Financial Analysis Telstra

Running head: FINANCIAL ANALYSIS TELSTRA 1
FINANCIAL ANALYSIS TELSTRA

FINANCIAL ANALYSIS TELSTRA 2
Contents
Introduction.................................................................................................................................................3
Porter’s five forces..................................................................................................................................3
Bargaining power of Suppliers............................................................................................................3
Bargaining Power of Buyers................................................................................................................3
Threat of new substitutes.....................................................................................................................4
Barriers to Entry..................................................................................................................................4
Rivalry among the existing players......................................................................................................4
Investigate the number of analysts following the stock and summarize their recommendations.............5
Comment on any similarities and differences between recommendations by analysts and the current
position of the company in the industry...................................................................................................6
References...................................................................................................................................................7
Appendix 1..................................................................................................................................................8

FINANCIAL ANALYSIS TELSTRA 3
Introduction
Telstra is one of the largest communication based company set up in Australia, intended
to provide the services covering various areas of communication such as mobile phones, internet,
accessories and advertising agents. Telstra offers a great deal off the services to its customers.
The major revenue of Telstra is from rendering the services to the customers in the form
of the net services. Apart from this due to the higher competition the company is losing on the
fixed line services, therefore the company can invest its most of the funds in leasing the mobile
handsets and other internet services (Investing Co, 2018).
Geographically the Telstra is operating in almost all Australia and it is having the
longstanding international business focus on Asia Pacific Region. Overall the company is
performing better and the revenue of the company is $21608 the total income earned is $29124
(Simply Wall Street, 2019).
Porter’s five forces
It is an analytical tool that is used to determine the five factors that can affect the position
of the market in the industry of the telecommunication.
Bargaining power of Suppliers
The bargaining power of the supplier is moderate and Telstra has entered into different
countries via setting up of the various subsidiaries. China is one of the beneficiaries of the
subsidiary which is established by the Telstra Corporation. This reflects the company is
expanding and is able to manage the businesses overseas. Products supplied from the suppliers
are of high quality and thereafter there is a strong development of the trust among the clients.
Call centers are considered as the good sign of the contact with the customers and hence it can be
stated that the bargaining power of the suppliers is of moderate nature (Namusonge, Mukulu &
Mokaya, 2017).
Bargaining Power of Buyers
The bargaining powers of the buyers are high as they have enough option to shift towards
the new outputs available in the market. There are several factors that affect the position of the
buyers are the gross trading, the uniqueness of the product and the various types of the