Vodafone Uk Essay

10 October 2016

This essay assess the external business environment of VODAFONE UK using the four headings of a PEST analysis; political, economic, social and technological it will provide information gathered from several researched sources relating to the four topics and will then go on to draw a conclusion based on the evidence provided. VODAFONE UK, Registered in Newbury Berkshire Vodafone UK is a British born multinational telecommunications company witch is headquartered in London and is part of the Vodafone group and behind CHINA mobile it is the world’s second-largest mobile telecommunications company however nationally it has 19. million subscribers which is third largest in the UK behind EE and o2. POLITICAL, It was alleged by the magazine private eye in September 2010 that it had ran an investigation and found Vodafone UK was involved in tax avoidance activities and that the company was placing its profits in a Luxembourg subsidiary. This lead to angry protests outside Vodafone flagship store in Oxford Street as well as a number of other stores across the UK from October 2010 right up past April 2011. It eventually paid ? 1. 25 billion in taxes following a legal battle with HMRC.

In recent months the UK government has increased the pressure on large businesses and multinational companies by aiming to tighten the loopholes which currently exist for tax avoidance schemes. In the media in recent weeks other well known name brand businesses including the likes of Starbucks and Google have been alleged to have been involved in tax avoidance activities. ECONOMICAL, Mobile phone service providers including Vodafone are now facing economic issues relating to the increased cost for buying mobile phone licences.

Vodafone Uk Essay Essay Example

Back in 2000 Vodafone and its competitors took part in an auction which involved selling the 3G licence this auction managed to raise ? 22. 5 Billion pounds for the UK government. Currently being discussed to take place around the end of 2012 and the beginning of 2013 is the next auction selling the latest 4G licences which is expected to raise a lot more money than the previous 3G auction. The high price Vodafone UK will expect to pay for these licences have a direct economic impact on there business within areas such as costing and pricing as well as having increased competition.

SOCIO-CULTURAL, Some of the socio-cultural issues regarding Vodafone as a business are society has issues regarding minors, children under the age of 18 using mobile phones which enable them to access adult content via the internet from there mobile device adult content which would include pornography displaying many flashing images of a sexual nature other forms of adult content would be gambling and instant access to violent games.

The rise of mobile phone thefts is another social issue that Vodafone faces as a company. TECHNOLOGICAL, The mobile phone is constantly increasing in its designs and features in what you can actually do with your mobile phone for example when mobile phones were first introduced its sole purpose was speaking and designed to make and receive phone calls.

Due to advancing technologies today’s mobile phone can do so much more than that some of the present day features in a mobile phone are the use of a camera to instantly take a photo the same camera can also be used to make an instant video another feature on a mobile phone is the text messaging which instantly became popular you no longer have to speak with someone you can now just send someone a quick message which could be more convenient, other new features include the ability to instantly access the internet via Wi-Fi.

With the advancing technologies and added features this has a direct impact on the market in terms of customers and sales in other words sales increase when a new feature is developed for the mobile phone. CONCLUSION, With the information provided in this essay using a PEST analysis the evidence would suggest firstly the political influence on Vodafone as a leading brand with a huge customer base should continue to act under the government guidelines and be seen to be paying there due taxes in order to prevent any future public outcry and maintain a good image that reflects Vodafone as a company with good morals.

Secondly economically the information provided suggest that with increased costs on licencing Vodafone must remain competitive with its prices in order to stay ahead of there market rivals. Thirdly from a social view point Vodafone could be doing more in terms of user protection in relation to persons under the age of 18 it could choose to implement more content security and restricting children from being able to access adult material it could also endorse more public awareness through its advertising campaigns.

And lastly Vodafone as a multinational telecommunications company must continue to invest in the advances of new and exciting technology in order to stay competitive with its market rivals with increased sales and an ever increasing customer base.

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