The purpose of this report is to identify a firm which you are familiar with and apply the PESTEL framework to events in its business environment. Pestel analysis is a simple, but very important and widely used tool to help you understand the general political, economic, socio- cultural, technological, environmental and legal environment sphere in which you are operating. This report will be about The Pestel Analysis of the Vodafone. Vodafone is a British telecommunications network company and has a market value of about 86 billion pounds.
It is headquartered in Newbury, Berkshire, England. Vodafone is the second-largest mobile telecommunications company after China mobile. Over 400 million customers use Vodafone services in more than 30 countries around the globe. They chose Vodafone services because Vodafone Company stands for a good value, great coverage and excellent connections- as well as a passion for improving the customer experience. It gives people the power to connect with each other- to learn, play, work and broadens their horizons wherever and however they choose. Vodafone also owns 45% of Verizon Wireless.
Literature Review 1. Political Factors * Regulations- mobile phones license tightly controlled and limited access to spector. In addition, political pressure may be caused by the use of mobile phones by children and possible health problems associated with cell phone use. * Infrastructure- typically created to keep the network has received permission from government for use their lands. * Health issues- there is no definitive opinion on the impact of the use of the mobile phones on people, and the possible effects on health proximity phone masts in schools. . Economical factors * Cost of licenses- the cost of purchasing a license for mobile phones is very high.
* 3G- bidding war for a license for 3G occurred at the height of the economic boom and therefore paying for them was critically high. These costs for building the network require a lot of money to break even, but if the price is high and the standards that will be the same. * Cost of calls being driven down- there are constant price war between the providers and very few markets where monopoly controls the mobile business. 3. Socio- cultural factors Health issues- if mobile phones are showing harmful side, there may be a ban on their use. * Demographics- phones are generally used younger members of society. In a country, where the population is aging, which is the tendency of the European Union, the demographics may switch to a more elderly population, who are the least using mobile phones. * Social trends- mobile phones take a lot of free times and also peers pressure. People buy very expensive mobile phones; through they do not understand how it is harmful to their physical condition.