, Swot Analysis of Vodacom’s Micro environment and Competitive positioning
Introduction
Vodacom is a South African telecommunications firm and is in the service industry
which has a lot of stimuli owing to the competition it faces. So to exist and thrive in
this kind of environment sustainable success require analyzing both the micro
environment and the competition. This essay will discuss the purpose of micro-
environmental analysis, evaluate the main strengths and weaknesses of Vodacom,
discuss the four-corner analysis for a major competitor, explain the concept of
capabilities and their significance to the value chain, and demonstrate the
differentiation strategy based on a cell phone brand.
Micro-Environmental Analysis
The micro environment on the other hand consists of factors that surround a
particular company. Micro environment analysis offers the understanding of the
opportunities and threats that may be useful in the evaluation of a business unit.
Three common approaches to micro-environmental analysis are:Three common
approaches to micro-environmental analysis are:
SWOT analysis: This framework defines the internal environment of a company;
more specifically, its strengths and its weaknesses, and the external environment;
more specifically, the opportunities that it presents and the threats.
Porter's Five Forces analysis: This model assesses the degree of competition in an
industry by evaluating the bargaining power of buyers and suppliers, the threat
posed by new entrants, threats of substitutes and the competition existing
competitors offer.
PESTEL analysis: This conceptual approach analyses the political, economic, social,
technological, environmental and legal factors that affect an organization.
Vodacom's Strengths and Weaknesses
Based on the case-study, two key strengths and two weaknesses of Vodacom can
be identified:Based on the case-study, two key strengths and two weaknesses of
Vodacom can be identified:
Strengths:
Strong brand recognition: Another strength of Vodacom is that it enjoys a very good
brand reputation with many customers.
Extensive network coverage: The company has a good network structure to support
its customers and this makes it sell its services with confidence.
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