In the modern era, businesses operating in the global context need to take into consideration a number of business environment factors as they impact upon its functioning as well as performance. Such factors may be internal or external, however it is recognised that external factors have a greater influence on the business operations of a company (Crane, Matten and Spence, 2019). These external factors are acknowledged to be political, economic, social, technological, international trade etc. These aspects tend to cause a difference in the performance of businesses across the different nations.
The present business report is based upon the comparative analysis of 2 companies operating within mobile phone industry in Russia and UK each in terms of their market share. The selected British organisations are Bullitt Group Ltd. and Vodafone Group PLC while the Russian companies are MegaFon and Mobile TeleSystems (MTS). Also, the project takes into account two factors which have resulted in differences between their performances over the course of time. Besides this, the report contains comparison of the influence of business environment on UK and Russia. At last, recommendation is provided in relation to whether or not entry should be made in any or both of the nations.
Introduction to 2 companies in mobile phone industry of Russia
MegaFon:
This is recognised to be the 2nd biggest mobile phone operator together with standing on the 3rd position in terms of biggest telecom operators of Russia. This entity functions within the GSM, UMTS and LTE standard (Bartoli, Guerrero and Hermel, 2019). The primary rival firms of this market leading organisation are acknowledged to be MTS, VimpelCom (Beeline), Tele2 (Rostelecom) and Interregional TransitTelekom.
Mobile TeleSystems (MTS):
MTS is acknowledged to be a mobile network operator carrying out its operations within the confines of Russia, Armenia, Ukraine and Belarus. This organisation has more than 106.5 million subscribers within the confines of these 4 nations. As per the reports of 2017, this company had the biggest marketplace share of 31% within the confines of Russia and was also the biggest mobile network operator within the respective nation having a base of 104.7 million subscribers (Guo and Jiang, 2019).
Introduction to 2 companies in mobile phone industry of UK
Bullitt Group Ltd.:
This is recognised to be an international firm which is conducting its business operations within the confines of mobile phone and consumer electronics sectors. This entity was found in the year 2009. This enterprise is engaged in designing, production, marketing and sale of consumer electronic devices by leveraging its partnership with a range of international brands. This company runs as a licensee of Caterpillar Inc. for rugged mobile phones as well as associated accessories (Tura and et. al., 2019).
Vodafone Group PLC
This is recognised to be a multinational conglomerate which is headquartered within the confines of London and Newbury in Berkshire. This entity functioning within the confines of mobile phone industry majorly operates in regions such as Africa, Asia, Europe and Oceania. It has been acknowledged that among the large number of mobile phone operator groups functioning across the globe, this group stands at position 4 in terms of quantum of customers, having a base of 313 million in accordance with the reports of 2018 (Kahiya, 2019). This entity carried out operations within 25 nations as of 2018 and had partnership network within 47 other nations.
Business performance (market shares) of two companies in each of the chosen industries in both the countries with relevant data between 2010 and 2018
Market share in Russia
|
Â
Â
Â
Mega Fon
|
This is a Russian owned company started by Oligarch Alisher Usmanov and TeliaSonera. This organisation provides 2G(GSM) and 3G(W-CDMA) mobile phone services. This company was one of the service providers which started providing 4 G services in April 2012. this company had 55.7 million subscribers in Russia i.e. 27% market share. This company has not developed operations outside Russia. It has always focused on residential broadband services.Â
|
|
Â
Â
Â
Â
Â
Â
Mobile Telesystems
|
This company's 51% is owned by AFK Sistema and this provides phone services. This uses 2G Gsm technology, 3G services by using W-CDMA technology. This provides fixed broadband services and fixed line telephony services. MTS was the biggest operator in the year 2013. There were around 69.6 million subscribers of this company in Russia which is equivalent to 31% market share (GarcÃa-Mariñoso, and Suárez, 2019). In the year 2015, MTS had 2.1 million residential fixed broadband subscribers. It has 940,000 subscribers in Moscow which is equivalent to 27% of the market share.Â
|
Â
Market share in UK
|
Bullitt Group Ltd.
|
This company opened an international operations in the year 2010 and in the USA in year 2012. this company established first license with JCB mobile devices in 2012 (Olayinka, Olukemi, and Chukwuemeka, 2019). Bullit group became the global licensee for Ministry of Sound in 2015.
|
|
Vodafone Group PLC
|
According to the statistics, it is analysed that market share of Vodafone in main market of operation in the year 2018. Within this year, Vodafone held a 22.4% of mobile market in UK. The market value of Vodafone in market has substantially decreased.
|
Â
Potential reasons behind the different performances (based on 2 of PESTEL aspects)
Business performance of all the four companies in Russia and UK market is described in above paragraph (Lee, H., 2016). There is reason for this type of business performance within marketplace. According to any two of the factors of PESTLE, the reasons for the four companies is described below -
|
|
Technological
|
Economical
|
|
Â
Â
Â
          Mega Fon
|
This company is the biggest mobile internet in Russia. This is possible because Russia has used latest technology. Megafon has used new techniques for providing mobile services to customers.
|
There were around 200 milion unique mobile subscribers in Russia, Ukraine and Uzbekistan. There is an accelerating shift in to mobile broadband. The Russian mobile service operators are facing high profits as there is launch of 4G and 5G services.
|
|
   Â
Â
Â
      Mobile Telesystems
|
Same is case with the mobile telesystems. The technological advancement of the country as well as within the company has helped a lot in increasing market share of this company in Russia.
|
Similarly, due to the increased demand of 5G as well as 4G service of mobile operating services, there is increase in market share of Mobile Telesystems within Russia.Â
|
|
Â
Â
Â
Â
      Bullitt Group Ltd.
|
Bullitt Group Ltd. Was started in the year 2009 by Colin Batt, David Floyd and Richard Wharton (Matinmikko-Blue, and Latva-aho, 2017). This company provides products in more than  75 countries. This company has incredible global growth and the reason for this is strong technological advancement used within the organisation.
|
After Brexit, market of UK was affected badly. There were changes in trading taxes. This has created problem for various mobile service operators too. In context of Bullitt Group, it is concluded that this company has faced problem while providing service to customers.
|
|
Â
Â
Â
   Vodafone Group PLC
|
There was decline in the market share of this company in UK in 2016. by using the technological advancement, Vodafone is able to become UK mobile operator for turning on 5G network.
|
Mobile service operators in UK are facing great threat. This is due to shift from 3G services to the 4G or 5G service connections (. Hikmawati, 2016). It is essential for the mobile service operators to adopt latest technologies and work effectively.
|
Comparison of impact of business environment on their performance between these two countries
The Russian Telecom market is largest in Europe and it consists of 144 million users. Various telecommunication and mobile service operators including MegaFon and Mobile Telesystems (MTS). Government of Russia is investing a lot of money in telecom and mobile industry (Midkiff, AT&T Intellectual Property I LP, 2019.). Russia is a country which has become the fastest growing markets for fibre based broadband.
There is strong growth in market of mobile connections and advancement in product design have supported the demands of consumers. The service operators faced challenges by heightened competition from external retailers. There is shift from consumer purchasing trends and increased saturation of the mobile service operating companies. Within UK, there is high competition and different companies have to work effectively for making them,selves competitive from other competitors.
It is analysed that both the countries have good business environment which is suitable for mobile service providers like  Mega Fon Mobile Telesystems Bullitt Group Ltd. And Vodafone Group PLC. In context of all service operators it is concluded that technological advancement in the industry accelerates the functioning of these companies.
Recommendation with regards to whether or not expansion should be made in one or both of the nations or not
Both the companies UK and Russia have various potential customers. Both the companies have stable political conditions. Thus, these companies can expand their business in these markets. The technological advancement in these countries within the mobile and service provider is essential for making profitable business. On the other hand, companies must have good marketing strategies that will lead in capturing more potential customers.
CONCLUSION
On the basis of above discussion, it has been discovered that businesses operating within a global context are impacted by a number of external environmental factors such as political, economic, technological, social and international trade. Further, it has been determined that political and economical factors play the most important role in creating a difference between the business performances of companies within 2 nations. In addition to this, it is acknowledged that business environment as whole impacts upon the business functioning in countries, thus acting as a supporting or hindering factor in their growth and success within the global context.Â
You may also read more samples from below -
Business Environment Factors| Bullitt Group Ltd | Vodafone Group PLC
Reflective Analysis Of The Internal Business Environment
Internal Business Environment Study of Unilever
Amazing Discount
UPTO55% OFF
Subscribe now for More
Exciting Offers + Freebies
Update your Number
Update your Number