Vc Analysis

Strategic recommendations to the Vodafone Group Plc

This report has been created to provide strategic recommendations to the Vodafone Group Plc, in order to maintain its position as market leader in the markets in which it operates. Through the analysis of the external and internal environment and the resources and capabilities of Vodafone, recommendations were made for strategy potentials for the future. The report focuses on the personal-use mobile telephony sector of the group, with a main focus on the UK parent company of the group.

Through the analysis of the macroeconomic environment, the industry and the business level analysis, the industry driving forces and key success factors were identified, and the external opportunities and threats were listed. The main opportunities identified were its focus on emerging markets, Vodafone's market leadership, its global footprint and reputation, and the low threat of new competition through the highly regulated industry. While the external threats were its low revenue potential through its focus on emerging markets, the continual emergence of new technology and the difficulty and cost of keeping up, emergence of new companies extending their product line such as Apple and Microsoft, its global footprint which can lead to exposure of unpredictable risks, the highly regulated Industry which has an effect on revenue as reported, and the saturation of the market.

The resources and capabilities of Vodafone were identified and analysed through the use of Value Chain and VRIO analysis to identify its internal strengths and weaknesses. The identified strengths of Vodafone were its strong R&D, its exclusivities, its strong corporate culture, its strong financial base, its own brand handsets and keeping it simple in terms of its operation; while the weaknesses were the low differentiation between competitors, its short term advantage through exclusivities, its scarce managerial resources due to constant expansion, its low...