Applied Corporate Strategy Report: Vodafone's Strategic Analysis

This report provides a comprehensive analysis of Vodafone's corporate strategy. It begins with an introduction to corporate strategy and its application to Vodafone, a British international telecommunications company. The report then conducts an external analysis using PESTEL and Porter's Five Forces frameworks to assess the UK telecommunications industry and Vodafone's competitive environment. An internal analysis, including SWOT and VRIO analyses, evaluates Vodafone's strengths, weaknesses, opportunities, and threats, as well as its resources and capabilities. The report also examines Vodafone's value chain, covering inbound logistics, operations, outbound logistics, marketing and sales, and services. Finally, the report discusses the SAF criterion, concluding with an overview of Vodafone's strategic position and recommendations.

Applied Corporate
Strategy

INTRODUCTION
Corporate plan refers to an ultimate way that considered an establishment that helps the
organisation that assist the venture an earning an efficient benefit within the marketplace. Along
with this corporate strategy provides efficient revelation for an establishment to effectively
achieve its formulated goals and motives in effective manner (Baltina, Bolodurina and
Gorbatenko, 2018). This document is supported on Vodafone which is a British international
telecommunications administration. This company was integrated in 1982 and is headquartered
in London, England, UK. The company is presently inflowing into a amalgamation with
European Liberty which is another telecommunication organisation and also situated in UK. The
description will defined a detailed exterior examination of the telecommunication commerce in
the UK as well as interior investigation of the assets and key analysis of the firm. Moreover, the
document also includes assessment of the plan of merger SAF criterion.
EXTERNAL ANALYSIS
PESTEL Analysis
It is a determination which is organised by the administration of an organisation to analyse
the influence of the extrinsic component of company. Telecommunication industry in the UK has
been an eternally developing sector and there are several external factors in the business
atmosphere that generate a great influence on this industry. The brief explanation of this analysis
in reference to Vodafone is as under:
Political- This component include several factors such as government policy, instability
or insecurity, taxation policy, dishonesty and many more. If there are any types of modify arise
in these kinds of elements then it creates impact over the business of enterprises of specific
industry. In UK, Brexit is the major element that deeply contacts the commerce of
telecommunication sector and also affects those ventures which also operate their business
within it. It will indicate that England will no longer stay a segment of the European Union,
leading to increase introduce tax (Köhler and Zerfass, 2019). After UK’s exodus the increase rate
is maximised that impact the commerce of Vodafone in unfavourable way. Along with this factor
also positively affect the firm as Vodafone make joint venture with Qatar foundation which
assists in developing the production of this enterpire in Qatar.
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Economical- It considers several aspects such as employment rate, inflation or deflation,
foreign exchange and many more. In Vodafone, owing to early development in the functioning
alteration, the organisation has defined to speed up the timeframe for performance of “Digital
Vodafone” curriculum from five years to three years (Ruck, 2019). The firm has determined to
minimise their network charge in Europe by 1.2 billion Euros by the closing stages of FY21 and
involving a yearly investments of 400 million Euros. The venture is concentrated around
realising considerable opex and capex synergies produced through the statement of Liberty
Global business.
Social- This component consider diverse factors such as culture, customs, beliefs, needs,
demands, living standard, occupation and demographic components etc. In Vodafone, the
growing need for internet entire globe due to commercialisation has assisted a maximise in the
demands for fast internet facilities. Development in need of internet has established to be useful
for global telecom organisations like Vodafone.
Technological- It includes diverse components such as research & development,
innovation in technology, advance technology, artificial intelligence and others. In Vodafone, in
order to construct consumer faithfulness and involvement the firm has developed into Europe’s
directing TV and stage for contented allocation with 22 million vigorous consumers. Along with
this, the respective venture also offers MyVodafone application which help establishing and
managing consumer relations.
Environmental- This factor of PESTEL analysis consist different components such as
climate, atmosphere, environmental law, pollution act, carbon footprints and others. Vodafone
organisation appreciates that it is accountable for attaching over 650 million and several
companies on an international extent. Along with this, the company also realise that contact of
digital prospect is a growth option that should be consistently allocated so that most susceptible
are not left after. The administration of respective firm has determined to concentrates on
moving to renewable sources of energy for effective supply.
Legal- This component include all the regulatory framework and policies of national
authorities and organisations which are developed to occupation the commerce of firm in
efficient and efficient manner (Mendes, 2018). In Vodafone, the management of company
effectively follow employment law, pollution act and health and safety for appropriate running of
company which favourably influence the corporation.
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Porter’s Five Forces Analysis
This framework was formulated by Michael Porter in 1979 to help the organisations to
identify the aggressive services that are available within the business sector. All the five
approahes of this study are explained as below:
Threat of new entrant- The risk of new marketplace competitors is low as of obstructions to
entry. Organisations which want to come in this marketplace or business sector must pay huge
certifying fees attached by variety accessibility and authoritarian complexities related to business
production (Weissenberger-Eibl, Almeida and Seus, 2019). Along with this, cost of
establishment network infrastructure is elevated and the fast altering machinery devises it
complex for new entrants to manage
Bargaining power of suppliers- Vodafone providers have a high negotiating control since
the firm runs with high restrictions evaluated to its rivals. As an organizer in the marketplace, the
market share is great significance that can adopt any cost maximisation in ease manner from the
providers more than its rivals can. The respective from can also manage low costs from its deals
easily and constant making profitability.
Bargaining power of buyers- In telecommunication industry, the negotiating control of
consumers is elevated cause of high level rivalry and lack of distinguished commodities. The
immense purchaser influence efficiently minimise the charge process in the sector through not to
the extent of its rivals.
Threat of substitute product- Vodafone suffers a substantial risk for goods and facilities.
The landline and CDMA facilities are rapidly reducing whereas broadband forces are highly
flattering ordinary. Due to immense purchaser power and efficient financial system of scale, the
respective firm does not require passing down the expenses credited to replacement to target
audiences.
Competitive rivalry- Vodafone suffers tremendously high competition from its rivals cause
of low call rate value stimulating by its nearby rivals (Chen, Meyer-Doyle and Shi, 2018). Along
with this competitors continually offer creative commodities and facilities to target audiences
which state that Vodafone has to offer similar to its target consumers.
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INTERNAL ANALYSIS
SWOT Analysis
It is a tactical framework and scheduling method that can be utilised by the administrators
of Vodafone to organise situational analysis of the firm by determining capability, weaknesses,
growth options and risk, the establishment is suffering in its existing business atmosphere.
Strengths Weaknesses
 The company provides landlines,
mobile technology, digital TV facilities
and also has immense advertising with
ZooZoo conceptions made Vodafone
advertisements very famous.
 The organisation operate its business in
more than 150 nations and offer
different forces like payment
alternatives (m-Pesa), Health facility
and establishment etc.
 The respective firm has to continually
clash for market share with rivals’
cause of value wars.
 Being a multinational organisation, the
establishment comes under constant
vigilance from international
government (Rauw, 2019).
Opportunities Threats
 The firm can use hottest and low price
knowledge that can assist in growing
and developing brand.
 By expanding business in unexploited
rural marketplace, there can be
enormous possible for Vodafone.
 New entrants low price offering can
influence Vodafone profit margins in
negative manner.
 Changes in law due to COVID19
pandemic also affect the business in
unfavourable manner (Yamazaki,
2019).
Tows analysis
SAINSBURY
INTERNAL
ANALYSIS
STRENGTHS (S) WEAKNESSES (W)
 Large distribution network in term of
wide range of retailers and outlets
 Large customer base
 Claim problem of
retailers
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OPPORTUNI
TIES (O)
 Using large consumer base for mobile
payment bank services
 Expanding rural data
marketing minimising
perception of offers.
THREATS
(T)
 Pricing for 4G should be competitive.  Providing claims to
retailers with respect to
online recharge claims.
Strength/opportunity- There is different expansion opportunity accessible to the company
such as increment in the utilize of reproduction aptitude, along with it, maximise command of
diverse promising marketplace in telecommunication sector of UK (Eckhardt and Curran, 2019).
In context of Vodfone, the firm has large customer base which help in offering opportunity to
make development in business by offering mobile payment facility.
Strength/threat- The firm has string customer base but expanding rural information
marketing can reduce perception of offers and facilities of company. If the company will use and
adopt effective techniques then it can assist in developing business.
Weakness/opportunity- The main weaknesses of respective firm is claim issue of retailers
but the allocation of goods and commodities can be affected. In term of overcoming the firm can
pay the monetary value of time. This help in effective running of firm.
Weakness/threat- The opinionated situation of the UK is extremely doubtful and there are
threats associated to modify in regulations and laws of country. Along with this expanding rural
data marketing reducing perception of offers is another issue (Fitria, 2018). It can create negative
impact over the business of respective firm.
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Value Chain Analysis
Inbound logistic-It is important to the corporation to create proficient connection with
dealers so they can hold organisation in term of obtain, offer and allocate products. Without
analysing inbounds logistic, the organization of particular firm can undergo several complexities
in produce expansion stages (Katarachia and et. al., 2018). If the firms will create concentration
on its inbound logistic then it can getting better unprocessed substance, accumulating the efforts
and initially assigning the commodities to begin manufacturing and storing material in
warehouse.
Operation-The essentialness of analysing functioning performance happens when raw
substance obtains and Vodafone prepared to renovate it in to finished good and supply it in
marketplace. If the organization of the firm will create concentrates on the processes of the firm
such as machining, covering and difficult by using effective technology. Then, it will help in
escalating productivity and achieving financial enlargement in form of earning aggressive edge.
Outbound logistic- It comprises that process and functions that distribute the commodity
to target audiences by transitory during several intermarries. Various outbound logistic functions
are substance management, scheduling, warehousing and other doling out, conveying and
distributing to the necessary place. The management of Vodafone can decide the outbound
logistic to receive rivalry benefit and achieve its commerce growth goals.
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Marketing and sales- Some advertising and trading processes of respective firm are
publicity, marketing processes, channel assortment and building competent relationship with way
persons (Dahl and Fløttum, 2019). For proper advertising of merchandise and facilities, the
administration of firm can employ selling channel process to develop its promotion and trades
activities. The selling strategies can be shoving and draw in character and hold it. Vodafone
goals, brand representation, competition energetic and existing place in marketplace.
Services- Vodafone provides previous and post auction facility so as to will cooperate a
significant function in budding customer constancy. In breathing period, customer expects post
sale which is also crucial as advertising manners. The administration of the company must
analyse hold up actions to evade harmful brand reflection and augmented utilize it s a tool to
make positive word of mouth approval due to quick appropriate and efficient preserve facilities
(Lee and Shin, 2018).
VRIO Analysis
Capital access- Vodafone UK is able to access fund from Vodafone Group as it parent firm.
With free cash flow, the unit is capable to offer its subsidiary with assets to develop its
functioning capability or exaggerate its advertising. Wealth access is precious ability. However,
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rivals also have contact to assets from varied basis and therefore this capability is ordinary,
separation Vodafone in a situation of rivalry parity with its competitors.
Network capability- Vodafone has spended much in their multifaceted and as an production
they offer fats haste internet with exceptional inside and outside treatment. The respective firm
proposes that they have obtained the largely choices associate to rivals in the UK and that their
low incidence 4G signals sanctions for quick inside internet hustle (Guan and Kim, 2018). This
technological ability can be imitated in ease manner and thus it would only lead to a temporary
rivalry benefit.
Brand equity-According to British newspaper “The Independent”, Vodafone ordered 5th in
world brand ranking with a brand equity. It is has good presence in number of nations and brand
equity is greatly valuable, costly and imitate as well as organised exploit (Hickman and Silva,
2018). Thus, due to its international brand, the respective firm reaps a realised sustained rivalry
edge.
Human resource- The workers of the company are valuable, imitable, rare and organisable
due to having effective and crucial skills and abilities. The firm can manage them through
training, due to having innovative competencies they are rare and inimitable. Therefore, unique
skills help in gaining competitive benefits.
Resources
Tangible resource- It designates to corporeal objects that are observable and can be
touch by an individual. For instance, money, catalogue, equipment, property, manual labour,
construction and others. In reference to Vodafone, touchable assets are goods CEO, manpower,
distributors and many more.
Intangible resources- It refers to those resources that have not corporeal matter in
reference to physical resources. An insubstantial resource is basically much complex to measure.
In context to Vodafone, elusive assets are Brand, reputation and advertising.
EVALUATION
SAFe Criteria
It is a multifarious act for managers to examine and evaluate as well as measure the
scheme accepted by them. Thus, the purpose of Vodafone to go into a merger with European
Liberty is also extremely complex to be assessed. Thus, in refernce to efficient analysis the
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comparable, SAF criterion can be implemented that can be efficiently evaluate the strategy. This
criterion is defined as beneath:
Sustainability- In order to effective analysis of the sustainability, it is crucial that it is
measured with the assistance of SWOT examination described as exceeding. In Vodafone, the
capabilities of the organisation are efficient pricing plan of action of commodities, amount of
brand and goods for all profits unit target audiences (Cappucci, 2018). Therefore, these factors
help Vodafone with European Liberty to make development in its business and make growth in
its business and devise able European Liberty to earn competitive edge. To form a sustainable
business, the management constantly striving to form its operations more energy-effective and to
capitalise on renewable energy opportunities. By 2020, they will cut their carbon emissions by
50% and they are increasing joint strategies with main dealers to do this.
Acceptability- It is essential for organisations to effectively evaluate the strategic tool and
plan in term of adoptability from stakeholder of the company (Baltina, Bolodurina and
Gorbatenko, 2018). It mentions evaluation of several issues associated to methods and takings
that are basically to be determined through establishment for this original firm. There are
numerous shareholders of the company which are explained below Stakeholder control indicator:
Apart from the various stakeholders forming part of an organization environment, there
are three shareholders groups which are majorly affected by the organization strategy. These
shareholder groups are defined as below –
Investors- Investor group is the group of people or organizations who are investing
money into the company. These stakeholders provide the monetary strength to the organization
against the future expected returns from the business. These stakeholders play critical role in
initial phase of the business as well as plays an important role in the expectations expansion and
growth of the corporation. Vodafone and European Liberty both operates in the retail division
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and this amalgamation will help these companies in detaining larger market share helping them
in maximizing scale of economies resulting into higher return for investors.
Employees–Employees or the human resources are the one of the most critical factors
contributing in the sustainability and growth of the business. They directly impact the strategies
formation, implementation and review process. Employees are the one which implement the
various management strategies and provide the maximum results by contributing their efforts.
Suppliers –Suppliers are the backbone of the business as they maintain continue supply
of the goods to the business for effective customer deliverables. They are one of most influenced
stakeholders during the course of merger (Köhler and Zerfass, 2019). During merger under
process alignment of vendors and processes make huge impact on the overall structure of the
supplier base. Optimization of resources helps the new entity to achieve reduced cost.
Feasibility-As merger of two or more organization is a very cumbersome process,
feasibility of the strategies defined for merger is very critical (Ruck, 2019). Feasibility check of
the strategy will include the overall benefits to the new entity as well as to the pre-merger unit’s
stakeholders, along with the process for the merger, review mechanism etc. To have a successful
strategy in place for Vodafone to discuss better purchasing deliberation with European Liberty’s
management. Due to having skilled workers and implementation of effective strategies and plan
of action, the business of respective firm is feasible.
Stakeholder mapping-As an organization is formed from various stake holders mainly internal
and external. External stakeholders are customers, govt entities, suppliers, investors etc. whereas
internal stakeholders comprise of employees and promoters of the company. As all these
stakeholders are critical part for existence of an organization mapping of these stakeholders is
very critical to define their contribution towards the growth of the organization (Mendes, 2018).
It is vital for the achievement of the corporation as when the venture has charted its stakeholder
it will assist in improved achievement of their defined goals.
CONCLUSION
It has been summarised from the previous describe conformation that all the commerce
firms requires genuine strategy to attain diminutive and extended period aims of the firm. In
instruct to determine development opportunities and risks that are related to the commerce
atmosphere, PESTEL examination is conducted by the administration. During preparation to
determine competitive in specific sector porter’s five forces form is developed. With the
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