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macroeconomic factors affecting telecommunication industry
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Global Communication is a company that is faced with many challenges. Within the past three years Global Communications stock values has plunged from $28 to $11 per share more than 50 percent depreciation. Recently, Global Communications reduced it employee's benefits in hoping this would be a long term growth for the company. Global Communication is struggling with competing in the telecommunication industry, but this analysis will show and prove that with the right team and dedication Global communications can bounce back and become a effective competitor in the telecommunication industry.
Situation Analysis
Issue and Opportunity Identification
Global Communication has been under tremendous economic pressure and it's not just Global Communications but the entire telecommunications community. As mentioned in the introduction, in the past three years Global Communications' stock has declined from $28 per share to $11, more than 50 % depreciation. There is so much competition for the local, long-distance and international markets for small businesses and if that was not enough there is a huge competition with the cable companies.
Global Communications senior leadership team has come up with two aggressive approaches to mind the problems that the company is facing. First, they plan to introduce new services, to its small business and consumer customers (Baxi, 2007). To compete with the local telephone and cable companies (Baxi, 2007), they have created alliances with satellite (Baxi, 2007), providers to offer video services as well as satellite version of broadband (Baxi, 2007). They have a partnership with a wireless provider (Baxi, 2007), that will allow the small business (Baxi, 2007), owners anytime internet access through the wireless telephone (Baxi, 2007) and or PC card (Baxi, 2007) and companies information can be accessed remotely (Baxi, 2007). Second, Global Communications is planning to market itself more aggressively internationally. Although, Global Communications has decided to outsource their call centers to Ireland and India this will result with laying off employees.
Stakeholder Perspectives/Ethical Dilemmas
Katrina Heinz is the Chief Executive Officer of Global Communications and has been with the company for only six months. Katrina's primary objective is to increase revenues and profit. Sy Rodriguez is the Executive Vice President of Consumer Marketing and Sales. Sy has been with Global Communications for more than 20 years. During his time with Global Communications he has helped establish relationship with most of the key stakeholder. Sy is focused and driven and he specializes in getting results.
Major customer consists of the businessman who is willing to travel around the world as well as staying in touch with the office and home. In account of the industries that operate in remote areas, the competitive positioning option of Iridium tends to be access-based to reach differently accessible customer with the similar need in terms of communication. Iridium designed a set of activities to make tradeoffs in competing, for instance, reduce marketing campaign in urban areas and brand name development for large corporations.
WorldCom, US second largest telecommunication company in the United States behind AT&T, was founded in 1983. The company starts their business under the name “Long Distance Discount Services” (LDDS), providing long distance telecommunication services. The company was profitable from the start. In 1985, Bernie Ebbers became the company’s CEO. The company changes its name to WorldCom in 1995. During the 1990’s, the company starts to grow through series of successful acquisition and merger. However, during the late 1999, the company’s performance begins to decline due to heightened competition and reduced demand for telecommunication services.
Americatel is positioned within the small to mid-sized market in the telecommunications sector. However, their primary competitors Movistar and Claro compete within the large-sized market. With only 10% overall market share, Americatel has the potential to capture additional growth as the industry growth rate is growing at 6%. To accomplish this we recommend that Americatel own their position in the small to mid-sized market by capitalizing on their competitive advantage of providing superior customer service as well as leveraging new solutions to further drive customer satisfaction.
The telecommunication industry is one of the largest industries in the world with a wide range of players. The competitive nature of this telecommunication industry makes it perfect for analysis. This investigation explores the performance of the top ten industrial players within the industry. A strategic group map is developed to compare these firms’ profitability against the market value of each firm for fiscal year 2015.
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 world is experiencing a communications revolution. The Internet, e-Commerce and other developments (including the convergence of communication technologies) are profoundly reshaping economic and social life. AT&T must position itself to meet the challenge of this revolution. The strategic development of information-based industries is a key to the future social and economic development of the world.
Global Communications is a company that needed a new strategy in order to compete with its competitors. The telecommunication industry was flooded with the addition of cable companies joining in their market. Global Communications was financially in a decline and had already asked union workers to give up a percent of their benefits in order to help. The union did so willingly in order to preserve the future of their jobs within the company. The company brought in new executives to try and come up with a plan to save the company from its decline. The senior leadership team came up with a strategic plan to compete with the telephone and cable companies. They obtained approval to implement the plan, but not without problems. The senior leadership team did not consult or divulge any of their plans to the union representative or the employees prior to their approval. Their plan included outsourcing some of the work overseas which would reduce cost but also cut jobs within the company. The senior leadership team needed the support of the union representative in order to explain to the worker's what the company's plans were and how it would affect them. The union representative was upset she was left out of the communications and had to hear it from her superiors. Global Communications needed the employees to grow and increase profitability; however they could not reach an agreement and Global Communications implemented layoffs. The union is discussing what action they will take to stop the outsourcing plan that will set precedent for the whole industry.
The events that led to the changes Global Communications are making came about with the shift in technology and the competition within the telecommunications industry. With companies able to compete globally, there is too much competition within the industry from other telecommunications companies as well as cable companies who can offer all the same services. With increased companies offering a wide range of services, Global is forced to cut costs in order to compete effectively and increase profitability. To this end, Global Communications senior management has come up with an approach to outsource some of their call centers to India and Ireland and expand new services to small business and consumer customers. Global also joined with a satellite provider to offer video services and a satellite version of broadband. This will mean job cuts and a reduction in salary for employees who remain and are relocated. The plan was accepted quickly and now management is under the gun to communicate the changes effectively to the employees without risking a morale problem that could affect productivity. Also, since the employees belong to a trade union and the union was not involved in the process of negotiating these changes, Global has to consider the legal and public relation implications of not fulfilling their contractual obligation to the trade union.
...In order to remain profitable in such competitive market a company must provide a product or service that spans the global in appeal. The vast media arena is ever changing as innovative young minds continue to find new ways to make success an inevitable fact. In essence the public will have the final say so in which business will sink or swim in the media global marketplace. The tough decisions are made on the streets and not in the boardroom. Over the years the streets have called for a more diversified aspect of the media. The companies mentioned above are leaders in this respective services they provide and will continue to play a major role in global media.
The telecommunications industry is changing creating the need for a more competitive company. The changes that are happening are that there is greater competition in the market with foreign firms such as China Netcom and China Telecom are entering the UK market[1] increasing the number of firms. Also the European Union is looking to improve competition by breaking open the telecommunication markets further by giving national authorities stronger powers[2]. The type of competition is also changing in recent times as firms grow in size and capability as they merge. The recent trend being the buy out broadband and telephone companies so that firms are then able to offer bundled services[3].
Global Communications is a financially struggling telecommunications company. Its stock has depreciated fifty percent in three years. Currently, the organization is faced with too much competition within the telecommunications industry. Local, long-distance and international markets are all competing for the same business. In addition, the industry suffered a huge blow at the hands of the cable companies, who stepped in to provide complete solutions encompassing computers, televisions and plain old telephone service (POT).
Rakuten has just started its globalizing efforts in the last few years. From setting up overseas offices, acquisitioning of small medium enterprises, implementing an English-nization project, to hiring overseas talents. However, will Rakuten actually become a global powerhouse? How successful are these efforts? In this paper, I will discuss Rakuten...
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
The industry of communications is changing and intensifying more everyday. Two-way communications begin as early as the 1800s with first telegraph. Now, we have multimedia and mobile telecommunications. People are communicating today with one another by cellular phones, computers, fax machines, palm pilots, and other personal and portable devices. Since these means of communication have penetrated the industry and marketplace, companies and corporations are having a difficult time to remain competitive. These corporations have to come up with new product lines and innovative ways to remain profitable. For example, BellSouth has had to make changes to compete with likes of Sprint and MCI. They had to start offering more than just local and long distance service. Such is the case with Global Communications. In order for them to remain in business, they had to come up strategy to increase profits and compete with other companies in the industry. First, let us take a look at the background of Global Communicaitons.
University of Memphis, . (1990).Communications networks for managing global operations. (global business). Retrieved from http://www.entrepreneur.com/tradejournals/article/9267862.html