PESTEL Analysis - Vodacom

Luxa M.

Order the writing of a tailor-made NTIC marketing Case study

Free quote online

Case study Format .docx

PESTEL Analysis - Vodacom

Download

Read an extract

Themes

PESTEL analysis Vodacom, South Africa, Vodafone, telecommunication industry, customers, strategic management, armed conflict, local government, WTOCS World's Trade Organization regulations on Communication Services, global presence, social media, NTIC New Technologies of Information and Communication, data protection laws

Reader
Abstract
Contents
Extract

Abstract

The company is based in South Africa and was created since 1993. It can be considered as an extension of Vodafone in South Africa, DRC, Lesotho, and Mozambique. In fact, the Vodafone group has almost 64.5% of Vodacom. The latest operates in the telecommunication service industry. When it comes to the figures of the group, we can say that Vodacom is a big company that has proved to be very effective for years in the countries where it's implanted. In 2018, Vodacom had almost 73.8 million customers in South Africa, DRC, Lesotho, and Mozambique. In 2019, the company had a turnover of 90,100,000,000 Rand. That same year, the company had 7746 workers in the world.

Introduction
1. Presentation of Vodacom
2. Industry and market data
3. Presentation of PESTEL analysis
PESTEL Analysis of Vodacom
1. Political
2. Economical
3. Social and cultural
4. Technological
5. Ecological
6. Legal
Conclusion and strategic recommendations

Get this table of contents for free after login.

Extract

[...] Therefore, Vodacom must prepare to such events so that it can know how to face it in advance. If there is no precaution taken in advance, it will badly impact the company's profitability. -WTOCS: the world's trade organization regulations on communication services industry can also affect the business of the group. In fact, if the company operates in a country where the WTOCS is accepted and operational, this will increase the pressure on the company. So, each company must know whether such organizations exist in the country where it intends to implant its business. [...]

[...] Vodacom, as a telecommunication services company, is supposed to take advantage of this trend in order to make considerable profits. For instance, during the Covid-19 pandemic in 2020, Vodacom played a major role in keeping people connected. Without the kinds of services provided by Vodacom, it would have been difficult for many people to cope. But, with the services provided by Vodacom, people were able to make normal calls, use the internet through social media like Facebook, WhatsApp, and many more in order to allow them to keep in touch with their loved ones. [...]

[...] So, the more people bought internet data for Zoom or TikTok, the more Vodafone made profit." Based on the fact that Zoom and TikTok are used even in poor countries nowadays, it is obvious that Vodacom shares and benefits from this development as well. People from DRC and South Africa for example, through their use of these two platforms, are using Vodacom's services, which is good for the brand. Also, there are lots of opportunities created for the Vodacom group nowadays. In fact, the simple use of smartphones proves that Vodacom can sell its services in every country where it operates. Another fact is the increase in the use of e-commerce platforms around the globe. [...]

[...] The fact that most of the world's population has a phone nowadays means that Vodafone can easily propose its M-Pesa service in order to make more profit." Based on the fact that Vodafone and Vodacom are linked in a way that Vodacom is an extension of Vodafone in the African continent, the above declaration thereby fits for Vodacom too. In the technological aspect, it is very important to mention the cyber-attack as a risk that the group might face. The company must avoid such incidents because once they happen, they do not only damage the image of the company, but also decrease the profitability of the company as well as its clientele base. [...]

[...] The PESTEL analysis stands for political, economic, social, technological, ecological, and legal. PESTEL Analysis of Vodacom Political Whenever we talk about the intervention of national or local governments into the affairs of a company, the government's policies and decisions therefore impact the activities of the company that operates in the region. -Armed conflict: Towards this aspect, the Vodacom group has proved over the years that it has the ability to adapt to any kind of circumstances. In fact, not the military policies, terrorists' threats, or any other kind of instability has ever caused disruption to the Vodacom's activities. [...]

docx