Formulating an accurate business strategy with high-efficiency implementation is an essential step for a corporation to precisely achieve its business goals. In this report, Telstra is discussed by analyzing its recent strategies and its performance in details. Firstly, a brief company profile will be provided. Then, it will describe the external environment by analyzing the telecommunication industry, the five forces of Telstra, as well as the macro-environment. The description of Telstra’s internal environment which includes the core competency analysis and SWOT analysis will be followed. After that, it will analyze how Telstra’s strategy is accurately formulated and consistently implemented. Finally, an evaluation of the strategies will …show more content…
Wired telecoms involve telephone networks, cable television internet access and fiber-optic communication (Kaur & Monga 2014). Wireless telecoms include cell phone and other wireless networking (Kaur & Monga 2014). The telecommunication industry of Australia is in the mature stage of life cycle (IBIS 2016), with compound annual growth rate (CAGR) of 0.1% in the five-year period 2012-2017, to reach 43.4 billion dollars (IBIS 2016). Both fixed line and wireless providers have been reducing prices and providing additional value on their plans in order to maintain their market share as well as keep customer base. It is forecasted a return to positive CAGR of 1.5% in 2015-2020 (IBIS 2016). The growth is driven by technology innovation, network coverage expansion and infrastructure upgrade (IBIS …show more content…
This indicates the loss of single customer will not influence much on market player. However, Customers care about the quality and coverage of service network when they choose providers. The switching cost among different service providers is low since customers tend to choose quality products with lower price. Buyer power is strengthened. In general, buyer power is moderate. Bargaining Power of supplier – Low Telstra has its own infrastructure which provide stable and extensive network. The suppliers of Telstra are mainly network carriers. Most of carriers have reliance on network capacity with Telstra (IBIS 2016) to compete with other service providers. The cost of switching to another provider is relatively high so the supplier power is considered as low overall. Threat of substitutes - Low Internet service is the main substitutes of telecommunication service (Marketline 2016). Most of internet options are free or cost lower than telecom connection. However, internet connection is still unstable and most of Internet service are only available from telecom companies. Moreover, Telecom providers like Telstra are offering packages with substitute products with telecom products to reduce the threat. In general, threat from substitutes is
Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.
CenturyLink is one of the larger communications companies within the United States and has even expanded abroad to other countries. When analyzing the SWOT analysis for CenturyLink, I was able to identify several strengths that set them apart from their competitors. As mentioned, they are distributing services in over 20 states currently and continue to broaden services to reach more clientele. They pride themselves on exceling in data communications and network systems databases which has allowed them to become one of the desired communication companies.
There are many prevalent threats that Verizon must account for going forward. These threats arise from competitors, technology, and even the government. From a competitor standpoint, Verizon must constantly maintain and upgrade its networks to compete in the telecommunication services market. On the national level it competes with companies such as AT&T and Sprint, while at the same time must be able to compete with local or regional carriers such as Bluegrass Cellular. At the national level, Verizon is lagging in price amongst some its competitors like T-Mobile. The result has been a reduction in service cost to be comparable to peer.
In a competitive environment where market is changing instantly, organizations are in a fix to design a strategy that could market their products enticing the consumers to buy their products and services. Market is the arena for business gladiators who fight out for maximum share and profitability and this is possible only through effective marketing strategy. Competing in present economy means finding ways to break out of commodity status to meet customers’ needs better than competing firms (Ferrell and Hartline, 2010). The intensity of competition has increased after the introduction of media and internet where the companies present their product in the best way through advertisements, product reviews, blog entries, etc. With the advancement in technological innovations, companies have found various ways of providing services to the consumers in a cheaper and effective way and this has resulted in communication revolution in late 1990’s as the cellular technology was unfold in most of the regions. Singtel Optus Pty Limited (Optus) is one such company that has evolved during this period as a leader in integrated communications and this paper is assumed to make an analysis of the company’s marketing strategy and its financial position in the market industry.
COMMUNICATION SYSTEM What are the strengths and weaknesses of Telerik’s communication strategy and practices? Strengths :- 1. What is the difference between a. and a. Employees at Telerik work in an open space. The atmosphere is informal, flexible and open.
The industry has loyal customers with broad customer base that lowers the collective bargaining power of buyers to medium. The switching cost is very low and thus the customers can turn to a service provider who provide faster and innovative service but this is overcome by customized services and integrating into their customer supply chain.
In order to achieve the goals which is being most successful in the telecommunication industry, AT&T have concern about their external environment. The external environment can influence their guideline while running their business because it can be the bench mark for the company to gain more profit and becoming better than the others. Consequently, the AT&T company had analyze and focusing on the external environment to understanding their market and condition of the company. Therefore, the six segment such as technological, global, sociocultural, economic, demographic and political/legal are the segment that help the company to have better understanding about their general environment.
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
The telecommunications industry is of vital importance to the development of the information-based economy. AT&T need to supply access to cost efficient, timely and innovative telecommunications services.
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Telstra Telstra is the Australia’s largest telecommunications company and one of biggest five companies of the country. This media company is known for building and operating telecommunication services. Telecom network, mobile, internet access, and other entertainment products and services are provided by Telstra. Background – Telstra, now a fully privatized company was originated from government bodies.
If competitors offer equally attractive products and services, then one will most likely have little power in the situation, because suppliers and buyers will...
2.1 Studies Related to Competition in Indian Telecom Service Sector: N.M. Shanthi (2005) throws light on the factors that contributed to the growth of telecom sectors. The studies various initiatives take by government in lien of liberalisation, privatisation and de-monopolisation initiatives. The trend is expected to continue in the segment as prices are falling as a result of competition in the segments. The beneficiaries of the competition are the consumers who are given a wide variety of services.
The SWOT analysis is a useful tool for identifying our personal strengths, weaknesses, opportunities, and threats to our plans and goals. According to a “Fuel My Motivation” article (2010), this analysis considers internal influences that can positively or negatively affect our ability to achieve our goals. The internal factors are our strengths and weaknesses. Also considered are opportunities and threats, which are external influences that can have a positive or negative impact on the ability to achieve our goals. I will share how the self-assessment instruments and self-exercises in this course have contributed to assessing and understanding my strengths and weaknesses. I will also discuss techniques I will use to leverage my strengths and understand my weaknesses. In addition, I will consider opportunities that I can take advantage of and the threats that can possibly impede my progress.
switching behaviour. Literature reveals about the factors of switching cost, better customer care services, networking coverage, advertising , etc for switching behaviour of customers. The researchers identify the problem of industry that if one firm gains then other must be losing a customer. Number of network providers are increasing calling for an intense competition. Empowerment of technology has led to growth of mobile industry more economical.