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Business Strategy of O2 Telecommunication

University: UK College of Business and Computing

  • Unit No: 5
  • Level: Undergraduate/College
  • Pages: 5 / Words 1147
  • Paper Type: Assignment
  • Course Code: K/508/0574
  • Downloads: 709
Question :

This sample report is based on O2 Telecommunication which includes business strategy will be applied by using model like Porters five forces to analyse impact of competition.

  • Apply Ansoff matrix and PESTLE model for assessing impact of macro environment factors on the business strategy of O2.
  • Analyse internal environment of O2 by applying VRIO/VRIN followed by assessment of organisational capabilities.
  • Conduct industry analysis of telecommunication sector.
  • Provide details of future strategic options and direction that O2 can follow.
Answer :
Organization Selected : O2 Telecommunication


Business strategies is a main factor for the success of company so that duties of management is to apply a plan into their working environment for meeting objectives and goals in a span of time. Management of the company develop strategies as well as plan in order to achieve competitive benefits at market place thus increase their market position in long period of time. O2 is a industry of telecommunications provider in UK. Founder of this organisation is John Carrington in 1985 (Ackermann and Audretsch, Eds., 2013). The numbers of employees are employed in this are approx 21,580 in 2013. their main competitors into telecom sector is Vodafone, BT, EE etc. In this report include Companies PESTEL analysis as well as Porters five forces model and Ansoff matrix are involved in this project report. Bowmen's Clock model strategy and Internarial environment of the organisations.


P1 PESTEL Model and Ansoff growth vector matrix

O2 is an best company in the sector of telecommunication. This enterprise is having their operations in various regions like as UK, India etc. Reason behind their growth as well as success is that enterprise is able to execute and formulate best marketing strategies. For dealing with all the market conditions it is needed that macro environment should be analysed in a effective way. Some of PESTEL analysis are explained in detail below:

Political Factors: Organisation is having a governance framework for guiding their functions properly as well as performance are complied with regulatory and legal needs. It takes seriously any future or current risk of environmental, ethical and social nature.

Economic Factors: Factors of economic is an very main context within the sector of telecom enterprises. By competitors, things are dynamically changing within the whole world. Globally it depends on customers pocket. It customers will spend higher on services and products (Alsoboa and Aldehayyat, 2013). These trends of economic will support the changes of technologies.

Social Factors: In O2 it is a very strong sense of companies spirit within the organisation. It gives advices as well as information on risk of potential health of contributing fully in debate and mobile user. It is operating a research centre for its effects on persons health and technology of mobile telephone. It also provide advices on problems like as safety of customers, child protection and leaflets which are explaining present scientific thinking.

Technological Factors: O2 is an first organisation in the globe to roll out as well as launch a commercial medium speed of GPRS network of mobile data. Organisation gives connection of 4G by using the technology of LTE which is given by Huawei technology company Ltd. Company starts trial of near field communication (NFC) in 2007. It has launched Europe's First HSDPA as it is very fast network than 3G. It also gives various TV channel to mobile handsets.

Environmental Factors: O2 Company is an certified telecommunication gives with a carbon standard of trust due to its commitment to decrease the footprint of carbon. It provides technology of smart metering within the organisation cell sites, retail stores and offices (Bentley, Omer and Sharp, 2013).

Legal Factors: Organisation is having a commitments of higher ethical standards to each person who are working within the company. They work in a very systematic to live in a comply and law within regulatory guidelines as well as voluntary standards. O2 is abided by the standards of international to make sure about the quality of goods as well as health and safety along with higher management of environment.

Ansoff Growth Vector Matrix

It is a systematic market analysis approach propounded through professor Vector Ansoff. There are major four quadrants which consist in the referred report i.e. market development, market penetration, diversification and product development.

Market Penetration: These elements indicate the condition of market in which organisation is operating their existing services in the recent market. In regard of O2 organisation, this can be discussed as the organisation have launched their service and data in those nation in which they are operating function of business in efficient way (Cadle, Paul and Turner, 2010). Company is also producing m-commerce through online activities and media which has delivered more service through the assistance of internet.

Market Development: This sort of scenario help in carrying out the existing product launching in the new trade or marketplace. O2 is planning to launch their services and wide range of network across the globe specially in open market nations such as India, China etc. referring the novel products and market such as mobile data and calling service which are existing in the current condition of market development (Curwen, 2011). Such sort of market consist of expansion plan of business which organisation are creating beyond the boundaries of market.

Product Development: When an organisation launches a new service in the present marketplace, then this can carry out new service or product development. As per this, O2 has been working over the development of 5G service in the competitive marketplace as this can deliver more efficient and effective service in the competitive marketplace. Also the enterprise has development a calling services which allow the user convenient PORT option through satellite touch of organisation. Hence, this can develop a proper new marketplace and product development strategy in Ansoff Matrix.

Diversification: It can be referred as the last Ansoff Growth Matrix issues which claims that when a new service or product is being launched within the competitive marketplace, diversification situation incur in organisation. In such condition, this is fundamental for organisation to get success opportunity with a new aspect or concept. O2 has initiated their business across the United Kingdom and provided numerous different types of services including, mobile network, calling, smart phones etc. Company provide wide range of services and products in the competitive marketplace.

As per the mentioned evaluation, this can be claimed that macro environment evaluation is suitable as this action deliver in-depth evaluation of market situation along with business environment so that entire decisions of business can be implemented in more suitable manner. Entire consequences have both demerits and beneficial aspects (D'Aveni, Dagnino and Smith, 2010). Like some, entire limitations and approaches has presents that this is possible that whole situation of market could be evaluated in most recent conditions as well as cause of these, future decision can be influenced as well as such actions type can also hamper execution and strategic formulation in efficient manner. Hence, cause of its effective marketing strategies, the organisation has been enlisted as market leader in telecommunication industry of United Kingdom.

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