Business Strategy of Vodafone

TASK 1

P1 Impact and influence the macro environment

Strategy is one of the important activity for business organization through which company design an action plan to attain long term goals and objectives in appropriate way. Basically, business strategy define the way and direction to company in order to attain set goals and objectives in appropriate period of time. In this, it is important duty of top level management to develop appropriate strategy which may leads in attaining desirable results in allotted time frame. In this context, macro environment is also consider as an important factors which directly impact on the business and its activities which exist in outsider of the company. All these are directly affect the overall performance of the company in positive and negative manner. In today's market, mobile telecommunication industry is developing sector in over the world. In this larger number of companies operate their operations with the aim of attaining better success at market place. Vodafone is also a famous company which operate their business in telecom industry as they provide better services in overall the world in order to improve their performance level at market place (Alsoboa and Aldehayyat, 2013). This company founded in 1991 in which they cover all the world as they deliver quality services to its customers. Now company operates network in various countries to provide telecommunication and IT services in approx 150 countries.

PESTLE Analysis of Vodafone

Pestle analysis is strategic tool which is used to examine external factors which impact on the business. Vodafone organisation determine all its external factors which affect on business activities in negative manner.

Political- This factors influence in a way to progress of organisations such as Vodafone as it develops better infrastructure for an organisation to operational in specific state. This firm conduct its business in many countries or at global level (Bentley, Omer and Sharp, 2013). In addition to this, political factor affect Vodafone by including regulations of EU roaming which aims is to reduce the usage of mobile phone through 70%. In the Mexican telecom market, licence is not easy to met and it is very expensive. Government of Mexico does not give permission top enter in telecom market because the growth in this country is high. For ex., Due to having strict legislations in many countries not easy for Vodafone to operate their functions effectively with ease and expertise.

Economical- Recession affect on income level of people and customers as well. In which customers are fails in buying new and innovative products which larger effect the overall growth of the company. In addition of this, company also change their policies as per recession which may leads in inviting as well as attaining larger number of customers to purchase company phone (Williams and Figueiredo, 2011). Along with this, cost of new licensing is also affect the company performance as current Mexican market, Vodafone also use new technologies within their process to increase the profitability level of the company at market place. For Ex., Vodafone has their business operations in all major developed nations where economic condition is better which is beneficial for Vodafone to get the desired results in stipulated period of time.

Social- Under this, life style of customers, their taste and preferences are also affect the whole performance of the company at market place. In this context, Vodafone serve quality services to its customers in order to satisfy their needs which may contribute in attaining better success in Mexican market. This market always change new technologies as it largely affect the customers and company strategy as well. Thus, Vodafone serve better services as per customers needs and wants which may leads in improving their performance level. For ex., society is hugely depends upon telecommunication sector even after having their adverse impacts. This will proves as positive factor for their business operations to grow with continuous rate.

Technological- New and advanced technologies are also affect the whole performance of the company. Mexican market is growing and developing market in which number of companies tries to operate their business with the purpose of attaining better growth (Cadle, Paul and Turner, 2010). So that Vodafone provide better upgraded products as per customers convince. Along with this, GPS also a major term which is available in entire handset as Vodafone also provide better navigation programs to its customers which help in improving overall growth at Mexican market. For ex., There are large number of technological changes are happen in telecommunication sector on regular basis which has positive impact on working Vodafone to effectively grab the future opportunities.

Legal– Number of laws and regulations are introduce by government, which is important for Vodafone to follow it effectively in order to maintain their performance level at market place (Curwen, 2011). With the help of this company enhance their productivity level and at the same time also manage their business activities in an effective way. For ex., There are may regulations which are required to fulfil by the management of Vodafone while operating their business functions. This will have negative impact upon the image of Vodafone if such regulations are not fulfilled.

Environmental– For improving their performance level at market place, Vodafone have set a recycling programs in which they reduce the resources as well as materials. With the help of this company help the environment and also reduce the negative aspect which affect the environment. They also give incentives to customers for exchange the old phone for new one which may helps in improving the performance level. For ex., There are large number of radiations are coming out from the networks which has negative impact upon environment. In this regard Vodafone is required to adopt such measures which helps in removal of such impacts and getting the support of society.

Ansoff's growth vector matrix of Vodafone

It is an effective matrix which helps in determining the overall growth of the company at market place. By using this strategy company enhance their performance level by serving new and quality products to its customers (Tavitiyaman, Qu and Zhang, 2011). This will aid in accomplishing positive brand image of the firm in market place. In addition of this, this matrix include four various growth strategies are as follows:

Market penetration: It is an appropriate strategy in which company serve their quality and current products and services to the current customers in order to attain better profitability level at market place. With the help of this company invite as well as attract larger number of customers towards company products. With the help of this company capture larger market share from its rivals and at the same time also create strong customers base.

Product development: It is also an important aspect in which company provide their new and innovative products in existing market with the purpose of attaining better profitability level. Under this, company enhance their performance level and also attain competitive place in market.

Market development: Under this, the main purpose of company is to serve their existing products in new market by determining all the factors (D'Aveni, Dagnino and Smith, 2010). For attracting larger number of customers, Vodafone provide their services in new countries which may leads in capturing larger market share form its rivals. By introducing their existing products in new market Vodafone create strong customers base.

Diversification: It is one of the important aspect which used by company in strategic development in which firm develop new and innovative products in new market. Basically it is an effective option but it also include risk factors (Dobbs, 2014). By using this company enhance their performance level at mar

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