UK Telecommunication Sector: A Business Strategy Analysis of Vodafone

This report provides a detailed analysis of Vodafone's business strategy within the UK telecommunication sector. It begins by examining the external environment using PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors impacting Vodafone's operations. The report then delves into Vodafone's internal capabilities through VRIO framework, assessing the value, rarity, imitability, and organization of its resources. Additionally, a SWOT analysis identifies Vodafone's strengths, weaknesses, opportunities, and threats. Porter's Five Forces model is applied to evaluate the competitive intensity within the UK telecommunications industry, and Ansoff's matrix is used to explore growth strategies. The report concludes by discussing Vodafone's trade planning and strategic positioning within the market.

Running head: BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Name of the Student:
Name of the University:
Author Note:

1BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Executive summary
Telecommunication is one of the most important sectors of a nation. In this report, the business
strategy of a telecommunication sector of United Kingdom has been discussed in details.
External environment of Vodafone has been discussed. It is very essential step to do the PETSLE
analysis of Vodafone. In addition, the VRIO analysis has also been done. Telecommunication
sector has been analysed. In this report, the trade planning of Vodafone has been clarified and
grasped.

2BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Table of Contents
Introduction:....................................................................................................................................2
Task1. The outside condition...........................................................................................................3
Task 2: The inside condition and association abilities:...................................................................8
Task 3: Analyzing media transmission sector...............................................................................12
Task-4 Grasping and clarifying the trade planning.......................................................................14
Conclusion:....................................................................................................................................18
References:....................................................................................................................................19

3BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Introduction:
The rise of the versatile business facilitates the way of the media transmission system to bargain
in the market. It has been watched that employments of the cell phones increment significantly
and the young people are the most influenced age gathering of this media transmission and
portable upset. In the wake of propelling the web the significance of the media transmission part
winds up one stage higher. In this paper, the PESTLE investigation and Ansoff's grid
examination will be investigated to comprehend the outer condition action and vital position of
the organization. Likewise, utilizing VRIO and SWOT inside abilities of the organization will
likewise be depicted in a critical way. Doorman's five powers have been utilized to distinguish
the opposition in the market and in conclusion, Bowman's system clock will be displayed to
decide the key choice of the picked organization.
Company background:
The chosen organization for this task is the Vodafone. Headquarter of Vodafone arranged in the
London. It is one of the biggest media transmission specialist co-ops on the planet and working
their administration in various landmasses like Asia, Oceania, Europe, and Africa. In worldwide
conditions, they positioned fifth in gathering income and positioned second in the measure of
association comprehensively. They have in excess of 100,000 representatives everywhere
throughout the world and extended their administrations in 150 nations (Vodafone.co.uk, 2018).

4BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Task1. The outside condition
The outside condition is one of the fundamental factors that can impact the business in various
ways. So as to comprehend the outer factor organization needs to break down the components by
utilizing PESTLE examination. By seeing such components Vodafone will have the capacity to
reason a perfect and clear arrangement where all the bearing of ecological segments can be
defended with the vital choice.
PETSLE:
Factors Description
Political (P) Political components are especially imperative
for the organization like Vodafone in light of the
fact that they work their administrations in
various nations and as they are media
transmission industry they have to fabricate their
own particular foundation (Klauer 2015). A few
controls and standards of the administration in
various states and nations are distinctive which
made a stalemate circumstance for the
organization. Precarious political condition
hampers the development of the organization in
various angles.
Economic (E) Financial factors dependably impact the media
transmission areas and when the dialog is with
respect to Vodafone then the monetary security

5BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
can create stable business development.
Increment GDP rate can bring the business for
the organization and furthermore expands the
purchasing energy of the buyer. Fast information
innovation can be adjusted by Vodafone which
builds their benefit and brand esteem. The world
financial emergency influenced the organization.
Social (S) Social angles are helpful for the Vodafone on the
grounds that they giving their administration
close around 150 nations and they have
noteworthy procedure to help the socio-social
part of the nation (Davis and Higgins 2015).
Furthermore with keeping up CSR rate is high for
Vodafone and they give sum for social
improvement.
Technological (T) Vodafone is profoundly related for their
mechanical plenitude and advancement. They
gave every one of their administrations which are
exceedingly innovative based. They give the
superfast network access in various nations (Al-
Atiqi and Mumen, 2014). Because of tight rivalry
Vodafone should be more mechanical solidness
to support in the market.
Legal (L) Telecommunication industry is an influenced
enterprise by lawful choice of the legislature. As
Vodafone is working in various nations diverse

6BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
lawful activity or tenets influenced their business
clearly.
Environmental (E) Vodafone is a designated organization for their
ecological exercises and they are extremely
dependable towards the general public in
individual nations (Kiprono, 2015).
PESTLE analysis
Source: Created by author
From the above, one might say that political factor and lawful components influenced the
organization contrastingly yet mechanical headway and social-social rationale of the
organization expands the brand esteem development of the business in various landmasses.
Ansoff's framework:
Ansoff's framework is essentially polished to see how every open door can be fitted with the
business targets of the organization. In Ansoff's network, fours components are advertise
infiltration, showcase advancement, items improvement, and broadening (Shaw and Goodrich
2014).

7BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Source: Created by author
1) Market entrance:
Market infiltration essentially indicates the present market with show items. Vodafone Company
gave the rapid association and intrusion free voice brings in each space and nations. Provincial
improvement and framework advancement demonstrated successful in various nations.
2) Market advancement:
Market advancement essentially includes the improvement of the new market by existing items
(Hao and Song, 2016). Vodafone is as of now celebrated for their administration in the standard
area and they encouraged different offers.
3) Product improvement:
Item improvement demonstrates the development of the new items in the present market.
Vodafone is the standout amongst other supplier of the fast web office and they are endeavouring
to use this in the exceptionally precise way to construct the solid impact on the current market.

8BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
4) Diversification:
This is the essential component for growing the business by giving new items in the new market
(Haselwanter et al., 2016). Vodafone is executing the worldwide machine to machine (M2M)
innovation as their new administration to give propelled client benefit office and focal control of
their diverse administrations.
From the Ansoff's development lattice one might say that Vodafone has the vast chance to snatch
the new market by their broad methodology and furthermore has the opportunity to extend their
administration in the rustic region for improvement. Continuous administration and rapid
information innovation can give the entire favourable circumstances and impact their
methodology in a vast way.

9BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Task 2: The inside condition and association abilities:
Key capacities:
Key capacity is the term that infers the total information of utilizing the association’s benefits,
showcase position, assets to get the upper hands in the market. It is essentially honed to
comprehend the conceivable result of the system later on and to make a maintainable technique
for what's to come. For the Vodafone Company, vital capacities will be a noteworthy piece
without bounds on the grounds that the opposition level is genuinely high and Vodafone needs to
make a reasonable technique by utilizing their current assets (Lodge and Wegrich 2014).
Vodafone Company has huge system foundation and permit as a solid asset which assist them
with getting the vital capacities.
VRIO framework:
Value:
Fundamentally, Vodafone is the biggest organization on the planet and has different assets in his
pocket yet the primary asset which empowers them to work their administration in a critical way
is the permit and system framework (Al-Atiqi and Mumen 2014). They have rapid parcel get to
(HSPA) which encourages them to give fast information transmission methods and they likewise
have high velocity downlink bundle get to (HSDPA) which gives 28.8mbps speed. The greater
part of this framework advancement ended up being gainful for the organization and get the
incentive to the market a critical way.
Rareness:

10BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
The assets which Vodafone have are uncommon however in ongoing business sector, a few
contenders or other media transmission arrange supplier dispatches such propelled innovation
and system framework to give continuous administration (Saka-Helmhout and Ibbott 2014).
Vodafone has the permit which is as yet not uncommon in the market on the grounds that other
organizations additionally have that office.
Immutability:
Mimic the assets of the Vodafone isn't simple since it needs extensive money related help and
furthermore administrative hold. A few organizations have the system foundation yet very little
solid as the Vodafone on the grounds that they are knowledgeable about the market and have the
brand and incentive and also the monetary and legislative reinforcement (Saebi et al., 2017).
Organization:
Vodafone can utilize such assets in a huge way and in this manner they are a standout amongst
other specialist co-ops on the planet. Not just that they as of late give rapid web and information
transmission office.
RESOURCE
OR
CAPABILITY
VALUABLE RARE IMITABLE ORGANISED Effect ON
COMPETITIVE
ADVANTAGES
Network
infrastructure
Yes Yes No Yes Rapid
information
transmission and
continuous
administration.

11BUSINESS STRATEGY: TELECOMMUNICATION SECTOR (U.K)
Licence Yes No No Yes Help to extend
their
administration in
better place and
nations.
VRIO framework
Source: Created by author
From the above investigation through VRIO system one might say that system and framework of
the Vodafone organization are extraordinary than other which can give them outrageous upper
hands in the media transmission industry.
Quality and shortcoming
With a specific end goal to recognize the quality and shortcomings, SWOT investigation should
be finished.
Quality:
Worldwide benefit: Vodafone is the biggest specialist organization in the media transmission
industry and extended their administration close around 150 nations (vodafone.co.uk, 2018).
Network framework: arrange foundation of the Vodafone Company is quality as they give the
rapid system through HSDPA and HSUPA innovation.
High mark esteem: Brand estimation of the Vodafone organization is high than other
organization due their total administration.
High quality client benefit: Vodafone is notable for their client benefit.