Sustainable Strategy

Topics: Mobile phone, Strategic management, Vodafone Pages: 14 (3797 words) Published: December 16, 2011



Vodafone Group plc (LSE: VOD, NASDAQ: VOD) is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers (behind China Mobile), with around 341 million proportionate subscribers as of November 2010. It operates networks in over 30 countries and has partner networks in over 40 additional countries (Wikipedia 2011).

This report provides analysis about Vodafone’s current strategic position and the strategic direction through which it pursues.
Methods of analysis include examining the surrounding environment, capability, purpose and culture as well as models such as ANSOFF matrix, BCG matrix and Bowman’s strategy clock.
Results of the analysis show that, Vodafone is dotgminating the telecommunications industry with its global presence. In particular, the company is concentrating more on emerging markets. There are also certain weaknesses in terms of innovation.

The domination is in the threshold level because of the industry’s continuous growth. Weaknesses require immediate attention from the management level. Recommendations discussed include:
* Market penetration
* Diversification

Strategic Position
* Environment
* Macro-Environment
* Industry Sector
* Competitors/Markets
* Capabilities
* Resources & Competences
* TOWS Matrix
* Purpose
* Culture
Strategic Direction
* The Strategy Clock
* ANSOFF Matrix
* Market Penetration
* New Products and Services
* Market Development
* BCG Matrix
Vodafone’s Critical Success Criteria
* Suitability
* Feasibility
* Acceptability
* Sustainability

The following context provides the evaluation of Vodafone group plc, the telecommunications giant, in terms of its current strategic position, pursued strategic direction. The argument begins with explaining the current strategy in terms of environment, capabilities, purpose and culture. It is followed by evaluating pursued strategy directions using BCG, ANSOFF matrices and Bowman’s strategy clock followed by conclusions and recommendations for Vodafone to adopt strategies that are successful in the future. Strategic Position

Vodafone’s current strategic position depends on four major factors. They were analysed briefly in the context given below in order to acquire a clear picture of where the organisation is currently standing. Environment

* Macro-Environment
When looking at the political aspect under PESTEL, Vodafone is strongly responding to the government’s commitment to broadband services (Silicon 2010) by increasing its employment rate. Economic aspect shows raise in cost of operation after the recent economic recession. The company involves itself in social activities by working with NHS in the UK and various NGO’s and Ministry of health overseas (Innovation Expo 2011). It also shows innovation in technology by launching the world’s first mobile phone having built-in Facebook (Vodafone 2011). The company sells, recycled mobile handsets thereby contributing to a green environment. * Industry Sector

The threat of new entrants is low because of various factors. E.g. Economics of scale. Substitute threat is dramatically high because of low switching costs. Competitive rivalry is high because of continuous market growth. Ultimately buyer power is increasing, leading to reduced supplier power. The Industry life cycle shows the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Adidas Sustainable Development Strategy
  • STRATEGY Essay
  • Diversification Strategies Essay
  • Strategy and the organization Essay
  • Essay about Strategy formulation
  • Alternative Strategies Essay
  • Tactics and Strategies Essay
  • Critical Essay- Strategy

Become a StudyMode Member

Sign Up - It's Free