Telstra’s challenges due to global competition

Managing
in
Global Business Environment
Telstra’s challenges due to global competition

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In all across the globe competition has raised to the highest of levels irrespective of the
industry in which they are working in. Such competitive environment also exists in Australia.
This leads to huge challenges for the companies in the country. Telstra is one of the biggest
Telecommunication companies in World and the largest in Australia (Peng, 2016). This
company provides its services in the fields like providing telecommunication network. In this
they gives services like voice calls, internet access, mobile, pay television as well as other
products and services. There is a change in the nature and the demand of the market which
company will have to respond to so as to gain competitive advantage. In this type of
competitive environment it is essential that company focuses on increasing their business
reach as well as improve the core competencies. It depends on the strategies made by the
company that how they are able to cope up with these challenges related to international
competition.
The first and the most basic challenge that Telstra is facing is the cut throat competition. With
so many companies emerging in the market offering services at lowest of costs, retaining
market share has become difficult (Wettenhall, 2011). Management of Telstra needs to ensure
that they understand the nature of competition as well as the strategies made by the
competitors so as to make the strategies accordingly. This will help the firm in placing
themselves at better positions in the market. Another important and very crucial factor that is
changing the global telecom market is the technology. In this industry technology has
expanded in multi folds and the global players have huge amount of technological resources
to expand their business. Since the research is going on in various parts of the world hence
Telstra will have to be ready with their plans to face this business challenge. This can be done
by bringing some kind of disruptive technology (McFarlin & Sweeney, 2014).
A report by company suggests that there will be fixed cost decline by around 7% in the
financial year 2018. This might show a decline in the overall revenue of the company. The
major reason for it is the emergence of new competitors in the market. In order to overcome
this company has led many strategies which also includes new kinds of investments
especially in the emerging technologies. Switching to IoT is one of the major challenges for
the company (Binder, 2016). This also includes transport links, autonomous mine sites and
port logistics. The number of devices on the network is increasing especially in terms of the
sensors, trackers and monitors. With the increasing demand for the data rates, it is a challenge
for the company to provide them to all the consumers. The recent price competition between
Vodafone and Telstra has been very intense which has benefited their customers. Along with

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this there is an immense increase in the quantity of data that is generated in the business
operations. All these data are crucial and needs to be managed in a proper manner so as to
gain appropriate information from it (Deresky, 2017). Global environment challenge is
becoming very big and companies like Telstra needs to work on managing the use of the
technology that is emitting less radiation or in other words creating less health issues.
Installation and use of technology in the residential area needs to be rechecked.
When it comes to upgrading technology, training becomes a very tedious process. It is to be
noted that providing training to the people that are from different cultural backgrounds can be
a difficult process. Training is important for the employees at every level of the organisation.
Training must also be provided in terms of ethical concerns linked with the improper use of
technology so that such issues do not arise in the business process (Verbeke, 2013).
Trade deficits among countries have increased with the powerful nations becoming more
powerful while the poor countries still seeks external help. Along with this there are new
centres of economies getting generated in the world. This has challenged the preposition of
the world’s economy and the affect can be clearly seen with the examples like downfall of
European economy and the slowdown in the American economic growth. This has also
affected the Australian economy and hence Telstra’s expansion plan has also been affected.
Managers of the company have to be ready with a plan that has pre-calculation regarding
Return on Investment. The most exact calculation that company needs to do is regarding the
use of resources as well as mode of entry that they select for their expansion into a nation
(Sinha, 2012). In the amount political risk that exist in the global business it is a bigger
challenge for the company. The decisions like Brexit change the global business environment
for which Telstra needs to be ready with.
Global Human resource management is another greater challenge for the International
managers. This is due to the fact that the demands of the employees are increasing. Meeting
these demands could involve an extra cost from the company pocket and not meeting these
demands could lead to situations like strikeouts or lockouts. Cost saving has become one of
the major goals of the companies all around the world. In the large companies like Telstra
there are many employees working from different cultural backgrounds and hence it becomes
important for Telstra to have an efficient diversity management policy (Schuler, Jackson &
Tarique, 2011). This might be strengthened from the fact that Australia has a huge number of
students studying from different countries giving them equal chance into their company has