Comprehensive Strategic Report on Vodafone's Business Strategy

This report provides a comprehensive analysis of Vodafone's business strategy, focusing on the impact of the macro environment and internal capabilities. It utilizes frameworks such as PESTLE and SWOT to evaluate Vodafone's position in the telecommunications industry. The report examines the influence of political, economic, social, technological, legal, and environmental factors on Vodafone's operations. Additionally, it assesses Vodafone's internal strengths and weaknesses, opportunities, and threats through SWOT analysis. Porter’s Five Forces model is applied to evaluate the competitive dynamics of the market Vodafone operates in. The report also interprets and devises strategic planning using various theories, concepts, and models. It highlights Vodafone's challenges, such as competition in specific markets and legal scrutiny, while also recognizing its strengths, such as its extensive market coverage and technological advancements. The report emphasizes Vodafone's commitment to environmental responsibility and its efforts to reduce its environmental impact.

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Applying appropriate frameworks analyse impact and influence of macro environment and its
strategies. ....................................................................................................................................3
Analyse the internal environment and capabilities using appropriate frameworks. .................9
Applying Porter’s Five Forces model evaluate the competitive forces of a given market.......11
Applying a range of theories, concepts and models, interpret and devise strategic planning ..14
Actions plan:.............................................................................................................................16
Recommendations are missing here:.........................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
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INTRODUCTION
Business strategy involves the strategic involvement in which implementation and
formulation of gaols as well as initiative is perceived on behalf of stakeholders. It is also be a
documented forum with this organisational value and gaols both get processed over balanced
manner and it is also be pertain with support of key principles that outline standardised
objectives of the company (Altin and et. al., 2018). It induced continuous based success and
development of an organisation with this possibility to perceive prefectural range of benefits in
processed in effective manner. The report below is based on Vodafone that is a British
multinational telecommunications company and having a global headquartered in Newbury,
Berkshire, England. The report below comprised of impact and influence over micro
environment and business strategy, organisational internal environment and capability, porter’s
five forces model within specified sector and model, theory and concepts that assist effectual
understanding that is available within strategic capabilities.
MAIN BODY
Applying appropriate frameworks analyse impact and influence of macro environment and its
strategies.
The macro environmental factor is a basis that induced direct and indirect based
implementation over working tendency with this performance and productivity get influenced on
clear manner. There are few internal and external factors that is as briefly explained below as:
Different strategic planning techniques
Benchmarking: It is a tool and technique that is used by the management of a business under
which standardised range of benefit is altered in successful manner (Brown and Brown, 2019). In
this Vodafone get capitalise its working performance and set standardised platform so as to
achieve higher sustainability and for that effectual range of strategies and initiatives get applied
so that working tendency and possibility to process higher success is pertained in flexible
manner.
Business analysis: It is an analysis that is performed by the management of Vodafone under
which different kind of strategies get collected and performed with support of perfection. there
are a lot of market competitor and all have induced different strategies so as to attain higher
market share with wider customer base. In this research and development department of
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Vodafone analyse the working performance of company so that sales and profit maximisation
attained in comfort manner.
There are different framework that is used by Vodafone so as to enhance profit credibility
and balance within working standards that is as clearly explained below as:
Stakeholder analysis: It is an analysis that is used by the management of Vodafonr under
which all the associated members and their working is supported with this favoured amount of
change within the project is processed as by enhancing and advancing working relationship
(Dau, Moore and Kostova, 2020).
(Source: Stakeholder analysis, 2019)
STEP 1: It is an initial stage within this Vodafone analyse the working tendency of all its
stakeholders such as supplier, customer, government, employee, buyer and many other as well.
For this suitable interest of all about the adequate project is processed in timely constrained.
STEP 2: It is an another stage within this Vodafone and its management make clear
optimisation about the interest of all the stakeholder and that is completely dependent over power
grid analysis and that is as summarised below as: High power, high interest: Vodafone always get specified range of changes over the
different stakeholder within this interest and power of all each get analyzes (Liu and et.
al., 2020). In this the involvement and performance of all the employee and management
is processed with this effectual relation is developed with all.
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 Low power, high interest: It is a basis with this stakeholder having lower power and
higher interest as the one having less involvement get cultivate and for that suitable or
required information is processed by Vodafone with perfection (Brown and Brown,
2019).
 High power, low interest: These are the stakeholder having higher power but lesser
interest towards decision making thus all the respective information and decision get
shared as per appropriateness with this they have aware about the change.
 Low power, low interest: It is the one having lower power and lower interest thus they
doesn’t induced wider impact over the working of company and project thus management
process all the necessary information as in timely constrained or as per need (Centobelli
and et. al., 2020).
STEP 3: It is the final stage within which Vodafone and its management make effectual
understanding about the stakeholder and its influence over the project (Njoroge and et. al., 2019).
For this adequate relations get developed with this emphasised range of benefit and market value
is processed so that working proficiency and productivity both get enhanced perpetually.
PESTLE Analysis: It is an analysis that provides clear evidence about the external basis that
induced direct impact over the performance and productivity of Vodafone and it is as described
below as:
Political Vodafone worked in many of countries and with have faced tough competition
in Italy and Spain and in mid of year also facing pressure in South Africa as
well (Dau, Moore and Kostova, 2020). In regardless of all management
maintain organic growth and success as by 0.3% EBITDA up by 3.1 % and
EBIT BY 9.4%. In the year 2018 the Vodafone Qatar get sold to Qatar
foundation as it is a joint venture in between both so as to enhance the decline
amount of sale and to maintain clear settlement to receive handset financing.
In addition company received higher growth in UK, Europe and Germany as
they have repositioned themselves to increase price competition.
Economic It is a basis that is dependent over the economic prospect of nation and
Vodafone has worked with clear vision and mission that is designed with
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support of effective strategies with this ability to drive long term success and
better return in term of capital advancement is processed with perfection.
Vodafone is taking cost base advancement with support of digital technologies
as with this management deleverage the balance sheet in clear manner. For this
ability to operate functional and operational transformation is developed
systematically (Pang and et. al., 2019). The direct based focus and substantial
success used to synergies the run rate in this better outcome is developed by
company.
Social The socio-cultural factor is dependent over the profound impact with this sales
and profitability get processed with specified manner (Kumar and et. al.,
2021). The preferred change within the living standards is always been induced
direct impact over the financial health of the company. The growing demand of
internet induced successful impact over Vodafone as customer get facilitate
toward advance demand with the purpose of work and entertainment both.
Technological The Vodafone attain high target for transformation from side to side a
rehabilitated focal point on operational excellence and target a more reliable
commercial performance transversely the whole cluster. It used to build and
support customer loyalty and engagement as Europe become the leading TV
and platform intended for content distribution by means of 22 million active
users. Vodafone maintain clear focus over optimisation of asset with this
sustained network and effective leadership is maintain as by advancing
infrastructure partnerships and leading gigabit networks.
Legal The merger of Idea and Vodafone comes under the light of legal scrutiny
connected to issues of raise demand for dues (Liu and et. al., 2020). The
Hutchinson in 2007 also acquired by Vodafone with this tax amount was
charged about $2.5 billion by the Indian Income Tax Department over declare
purchase. In this transaction is given to Vodafone about 67% and deal also
removed right over Hong Kong based company in India (Yeow, Soh and
Hansen, 2018). In after 2012 supreme court passed a judgment in favour of
Vodafone as tax is levy overseas in between formed and incorporate outside
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India.
Environmental Vodafone understand its responsibility towards environment with this wider
connection is developed over 650 million and various organizations on an
international level. It reduces the environmental impact with more than 50% by
2025 in this purpose to take firm in different stage as digital society, inclusion
and for planet is process as per realisation of clear access toward digital future
(Liu and et. al., 2020).
Impact of PESTLE on Vodafone:
Vodafone all through the years has confronted growing competition in Spain and Italy.
During the mid-half of the last 12 months the employer confronted sure pressures in South
Africa as well. The enterprise’s enterprise declined due to the sale, a number of settlements in the
previous 12 months and an basic lower advantage obtained from handset financing in the UK.
The employer carried out earned suitable sales and growth in Germany, UK and Other Europe,
their performance was offset by using decline in profits in Spain and Italy. In Spain the
enterprise had to reposition itself because of increase in charge opposition while in Italy, the
employer confronted a new entrant inside the mobile market. A new records regulation resulted
in a slower boom in the South African marketplace. The secondary goal of the agency is to alter
their cost base by taking advantage of latest digital technologies. The changes in sociocultural
elements of an financial system could have a profound impact in the sales and profitability of
business specially in specific areas. A exchange in lifestyle in addition to choices of the
consumers immediately impact the economic fitness of the business. The developing call for
internet all over the international because of consumerism has facilitated an boom within the
demand for immediate net services. Vodafone agency has set up high objectives for
transformation thru a renewed cognizance on operational excellence and concentrated on a extra
constant business performance across the entire Group. In order to construct purchaser loyalty
and engagement the organization has end up Europe’s main TV and platform for content material
distribution with 22 million energetic users. My Vodafone App has been successful in organising
and keeping client relationships. The organisation has a leading worldwide loT platform for
persisted commercial enterprise partnerships.
Internal environment Analysis
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SWOT Analysis: It is an internal analysis that acts as strategic planning tool with this
management of Vodafone get analyse about overall situation and implement favoured changes in
working business environment that is as briefly explained below as:
Strength The massive market coverage of Vodafone brings it at 395th position among
2000 brands by Forbes (SWOT analysis of Vodafone – Vodafone SWOT
analysis, 2021). The company is known for wider distribution and network
with this become highest telecom operator in more than 25 countries. The
revenue generation of Vodafone is in billion dollars and it whopped the 87.3
billion dollar with this company ranked 104 in sales and 84 in terms of market
value.
Weaknesses The dropping subscriber base drops the market value of company in last four
years in this core values and strategies implementation need to acquire by its
customers (Kumar and et. al., 2021). The dropping brand valuation is
responsible to drop functional value of business in which suffered amount of
business reduced the brand value. The losing market in USA is demanded with
premium need thus working tendency get reduced in balanced manner.
Opportunities The rural market opportunity is reluctant towards market penetration for this
company become in priority of many telecom operators for that competitor as
Airtel and Reliance make successful implementation in marketplace. The
emerging market induced potential impact over disposal income and
communication that emerged concentrate over all across the globe.
Threat The competition all across the world induced higher competition as with
Verizon Wireless and AT&T. The cut throat competition within telecom sector
induced stronger impact over business working in this Vodafone uses
differentiation that assists the business to keep premium pricing. In addition the
portability of mobile number is also be a threat with this if other competitor
provide the service at cheaper cost than they customer easily get switch
towards other operators thus it reduces market share and customer base.
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The level of threats of can be reduced by implementing effective strategies. This will not
only reduce the threats but also help the company in achieving its overall goals in an effective
manner. there will also be an increase in the level of performance of the company.
The internal as well as external factors basically used to influence the working behaviour
and tendency with this working performance and productiveness get affected on direct basis. For
this Vodafone and its management assure about the strategy that is used by others so that make
prominent changes in own business with this advanced range of benefit is altered in possible
manner.
Analyse the internal environment and capabilities using appropriate frameworks.
The internal basis provides clear information about the inner working consequences that
has wider and direct impact over the working standards. The strength of management is reflect
from the aim, vision, mission, objective, goals and action planning with this Vodafone is able to
attract and gather attention of wider marketplace in comfort manner. In this company must have
develop various strategies and initiative so that ability to attain effectual competitive
advancement is processed as by enhancing values and market share of company.
McKinsey's 7S model: It is a model that consists of different factors with this ability of
Vodafone to measure growth and development is processed with effectiveness and it is as briefly
explained below as:
Strategy Vodafone is using the cost leadership strategy and for that provide adequate range of
benefits and services to the customer with this ability to retain and attract more of
customers is processed willingly (Centobelli and et. al., 2020). Moreover, Vodafone
get merged with Idea as well so as to advance its market share and working
competency.
Structure It is a fundamental basis that is used by Vodafone or any of large organisations as it
have its own retail stores, service provider and many other basis thus management
uses hierarchical structure with this sustained information is gathered in ordinate
manner.
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Systems Vodafone and its management assure to advance working performance of employee
for that provide adequate benefits to them such as bonus, incentives, appraisal,
timely recognition and that all its completely dependent on the performance and
productivity that is generated due to efforts of an employee.
Skills It is an aspect that is related to the ability of employee and for this Vodafone assures
to provide timely based training and development so that learning capability and
competency of workers gets developed in ordinate manner.
Style Vodafone and its management uses steering wheel cycle so that they could have
make and induced better innovation with this ability to set and accomplish higher
heights is processed with adequateness (Bratton and Watson, 2018).
Staff Vodafone has a staff of 93,000 number of employee and has its own network in 22
countries and get partnered with network in other 48 countries.
Shared
values
The Vodafone uses to provide better customer service and experience for that
provide timely based services with this higher value get shared and generate in
flexible manner.
VRIO Model: It is the model with this resource and capability of an organisation get
analysed with perfection and as per concern of Vodafone it is as briefly explained below as:
Resource/Capability Valuable Rare Imitate Organised
Customer services Yes No No No
Employees Yes Yes No No
Patent Yes Yes Yes No
Financial resources Yes Yes Yes Yes
 Valuable: It is an aspect that is essential for an organization as with this possibility to
perceived higher competitive advantage and a balanced surround is achieved in
progressive manner. The financial resource of the company induced special impact over
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the working as with this adequate control towards operations and functions to advance
sale is processed. The customer service is also being valuable as company offered special
benefit and offers to its potential customer on regular basis so that sustained value get
shared in effective manner (Konovalova and et. al., 2018). The employee are valuable as
company provide special training and development to them with this possibility to induce
different strategy is capitalized in profitable manner. Moreover patent of company
processed a recognized and well fragmented image in competitive marketplace so that
easy access of business in competitive era is developed in many of countries.
 Rareness: The financial capability and resource of Vodafone is rare as it is developed due
to the combined efforts that are induced by the management in order to make effectual
competency in competitive world. It assists the business to implement favoured strategies
and goal as per requirement so that ability to provide sustained customer service also get
advanced. It is also be rare as different benefits and vouchers are provided by company to
its customer with this they could able to retain and attract more of customer on regular
basis. The patent of company is rare as with this service and product accessibility is
transformed with safer aspect under which brand name and value get developed and
processed only as per approval. Imitable: The financial resource of the business is imitable as it is developed as by
putting regular based efforts and make easy for management to process the working
without any difficulty related to funds. In addition the patent is also be imitable as with
this company only provide accessibility of its good and service as per their own
relevancy.
 Organised: It is a basis that is more flexible for an organisation thus in this financial
resource of Vodafone is organised so that productive amount of changes is altered in
relative manner.
The able analysis provide clear evidence about the resource and capability of the business so
that management of Vodafone my adequate usage of all so as to strengthen it more or to
make balanced range of outcome in productive manner (Melissen and Sauer, 2018).
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Applying Porter’s Five Forces model evaluate the competitive forces of a given market
Porter's five force model: It is a basis that provides clear evidence about the market
competency and it is as furthermore explained below as:
(Source: Porter's five force analysis, 2019)
Bargaining power of buyers: It induce higher impact as buyer has higher demand thus
company offer service as minimum price as possible in this wider customer base is developed for
this Vodafone seek to provide discount and offer to its customers.
Bargaining power of suppliers: The Company in wireless communication industry have lot
of suppliers to buy raw material thus it induce less impact over Vodafone and induce profitability
for company and its growth.
Threat of substitute: It has higher impact as service offered by other substitute process
reduction in profit for instance, Dropbox and Google Drive are substitute of storage drive that
reduce profit credibility of business.
Threat of new entrant: It induce higher influence as new entrants within wireless
communications bring innovation that put pressure on Vodafone through lower pricing strategy
that reduce cost and value proposition towards marketplace (Boella and Goss-Turner, 2019).
Rivalry among the existing competitors: There is a intense market competition that drive
down price and reduction of profitability that reduces the profit and market share of business.
Competitive advantage can be achieved by developing effective strategies.
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