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Evaluation of the Telecommunication Industry - Vodafone


  • Unit No: 3
  • Level: Diploma
  • Pages: 5 / Words 1300
  • Paper Type: Dissertation
  • Course Code: BAA749
  • Downloads: 448
Question :

With the help of this report better understanding of the external and internal environment is developed with various models and concepts. Various tasks to be undertaken include:

  • Analysis of the external environment 
  • Analysis of the internal environment and capabilities of the organisation
  • Evaluation of the telecommunication industry
  • Interpretations of the strategic directions 
Answer :
Organization Selected : Vodafone


Vodafone is an UK based company, it is second largest mobile phone industry and it is providing telecommunication services all over the world (Barney, 2012).This report can include the impact and influence the macro environment of Vodafone organisation and also explaining its business plan of action through pestle model and Ansoff's growth vector matrix. This report can be included strategies capabilities and applying the VRIO model to determine the strategies capabilities this industry and identifying the strength and weakness of this organisation. According to this report analysing the telecommunication sector and understanding the strategic direction through Bowman's strategy clock model of this corporation.


PESTLE model for environmental analysis

Pestle analysis is a strategical tools used to analyse external factors affecting the organisation and it is refer with political, economical, social and technological factors of the business. Vodafone PESTLE analysis.

  • Political factors affecting Vodafone consider with European union Tramp Regulations that main motive to modification charge for smart phones usages abroad by 70% and increasing the level of customer right within Europe and all the decision made by EU regulatory set the framework for the communication sector (Scholes, 2015 ). Government intervention is also through legislation and this factors is very much influential in the way of progress of the Vodafone telecommunication company like as it ha to develop organisation infrastructure.
  • Economical factors also affect this company its main growth of Gross domestic and the level of rising prices within markets where the industry operates. The global economic problems like global financial crisis are also affecting the this organisation. Moreover , the all over economical crisis the world has facing in recent times has also direct striking on the this corporation.
  • Social factors it is totally based on the local beliefs and culture of the people in which the organisation is work. Vodafone also show their adaptability in its policies pertaining to local culture, it is very dynamic and for the success of the business. This industry is basically European and its policies as per the local social factor. Social factors consist with changing work patterns that are becoming very famous make UK group of people work from home increasing relying in communication technologies.
  • Technical factors the impact of this factor Vodafone is without any doubt due to the nature of the telecommunication company. Particularly, a technology is the part of new innovation in communication and emergence of alternatives means of communication like as online chatting. Messenger are going to affect this organisation strategies in the way of the industry is left with a choice other strategic alliances with other company commit to considerable amount of research and improvement in order to introduces new product and work in market.
  • Legal factors Vodafone has face many disadvantage from the many times, this industry has been not paying much their employees as compared to its rivals. This company stay by the legal issued of the domain in order to increase their customer and maintain a positive image in their market which will always help in generating the trust of the consumers.
  • Environmental factors it is related the working condition of the company must also be better enough to attract the best of the individuals to be the part of the Vodafone industry. This organisation has been highly changing in nature and it also maintain the market , expand their network, this organisation should always consider with the aforementioned facts and analysis.

Ansoff’s growth vector matrix to analyse the organisation’s strategic positioning

Ansoff's growth matrix is related with the Ansoffs product market growth matrix. Its shows the current product and current market strategy model of the business and also show the current position of the company.

  • Market penetration strategy of Vodafone industry it refer to the current product and current markets its also focus is on selling their product in existing customer. Vodafone also focus on accelerative their market share through with their marketing promotions, more effective marketing and their strength. This company create more customer value and main motive to attract their existing customer as well as new target customer through effective advertising or quality of product and service provide their consumer. Market penetration will increase comparative rivalries in this organisation and make significant increases their market share, this corporation must be willing to drive competitors out of their market. This industry also exposure to one product market segment can make the business more assailable on future.
  • Product development is consider with need of current customer and understand the customer need want. Vodafone focus on their replace existing product with something better and providing complementary product their customer need to buy before, during or after purchases of the main product sold by the company (Teece, 2013). This organisation sells other product also the customer buys as a way to leverage the relationship and provide better quality services. This industry main focus on their product development they increasing their product quality and maintain the relationship between target customers. They develop new product through using this matrix and it is very help full for developing the new product and business can work with existing supplier they established resource and capabilities offer them new routed to market.
  • Market development it is consist with different ways like new marketing am distribution channels this company disturbed their product all over the world the strength of Vodafone industry their product services. The strategy of this company full fill their customer demand and expand their business with effective services. This company want to extend their business organization as much as they can to the youngster, matured person, professional persons. This organisation have different prices package with suitable to the every age group of consumer and these different packages are added the value of customer satisfaction. This corporation is start offering monthly prices plan packages and it also provide online top up facilities and this company also giving NECTER benefits by using the test messages, sending pictures and many other thing.
  • Diversification Vodafone is in a strong position to diversify their business this company main aim to diversification their business product using exiting resource and capabilities

while the customer and product are different. This company focus on their modernization of current network for long term and providing 4G services all over the world in 2016. the current position of the company providing quality services to their customer and and their business, improve their current mobile network in as effort to reduce dropped phones calls.

Task 2

Explain what strategic capability means

Strategic capabilities are know as a enterprise ability to successfully employee competing strategies that allow to face and increase its value over time. Vodafone company strategies capabilities is to grow through geographic expansion, acquisition of new consume, retention of existing customers and increasing more usages through new innovation in technology. This company business strategy to generating their profit as well improve the quality of services. Giving the lot of opportunities in grow their business. This organisation purpose to identify and focus on those areas where their interventions can address sustainability challenges are better at same times as offering their shareholders. The capabilities of this industry depend on their product, services and market. This company can also import their services, providing development and also to environmental sustainability. This company identifies the conflicts of interest and potential conflict and help to giving an over all picture.

Strategies capabilities of Vodafone company in remaining financially viable and growing present competitors in a free market. This company include capitalist, who want to put their currency into their bus

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