According to changing economic condition, company also has to
face many problems. To overcome there problems, the company take corrective measure
according to it (Yorio, Willmer and Moore, 2015).
Social factors: This analysis influence purely on the basics of beliefs, traditions and culture of
that country. Vodafone is basically a European company and has change there policies and
procures of there organisation according to the local culture in the state where they are working.
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An organisation should show some flexibility in changing there policies and produces in the
country where they are operating. By bring changes according to local culture can help
organisation to get success faster.
Technological factors: This factor mainly focuses on technical factors which affects the
organisation and Vodafone is famous for its innovation. The company always aims at following
latest trend of technological and communication, so that they can compete to there rivals. By
launching the devices and features of that devices. Its very importance for company to deal with
the latest technological and to bring innovation in there communication serves. This company
mostly produce technological related product and servers, so they should have the latest
knowledge about there product (Barney and Hesterly, 2015).
Legal factors: This factor is related to legal rights of the company, as Vodafone has many rivals
in the market. The company should be very particular about there legal issues of copying and
pirated. Vodafone company has been accused by its employee because company provides very
less pay to its employee. By this issue employee leave there job and join to there rival company.
This can affect the company's product innovation and ideas by providing information to there
rival company. To build the image of the company and build trust in the customers, its very
importance for the company to bring some changes in there perspective.
Environmental factors: This is the last factor which affects the organisation structure of the
company. Vodafone in a company which is dynamic is nature and performance all its duties
according to changing environment. Nowadays, customers like to buy goods and servers from
company which uses environment friendly technique. Which is not harmful to the environment
and there livelihood.
Competitive advantages of Vodafone
Competitive advantages is the condition in which company can sale there product in lower price
then there competitors and can enjoy the advantages of this. Also, provided high quality to there
customers and performance better than there rival company, by improving there quality of goods
and serves. Vodafone company has competitive advantages over its rival, as it provides wireless
communication serves to its customers (Yunna and Yisheng, 2014). In better quality then there
competitors and the consumer trust this company more than any other company. The company
has introduced plans for small, medium and large scale organisation. They have done huge
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investment in building there network strong, by these customers have started believing in them.
Vodafone company's rivals has to face tough competition, has this company provided quality
network to its customer. The network coverage and availability of network is good all over the
world. There voice quality serves is also good and provided 2G, 3G and 4G the fastest speed in
the world. They focus on customer care serves to improve there quality of serves and maintain
high standers in the market (Jarzabkowski and Kaplan, 2015). To compete with there rival firms
and gain competitive advantages over them. Vodafone company also introduced new mobile
communication and network technological in health care in 2009. This has served many counties
in the world-wide. Believes of people on this company has increased and this company is
providing the best facilities to its uses. Vodafone company always focus on cost differentiation
and try to charge the lowest price of there product with the best quality. Company has also
transformed public services by brining more flexibility and efficacy in the work. This company
has invested more in promoting there websites and focus on customer's feedback and win the
confidence of there customers. So Vodafone has competitive advantages over others (Sharma,
2016).
The company has to face many problems in today's competitive market. There in lot of
competition in the market and also has to provide better quality then there competitors. If
customers are not satisfied with the servers of the organisation then they can shift to there rival
company. There is lot of price differentiation of product in the market. Vodafone company has
competitive advantages, so has to work more to maintain its reputation in the market.
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TASK 3
Further Analysis with regard to:
 The extent to which the company is facing strategic drift.
Strategic drift is a condition when the external environmental factors fails to impact the
performance of a business entity. Vodafone has to look after the effective handling of business
entities and operations that will help in placing a suitable rise meeting of a business entity 's
operation, this will cause the organisation to handle the business operations in an effective way.
The dynamic macro environmental elements are required to be in consideration of a company in
order to carry out the business strategy and meet the business factors and operations in a
significant manner. As Vodafone is a telecommunication firm, operating on global platform, it
has to see through the effective planning of external factors and strategic drift (Kim, and
Mauborgne, 2015).
The firm has to make suitable changes within its policies and work process in order to
improve its performance and meet the business activities and objectives in an significant way.
Other than this, it assists the firm to place suitable and significant changes within organisation
and improve the internal strategic capabilities of firm at workplace. It involves the various
phases which are as follows:
Phase 1: incremental change: it involves the little changes that are been occurred within the
macro environmental factor of the firm.
Phase 2: strategic drift: it leads to the increase in the changes within the organisation's external
environmental factors.
Phase 3: flux: it involves the proper setting of decision management within the firm. This leads
top proper management of market expansion strategies.
Phase 4: Transformational changes: this will involve the proper setting of the business
strategy within the firm.
 Whether their mission and vision statement are aligned to the demand of the marketplace.
The vision and mission statement of Vodafone is required to be managed and effectively
managed and placed in order to handle the business operations and activities (Tong, Li and Wei,
2015). The major vision statement of organisation is to provide its customers with effective and
high quality services that will help in improving the quality of services and thus will help in
improving the performance of cited telecommunication company.
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 The company strategic capabilities
In order to find out the strategic capabilities of the cited business firm will be effectively
analysed using the SWOT analysis which is as follows:
SWOT Analysis
Strength Weaknesses
Vodafone is one of the major
telecommunication firm in UK and on global
level. This increases its operational capacity.
And allow the firm to have a good growth
(Liu, Zhu and Kang, 2017).
The lack of proper customer care services and
expansion strategies is the major drawback that
impacts the performance of the firm.
Opportunities threats
Application of a proper market strategy and
placing of a suitable advertising campaign will
help the firm to attract more and more
customers and thus will help in effective
placing of business activities and gaining a
good market share.
The lack of proper customer communication
may lead the firm to lose its valuable customer
base. Also the rise in competition in
telecommunication sector will cause the firm
to have a loss of revenue.
 Use the Business Canvass Model to portray and describe the rationale and core logic of how
the company creates, delivers and captures value within its industry/market to its clients
The business canvas model will help Vodafone to have the strategic market share and
good growth. It involves following factors:
Key activities: this involves the basic operations that are been followed by Vodafone.
Key resources: it involves the various resources that will be utilized by the cited
telecommunication firm.
Partner network: this will involve the supportive firms that work with organisations to carry
out its business activities (Condorelli and Galeotti, 2015).
Offering: the services that are been provided by cellular firm.
Customers: these involves the buyers of the business operations and activities by the firm.
Channels: this are the various ways by which the firm will communicates and relate to firm.
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Finance: it involves the monetary resources that are applied within firm.
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TASK 4
Discuss the possible strategies that the company could follow to defend its core business.
Vodafone company operating in Malta applies various strategic models to benefit its
sectors and increase its profitability (Condorelli and Galeotti, 2015). These models describe
strategic plans and improves processes. There are explaining some action and strategies to
perform company functions better and effective.
Following are some strategic models are given below:
Signalling
It is a high level model used at the initial stage of organization's strategic planning. It
determines the strength, weaknesses, opportunities and threats of Vodafone of Malta. With the
help of this analysis organisation can determine its strength which can be good relations with
customers, successful marketing strategies, opportunities can be loyal customers and good
customer demand, weaknesses could be cash flow problems and threat could be active
competitors in the market (Condorelli and Galeotti, 2015). Through this analysis Vodafone can
analyse its position and handle its upcoming problems easily. Alternatives can be created to deal
with future aspects. By identifying the strength and weaknesses of the company. Company could
adopt the signalling strategy through they can defence their business into more effective manner.
This approach of signalling will help company to explain all action taken by the company
to the public.
Company needs to adopt the different functions and models in order to sustenance the
business activate sin more perfect and effective manner. Because of the high competition level. It
brings the new level of technologies and growth in order to meet the organisation goals and
objective levels. Besides, to sustain its core business values company requires adopting some set
of skills and strategies to get over from the competitive environment it also helps to sustain in the
market in long term manner (Kim and Mauborgne, 2015). This brings the long term changes and
better opportunity and growth in order to meet the goals.
Fortify and defend
This is the another strategy or growth that helps to taking care or defend the risk barriers
for competitors. The main purpose of the defensive marketing strategy is to lower the
inducement to attack. These factors determine business environment. Political factors include
educational policies, employment rate, labour law, tariffs, political stability, government policies
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