Business Environment Of Vodafone Group Plc Marketing Essay

Business Environment Of Vodafone Group Plc Marketing Essay The aim of this report is to analysis the external and internal business environment of Vodafone Group Plc, and identifies possible strategy for Vodafone to sustain growth. Vodafone existence in Europe, Middle East, Africa, Asia Pacific and United States; operated in form of subsidiary, joint venture, associated, or investment in 21 countries, and operated in form of partner market agreement in 49 countries. See Annex I for details. To understand a company, it is best practice to begin from its Vision and Mission statement to understand the corporate direction. â€Å"Our Vision is to be the world’s mobile communication leader – enriching customers’ lives, helping individuals, businesses and communities be more connected in a mobile world.† â€Å"Our mission is to lead the industry in responding to public concerns regarding mobile phones, masts and health by demonstrating leading edge practices and encouraging others to follow.† External analysis PE STEL Analysis is tool used to scan the external macro-environment in which the company operates. It express in terms of Political, Economic, Social, Technological, Environmental, and Legal. Political Political factors including political stability, labor law, environmental law, trade restrictions, tax policy, and tariff. Country which Vodafone operate their business are political stable, and welcome for foreign investment or joint venture with local business. China, Israel, India have tax benefit for foreign investor. In UK, Ofcom introduced the local loop unbundling process required BT to allow other operators to install their own equipment in BT exchange; this policy lowered the entry barrier for the industry. Also more licenses was issued to new operator, competition in the market has become hot. Economic Economic factors including exchange rate, interest rate, inflation rate, and the economic growth. The global financial crisis especially in Europe causes the economic growth slo wly. Under this situation, customers become more price-driven than quality-driven. The bargaining power of bankers become stronger, get loan from bank become more difficult and have to pay higher interest. Social Social factors including population growth rate, age distribution, cultural aspects and life style. In Vodafone’s home country -UK, the population is increasing due to immigration and birth rate increase. The life style and way of using mobile phone are changing. The number of fixed line user is decreasing and the number of mobile phone user is increasing. Mobile phone is no longer using for only making phone call and text message, nowadays mobile phone is also use for web browsing, social media, and entertainment. Technological Technological factors including rate of technological change, automation, and technology incentives. The way of people using mobile phone change, need of a faster data transmission rate become necessary. New technology on both hardware and so ftware, such as IP phone and video on demand become common technology. Environmental Environmental factors including environmental protection regulation and non-regulated issue related to the industry. Currently there is no environmental regulation directly related to the industry. Legal Legal factors referring to laws regulating businesses. EU Roaming Regulation urges operators to lower charge on roaming service. Internal Analysis Resources Analysis Tangible Resources Vodafone Group Plc has total  £139,576 million of assets in year 2012. It has 14,000 stores and 238,000 base stations worldwide.