explanations.[COMPLETE ANSWERS]
INTRODUCTION
Vodacom Group Limited is one of Africa’s leading telecommunications companies,
operating in a highly competitive and rapidly evolving industry characterised by
technological disruption, regulatory complexity, and changing customer expectations. As
a multinational organisation with operations across several African markets, Vodacom is
continuously exposed to both opportunities and risks arising from its external
environment, internal capabilities, and strategic choices. In such a context, effective
strategic management is essential to ensure organisational sustainability,
competitiveness, and long-term value creation.
Strategic management theory emphasises that organisational success depends on a
thorough understanding of the external environment, the ability to develop and leverage
unique internal resources and capabilities, and the selection of an appropriate
competitive strategy. External environmental analysis assists organisations in
anticipating environmental changes and aligning strategies accordingly, while the
resource-based view highlights the importance of internal strengths as sources of
sustainable competitive advantage. In addition, the choice of competitive strategy
determines how an organisation positions itself within the industry to deliver value to
customers and outperform competitors.
This essay analyses Vodacom Group Limited using its financial year ended 31 March
2025 (FY2025) as a case study. The discussion is structured around three key areas:
external environmental analysis, Vodacom’s internal capabilities and core
competencies, and the company’s strategic positioning as a best-cost provider. By
integrating strategic management theory with practical application to Vodacom’s
FY2025 performance, the essay demonstrates how Vodacom enhances strategic
resilience and supports long-term value creation in a complex and dynamic operating
environment.
QUESTION 1
1. External Environmental Analysis
1.1 Purpose of External Environmental Analysis
External environmental analysis is a critical component of strategic management as it
enables organisations to identify and understand external factors that may influence
their performance, competitiveness, and long-term survival. The primary purpose of this
analysis is to identify opportunities that an organisation can exploit and threats that it
must manage or mitigate. By scanning and analysing the external environment,