Developing a total communication strategy in the uk market
1. INTRODUCTION
This report will critically analyse the external environment of the mobile phone operators industry with the application of appropriate strategy tools including PESTEL and Michael Porter's five forces models. An immediate result of this would be the identification of opportunities and threats that may arise from change in environmental factors and assessment of the attractiveness of the industry respectively.
The report will also analyse critically, the strategic capability of Vodafone, also applying appropriate strategy tools resulting in the identification of key strengths and weaknesses of the firm. The aim here will be to identify and discuss the core competences the firm possesses.
To aid the analysis, the report will draw on information from various sources such as:
The Vodafone case study on page 557 in the main textbook by Johnson, Scholes and Whittington, Exploring Strategy 9th Edition, Prentice Hall, 2011.
Other sources include Keynotes, Mintel and Magazines.
2. QUESTION ONE: PESTEL, KEY DRIVERS AND MICHAEL PORTER'S 5 FORCES
2.1 PESTEL
The PESTEL framework is used for the analysis and according to Johnson, Scholes and Whittington (2011), “it provides a comprehensive list of influences on the possible success or failure of particular strategies”. Discussed below are a few issues of PESTEL, please see appendix for other issues.
Political/Legal factors
Government's privatisation(through Ofcom) of the national telephone company, BT, compelling it to allow access to its network (via Openreach) for voice and broadband. This has helped to break down BT's monopoly thereby creating an opportunity for mobile operators to operate and at competitive rates.(case study p.558)
Economic factors a. The UK economy has still not fully recovered from the financial crisis of 2008, recovering even slower than other countries amidst huge government resuscitation efforts and