Intro-
Telstra Corporation Limited is a blue chip Australian company, which deals with telecommunications and technology. With Telstra’s conversion from a Government business Enterprise or in other words Government monopoly to becoming a privatized company was in the interest of improving efficiency and improving the sales of Telstra. Now Telstra conducts business under the public company legal structure. The company is under the quaternary industry sector as the company provides mobile services to 17.2 million customers within Australian borders. This makes Telstra, in terms of geographical spread, a national company as Telstra provides mobile services for Australians. Telstra’s geographical spread corresponds to the size of the company.
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Telstra is no different, where there are multiple factors, which affect Telstra’s business activities and the way Telstra conducts itself in the aspect of management and dealing with their competitive situation.
External Influence:
With Telstra’s large market share, Telstra is constantly under competition from major companies such as Optus and Vodafone. Businesses aim to achieve a sustainable competitive advantage where in this case, Telstra would be trying to maintain their market share as well as increase their already large portion of the market.
Competitive situation is an external influence, whereby the companies that are affected by it have no control over it. In a way, the competition in the market is created through the growth and decline of companies in the same industry sector, where huge growth in a business could threaten another company or the decline of a business is a sign of heavy
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In 2016, Telstra experienced 7 outages, and two this year has seen Telstra spend $3billion worth on improving its network. In one of the outages, which had affected thousands of Telstra’s Internet customers, Telstra had come out with an apology statement where each customer who was affected by the outage was automatically given $25 worth of credit. To carry on with the role of management especially with Ceo Andy Penn, is his ability and expectation to maintain the investor confidence within the company. In recent times, Telstra has seen a decrease in revenue and value where Telstra has began to borrow money to keep up with dividend payments to keep shareholders loyal. This decrease is twofold. One is because of the competition, where Optus and Vodafone have both been revitalised in particular in the mobile market. Here is where Andy Penn comes in, he brings confidence that Telstra as a company is strong as Telstra has “as strong balance sheet” and a “good track record on the construction site”. In this case, Telstra uses the strategy of a management team in order to maintain consumer loyalty and trust, as well as the business’ reputation during the 2016 network
The entrepreneurial spirits include foresight, planning, management, organization, coordinating, convincing, mobilization and compromise. It is the truth that Darren Entwistle satisfies all these terms. It might explain why he made TELUS from regional into coast to coast. “Darren Entwistle exemplifies the ideals of free-market enterprise.” said Brett Skinner, Fraser Institute president. There is no doubt that he bring an extraordinary success to TELUS, especially he is the only one CEO who has finished as huge numerous transaction while in a malicious competitive market for customers. The more is that there are a number of TELUS recognition on Darren Entwistle such as one of Canada’s Best Diversity Employers by Maclean’s (2011), inaugural Volunteer’s Award for Business Leadership from Prime Minister Stephen Harper and etc. Besides these, Darren Entwistle’s contribution made TELUS be named the top philanthropic corporation of 2010 by the U.S. Based Association of Fundraising Professionals, the first Canadian company to win this award. The awards in his career are significant
The company that I have chosen is Comcast Cable Company. Currently, Comcast is the leader in the home entertainment industry. Comcast offers their customer's: cable television, internet service, home phone service, television screaming app, home security, and mobile service. The company is working to compete with AT&T/ Direct TV, Dish Network, Hulu, Netflix and sling Tv. The competitors do offer cheaper service, but Comcast is known mostly for its great internet service. Xfinity Instant TV and Xfinity Mobile are the newest product that has been launched by Comcast. Xfinity Mobile has two phone plans, and you must have Xfinity internet service. Xfinity Mobile plans are: By the Gig data and Unlimited data. The By the
As soon as a competitor changes their plans or a new competition comes along customers may not want to change their mind about going to a different location (Belonwu). Having a “rivalry” may help concentrate on what needs to be improved in a business depending on what their weaknesses and strengths are. Having competition may be wonderful for the consumers because they have different choices to select what kind of brand of clothing, shoes, or a variety of tools, food and etc. Being able to choose a certain type of customer, may bring in a flow of customers that they’re are trying to reach out for; such as Walmart, they chose to sell products that are family oriented while having different areas in the store pertaining to men’s, women’s, and children’s necessities. If a customer is loyal and you all of a sudden are raising prices on items where they can get goods at a lower price elsewhere, that is causing a business to be disloyal due to competition.
Of particular importance is the deregulation of the telecommunications industry as mentioned in the act (“Implementation of the Telecommunications Act,” NTLA). This reflects a new thinking that service providers should not be limited by artificial and now antique regulatory categories but should be permitted to compete with each other in a robust marketplace that contains many diverse participants. Moreover the Act is evidence of governmental commitment to make sure that all citizens have access to advanced communication services at affordable prices through its “universal service” provisions even as competitive markets for the telecommunications industry expand. Prior to passage of this new Act, U.S. federal and state laws and a judicially established consent decree allowed some competition for certain services, most notably among long distance carriers. Universal service for basic telephony was a national objective, but one developed and shaped through federal and state regulations and case law (“Telecommunications Act of 1996,” Technology Law). The goal of universal service was referred to only in general terms in the Communications Act of 1934, the nation's basic telecommunications statute. The Telecommunications Act of 1996 among other things: (i) opens up competition by local telephone companies, long distance providers, and cable companies ...
Competition is everywhere in our daily lives. It begins from the day we are born until the day we die. Competition is just another word for challenge.
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...
Since its launch in the 1990s, pay TV market leader Foxtel has been a 50-50 joint venture between Telstra and Rupert Murdoch’s News Corporation – something that worked out brilliantly,
Effective competition is widely seen as a key to the development of telecommunications services. The ability of new telecommunications networks to interconnect fairly and efficiently with existing networks is critical to the development of competition. AT&T has undergone numerous changes since its inception in the late 19th century. The McKinsey 7 S framework as applied by Pascale is recommended to manage the changes they are facing to adopt a greater competitive presence in the global economy. In conjunction with this framework, numerous other models were applied to analyse the global competitive position of AT&T. Recommendations for a revised strategy and direction for AT&T have been made throughout this document including two scenarios of how the telecommunications industry might develop towards 2000, while outlining the impact on AT&T.
Optus Communications Pty Ltd was incorporated in 1991 as the holding company of Australia’s first private communication carrier (Mclennan, 1998) and by mid – 1994 Optus employed more than 2600 employees (Katz, 1997). Sintel Optus Pty Limited (Optus) is a subsidiary of Singtel Inc providing services in the field of telecommunications in Australia. The firm provides mobile, national and long distance services, local and international telephony, business net...
Porter has identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Porters model supports analysis of the driving forces in an industry. Based on the information derived from the Five Forces Analysis, management can decide how to influence or to exploit particular characteristics of their industry.
Background One. Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of the telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than profit the company (Cook, 2001). Initially, One.
Porter’s competitive forces model includes five forces that need to be analysed. These forces include the intensity of rivalry from traditional competitors, threat of new market entrants, threat of substitute products and services, bargaining power of customers and bargaining power of suppliers (Laudon & Laudon, 2007). See diagram below;
Firstly, the report will introduce the company and give an outline of the current operations, with focus on their current position in the market, and discuss the main competition faced in a global market. Secondly, focus will lie on the external forces and their influences on the company’s operations, along with discussing the strategic opportunities in order to overcome any facing competition. Finally, the report will include recommendations for the future of Vodafone and how they can become a market leader.
In fact, some of the biggest threats to the company’s growth are the government’s regulation that increases the risk to the underlying business. In addition, the risk of losing the exclusive contract for the iPhone would be a major loss for AT&T. Most of the consumers choose AT&T because of their exclusive contract for the iPhone. Hence, this loss of business will significantly influence the AT&T's profitability and revenue. Moreover, the antitrust authorities play an important role on approved the merger of AT&T.
The company continues to cement its identity into new emerging markets as it expands and collates material to continue plummeting the brand name. Utilizing established advertising agencies for promotion and market firms, Vodafone managed the resources available to “ensure performance by focusing on customer satisfaction and performance relative to competitors”. The marketing plan is divided into a logical sequence comprised of a number of steps, it occurs at the business-unit, product, and market levels.