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Introduction
Vodacom Group Limited is one of Africa’s leading telecommunications
companies, operating in multiple countries with diverse markets,
customer needs, and regulatory environments. In today’s rapidly
changing business landscape, telecom firms face intense competition,
technological disruption, and evolving customer expectations, making
strategic management critical for sustained growth. This essay analyses
Vodacom’s strategic position by examining both its external and internal
environments, with a focus on how macro-environmental factors,
resources, capabilities, and business-level strategies contribute to
competitive advantage. Specifically, the essay applies strategic
management frameworks such as PESTEL analysis and the Resource-
Based View (RBV) to assess Vodacom’s market responsiveness, core
competencies, and business-level strategy, including its adoption of a
best-cost provider approach. By integrating theory with evidence from
Vodacom’s FY2025 integrated report, this analysis highlights how the
company creates value, sustains resilience, and maintains its leadership
position in the African telecommunications sector.
Question 1
Theoretical Overview: External Environmental Analysis
External environmental analysis is a key component of strategic
management that involves examining factors outside the organisation
that can influence its performance, opportunities, and risks. Companies
operate in dynamic environments shaped by political, economic, social,
technological, ecological, and legal factors (PESTEL), as well as
competitive forces. Conducting an external analysis helps organisations