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PESTLE Analysis Vodafone Company Essay

In essence PESTLE analysis is commonly referred to as situational analysis and it considers political, economic, social, technological and legal factors before investing in the target market. Vodafone Company is not exceptional from the intense competition that the industry is subjected to not only in the U. K but all over the world. The company management therefore has to come up with viable marketing strategies in order to attain its competitiveness as well as meet the needs and demands of its customers through provision of high quality and high class technologies in the telephone industry.

Thus the company must consider diversifying at the same time producing quality products; and to effectively do this it must consider the following factors

Political factors

These are factors that relates to political system and political instability of countries where Vodafone Company wish to market its products. This will involve scrutinizing the system of government that such target countries have adopted. The company will therefore need to decide whether to invest in communist or capitalist countries after careful consideration of each political system in terms of carrying out business in the chosen country of interest. Read about political factors affecting Ryanair

It is recommended that Vodafone Company should invest in those countries with flexib

le capitalist political systems because it allows labour, capital and resources to flow freely in and out of their countries thus making those destinations the best target markets for Vodafone Company to market its service i. e. mobile network operations (Carter and Lee, 2005).

Economic Factors

This involves Vodafone Company analyzing the economic factors that may hinder or augment its operations in the target countries.

Such trade barriers like restriction of imports and exports as well as foreign exchange rate systems should be carefully evaluated by the management of the company in order to carry out its operations without economic constraints. Other economic factors of importance to be analyzed by the company will include, inflation particularly anticipated inflation, balance of payments, counter trade, fiscal and monetary policies among other significant factors.

Although Vodafone Company have not been subjected to many of the above factors it will be prudent to critically analyze deeply the factors particularly inflation and foreign exchange systems by utilizing forecasting techniques that can give the company a clear picture of the future (Wild, Wild and Han, 2003).

Social Factors

This involves the management of Vodafone Company analyzing income level, social structures, educational backgrounds, and religion and family units before marketing its services of network operations to the entire market.

History reveals that social factors play a major in role in utilization of services in the society for example some religious beliefs may not allow the use of mobile phones in church. Therefore, it will be prudent for the company to clearly identify the right services and products for the right consumers as well as for the right markets. Social factors may influence beliefs, interests and attitudes of the consumers and therefore the management of Vodafone Company has to consider in details such factors in order to avoid losses associated with these social factors (Buck, Filatotchev and Wright, 2003).

Technological Factors

Research reveals that, technology and innovations have taken centre stage in the modern business world and firms including Vodafone Company attempts to utilize such innovations to achieve a considerable market share. Technology provides an opportunity to Vodafone Company of expanding through utilization of advanced technologies but at the same time it may contribute negatively to market participation for example where businesses use technologies to compete unfairly. Vodafone Company will have to utilize advance technologies for example the use of digital marketing while trying to explore new markets in the target market.

Such technologies will be useful in that it will save time and financial resources that could have been spent and therefore the management can therefore use the surplus resources in further expansion or pay back its shareholders returns thus getting shareholder confidence in the process which results to immense goodwill (Clark, 2005).

Legal Factors

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All businesses including Vodafone Company must operate in a business environment deemed to be legal by the target market. Vodafone Company will therefore have to ensure that its products and services that they render are allowed by the operating law in order to avoid unnecessary legal battles.

However, research indicates that Vodafone Company has been observing the existing laws regarding to business transactions in the U. K as well as in other target markets particularly avoiding unfair competition. On the other hand, Vodafone Company should observe other legal aspects such as the areas of corporate social responsibility whereby Vodafone Company is expected to manufacture and sell its products at the same time protecting the environment and benefiting the surrounding community by employing them and also participating in community projects (Drucker, 2003).

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