Strategic Management Level 3 Kensington College of Business, University of Chester

Introduction

Vodafone Company is the global leader in mobile telecommunication and has a market in Europe, Africa, Asia Pacific, the Middle East and the United States.This has been made possible through various subsidiaries, joint ventures, investments and other associations. The company provides various services globally. In this project, there will be an analysis of the mobile telephony used for personal activities with the main interest in the main business of the company. Vodafone ahs various branches worldwide but for the sake of this report emphasis will be on the parent company situated in the United Kingdom. Since reference will be on mobile telephony, it can be referred to as a process that constitutes various operations such as manufacture, operation, and distribution of mobile devices. It also involves the distribution of additional services about mobile telecommunication.

  • In the current world, we are living in, mobile phones are not considered to as luxuries but are referred to as necessities. The rate at which mobile phones market is growing and their penetration are immense. The demand for mobile telecommunication is ever growing especially in the developing world like Africa and India. Vodafone has already identified this gap and enlarged its portfolio since the market potential is growing exponentially (BBC 2012).
  • According to evidence, the retail of mobile phones has grown to 15.4bn in the year 2008 which translates to approximately 2.7% increase in comparison to the year 2007. When it is compared to the amount in 2004, it is a 29.4% increase. Despite these facts, revenue has since stalled and this can be owed to the recession and market saturation. There are also reasons brought by immense competition with Vodafone competitors.
  • The competition is from network providers such as O2 and Orange and handset brands such as Apple, Samsung, and Nokia. The report will deal with the evaluation of the Vodafone's operating environment. Through this evaluation, it will be possible to point out key capabilities and resources, strengths, weaknesses, opportunities and threats. Through the knowledge gained, the appropriate recommendation will be proposed for strategic opportunities identified from the case study.

Vodafone's External Environmental Analysis

Macro-Economic Analysis

The project uses PESTLE analysis in the evaluation of the macro-environment. External factors have influenced how Vodafone operates. They usually include political/legal, economic, social, technological and environmental factors in the external environment of the company. All these usually have an impact on the way the company operates and ultimately the revenue.

Political Factors:

These usually include factors affecting the operation of the company such as tax policy, labor law, trade restrictions, and law on the environment, trade tariffs and the political stability of the environment of operation. Vodafone Company values the relationship it has with its clients and owing to this fact; the company has no problem shifting from unit pricing and tariffs units. It has gone ahead and adopted strategies that deliver the highest value to the consumers which in turn earns the company commitment, more balanced commercial expense or incremental penetration into the target market (MarketLine 2012).

Economic Factors:

Factors that constitute economic factors include interest rates, economic growth, inflation and exchange rates. Vodafone uses a pricing factor which ensures that customers get products and services at an affordable cost.

Social Factors: 

These factors include cultural factors especially due to health consciousness of the consumers. Other factors include the rate of population growth, the distribution of the customer age, career attitudes and focus on safety. Vodafone tries to generate products that are good and suitable for all age limits.

Technologic Factors: 

Technological factors are essential especially due to the technological orientation of the company's operations. They include automation, technology incentives and the rate of the dynamism of technology. The development of technology helps the Vodafone create more trust with the consumers due to the provision of high-quality services and products (MarketL

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