BT's Strategic Initiatives and Challenges

This assignment requires a thorough analysis of BT's 2016 Strategic Report. Students need to examine the company's investment strategies, focusing on ultrafast broadband expansion and educational programs aimed at improving digital skills among 5 million students by 2020. The report also highlights challenges faced by BT, including financial pressures and regulatory scrutiny.

Investigation On BT Plc.
Business Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The British Internet Provider Industry in UK is very widespread and established in year
1960 since when they are involved in giving the best form of internet service to UK. In this pro
cess telecommunication sector is been helping the internet industry to be able to give service to
home and office user of UK through cables, DSL and now in form of wireless connections. In
this race of been top of all others British internet provider British Telecom Plc is
heading the sector in its best form. In the present project we will be shedding light upon position
of BT in market, how company is different from others and what changes will be coming in
coming 2-5 years.
MAIN BODY
The BT Group Plc which was formally know to as British Telecom is now at present
operating in almost 180+ countries of world. This company is also the largest provider of
broadband service, mobile service and fixed line other than these they are also giving customers
with wide range of subscription television and IT services. In the year 1846 when Electric
Telegraph Company was founded in UK BT group was also founded which was then in 1984
privatised (Shine and Poldrack, 2018). 50% of the shares of company was sold to all its
1

investors and then between 1991-1993 government sold its remaining shares as well. In Britain
company is having almost 18+ million customers which are both home and office clients on 29th
January 2016 company acquired Everything Everywhere (EE) for £12.5 billion.
With switching from Integrated Service Digital Network (ISDN) network in 2015 BT
proclaimed and launched 4G services so that customers could be till 2025 migrate to IP network.
As in 2016 it acquired EE network company also changed its organisational structure in same
year which will be serving customers with mobile service and TV. While in the year 2016 when
BT filled case against its Italian accounting scandal which gave computer records which was due
to several employees and executives were found breaching rules of company and unlawful
conduct as well. For this BT had to pay about £225 million to two of its shareholder i.e.,
Deutsche Telekom and Orange in order to settle down claim of EE sale (BT profits dive by 40%
after £225m payout over Italian scandal, 2018). With this, profits of BT came down to 40%
stock market value to £8 billion and price of shares to 4% down.
BT plc is easily targeting all type of customer segment including corporate, business,
wholesale and customer segment with offering wide range of service and products in industry.
The products and service of company included fixed line, mobile telecom, broadband internet,
digital television, network service like that of home security, fleet management, supply chain
management and equipments of telecommunication (Sales and Marketing, 2018). Other strengths
of company include its employees who are been involved into progress and growth of company,
market position in domestic market via O2 brand, signing of the largest renewable energy deal in
world. The pace at which company is operating within market shows that it is very much
competitive in nature. One of the major core competency of company includes that it is
providing tailor made products and service to its clients like it is providing BT Bespoke solution
to business customers.
In the market BT plc is been marked and looked to as using the best form of technology
and innovation within its operation and products which they are providing to customers. In early
21st century company was the first to introducing copper and fibre wires within the industry
which will thus be helping in fast internet service. In order to keep the company ahead of all its
market competitors it is been able to improve all its competencies including marketing, customer
2

segment and strategic alliance (2016 BT Strategic Report, 2018). Been on of the oldest service
providers in world BT group is also having this as its advantage over others in same market.
Marketing strategies of BT:
As the whole industry is transforming within market and enabling all customers to get in
touch with each other in more better and efficient way. In this way company purchased the
largest mobile group in 2016 which is EE which is starting stone to progress of company (BT
profits dive by 40% after £225m payout over Italian scandal, 2018). This shows that marketing
strategies of company is very much competent to cover major share within market not just of UK
but worldwide (Smith, Nehrke and Brookes, 2018). In 2013 company started its television
network which made them taking the legal rights of broadcast Premier League from 2013-2016
season. In this race it also acquired ESPN Inc. in UK and Ireland and rights of Champions
League and Europa League for £897 million. In also lay stress on giving the best form of Service
to its customer for which in 2014 BT started new Central Business Service (CBS) so that it could
improve efficiency of operation within company. The company is also been able to understand
and make involved with regulatory changes in the telecommunication, information and
communication technology.
Marketing strategies which company is following since its birth is always giving them
chance to deepen its relationship with customers. Thus, making them in sustainable profits and
revenue generation via delivering better service, transforming cost of company and then
investing them within growth of company. Company is also consolidating both its sales and
marketing team which will be helping them in reducing cost of company. Year 2016 is
considered as the landmark year of business which involved evolution of developing customer
service of company (Crowcroft, and Su, 2015). Then its choice to buy EE was regarded to as
very much successful by increased in its revenue that year by 6%. CEO of BT confront that in
past 3 years company was declining its share value but now it is totally focusing on strengths and
competitive which is enabling top performance of 7 years.
3

With the help of efficient marketing and sale s team BT plc was able to introduce 4G and
super fast broadband coverage to about 95% in UK. The three of to marketing strategies of BT
plc Group encouraged them to grow and be successful within market these includes:
Customer service- this is the main essence of company and also that of it marketing strategies as
focus remains here only of all market operators. In 2013 when its launched BT Sports and then
BT mobile in 2016 both these were major marketing strategies of company which will be giving
them competitive advantage over coming 5 years around (Three ways the BT brand is evolving
its strategy for growth, 2018). Both companies are doing very good in market as about 45% of
viewers increased with BT Sports and more than 400000 subscribers of BT mobile. In order to
improve more customer service and network of company they decided to invest £6 billion so that
more and more customers could be attracted. Marketing team also look above company's new
strategies which was to reduce time of fixing faults in line by 24 hours and this way promoting
its CBS.
Use of EE brand- as it acquired the brand now its time to fully utilize brand value and brand
name of EE. Their strategies will be focused on network leadership claiming to be the biggest,
best and fastest mobile network (Tyagi, 2016). For this they introduced marketing strategies as
series of advertisement that was featuring Kevin Bacon and Rachael Riley.
Multi brand strategies- this will be enabling them to provide them offering TV, internet and
mobile and landlines service to all its customer. The toughest competitor in digital TV providers
which is Sky Sports which is having more than 75% of market share then BT tried and made
strategies to gain more 50% of market share with the help of its multi brand strategy. For this in
year 2016 BT was also nominated for Brand of the Year award at Marketing Week (Three ways
the BT brand is evolving its strategy for growth, 2018). One of the aim of company is to
minimize its cost to company which will be then reinvested for gaining market competencies.
Change of position in recent years:
The basic and main function of company is to provide solutions to customers in regard to
communication and network systems including local, national and international customers. BT is
having 5 of its basic customer facing line like that of BT wholesale, Open reach, BT Global
service, BT consumer and BT business. In the year 2017 it was having market capitalisation,
4

with 102,500 employees and sales of about $31.67 billion (Annual Report 2017, 2018). All the
products and service which company is giving to its customers are based on technology and
innovation in field of telecommunication and network providers. BT with decision of buying EE
was very good at all aspect as this is helping to offer access to internet both at home and office
and at present while moving as well. It is by the year 2025 also planning to switch completely on
voice based network which will be helping to lower down traffic. Last year of 2017 was very
much challenging for company and learning a good lesson from what happened in Italy in 2016.
As with the collaboration of 5 of its basic customer facing system has helped BT group a
lot by supporting internal service unit, operations and technology. Goal of company in 2017 was
to achieve customer satisfaction with endearing them with the best form of service which they
were able to conqueror. They were also able to create good value to all its stakeholders by selling
products and developing service which would be essential part of modern life. However, BT
group was not perfectly able to achieve what it had planned at beginning of year 2017
as because of accounting scandal of Italy in 2016. But then also revenue ended 31st March 2017
was very good with increased by 27% of £24,062 million and cash flow of about £6174 million.
Profits of year 2017 increased to £7645 million from £6459 million in 2016 which was expected
to grow in current year 2018 (Summary-financial-performance-for-the-year, 2018). BT group
was also evaluating good range of additional investment opportunities which will be resulting of
future spectrum auctions. While the dividend policy of company will be remaining the same with
the increased of 10% like was in 2016-17.
No only this company is also changing its style of promotion and advertisement and
making it more emotional approach so that they are becoming relevant to life of customer.
Number of competitors within this industry is increasing day by day which is making existing
companies to fight with them as new entry is brining with them the latest technology and
innovations. This is making very important for company to lower down its price so that customer
could be attracted with this. BT is thus enabling cost cut down of products and service this
strategy was same as adopted by competitors in market. BT also believes in promoting is brand
throughout all channels including radio, television, internet and billboards. They are giving
discounts and offers to customer so that they could retain them offers like that of buy one get
5

one (Annual Report 2017, 2018). Giving the best form of training and development need to its
employees so that they could equipped them with technology and process.
CONCLUSION
It becomes very important for BT to get in touch and deeper connection with customers
so that they could be gaining competitive advantages been in market. For this to happen their
focus will be on customer service with having mission statement of providing world class
telecommunication and information products and service. They will also be manage to develop
and then exploit their network at office, home and on move in order in meeting customer
requirement. Management also ensure that they are having plenty of opportunities which will be
enabling them to reduce cost over coming 2 years they are expecting that their investment will be
going to £1 billion. The whole amount which they would be saving with reducing cost they will
be able to meet opportunities for reinvestment. This will be made in ultrafast broadband to about
£10 million by the end of 2020 right investment and regulation of environment (2016 BT
Strategic Report, 2018). They are also having ambition to educate about 5 million students so
that they will be able to have better learning in computer skills till 2020.
REFERENCES
Books and Journals:
Crowcroft, J., and Su, P., 2015. UCL Experiences with high-speed pilots. Proc. of BRIS. 95.
Shine, J.M., and Poldrack, R.A., 2018. Catecholaminergic Manipulation Alters Dynamic
Network Topology Across Cognitive States. Network Neuroscience. (Just Accepted). pp.1-
41.
Smith, C.O., Nehrke, K. and Brookes, P.S., 2018. Cardiac metabolic effects of KNa1. 2 channel
deletion, and evidence for its mitochondrial localization. BioRxiv. p.223321.
Tyagi, K., 2016. Four-to-Three Telecoms Mergers: Substantial Issues in EU Merger Control in
the Mobile Telecommunications Sector. IIC-International Review of Intellectual Property
and Competition Law. pp.1-36.
Online:
6

2016 BT Strategic Report. 2018. [Online]. Accessed through:
<https://www.btplc.com/Sharesandperformance/Annualreportandreview/pdf/
2016_BT_Strategic_Report.pdf> .
Annual Report 2017. 2018. [Online]. Accessed through:
<https://www.btplc.com/Sharesandperformance/Annualreportandreview/2017summary/>.
BT profits dive by 40% after £225m payout over Italian scandal. 2018. [Online]. Accessed
through: <https://www.theguardian.com/business/2017/jul/28/bt-profits-italian-scandal-
deutsche-telekom-orange>.
Sales and Marketing. 2018. [Online]. Accessed through: <file:///home/user/Downloads/Sales
%20and%20Marketing%20Consulting%20Flyer.pdf>.
Summary-financial-performance-for-the-year. 2018. [Online]. Accessed through:
<https://www.btplc.com/Sharesandperformance/Annualreportandreview/2017summary/
downloads/Summary-financial-performance-for-the-year.pdf>.
Three ways the BT brand is evolving its strategy for growth. 2018. [Online]. Accessed through:
<https://www.marketingweek.com/2016/05/05/three-ways-the-bt-brand-is-evolving-its-
strategy-for-growth/>.
7