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Unit 3 Business Strategy Mont Rose College

INTRODUCTION

Mobile telecommunication EE sector is growing in UK.According to this report, teen and younger people use smart phones. In this file also define the pestle model, Ansoff’s growth vector matrix to analyse the organisation’s strategic positioning, Strategic capability and Bowman’s strategy clock model, analyse the strategic direction and options for EE. These are models and factors effect this organisation and help to show actual position of the business. This company also develop their new product to their customer and developing its technology. Devising their product, an organisation markets its brand cell phones product to brand new target customer.

TASK 1

1.PESTLE model for Environmental Analysis

PESTLE analysis is very important strategy it describes all the factors which is related to business model such as political, economical, social, legal, technical, and environmental.

  • Political factors there are different problems which are related to the services of the telecommunications in UK. The political condition of this country government showing 76% satisfaction are cover in urban area, EE has been facing diminishing of the customer satisfaction of 67% in the rural area (Ahmad and Peter, 2013 ). The UK authorities invest in some area but the purpose of investing to provide electrical engineering services in urban areas. Government increases their taxes services for this company and change some policy which is directly effect on the EE corporations.
  • Economical factors have great significant impact on the EE organisations and it includes UK economic growth, interest rate, exchange rates, inflations and income of consumers. This factor can be promoted macro and micro economic. Macro economical factors deals government expenditures and micro economic factor refer to people spend their incomes.
  • Social factors Each customer has different purchasing behaviours with telecom market, teen use smart phones from 61% to 80% in year 2011- 2013. This age group people use in mobiles in same tome and several ways of communications, they are using social network, testing free messages or making calls free by using various types of applications. These factors also include populations, growth, age distributions, health, career and it is related with specific interest as they have direct effect on the company markers.
  • Technological factors it refers to new ways of producing EE smart phones and new ways of distributing its services and new ways of communicating with target customer. This company is very fast technological change in UK market it is influenced by new technology and their goal to cover whole the market and earning more profit. They providing 4 G network in order to fulfil the need of the customer at low cost.
  • Legal factor refer to the rules and regulations determined that consumers have the righ ability of terminating their contact without penalties, under particular condition related to the price increase without any notification with month’s period. It refers to the health and safety of the customer, giving equal offers to the customer. EE telecom clear all the business need and they follow legal term to achieve their goal. They maintain their smart phones price, labelling and product safety.
  • Environment factor it is refer to the telecommunication environmental impact, this industry develop their service, infrastructure with giving better environment to the customer. It is very important for the growth of the company.

2. Ansoff’s growth vector matrix to analyse the organisation’s strategic positioning

Ansoff's matrix is very useful in telecom industry and other communication tools which help in the growth of the company. It includes four strategies such as market penetration, market development, product development, and diversifications.

Market penetration

· Company achieves their business target with exiting smart phones in their UK current market. This strategy refers current market and target customer

· Its main motive is to increase their market share and attract their customer's with new technological skills.

 

Product development

· This company develop their new products and developing new target customers also.

· It creates new cell phones with innovations or variations for their customer

· This firm making a strong strategy related to it particular customer rather than specific product

Market development

· Development of new smart phones, targeted to its existing market segments.

· Their approach is to attract new customer to an existing product.

· It refers to selling more smart phones s same product to existing customers.

· Company focus to improve their product quality and providing customers satisfactions.

· This company needs to find new ways to build-up a relationship with

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