OFFERS Buy 4 assignments and get 1 absolutely FREE!
Search
25% off
+
FREETurnitin
report

Prices from

£7.41

£5.56
Safe & Trusted

INTRODUCTION

Strategies play significant role in the success of business unit. Effective strategies support the firm in gaining success and sustaining in the market for longer duration. Present study is based on Vodafone which is operating in the mobile telecommunication field. Company is growing well in the international market (Ghezzi, Cortimiglia and Frank, 2015). It offers quality telecommunication services to consumers across the world. Present report will discus external environment of the industry. It will apply Ansoff's growth vector matrix in respect to Vodafone. Furthermore, study will explain strategic capabilities and VRIO model. Porter's five force model will be applied in the company context. In addition, assignment will use Bowman's strategy clock model for identifying options available to the business.

TASK 1

1. PESTLE model

Vodafone is the fastest growing telecommunication company.  It is operating its business across  the world. It offers telecommunication services globally. Recently it is operating in more than 30 countries (Heracleous and Werres, 2016). It considered external market situation and accordingly expand its business into the new locations. That helps the organization in gaining success in the market. There are various external factors that impact on its overall performance and business strategies. These are explained as below:

Political factor

            It is the most effective element that influence overall operational aspect of the firm. Vodafone always look at the political stability of the country and accordingly makes decision to run its business in particular region. UK is the place where government is stable and government has makes laws for enhancing telecommunication services, network of the company. This has helped the firm in running its business in the country smoothly (Haaker and et.al, 2017). Due to political stability Vodafone has become able to conduct operations in India, England, Newbury etc. many locations.

Economic factor

            It is another essential macro environmental factor that impact on overall performance of the firm. It is essential for dimension of the business unit. If there are unstable economic condition then it will not be able to run its business smooth. UK is the country where GDP rate is high, people have adequate income sources (Fasan, 2015). These people are able to buy products and services of Vodafone easily. This helps the entity in enhancing its profit. But there are many other countries where economic position is not sound in such condition firm has to face difficulty because it fails to generate revenues in these nations. If there is uncertainty in the economic condition then Vodafone makes changes in its strategies (Galperina and Klen, 2017).

Social factor

            It is another essential element that impact on business performance significantly. Life style of people, belief, culture etc. affect overall choice of consumers. If entity is able to meet with their expectation then people will buy its products. Vodafone always consider needs of consumers and provide them products and services accordingly.  That is why it has become the leading telecommunication firm in this market (Rafiq, 2016). Company always consider social aspects of different people those who live different location and accordingly makes strategy to conduct operation in the nation. Hat helps the entity in gaining success in the market.

Technological factor

            Vodafone always consider innovation and implements new ideas so that it can enhance satisfaction level of the consumer and can improve business performance. Vodafone recently has started providing 4G services that attracts many people towards the brand. It spends huge money in technologies and makes changes in its system if new technology come into the market (Harlow, 2016). That has supported the firm in gaining high profit and gaining competitive advantage in the market.

Legal factor

            As Vodafone is operating its business globally. It is very important for company that to follow legislation of each nation. Legal issue can create complication for the business in running its operation smoothly. If employment laws of particular nation are different from hone country then company has to follow these regulations otherwise it may create issue in retaining staff in the workplace for longer duration (Zeschky, Winterhalter and Gassmann, 2014).

Environmental factors

            It is another external factor that influence performance of entire telecommunication industry. Vodafone always create positive working condition for employees that attract people towards the Vodafone family. It takes into consideration to the aforementioned facts that helps in gaining success in the global market (Florczyk, 2016).

2. Ansoff's growth matrix

Vodafone group has the largest mobile network that has supported the firm in growing well in telecommunication industry. Ansoff's matrix is the strategy that assist in identifying strategic position of business unit. This is the tool that describes effectiveness of strategies of business hat drives the firm towards growth (Sammut‐Bonnici and Galea, 2015). It has several four phases:

  • Market penetration: It is the simple way in which entity sells its products in existing market only. Company always consider finding new opportunities or strategies through which it can reach to mass audience and can gain their loyalty. Vodafone has improved its market present by opening more than 25000 distribution outlets. That has helped the company in becoming leading telecommunication firm and service provider (Ghosh, 2016).
  • Market development: It is another approach that concentrates on developing market. It always emphasis on attracting new buyers by entering into new market. Vodafone has reached to many nations and it is operating its business in many geographical locations. Company looks at the demographic and psychological characteristic of the consumers of particular location and accordingly provide them services. This has helped the company in increasing its market share by 45%. It takes support of promotional strategy and enter into new market (Chathuranga, 2015).
  • Product development: It is another phase of Ansoff matrix. In this entity focus on creating new products for the existing customers. Company always tries to satisfy its consumers for that it makes changes in existing products and makee innovation. This helps in developing products so that consumers can get satisfied. Vodafone is continuously trying to develop new products. For example now it is offering 4G services to its buyers. That attracts many people in the existing location. This gives advantage to the firm and it becomes able to gain competitive advantage in this market (Salim, 2016).
  • Diversification: It is the next phase of Ansoff matrix that concentrates on diversification. Company concentrates on selling new product in new market. That gives the opportunity to the business to expend the firm. That improves supply chain and enhance revenues of the company. Vodafone has introduces global machine to machine service platform. This system is helpful for the companies to manage their wireless system. It helps Vodafone in providing amazing quality services to the new customers in the other countries.

TASK 2

1. Strategic capability

Strategic capabilities can be defined as ability of the business unit to run its operations successfully and gain competitive advantage in the market. Each firm has some abilities that make the firm different from other competitor brands. It is considered as essential element that helps the organization in remaining in competition and growing well in the market. There are many firms those which has strong financial capabilities, skilled employees. All these capabilities of the business unit helps the organization in accomplishing its goal (Pestle Analysis of Vodafone, 2017).

            If the company has strong capabilities then firm becomes able to attract new investors. That helps the firm in expanding its business in new locations and enhancing brand image in the market. Strategic capabilities include: human resource, technical \resources etc. In order to remain competitive in the market it is very important for the firm that to concentrate on its strategic capabilities and always try to raise capabilities. These abilities of the firm makes them able to earn more profit and enhancing satisfaction level of consumers. Vodafone is the leading brand in telecommunication industry (Chathuranga, 2015). That has strong financial position. Company has adequate financial resources that support business unit in expanding its business into the new location. If technological changes occur then entity has ability to implement these changes and run its business in smooth manner. Furthermore, Vodafone has strong command over market. It carries out market research before entering into the new market. This helps the entity in identifying situation of new location and test of people. By this way it makes its strategies and decide which kind of products needs to be provided to consumers (Salim, 2016).

            Strategic capabilities give opportunities to the business unit so that it can compete in the market and can grow well. It concentrates on assets of the business, market position etc. Vodafone is the firm that is performing well in the market. Because it is able to provide high quality services to its users across the world. Company has skilled employees and it treats its workers as assets. This is strategic capability of the business that helps the firm in expanding its operations across the world (Ghosh, 2016). Furthermore, firm has adequate financial resources, tangible resources. It has effective strategies that has supported the business unit in utilizing its capabilities in effective manner and gaining positive outcome.

2. VRIO/ VRIN model

Vodafone is the leading telecommunication brand that is operating its business across the world. It offers wide range of network services to the consumers. It has more than 25000 outlets that has made the firm more visible. It is operating is business in may countries that is why it has mass number of consumers. VRIO model is the framework that helps the firm in identifying its strategic capabilities (Sammut‐Bonnici and Galea, 2015). This model has four major components: value, rareness, imitability and non substitutable. Values are such elements that enhances value of the business unit and helps the firm in gaining competitive advantage. Rareness can be defined as resources that are available to the business that support the entity in running its operations successfully in many countries. Imitabilities are idea resources that gives chance to the firm to grow well. Non substitutable are ideas resources that are not possible to substitute with other resources (Florcz