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UK Business Realities: Digital Transformation and Economic Pressures


Businesses in UK have been based on many aspects and challenges in terms of dealing with various areas. In other words, with the change in the technology, UK businesses have changed to adapt to the changing trends in managing digital innovations or involving with numerous range of production process (Li, 2020). In this respect, it can be understood that UK-based firms, which are mostly getting surrounded by competitive challenges like growing prices or change in product offering or else in case of differences in service qualities.

According to online review, Tully (2020), it has been well identified and acknowledged that UK-based key challenging issues in businesses are tremendously at pressure of increasing operational costs as well as growing inflation and weaker pound. The report has been focused on the businesses and the significance of certain sectors having association with digitalization, or with deeper connection with of production cost and government policies.


In addition, the paper has mainly drawn key attention towards strategic analysis on the Telecommunication sector, which has been considered at the top concern among all. Moreover, it has been paid attention on the chosen company, as Vodafone troubled in comparison with other business sectors in the context of UK-based market situation.

Challenges in the UK

Brexit and workforce and government policies

According to the market research and business environment in the UK-based market is concerned, the most common form of challenges that majority of business sectors have faced due to Brexit. There have been tremendous issues in respect of business associated with auto industries while transferring materials via Irish borders (Eisenberg, 2020). At the same time, there have been cut off from jobs in sectors of medical as well as from auto sectors as well.

Changing UK business situations due to Brexit

From this graphical presentation, it can be observed that most of the job sectors are at pressure of discontinuation of business locations in UK. At the same time, it highlights that 19% leaving jobs due to Brexit, 12% already left and rest 6% have started going to quit it in the future.


Digital challenges in the distribution among retailers based in UK

Based on this graph, it has been evident that transformations of retail businesses that are based in UK have been affecting more rapidly on the key areas of staffs. It shows that nearly 36% of human resources face insufficient digital skills, whereas, 27% having issues in transformation strategy, 21% with no prioritization about training skills and the rest are 16% staffs having lack of communication skills as well (Statista, 2019).

Cost of production and customer tastes

Challenges in UK businesses in cost and investments

Considering the above graphical presentation above mainly revealed the fact that due to the influence of Brexit, as there is a deeper connection between business growth prospects. In that case, small businesses have been largely affected while investments in proper (Harvard Business Review, 2019). In other words, firms have been facing issues with regard to the productivity concerns, as it had reduced some the possibility of customer perception as well.

Challenges in the Telecommunication industry

Telecommunication industry has been one of the significant sectors that have been mostly suffering from network issues throughout the time of businesses worldwide. Due to the rising impact of COVID-19, this sector has been affected by new platforms of upgrades and automation control. At the same time, there been challenges with regard to application of 5G network services in a highly competitive market as well (Point Franchise, 2020). In this respect, it can be observed with vigilance that the industry has its own risks in association with security and risk impact on Data Breaches.

Other than this, there have been critical issues that came forward to have focus on increasing impact of radio waves that may be vulnerable to human body system and immune system as well.

Radiation Affecting Human cells

In fact, it has been well acknowledged that most of the telecom engineers have been facing tremendous threats of damaging cells in human body due to the growing impact of electromagnetic spectrum on the business (BBC News, 2020). Hence, certain elements as well as challenges have been massive in the market that had created a threat for customers based in UK.

Company Introduction

Vodafone has been considered as grand organization based in UK providing wider range of network in Great Britain. It has been recognized, as the second largest telecommunication organization located in UK since its inception and its flourishing in the international market as well with its high-speed network services in a competitive market with British Telecom. The organization currently employs closely 98,000 above staffs at this moment along with revenue of 6.48 billion by the year 2019 (Vodafone UK News Centre, 2020). At the same time, the company has been serving with millions of customers that consist of 22 million customers in association with television network as well as 17 more broadband markets as well.

The mission of the company is “To provide high-quality network with enhanced services along with the streamlined services in the market as well” (Verdict, 2020).

Vision of the organization is “To be a top telecommunication operator enriched with quality of network services and connecting people with unique mobile communication” (Vodafone UK News Centre, 2020).

In this regard, it can be justified that fact that the company has been tremendously working on improving its key network concerns through the world including its UK-based market by changing with digital transformations and replacement of 4G network with 5G network services.

General Issue A

According to the major challenges that has been encountered by the telecom sector in UK, the significant one is all associated with the high electromagnetic spectrum that is a threat to the nation (BBC News, 2020). In this concern, market is at high pressure of exchanging and transforming total replacement or variations among major areas of businesses. It has also been noticed that in general every other companies have been trying to manage and control unwanted cost of production in all sectors due to the influence of pandemic.

Managing Issue A

In compliance with above issue that is assured above, Vodafone seems to be actively taking some serious note along with some valuable aspects in its business. It has been taking fiber optic cable systems along with major wireless solutions so that it can reduce some impact of electromagnetic rays directly to human beings (Vodafone UK News Centre, 2020). This can be crucial in respect of its current threats that the engineers are receiving from every locations. Besides, it has also been found that the company has been trying to establish some additional protocol of testing EMF tests along with Ofcom for checking of all its frequency levels under ethical guidelines of ICNIRP.

However, despite of this fact and new initiative that is being taken by the company, it can be further suggested to the company to have some major focus on its customer concerns that is mostly the health and safety concerns that is associated with public benefit application of technology that cannot be avoided in delivering enhanced network system. Hence, it can be able to cope up with all at least its key concerns in respect of the customer service. This can be effective in terms of finding some new customer base in its existing market.

General Issue B

Apart from that there have been general issues in respect of digitalization and innovation in the industry sectors, as discussed above. With respect to certain issues that are evident, it has been identified that mostly, majority of businesses are facing pressure at creating innovation due to insufficient financial assistance as well as critical thinking aspects (Dey et al. 2020). In accordance with this concern, it has been observed that telecom market has its extreme level of pressure in the field of drawing attention on its risk factors as well as in minimizing the code of conduct that is linked with the suppliers.

Managing Issue B

Based on this above concern, Vodafone has been extremely considering about one particular concern that is none other than its supply chain issue. The firm works with multiple chains of suppliers in segregated manner so that number of capacities of building resilience would be managed well along with effective ways of monitoring it through experts in the most suitable way (Vodafone UK News Centre, 2020). In addition, looking into the sustainability concerns is the first priority from behalf of the company as well. Working at energy innovation is one particular concern, as well as privacy of customer accounts and information is another major concern that the company has been looking forward to the upcoming days so that the business may not suffer from unexpected challenges as well.

Other than this, it can be further suggested for further ways to overcome from these situations, as the market has been highly competitive so far that needs to be controlled and utilized with a lot of diversification and variations (Geissdoerfer et al. 2018). In this respect, it can be suggested to have a serious note on its existing business model for changing its pattern of doing business and transforming it into newly and modified model.

General Issue C

Other than above analysis of the issues, the integral part of business issue is related to the area of production and its expenditure that the overall market has been dealing with. In this regard, it can be found that majority of businesses in the UK-based industries are troubled with cost structure as well building infrastructure projects as well (Eisenberg, 2020). Hence, this has been considered as generalized issue again for all respective sectors here in the nation, as it has been deeply impacting on most of the innovation problem.

Managing Issue C

Considering this issue of cost and building infrastructure issue, it can be evident that Vodafone has also been facing this, however; with a different approach of addressing them on the particular concern of Brexit itself. The company seems to be maintaining its sustainability attempts with prime importance at the current moment that has been working in association with Tech against trafficking mainly with the multi stakeholder coalition so that it can reduce its impact on some of the cost structure in the business. At the same time, it seems that it has also enhanced Supplier Academy by launching for helping the supplier network and their capabilities so that its risk factors could be reduced from unexpected vulnerabilities in the market as well (Vodafone UK News Centre. 2020).

However, despite of its multiple attempts, the company may need to have its key focus on some of its additional concerns here that are actually dealing with issues of employee satisfaction level as well. In this regard, it has to focus on its major concerns of anti-bribery and privacy concerns with utmost care so that they are able to monitor compliance issues with efficient engineers and experts as well. Therefore, this can be far better prospects in the future for its progress.

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From the overall analysis of the Vodafone’s business, it has been encountered that most of its areas of telecom business has been facing issues with quality of network as well as customer benefits along with its major concerns of electromagnetic spectrum as well. In addition, it has also been addressed from this respect that businesses in UK have its own strength and opportunities despite of its tremendous level s of threats forever. This is evident from other sectors as well where there is an alternative scope of overcoming from any kind of pressurized or vulnerable situation as well.

Moreover, with this concern, it has been acknowledged that businesses either it is small or medium or large, needs to have alternative risk assessment plan as well as alternative scope of addressing external threats at any point of time. This can be conventional in respect of having some more valuable aspects in the business as well. Hence, the overall prospects of telecommunication sector with a focus on Vodafone is concerned can be well measured with the help of active decision-making process as well as finding valuable assets in hand.


  • BBC News. 2020. 'Murder Threats' To Telecoms Engineers Over 5G. [online] Available at: [Accessed 17 August 2020].
  • Dey, P.K., Malesios, C., De, D., Chowdhury, S. and Abdelaziz, F.B., 2020. The impact of lean management practices and sustainably‐oriented innovation on sustainability performance of small and medium‐sized enterprises: empirical evidence from the UK. British Journal of Management, 31(1), pp.141-161.
  • Eisenberg, A., 2020. Business After Brexit: What Changes For UK Businesses?. [online] Available at: [Accessed 17 August 2020].
  • Geissdoerfer, M., Vladimirova, D., Van Fossen, K. and Evans, S., 2018. Product, service, and business model innovation: A discussion. Procedia Manufacturing, 21, pp.165-172.
  • Harvard Business Review. 2019. Brexit Is Already Affecting UK Businesses — Here’S How. [online] Available at: [Accessed 17 August 2020].
  • Li, F., 2020. The digital transformation of business models in the creative industries: A holistic framework and emerging trends. Technovation, 92, p.102012.
  • Point Franchise. 2020. Top 8 Telecommunications Industry Trends For 2020. [online] Available at: [Accessed 17 August 2020].
  • Statista. 2019. Digital Transformation Challenges In UK Retail Businesses 2019 | Statista. [online] Available at: [Accessed 17 August 2020].
  • Tully, K., 2020. Five Key Challenges Facing Businesses In 2018. [online] Real Business Rescue. Available at: [Accessed 17 August 2020].
  • Verdict. 2020. Vodafone Earnings 2019: Vodafone Cuts Full-Year Dividend By 40%. [online] Available at: [Accessed 17 August 2020].
  • Vodafone UK News Centre. 2020. 5G And Health: Everything You Need To Know - Vodafone UK News Centre. [online] Available at: [Accessed 17 August 2020].
  • Vodafone UK News Centre. 2020. Mission And Values - Vodafone UK News Centre. [online] Available at: [Accessed 17 August 2020].

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