Strategic Management of Telstra - SWOT, Porter's Five Forces Analysis

This report provides a strategic analysis of Telstra, an Australian telecommunication company, through SWOT and Porter's Five Forces analysis. It includes an analysis of the telecommunications industry in Australia, competitors of Telstra, and the resources of the organization. The report also highlights the strengths, weaknesses, opportunities, and threats of Telstra.

Running head: STRATEGIC MANAGEMENT OF TELSTRA
STRATEGIC MANAGEMENT OF TELSTRA
Name of the Student
Name of the University
Author Note

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STRATEGIC MANAGEMENT OF TELSTRA
Executive Summary
The report is based on the strategic analysis of an organization based on the appropriate
models or frameworks. The organization which has been taken into consideration is Telstra
which is Australian telecommunication company. The internal environment of the company
has been analysed with the help of the SWOT framework. The telecommunications industry
of Australia has been analysed with the help of Porter’s Five Forces framework. The
competitors and the resources of the organization have also been analysed in the report.

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Table of Contents
2. Project Part B.............................................................................................................2
Analysis of the industry with Porter’s Five Forces model.........................................2
Analysis of the competitors of Telstra.......................................................................3
Analysis of resources of Telstra based on Resource based theory.............................3
SWOT analysis of Telstra..........................................................................................4
References......................................................................................................................6

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2. Project Part B
Analysis of the industry with Porter’s Five Forces model
Threats related to new entrants – The entry of new organizations in the market is
able to bring innovation and new ways by which things can be done. Telstra thereby needs to
manage these challenges that can occur in the highly competitive telecommunications
industry.
Bargaining power of the suppliers – The suppliers play an important role in the
telecommunications industry. Telstra needs to increase the efficiency of its supply chain in
order to operate in the market in a profitable manner. The suppliers who are in a dominant
position are able to use their bargaining power in order to lower the profitability of Telstra
(Dobbs, 2014).
Bargaining power of the buyers – The demands that are created by buyers in the
market also plays an important role in the successful operations of organizations. Telstra can
increase the customer base in order to decrease the power of the buyers.
Threats from the substitute products – The profitability in the industry or an
organization like Telstra suffers if the needs of the customers can be easily satisfied with the
help of products that are offered by other organizations.
Rivalry among the existing organizations – The intense levels of rivalry among the
organizations which operate in the market are able to affect the prices of Telstra. The
organization thereby needs to create an effective competitive advantage in the market in order
to increase its revenues (Durand, Grant & Madsen, 2017).

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Analysis of the competitors of Telstra
The major competitors of Telstra Corporation in the telecommunications industry are
Vodafone and Optus. The telecommunications market of Telstra has been totally heated up
with the competition that has started in the market. The organizations are thereby fighting to
provide the lowest prices to the customers and best levels of service as well. The companies
are also aiming towards implementing the new technologies in their operations so that they
are able to create an effective competitive advantage. Telstra has been holding the topmost
position in the market. However, the company needs to continuously improve its services in
order to maintain its position in an effective manner. The Australian market has also provided
huge opportunities to the organizations so that they are able to serve the customers with better
products and services (Ethiraj, Gambardella & Helfat, 2018).
Analysis of resources of Telstra based on Resource based theory
Telstra has been successful in the creation and maintenance of resources which have
been a major part of the success that the organization has experienced in the industry. The
cloud infrastructure that has been built by the company has become an important part of the
success that Telstra has seen in the telecommunications industry (Telstra - mobile phones,
prepaid phones, broadband, internet, home phones, business phones., 2018). The cloud
experts of the company are highly supportive to the customers and have been able to create a
flexible network as well. Telstra has also created an effective security management system
which has helped to protect the data of the customers.
The reputation of the organization has also been protected with the help of the
efficient services which have been provided (Hill, Jones & Schilling, 2014). The company
has been providing the technology solutions for many organizations which have helped them
to build their infrastructure as well. The organization has provided automation based
solutions to business firms which were based on old methods for their business operations.

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The levels of efficiency of business operations of these organizations have also increased
with the help of these solutions. Telstra also has an effective and efficient workforce which
has also played a major role in the ways by which the company has maintained its position in
the telecommunications industry (Hitt & Duane Ireland, 2017).
The Resource Network management team of the company has been able to maintain
the operations in an effective way. The complex processes of organizations have been
changed and new and improved operations have been implemented in the client
organizations. The cost of operations has also been reduced in the process which has been
helpful for the successful operations of Telstra in the telecommunications industry of
Australia. The resources that have been maintained by Telstra has thereby been helpful for
the maintenance of its position in the industry (Meyer, Neck & Meeks, 2017).
SWOT analysis of Telstra
Strengths – Telstra is considered to be one of the leading organizations in the
telecommunications industry of Australia. The brand image has been able to provide the
organization with a huge competitive advantage. The suppliers of Telstra are highly reliable
in nature and create an effective supply chain network. The community of dealers of Telstra
is also strong enough to create its position in the industry. The organization has also been
able to show high levels of performance in the new markets of its operations. This has proved
to be a major strength of Telstra.
Weaknesses – The company needs to make more investments in the new and
improved technologies which will be helpful in its operations. Financial planning related
activities also need to be performed in such a manner which will help the organization to
thrive. The research and development based investments of Telstra also need to be increased
(Michael, Storey & Thomas, 2017).

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Opportunities – The decrease in the transportation costs can help in the reduction of
operating costs of the company. The online channels are also providing huge number of new
customers to the organization which have been helpful in its successful operations. The new
trends which have been detected in the behaviour of consumers has provided Telstra with
whole lot of new opportunities.
Threats – The high rates of imitations which have started in the telecommunications
industry has posed a threat to the profitability of Telstra. Skilled workforce is also lacking in
the organizational processes which are able to cause huge pressure on the revenues of Telstra.
The organization has also many lawsuits recently due to issues that have occurred in the
product standards. This has caused a threat to the reputation of Telstra in the market (Meyer,
Neck & Meeks, 2017).

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References
Dobbs, ME (2014), 'Guidelines for applying Porter's five forces framework: a set of industry
analysis templates', Competitiveness Review, vol. 24, no. 1, pp. 32–45.
Durand, R., Grant, R.M. & Madsen, T.L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Ethiraj, S.K., Gambardella, A. & Helfat, C.E. (2018). Theory in strategic
management. Strategic Management Journal, 39(6), pp.1529-1529.
Hill, C.W., Jones, G.R. & Schilling, M.A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Hitt, M. & Duane Ireland, R. (2017). The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Meyer, G.D., Neck, H.M. & Meeks, M.D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. & Thomas, H. (2017). Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new
mindset, pp.45-65.
Telstra - mobile phones, prepaid phones, broadband, internet, home phones, business phones.
(2018). Retrieved from https://www.telstra.com.au/