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The Changing Business Environment Of Vodafone Marketing Essay

The reason for this newspaper is to understand changes created by Vodafone to achieve great success using the depth and making use of business environmental theory. I've making use of qualitative research method for applying the business environmental theory for Vodafone. This research proposal identifies that Vodafone has change its business environment corresponding to time. Vodafone has changing his business strategy. Vodafone is using long-term strategy for achieving success. By using this proposal author mainly represents the strategy followed by Vodafone in previous five years. Vodafone has adopts methodology and technique for solving some inside and external disputes. By using business environment Vodafone has transformed its marketing and financial strategy. Data analysis part details Vodafone's strategy implementation, financial status, difficulties, and successes, changes done by corporation and globalization and its impact on firm.


Business environment is the best way to implement and apply the business strategy for the business. Business environment provides techniques and methods to face up to the challenges and solve them. Pursuing are the key studies and predicated on the business environment.

How changing running a business environment makes effect on the Vodafone?

What are the main issue and challenges face by group and exactly how?

What are the key techniques to changing the business environment of Vodafone?


"Business environment is combination of strategy to become successful for organization. This is the method for corporation to make strategy using business environment. This business environment includes political, economical, social, technical, environmental and legal issues of organization. This gives opportunity to find out power, weakness, opportunity and danger for organization. It includes business strategy implementation and formulation and exactly how it can be apply to group. In past few years business environment theory has made some huge changes in the business to get the proper course of success. "

Vodafone is the UK's largest mobile telecommunication company. Vodafone is known for its best services. Vodafone operates its business in 26 countries. Vodafone is one of the public shown companies which is detailed in LSE (London Stock Exchange) and NSE (New York Stock Exchange). This British isles company is subsidiary of Racal Gadgets plc which is began its indie business and called as Vodafone. After merged with American company "Air touch" company achieves great success and in the cordless technology. Vodafone is the leading network supplier in britain. Because of globalization Vodafone has multiply its business in whole world shows itself by preserved unique image among customers. Now Vodafone is third most significant telecommunication company on the globe and first in United Kingdom

History and History of Vodafone:

In 1984, the initial company is Racal strategic radio limited has change its name often but 20% capital of Racal telecommunication company was taken by public in those days company was fully demerged and called as unbiased small enterprise whose name is Vodafone. Merging with American company Air Touch makes great affect on Vodafone gives it an international fame and position. . Vodafone has determined 200 million customers in all over world. But credited to fast and growing technology Vodafone is facing some business obstacles. Vodafone has started its service from GSM greeting card (Global system) for mobile. Vodafone is the live exemplory case of achieve incredible success running a business scheduled to globalization. Vodafone is also providing service related to data and tone communication. In early 90s Vodafone was working with only 6000 employees but scheduled to rapid technology in mobile & computer field makes great influence for group. Now Vodafone has more than 70, 000 employees from worldwide. Vodafone is working its business from its hq in London. Vodafone mainly focus on its customers with providing them best service.


During the data analysis process of Vodafone i usually focus on what changes created by organization using the business environment study. Vodafone is the organization which is change and expands as time passes and technology. Vodafone has made significant change in its services, products, and technology with time, new invention and achieve competitive advantages. Vodafone is using proper marketing and management technique for doing business. Vodafone is using management model for releasing the new product in the market. Vodafone has determined its strength and weakness time by time and make its weakness as durability. These significant changes make Vodafone more reliable to customers. Vodafone are using some business experts which will be the strategy manufacturer for corporation. Detail study of business environment gives solutions to make changes and provides empirical facts why these changes achieve great success for firm. Management methods like environmental scanning provides answer of the questions. Vodafone has made changes in its business strategy due some reason like globalization, changing in technology, opponents; maintain position of most significant telecommunication sector. Changing in business environment is long-term strategy to achieve success. Strategy is the main one kind of future planning organization to handle the future problems. Vodafone has transformed its strategy regarding to customer support. The main part of Vodafone is to attain great success is its strategy formulation and put it on in proper way. Research of business environment provides Vodafone to formulate the strategy regarding to productivity, marketing, financial future planning. The largest task for Vodafone is to handle competition in the challenging business market of telecommunication.

Business Environment Theory:

Business environment is done on the base of environmental scanning. This environmental scanning includes macro and micro environment. This environmental scanning is utilized to make the strategy which gives proper direction to have success and competitive advantages in the other organizations. This theory identifies all the key factors which help to make strategy formulation and execution for organizations. Vodafone and other firms feel positive effect by using this kind of business theory. Strategy formulation is the main part of organization because this will gives proper decision making direction. This theory pays to for identify factors for future crisis, and gives direction to resolve them.

!. Macro environment includes PESTEL or Infestation research and SWOT analysis of organization. They are the technique which identifies factors which makes influence on the business. These are critical indicators to make decision and implementation the business enterprise strategy of the company.

2. Micro environment includes some online marketing strategy regarding to product and services. This consists of method like Portor, five pushes, marketing mix and Ansoff matrix. Porter's methods are beneficial to accomplish competitive advantage within the other organizations in competitors. Marketing blend is applying for making marketing strategy for the organization. And Ansoff matrix pays to to make technique for launching new product in new environment or in current environment. Through the case study of Vodafone we can apply that how company have achieved strategy using these technique and what issues it face through the strategy implementation duration.

Case Analysis:

This part of proposal gives brief information that how Vodafone feels change in previous five years by using business environment theory. Vodafone is world's third most significant telecommunication firm. This success is attained by using proper strategy and applying at the correct time. Vodafone is not a major name in previous couple of years. So Vodafone has change its business strategy using the business enterprise environment theory. In 2000, Vodafone was merged with Airtouch communication. But credited to globalization more telecommunication company are taking involvement in the mobile technology and creates competition in the competitor of telecommunication firm. Vodafone has start business form GSM credit cards in mobile industry and today it can provide cellular technology also. These significant changes made through changing in business environment. Vodafone has identified all the factors which make affect on success of organization. This group has made some complex innovation that gives it fast success. Vodafone has changing its marketing strategy in past few years. Vodafone thinks in quality of service not in quantity. In 1991 Vodafone has launched first GSM card for mobile and now it is focusing on 3G technology. Relating to environmental theory Vodafone has identify mainly scientific factor to increase the business since it is complex sector company. Vodafone has launched first 3G services in 2004. Vodafone has 1 million customers when it has launched Vodafone messenger service. Vodafone has encountered many difficulties to attract the clients and keep maintaining them because there are another businesses are also available to provide same technology in the market. The biggest challenge for Vodafone is the fact how to attain competitive edge because there are several other company can be found. For your Vodafone has using business environment way for maintain steadily its position and steadiness. Vodafone did some significant changes by using these methods.

Changing in marketing strategy:

The most important technique to improve marketing plan and implement it for Vodafone is the fact Ansoff matrix. This environmental research gives technique to kick off product with new service in earlier market. So Vodafone has launched its 3G service by using matrix. It is business tool by using this firm can determine its product and marketing growth. There are following steps to get this done method.

1. Market penetration: This period gives Vodafone to market existing product in existing market. So Vodafone must kick off its existing product in existing market by doing aspect analysis of competition in rivals. Vodafone has launched some existing service with new marketing style, structure in existing market. So it is hard to make revenue in existing market with existing product. But this method briefly analyzes all the factors which affect the growth and sale of product. Vodafone has increased its revenue by increasing market deal during last few years. Firm has maintaining market show of current product in the existing market. Using promotional strategy Vodafone has drawn the existing customers in past couple of years. Changing in environment of firm makes tremendous change in growth of business in some earlier years.

2. Market Development: This is actually the key method for where Vodafone has launched its existing product in new market. In earlier years Vodafone has launched its cellular service in a few part of Asia with new strategy. Vodafone has launched its wi-fi technology in India so it is challenge for any organization to unveiling and get success of existing product in new environment. Due to physical changes Vodafone has made some changes in its online marketing strategy, circulation strategy. Vodafone has focus on demographic factors, Cultural issues plus some political and cost-effective factors before launching product in new market area.

3. Product Development: This method gives path to Vodafone to release new product in existing market. So Vodafone has launched its wi-fi service in UK which is the prevailing market because of this product where same service is provided by other group. So to attain competitive advantage this is actually the key method. Vodafone acquired started its broadband service in Europe employing this technique.

4. Diversification: Vodafone has launched its service in new market and country first-time so this is the challenge for group to develop its position and appeal to customers. This method gives strategy for making strong online marketing strategy to attract the customers.

Marketing Mix:

This includes online marketing strategy of Vodafone. This consists of 4p strategy Price, Product, Promotion and Place. Vodafone has made changes scheduled to above four factors.

Price lower: Due to competition Vodafone has also cuts price to increase deal of products and service, Vodafone has low cost by analyzing its competitors like three, O2 and orange. Because of downturn and high inflation rate firm has cuts its service cost in Europe and other countries. Vodafone has start some attractive skims for customer like festivity skim, wholesale skim, price discrimination of product, money back, free sim greeting card in past few years.

Promotions: This is most important strategy to attract the customers. Good advertisements and marketing strategy increase sales of products. So Vodafone is using some sports activities and film star like Football celebrity and Hollywood superstar to attract the clients. Marketing strategy is a technique to set-up value of product and service among the customers. Internet marketing, free home delivery, online shopping, free customer service, free access of cellular service at the start up of service. These sorts of strategy entice the customers.

Place: Vodafone has started out its new corporation where other providers aren't providing this kind of service. Vodafone has launched its new organization in a few Asian country like Bangladesh, Srilanka, Indonesia and other countries. Vodafone has made strong its syndication channel, vehicles management, and accessories regarding to products.

Product: Vodafone has launched some new product with new strategy and planning this consists of Apple i-phone with 3G gain access to, mms center, Skype facility, GPRS, CDMA technology, internet technology, messenger, internet broad music group and wi-fi, and Gps device facility. All of this is performed by great invention in technology industries and rapidly followed by Vodafone.

Changing in competitive strategy;

Challenge for achieve competitive advantages: Vodafone acquired used Portor's common theory of business environment to accomplish competitive advantages over other company.

Portor's Theory:

Vodafone seems competition anticipated to other electronic mobile network operator on the globe. This method offers possibility to identify power and weakness of its rivals and work on that. The biggest rival of Vodafone in United Kingdom is three mobile which gives same service like cordless, gsm and 3g service. In previous years three has changing its marketing strategy to attract the clients that end result made problem for Vodafone. Other providers provide better service than Vodafone in cordless technology. So Vodafone has recognized ability of buyer and vitality of company to expand the business enterprise. Vodafone feels threat of new entrants like T-Mobile, Orange and other corporation in past couple of years. To overcome these varieties of problems Vodafone use portor's theory for reaching competitive advantages.

SWOT Evaluation of Vodafone

This the part of business environment theory which gives all the factors that have an effect on on the business. Vodafone has identify its strength, weakness, opportunity and hazard using this method in last five years and made strategy to stable its position and position in fast and growing technical environment.

Strength: Vodafone know that no other company offers better services to customer than Vodafone. So they are at the stable position in earlier five years. Only thing is that they have to maintain steadily its reputation and service. Vodafone is brand name. In early 2000 Vodafone has features worldwide to providing service. Vodafone has make alliance with large mobile technology company Apple. Apple is the main one of the largest technological organization on the planet. 3g service takes on key role to draw in the customers in European countries, and Asia. Development in wireless sector is beneficial for Vodafone because before this there is other organization gives 3g service.

Weakness: Vodafone has identified that its cordless technology is not too much strong as compare to other network specialist like three telecommunication. Vodafone know so it hasn't too much expert specialist and engineers which makes rapid advancement in new technology. Vodafone has strong reputation in European countries however in Asia it offers limited user because of its high cost and limited gain access to of network services. Vodafone has some problems with respect to to customers complain so using that company has made technique to overcome the solutions.

Opportunity: Vodafone has opportunity that anticipated to globalization they have broadened its business in other fast expanding countries like India and China. So Vodafone has launched its service in developing countries to make more profit with better services. That is beneficial for both country and firm because customer gets new technology and service and organization get more revenue.

Threats: Vodafone has confronted this problem many times because after globalization annually launched new company making threat for group. So Vodafone is careful for this issue and new arrival in the telecommunication areas. Vodafone feels hazard from other service agency like, At&t, Three, O2, Orange, T-mobile. etc. Due to competition Vodafone feels some danger regarding to price crises. Because anticipated to rival every organization has same strategy regarding call price, service price etc. Vodafone is lowering its price and cost annually anticipated to competition. In previous five years Vodafone has cut down price 13 times. At the moment it's the cheapest and best service provider in UK.

PEST Research:

This research is the technique which identifies all the factors that produce impact on the organization. This method is focus on the Political, Economical, Friendly and Technological factors.

Political Factors: In last five years Vodafone has made significant changes scheduled to political issues. Federal has increased the tax policy and concern VAT on every business. So Vodafone has to make some changes due to this. Vodafone has reduced its price in earlier years but increase its business and income. Because of legislation regulation new authorities made new guideline and organization will need to have to check out them. Government made pressure to diminish its price anticipated to highly inflation rate in a few countries. Due to ethical concern Vodafone did some significant change in interior and external environment of company.

Economical Factors:

This is the largest concern face by Vodafone because a lot of countries seems recession problem at present. This downturn is directly influence on the expansion of organization. Due to economy turmoil Vodafone has slice its price. Vodafone has released some employees due to less business. Vodafone has decrease marketing criteria for this reason. Vodafone has discontinued some future project. High inflation rate in some area of the world make impact on the business enterprise.

Social Factors: Sociable factors can also make influence on the Vodafone. . Local culture, society, religious beliefs also make impact. Organization has to do business in customer's culture so group has to follow the circumference of the customer's culture. Mobile technology any how impacts the body so some individuals are not using technology because of this. Technology provides ways to addicted from gaming, erotic access, game playing and adult material access by internet so some country has ban mobile to significantly less than 18 years.

Technological Factors: Vodafone has made significant changes in its technology in past few years. Vodafone achieves great success in wireless technology. Vodafone is providing 3G gain access to now. 3G is the wireless technology which is tremendous achievement for group. Alliance with Apple I-phone provides strong reputation to draw in the young and technological customers. Because of other competitors Vodafone has started out wireless service as soon as possible because every day scientist does new technology in telecommunication sector. Vodafone has achieved great success after technology of wi-fi technology. This sort of organization has made trend in market and almost cleans away the concept of wire and broadband technology. Vodafone has rapidly accepted the new technology. Vodafone has made its network quality better by using latest equipment and it. Great creativity in information technology gives opportunity to adopt latest technology for Vodafone.

Challenges face by Vodafone in previous years and use of business environment:

The biggest concern face by Vodafone telecommunication in earlier years is competition in electronic network operator. There are several organization available like 02, three mobile, T- mobile, At&T, Orange etc which provide same service. All other competitors' reductions price in earlier couple of years so Vodafone has also make strategy for price cut. In last few years Vodafone has given good problem in market of Asia like producing countries China, India, Indonesia, and Malaysia. Vodafone has using Portor's theory to attain competitive benefits over its opponents. Another biggest concern for company is recession. Throughout that time organization has to release some employees and making salary minimize to their employees. Vodafone has launched new service through i-phone alliance with Apple. Vodafone has broadened the business enterprise in Asia so in present it is challenging for business where local operators are also strong.

Influence of Business Environment theory on Vodafone:

Business environment theory is very important for all the organization for making the strategy for upcoming time. It is good for firm they have planned to solve the challenge using these procedures. So Vodafone has widened its business by using these procedures. It determined its weakness and focus on it so that is good for business. In very short time period Vodafone has increase the customer and earnings. Due to globalization Vodafone has started its network far away and get chance to conduct business. This theory aware firm form upcoming problems. This theory provides proper direction to making marketing strategy, decision making, and overcome form financial meltdown, increase business.


According to study of business environment Vodafone has made some significant changes in its services, technology and product which gives superb influence on the organization in the sense of business progress, financial growth, bettering service, build up strong marriage among customers, success, and problem solving techniques. By using Vodafone has bind more than 10 million customers in all around the world. Vodafone has increased its revenue and sales in earlier five years. It seems some rivalry obstacles but due to proper strategy and management methods offers it success to achieve competitive advantages. Vodafone has transformed its marketing strategy by doing analysis of local environment and become successful. PEST analysis offers it the course to find factors which influence on firm. Now Vodafone is on the steady stage. According if you ask me business study of business environment gives people the factors to make strategy and is applicable them to accomplish long term success in challenging environment.

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