PEST Analysis
Political – political factors involved the tax policy, labor law, environmental law, trade restrictions, tariff, and political stability.
Due to the customer relationships that the company value most, Vodafone is willing to shift their approach away from unit pricing and unit based tariffs to propositions that deliver much more value to customers in return for greater commitment, incremental penetration of the account or more balanced commercial costs. This will require a more disciplined approach to commercial costs to ensure our investment is focused on those customers with higher lifetime value. In essence, we are confident that by targeting our offers, we can deliver more value to our customers and have a better financial outcome for Vodafone.
Economic – economic factors includes the economic growth, interest rates, exchange rates and the inflation rate. The pricing factors the company usually do is giving the consumers a right and justly cost so that, everybody can avail or purchase their product in a broad sense.
Social – social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The need for an equipment that can be a good device for every age range is available, since everybody are fully oriented in the use of the mobile technologies.
Technological – technological factors includes ecological and environmental aspects, like R&D (Research and Development) activity, automation, technology incentives and the rate of technological change. The technology is the thing that Vodafone is very proud of. The technological advancement enables the company to make a customer relationships stronger because of their customers trust that built over the years.
The PEST factors have major impacts on how businesses operate and make decisions. With the help of PEST analysis, the business can penetrate to the market with readiness. The determination of its four keys, the business will answer the common questions that revolve around the business society. These basic questions are what to produce, how to produce, when to produce and for whom to produce. No matter how many times a business answer these questions, the needs from the market will remain constant and unchanged.
It is an advantage of the company to know the scope and limitation of their business. It is done so that the company is prepared enough to face a future and ready to give solutions as possible when the demand for the products are satiated or already diminished.
SWOT Analysis
Strengths – The Company’s strengths can be the reputation of the business in the local market because of the product in long run. The company’s strengths are the strong bond of the company towards the customer and valuing them most as they craft another product. Another strength that can be depicted is the technology that is their greatest asset above the competitors.
Weaknesses – The result of the weaknesses can be shortage of materials needed or more expensive purchase of materials in the target country. Meeting the customers’ demand is sometimes hard to cope. Every company must admit that reaching the customers’ taste and preferences are really hard to achieve. But this weaknesses will serve as a challenge in the company and they must prepare actions in answering this needs.
Opportunities – The opportunities can be a well established position when the business successfully landed in the foreign market. On growth opportunities, the three target areas are Mobile data, Enterprise and Broadband
Threats – The threats can be large competitors that are waiting for the business that were undiscovered before conducting the study. This possibility is not that new. The Vodafone is not the only company that serving a kind of delicacy. Some companies might surpass their achievement, and therefore, they must maintain their company culture in dealing with their customers and being ahead in the products and services. The threats will not mean bankruptcy, but it can be a contributing factor in the bankruptcy of the company.
The SWOT analysis is a tool that assesses the company in its position in the market, or commercial viability. The method of sales distribution with the accordance to brand or product, business idea, strategic option, such as entering a new market or launching a new product, opportunity to make an acquisition, potential partnership, changing a supplier, outsourcing a service, activity or resource, and investment opportunity, in short, SWOT measures a business unit, a proposition or idea.
Conclusion
The fast growth of the company doesn’t depend on its strong cash flow but also affected by the assurance of the company’s customers loyalty. The exposure of the products in the market eye is a great help in earning the customer’s trust. The proper use and taking the chance of innovation considers a fifty-percent risky and the other half is fifty-percent successful. But in doing a business, the company must keep into their mind that it is better to lose a little in the income in trying to make a difference than to lose all because of doing nothing.
Sources:
History of Vodafone [Online] Available at: www.vodafone.com/start/about_vodafone/who_we_are/history.html [Accessed 19 Aug 2009].
Company Vision [Online] Available at: www.vodafone.com/start/about_vodafone/who_we_are/history.html [Accessed 19 Aug 2009].
Corporate Strategic Review [Online] Available at: http://www.vodafone.com/start/investor_relations/strategy0.html [Accessed 19 Aug 2009].
Vodafone’s Story of Success [Online] Available at: http://www.lexmark.com/success/Ret_ScS_Vodafone.pdf [Accessed 19 Aug 2009].
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