Strategic Analysis and Recommendations for Vodafone Malta

This report offers a comprehensive strategic analysis of Vodafone Malta, examining its past strategic direction, competitive environment, and internal capabilities. The report begins with an introduction to strategic management and then focuses on Vodafone Malta's strategic decisions over the past five years, including its response to market changes and technological advancements. It analyzes the external competitive landscape using PESTEL analysis and assesses Vodafone Malta's competitive advantages through a SWOT analysis. The report also examines industrial scenarios faced by the organization, strategic drift, and the company's vision and mission. Furthermore, it explores Vodafone Malta's strategic capabilities, business canvas model, and strategies to defend its core business. The report concludes with an evaluation of resource implications and provides recommendations for Vodafone Malta's future strategic direction, offering valuable insights into the company's operations and market position.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Strategic direction followed by the organisation in past and the ways which can be used to
have a growth within past 5 years...............................................................................................1
TASK 2............................................................................................................................................3
Analysis of external competitive environment, in compare of its competitors and analysis of
existing market growth domains.................................................................................................3
Analysis of competitive advantage of the organisation..............................................................3
Industrial scenarios faced by the organisation............................................................................5
TASK 3............................................................................................................................................6
Extent of company's strategic drift..............................................................................................6
Vision and mission to meet demands of market.........................................................................6
Strategic capabilities of Vodafone Malta....................................................................................7
Business canvas model................................................................................................................8
TASK 4..........................................................................................................................................10
Strategies of Vodafone Malta to defend its core business........................................................10
TASK 5..........................................................................................................................................11
Evaluation of resource implication and recommendations for Vodafone Malta......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The suitable planning of the strategies will help an organisation to have a good share of
market and thus, improves its functioning. The effective and strategic plan will help in proper
assessment of operations and carrying out the operations which will help in suitable planning of
services which will help in carrying out suitable growth of organisation. This will help in
identifying the needs of organisation as well as that of customers and other stakeholders of
organisation. Hence, proper management of strategies are required to be observed by an
enterprise. For the present report, a Malta based mobile telecommunication enterprise, Vodafone
Malta is been chosen.
The report will cover the typologies of strategies and its different concepts of strategies.
Different models and competitive drivers on the positioning of company is been evaluated.
Internal assessment of organisation is been carried out with strategic choice models within
organisation to have a good competitive positioning. Other than this, different resources
implemented for the selected strategies and various functionalities of the organisation with
evaluation of different models are been analysed for the proper assessment of the strategic
implementation of operations within the selected organisation.
MAIN BODY
TASK 1
Strategic direction followed by the organisation in past and the ways which can be used to have a
growth within past 5 years
Vodafone Malta is national subsidiary of one of the largest telecommunication network
group, Vodafone UK. This makes the company to have a strategic and effective communication
and growth strategies which are been followed by the organization. In last five years, Vodafone
Malta has emerged as one of the largest telecommunication service provider of the organization.
The extensive marketing processes, developing and implementation of suitable strategies and
policies that are been carried out by the organization which will help in suitable rise in growth
and development of telecommunication firm. More emphasis on digital and technological
advancement, usage of customer centric policies and providing maximum returns to manage the
trust level of their stakeholders are some major strategic directions that are been followed by the
selected enterprise in order to have a good control over its operations in market of Malta (Noe
and et.al., 2017). Within past 5 years, efficient strategies are been placed. That will help in
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carrying out of service measures undertaken by Vodafone Malta. Few of effective strategic
thinking has been developed within the form in past 5 years are:
Increasing usage by smartphone users: Vodafone Malta looked after the adoption of effective
usage within smartphone users. The high speed internet, advancement of telecommunication
technologies and reasonable data plans and allowances are certain important factors which are
been carried out by the selected firm that helped in meeting the operational needs and other
growth measures which are been undertaken within organization (Bell and et.al., 2018). It also
helped in carrying out of services and thus, improves the suitable evaluation of the 4G and 3G
services offered to their users. This has proved to a major growth strategy for Vodafone
Malta in a sustainable manner.
Expanding the customer coverage: Vodafone Malta has improved its overall market presence
in Malta, that assists the overall performance of organization within market. The Vodafone Malta
has not only provided the basic telecommunication services, but also has improved the usage of
internet based services, broadband services and TV based digital media communication. The
fixed and mobile interaction facilities which supported a suitable arrangement of services that
helped in meeting their customers needs and meeting rapid demands of their users. It supported
its service infrastructure along with suitable distribution and allocation of services. Following
these measure assisted Vodafone Malta to increase their sales and market share to about 32%
within past 5 years.
Reaching maximum number of population: Till 2014, the users of internet services in Malta
were about 46%, that too in urban areas. After the entry of Vodafone in Malta, the population
with the accessibility to internet based services have increased tremendously since 2015 and in
past 5 years, the population using 4G based services have increased to about 72%, in both rural
and urban areas. This has not only improved the market coverage, revenue generation and market
share of selected enterprise in Malta, but also played a specific role in development of
sustainable telecommunication infrastructure within organization. This has not only improved
the sales of the organization but also improved the performance of organization. This has helped
in proper planning of services and this has improved their market presence and strategic growth
in Malta within past 5 years.
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TASK 2
Analysis of external competitive environment, in compare of its competitors and analysis of
existing market growth domains
The external competitive environment of an organisation lays a significant influence on
the operations of an organisation that will help in proper assessment of operations carried out by
a firm (Hertz and et.al., 2017). The effective planning of the external competitive advantage can
be evaluated with the help of PESTEL analysis, which is as follows:
Political: Malta is a smaller country which is a part of European union (EU). The political
conventions that are been followed within the EU countries. Thus, Vodafone Malta is required to
look after proper management of various trade policies, tariff plans etc.
Economic: The constant occurring of difference in the valuation of exchange rate of currency,
inflation rate and other factors will impact the operations leading to economic development of
organisation.
Social: The demographical factors like majority of people with Catholic origin and hence the
involvement of people from other cultural backgrounds is very difficult. Thus, Vodafone is
required to monitor these factors to have a sustainable strategy within Malta.
Technological: As Vodafone Malta is a telecommunication enterprise, it is required to look after
significant innovation in telecommunication and mobile technology in order to sustain its users
and attract new buyers.
Environmental: the organisation is required to see trough effective and suitable environmental
factors which are been followed by the organisation. Suitable CSR measures can be carried out
within the organisation that will help in proper evaluation of its environmental factors.
Legal: the trade laws, Employee legislation and most important, the data security measures are
been carried out that will help in proper assessment of operations which will help in suitable rise
in overall operation of the organisation (Teece, 2019.).
Analysis of competitive advantage of the organisation
The company will look after proper evaluation of the competitive advantage as compared
to its direct competitors, which will help in carrying out of SWOT analysis of organisation.
SWOT Analysis
Strength Weaknesses
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 High level of market presence:
Vodafone Malta is one of the major and
largest company in the country. This
helps the organization to have a high
level of market presence and reach
maximum number of customers or
buyers within the market (Certo and
et.al., 2018).
 High level of innovation: Vodafone
Malta is known to provide effective and
innovative services to their customers
which assist the business organization
to provide out suitable services and
products
 Strong Advertising: Vodafone Malta
is also known for its captivating
advertisement and promotional
measures. The usage of ZOOZOO ads
have made their commercial marketing
to be more attractive and innovative.
 Effective product and service
portfolio: Besides the
telecommunication services, Vodafone
Malta also offers internet services,
online payment mediums, access to the
latest movies and music through its
mobile application. This will help in
developing a positive relationship with
their buyers and hiving effective
competitive advantage.
Lack of proper financial management:
Vodafone Malta lacks the effective financial
management that causes the gap between the
expenses and profit margins that are been
made. This will also help in proper handling of
services and other factors that are been carried
out by the organization. Within Malta, the
selected enterprise is required to see through
proper assessment of their financial operations,
which will help in carrying out of services and
hence improves the overall performance of
operations in a significant manner.
Employee turnaround rate: In the recent
time, the change in employee's welfare policies
and developing of employment laws have
increased the awareness of work force. The
employees at Vodafone Malta are quite not
satisfied with the work environment and
conditions that have impacted the performance
and operations which has impacted the overall
performance of operations within the firm
(Hladchenko, 2015). Hence, Vodafone Malta
will look after proper management of
controlling their employee turnaround rate.
Opportunity Threat
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The improvement in cellular technology and
providing accessibility of wireless internet in
remote rural areas of the country will provide
suitable rise in improvement of sales and
overall operations of the organization. Besides
this, firm can also opt to provide low cost
cellular based services to its users (Meyer and
Xin, 2018).
The rise in competition and entry of new
entrant firms can impact market share and sales
of the selected enterprise. Other than this, the
Mobile number portability service that allows
users to switch their service provider without
changing their number is a major threat factor
for selected organization.
Industrial scenarios faced by the organisation
The probable industrial scenarios that are been faced by the Vodafone Malta are:
Threat of new entrants: Due to advancement of mobile technology and reduction in cellular
service cost, many new firms have entered into Malta's telecommunication market. However, as
Vodafone is a major firm in the market and possess a low threat from new enterprises.
Bargaining power of suppliers: As Vodafone Malta produces its own cellular services and
products the rate of bargaining is low. The cost of manufacturing and supplying the mobile SIM
by the firm is comparatively cheaper for the enterprise.
Bargaining power of customers:As many cellular service operators are providing the data plans
and other telecommunication services on a cheaper rate, customers or buyers tend to negotiate
for the cheaper and most reasonable plans. Vodafone Malta is required to effectively look after it
in order to sustain its operations.
Threat of substitution: As many other telecommunication enterprises are providing the similar
services on a lower cost, the firm is highly susceptible to get substituted easily within the market.
Vodafone Malta is required to look after the proper planning of their business operations in order
to avoid their substitution within market (Slack and Brandon-Jones, 2018.).
Rivalry among existing competitors: Many rival companies are operating within the
telecommunication market of Malta that will impact the sales and market share of organisation.
Hence, it is required to have proper assessment of their operations and sustain their position
within market.
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TASK 3
Extent of company's strategic drift
In order to operate effectively in the telecommunication market of Malta, Vodafone
Malta will look after proper assessment and identification of the measures which are followed by
organization in most effective and appropriate manner. The innovative advertising and
promotional measures, providing high quality products and services and establishing an effective
communication with their users, buyers or customers are few strategic measures that are been
carried out by the organization. This will help in carrying out of the operations which will help in
properly meeting of the operations which will help in carrying out of services and thus, supports
in improving sustainability of organization in an effective way.
Besides this, it will also help in carrying out of operations and business activities which
will see through the proper planning of growth activities and other improvement steps. The
management of different business strategies which will help in carrying out of operations that
will look after the proper rise in carrying out of services in an effective and significant manner
(Audretsch, 2015). This will also help in meeting the quality of services and hence, supports
production of high quality, innovative product. The management of Vodafone Malta will
undertake suitable steps in order to rectify the strategic gap at work place.
Vision and mission to meet demands of market
Vision statement of Vodafone Malta:
The vision of Vodafone Malta is to establish itself as the market leaders in
telecommunication industry. Also, they aim to be well connected enterprise with their customers
in Malta and all around the world.
Mission Statement of Vodafone Malta:
The mission statement of Vodafone Malta is to enrich their customers with a wider range
of products and other mobile communication services that will help them to have a good
customer satisfaction level and hence, improves the setting up of operations and measures which
will help in carrying out of other business operations in an effective way.
On the basis of the assessment of this mission and vision statements by the organization,
this can be effectively said that these statements guides and encourage the firm to have a high
level of operational effectiveness and thus, supports a good rise in the quality of products and
services that are been carried out by the organization (Bailey and et.al., 2018). It will help in
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carrying out of services and thus, leads to decrease in strategic gap between meeting the
operational needs or demands of customers and measures undertaken by the firm. The strategies
that are been followed by the organization will lead to meet their market place demands and
hence, contributes in handling the needs and enhancing the revenue generation in most effective
way. It will also help in improving the quality of services and products offered to their
customers.
Strategic capabilities of Vodafone Malta
In order to effectively perform within the market the selected organization will look after
proper assessment of operations and carrying out of services. It will support a good rise in
capabilities and handling of the measures which are been carried out by the organization. This
will help in setting up of measures and growth activities which are been carried out by Vodafone
Malta. In order to identify the extent and effectiveness of the marketing and other business
strategies that will help in carrying out of promotional and other functions, VRIO assessment is
been carried out by the firm that will help in proper evaluation of organization in an effective
way. The VRIO assessment that is been carried out within the organization are as follows:
Value: This is the most important aspect of the strategic planning. The management of selected
organization will look after the implementation of an effective strategy which will look after the
proper assessment of the growth measures and promotional steps undertaken by the organization.
Positive value creation by the organization will look after the proper growth of the organization
in an effective and significant manner (Williams, Chen and Agarwal, 2017). The suitable value
for money approach and products that are been offered by the firm will lead to significant rise in
operations and other facilities which will support a significant rise in the creation of the measures
which will support a good and significant rise in capabilities and growth measures which are
been carried out by the firm (Lasserre, 2017.).
Rareness: It includes the uniqueness of the products or services that are been offered by the
organization in an effective way. The providing of high speed cellular services and other
telecommunication facilities on a very low or reasonable cost is the major factor that will help
the organization to improve their quality measures and have a better growth and strategic
connectivity with their customers increasing strategic capabilities of the organization (Meyer,
Neck and Meeks, 2017).
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Imitation: Although the technologies and products that are offered by Vodafone Malta can be
easily imitated or copied by the competitors firm, but meeting the brand equity level and quality
parameters set by the organization is a very difficult for the competitor enterprises. This will help
in having operational advantage in most effective and significant manner. It also supports in
proper rise in carrying out of services and growth measures which are been carried out by the
firm (Hitt and Duane Ireland, 2017).
Organization: Various departments of Vodafone Malta will work in coordination with each
other that will help in proper assessment of the growth measures and rise in capabilities in an
effective manner. It not only helps in handling the growth measures of the organization in most
effective way but also supports a significant rise in capabilities and competitive advantage of the
organization. This will help in meeting the business operations and demands of various
customer's in most effective way.
Business canvas model
The business canvas model is well known for the effective planning of the operations and
growth measures which are been carried out by the organization (Wheelen and et.al., 2017). This
can be said that the proper assessment of the growth measures that are been carried out by the
firm. This will help in proper planning of the operations which will help in setting up of the
growth measures. The business canvas model of Vodafone Malta is as follows:
Factors Constituent Elements
Key Partners Vodafone Malta has collaborated with Soft bank to provide payment
based services to its customers.
Key activities The firm provides effective telecommunication service with internet
data, payment services and other mobile based services to its
customers.
Key resources The Human resource, technological designs and knowledge and
other infrastructural facilities are the major resources which are
been carried out by the organization.
Value proposition The digital customer care center and 24x7 online availability of the
technical support for the customers will lead the organization to
have a high level of value proposition.
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Customer relationship Various measures like interactive and unique advertisements,
loyalty programs and collecting feed backs on regular interval are
certain measures which are been looked after by Vodafone Malta to
have a good customer relationship (Ginter, Duncan and Swayne,
2018).
Channels Various marketing channels are been used by the organization like
social media marketing, digital promotions, TV commercials and
mobile notifications are certain channels that will be utilized by
Vodafone Malta.
Customer segment In order to promote their 4G LTE internet data services, Vodafone
Malta will look after the proper assessment of the measures which
will help in attracting young generation. Besides this, the
smartphone users will also look after the suitable demands of the 4G
LTE services that is been offered by the organization.
Cost structuring The cost structuring of the organization will cover all the business
measures leading to profit and expenses of the organization. This
will help in proper placing of the growth measures which will help
in proper handling of service measures which will help in carrying
out of marketing, product distribution and infrastructural
establishment measures. An estimated cost of €20,000 will be
utilized.
Revenue stream The royalties from partners, profit gained by selling up of its
products and services and procurement measures are been carried
out that will influence the overall operational capabilities of the
organization in an effective way.
This measures will help the company to develop a connectivity with its customers a sell
out their products or services in most effective and significant manner (David and David, 2016).
This will help in meeting and handle the operations and growth measures of the organization in
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the effective way. It will support the rise of operations within the organization in most effective
way.
TASK 4
Strategies of Vodafone Malta to defend its core business
Looking at the rise in the extensive market competition that is been carried out by the
selected enterprises, Vodafone Malta is required to look after the proper planning of strategies
which assists the organization to improve their functionality and core business. Some major
strategic steps adopted by the selected telecommunication firm will include the Ansoff's growth
matrix which is as follows:
Market penetration: Vodafone Malta will look after the proper management of the measures
which will help in increasing the market share of the firm. This is deeply based on the marketing
and promotional measures which are been undertaken by the telecommunication business
enterprises. It will assist the firm to leverage their resources in most effective and appropriate
manner that will help in increasing the sales of the organization in most effective way. Besides
this, it will help in gaining a high value proposition as compared to its competitors. Improving
the sales and growth measures of the organization in most effective way.
Product development: In this strategy, the organization will look after the proper development
of high quality product or service that will help in carrying out of services which will lead to rise
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Illustration 1: Ansoff matrix strategies
Sources: Ansoff matrix, 2019