Competitor Analysis of Telstra: Identifying Strengths and Weaknesses
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This essay analyzes the competitor analysis of Telstra Company in the competitive market, identifying strengths and weaknesses of different competitors and strategies for distinctive advantage.
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Running head: MARKETING MANAGEMENT Marketing Management Name of the Student Name of the University Author note
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1MARKETING MANAGEMENT Introduction The essay assists in analyzing the competitor analysis of Telstra Company in the competitive market. The purpose of the competitor analysis is for determining the strengths and weaknesses of the different competitors within the market along with identification of various strategies which will be providing the company with distinctive advantage. The knowing of the competitors is important as it will be helping in communicating with the target audience and distinguish the business from the other competitors and navigating the different challenges in the market as well. Overview of Telstra Telstra Corporation Limited is the Australian telecommunication organization which was incorporated in the year 1975 and the areas served by them is Australia and there are selected products which are sold in different other parts of the world (Telstra.com.au, 2019). Till the year 2017, there are more than 32000 subsidiaries working in the company and the revenue which has been earned by the company is A$26 billion till the year 2017. The different products which are sold by company includes mobile telephony, internet along with other network services. Identification of Competitors of Telstra From the different researches and surveys, it can be seen that the major direct along with indirect competitors of Telstra in the competitive market includesSingtel, Vodafone, Circles Asia, PCCW Global, Optus, TPG telecommunication, MyRepublicandStarhub. The main competitors of Telstra are performing extremely well in the market and they have earned a high level of market share in comparison to the others.Singtel Australiahas earned the revenue of $12.322 billion USD till 2017,Vodafone Australiahas achieved the target of 4,366.6 crores EUR,Optushas generated the revenue of 893 crores AUD,PCCW Globalhas
2MARKETING MANAGEMENT increased the market share to $589.3 crores AUD,Circles Asiahas generated more than 334.5 crores AUD,TPG Telecommunicationhas gained the strong share in the market which is around 249.5 crores AUD till the year 2017,MyRepublicis the other competitor in the market of Australia wherein the earnings of the company is $5 million till 2017 andStarhub has gained $2.44 billion till the year 2017 (Wang & Zhang, 2015). Analysis of Finding of Competitors Whilecompetingintheentiremarketwhichiscompetitiveinnature,the competition can be managed which will be suitable for the growth-related aspects in the competitive business environment. For a company, there are different direct and indirect competitors present that needs to be analyzed effectively. Direct Competitors-These are the ones wherein there are two or more competitors present in market that assists in providing same services in the market to the different customers and satisfy their needs effectively (Sammut‐Bonnici & Galea, 2015). They are recognizedthroughMarketResearch,SolicitCustomerRelatedFeedbackandonline communities on social media. Indirect Competitors-These are considered to be the ones wherein the two organizations manufacture and produce two different items; however, they target the same customers in the market and aim to satisfy their needs effectively (Rosemann & vom Brocke, 2015). They are acknowledged throughKeyword search and analyze SEO Results Page which plays a suitable role in managing the effectiveness. Analysis of Eight Direct and Indirect Competitors Direct Competitors
3MARKETING MANAGEMENT Singtel-It is one of the chief opponents of Telstra in the market of Australia wherein the revenues of the company are more which helps them in attracting large number of customers. Singtel has their presence in the international market including Australia and they havemorethan4.1millionsubscriberswhobelongtodifferentpartsoftheworld (Singtel.com, 2019). Vodafone-It is the second major competitor of Telstra wherein the company has been able to serve billions of individuals in international and national market and it has been one of the most effective aspects that has led to the strong growth in revenue of the company (Vodafone.com, 2019). Optus-It is the other opponent of Telstra wherein it is wholly owned subsidiary of the Singapore company. The company has generated various offers which are within the budget ofthedifferentindividualsthathashelpedtheminincreasingtheirmarketshare (Optus.com.au, 2019). Starhub-It is the telecom company that offers different promotions as well as deals to the different customers which has been effective in redeeming points and it attracts the different customers from various income groups and it has been successful in growing in competitive market (Starhub.com, 2019). TPG Telecommunication-It is the last direct competitor of Telstra which tries to offer virtual network operator that has been beneficial for them in making the usage by the customers in an easy manner (TPG Telecommunication.com.au, 2019). Indirect Competitors MyRepublic-Itisthemultinationalinternetorganizationwhichisindirectly competitive in nature for Telstra, however they try to offer the different packages which are
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4MARKETING MANAGEMENT not costly such as NBN Plans for satisfying requirements of the clientsn (Myrepublic.com, 2019). Circles Asia-It is the second most competitive companies which is the considered to be the virtual network operator operating in Australian economy and they have the cloud- based business model that helped the company in improving their status in the market (Circles Asia.com, 2019). PCCW Global-Lastly, it is the indirect competitor which works as the global network in different parts of the companies and it has been suitable for them in becoming the major competitor of Telstra as they offer similar packages like Telstra, however at discounted rates (PCCWGlobal.com, 2019). Creation of Competitor Analysis Grid CompetitorsInformation of Company Information of Products and Services Information of Customers Sources of Competitive Advantage and Data SingtelItistheleading telecomcompanies with4.1million subscribersthat provides customers with diverse range of services such as fixed,mobileand internetaspectsto customers(Steiss, 2019). Mobile Telephony, fixedline internet services alongwith digital television (Noeetal., 2017) Serving more than4.1 million customersor subscribers in themarket thathas helpedin gaining competitive advantage Sourceof gaining competitive advantagein the market is related to the offeringthe customers withthe digital television options which is not
5MARKETING MANAGEMENT available withother companies VodafoneItistheother Multinational Companythat offersthe customerswith differentinternet andtalktime packagesforthe differentgroupof individualsin nationaland international markets(Riasi, 2015) FixedLine Telephone, IPTV, Broadband andinternet television Vodafone has been successfulin serving more than millions of subscribers in themarket andithas beenhelpful forthemin gaining competitive advantage Themajor competitive advantageof thecompany isthe artificial intelligence incorporated indifferent aspects OptusItistheother largesttelecom companyinthe market which offers the customers with variouskindsof cableTVoptions alongwithother mobile connections (Phadermrod, Crowder&Wills, 2019) Fixed Telephony Data Transmission Ithasbeen successfulin providing the customers with the data transmission thathas helpedthem in growing in themarket andithas been beneficial approach Sourceof competitive advantageis theusageof the AI in the transmission of data StarhubIt is one of the threeDigitalThe companyDigital
6MARKETING MANAGEMENT major telecommunications whichhastheir presencein Australia and it is suitable for meeting the different needs ofcustomers appropriately (Daellenbach, 2015) Television, Cable Television, Telephone and Mobile hasbeen successfulin serving more than2 million subscribers andithas madethem effectivein comparison totheother competitors television and IPTV are thetwo artificial intelligence aspectsthat helpsthe companies in managing their growth TPG Telecommunicatio n It is the Australian telecomcompanies whichmainly specializesin businessand consumerinternet relatedservices alongwith providingservices ofmobile telephone. Internet Connections alongwith Mobile services Itservesthe different kindsof internet servicesto different income group customersin the market Themost cost-effective approachin dealingwith thedifferent plansfor mobile phonesto their customers MyRepublicIt is considered to be the multinational company which has theirpresencein theentiremarket and their plans are unlimitedwhich attractsmajor numberof Internetand thedifferent major aspects of the Digital television Serving more thanmillion ofcustomers intheentire market which is suitable for growth of the company Itiscapable oftargeting different income group individuals
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7MARKETING MANAGEMENT customers. Circles AsiaIt is considered to bethemobile virtual network that appliedthecloud- based aspects and it assists in managing the effectiveness. Thecloud- based technology aspectsand thedifferent IPTV It is effective in serving the different income group customers andserving them effectively The respective company has been successfulin becoming the virtual mobile networkand ithasbeen suitablefor themin innovating more through theAI schemes PCCW GlobalItisoneofthe indirect competitionsto Telstraasit providesthe differentkindsof aspectssuchas customizable mobile services Mobile Telephones andthe Internet Related Services Itserves morethan2 million customers that has been suitablefor growth The company is the indirect competitor; however, theyare capableof providing subscribers withthe different services whichare withintheir rangeandit makesthem
8MARKETING MANAGEMENT satisfied Assessing Current and Future Objectives and Strategies of Competitors Objectives of Direct Competitors To increase and radicallyimprovethe offerings relatedto product along with eliminating the pain points of the customers To establish the standalone infrastructure which will be beneficial in driving the performance in comparison to the other indirect competitors present in the market and it will be suitable for the growth of the company appropriately Strategies of Singtel Target Market The main target customers of Singtel includes the different customers who are technologically advanced in nature. However, the other competitors include the customers from different income groups that helps them in increasing their sales and growth prospects in an accurate manner (Chang, 2016). Marketing Mix Product-It sells different kinds of mobile phones, tablets along with broadband facilities which play a vital role in improving their effectiveness. Price-Ithasadoptedthecompetitivepricingthathelpedthemingrowthin competitive business environment. The other competitors include the undifferentiated pricing policy that helps them in gaining competitive advantage and improve their sales prospective (Arcos, 2016).
9MARKETING MANAGEMENT Place-Online platform has been used by them for facilitating services of the products and services. The official websites of the different companies are helpful for them in gaining competitive advantage within expected time frame and it improves the effectiveness of the services in an appropriate manner (Arcos, 2016). Promotion-There are different promotional offerings such as data doubling and it helps them in growth. There are different promotional tools such as discounted pricing policy that helps them in improving the visibility of the products and it enhances the growth of the company in an effective manner. Aspects Related to Marketing Singtel needs to incorporate the different kinds of policies and set different legal precedents on the broadcasting, telecommunication which will be suitable in enabling the maximum access to public such as technological aspects at lowest cost. Objectives of Indirect Competitors of Telstra To undertake the different activities which will be contribute towards the increased and proper access of public of such kind of technologies at lowest possible costs (Aithal, 2017) Strategies of Indirect Competitors Target Market The major target market of the indirect competitors are the ones who are not so technologically advanced, however they prefer to receive such services with less knowledge. Marketing Mix Product-Different internet services along with digital telephony
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10MARKETING MANAGEMENT Price-It includes the competitive and low pricing strategies Place-It is available in online and physical markets Promotion-It is promoted through the different online and offline channels such as internet or newspapers (Aithal, 2017) Aspects Related to Marketing In order to succeed in the competitive market, there are different strategies which can be adopted by the indirect competitors which includes the prospect related to introducing the other services like the direct competitors for improving their growth. Conclusion Therefore, it can be inferred that the competitor analysis plays a crucial role in managing the effectiveness of the firms in comparison to other companies which are the major competitors. It has been successful in understanding their growth prospects and set their own targets which will be effective in building their strong position in the market.
11MARKETING MANAGEMENT References Aithal, P. S. (2017). Industry Analysis–The First Step in Business Management Scholarly Research. International Journal of Case Studies in Business, IT and Education (IJCSBE), 1(1), 1-13. Arcos, R. (2016). Public relations strategic intelligence: Intelligence analysis, communication and influence. Public relations review, 42(2), 264-270. Chang, J. F. (2016). Business process management systems: strategy and implementation. Auerbach Publications. CirclesAsia.com (2019) CirclesAsia (online) Retrieved fromhttps://pages.circles.com [Accessed on 4thSeptember 2019] Daellenbach, U. (2015). Competitor Analysis. Wiley Encyclopedia of Management, 1-4. Myrepublic.com (2019) MyRepublic: Mobile Plans and Services (online) Retrieved from https://mobile.myrepublic.com[Accessed on 4thSeptember 2019] Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management:Gainingacompetitiveadvantage.NewYork,NY:McGraw-Hill Education. Optus.com.au (2019) Optus - Mobile Phones, NBN, Broadband, Entertainment and Sport (online) Retrieved fromhttps://www.optus.com.au[Accessed on 4thSeptember 2019] PCCWGlobal.com (2019) PCCW Global | Digital Solutions Delivered (online) Retrieved fromhttps://www.pccwglobal.com[Accessed on 4thSeptember 2019]
12MARKETING MANAGEMENT Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194- 203. Riasi, A. (2015). Competitive advantages of the shadow banking industry: An analysis using Porter diamond model. Business Management and Strategy, 6(2), 15-27. Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management.InHandbookonbusinessprocessmanagement1(pp.105-122). Springer, Berlin, Heidelberg. Sammut‐Bonnici,T.,&Galea,D.(2015).SWOTanalysis.WileyEncyclopediaof Management, 1-8. Singtel.com (2019) Singtel: Mobile, Fibre Broadband and TV services provider (online) Retrieved fromhttps://www.singtel.com[Accessed on 4thSeptember 2019] Starhub.com (2019) StarHub: Personal Mobile Phones, Broadband, TV, Voice (online) Retrieved fromhttps://www.starhub.com[Accessed on 4thSeptember 2019] Steiss,A.W.(2019).Strategicmanagementforpublicandnonprofitorganizations. Routledge. Telstra.com.au (2019) Telstra - mobile phones, prepaid phones, broadband, internet (online) Retrieved fromhttps://www.telstra.com.au[Accessed on 4thSeptember 2019] TPGTelecommunication.com.au(2019)TPG(online)Retrievedfrom https://www.tpg.com.au[Accessed on 4thSeptember 2019] Vodafone.com (2019) Vodafone - Prepaid | Postpaid | Callertunes | Buy New Connections (online) Retrieved fromhttps://www.vodafone.com[Accessed on 4thSeptember 2019]
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13MARKETING MANAGEMENT Wang, F., & Zhang, X. P. S. (2015). The role of the Internet in changing industry competition. Information & Management, 52(1), 71-81.