Telstra Strategic Report

This strategic report analyzes the current strategic and competitive position of Telstra Corporation, evaluates the internal and external environments, and provides recommendations for growth and market share increase.

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TELSTRA STRATEGIC REPORT
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Abstract
Telstra is leading in the industrial sector by embracing innovation and taking up novel business
chances. The company is deliberate as most superior service provider because it has been
successful in transforming itself into a full service ICT firm. This paper has used the tools of
strategic analysis to weigh up the current strategic and competitive position of Telstra
Corporation. In addition, this report drew attention to discuss a number of aspects of internal and
external environment. The paper recommends that organisation should enter overseas market and
increase its market share. Telstra should also concentrate on the monetary functions, and
concentrate on mass customisation, functions and co-branding with other companies. Finally, it
should emphasis on the reporting systems and monitoring strategic risk management systems.
The paper concludes that the company should advance customer satisfaction by upgrading its
service and product range.

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Introduction
Telstra Corporation Limited is a service provider of telecommunications, information services,
and network platform businesses and the ex-state owned monopoly offers conventional
telephone-service to homes and industries, adjacent and long-distance service, mobile
telecommunications, and an inclusive range of data-services, comprising Internet and online-
services (Telstra Annual Report 2018). At present, they have ventured in networks upgrades and
are the first launcher of mobile data services. The telecommunication services offered by Telstra
are centred on ubiquitous, robust and affordable infrastructure that can assist the firm to move to
the subsequent level (Crozier 2010).
The rationale of this report is to evaluate strategic decisions of Telstra, to assess the competitive
position, to consider the internal and external environments, and recommend based on strategic
gap. This company analysis of Telstra has used the tools of strategic analysis to weigh up the
current strategic and competitive position. In addition, this report drew attention to discuss a
number of aspects of internal (TOWS, company’s mission, vision, and competitive advantage)
and external environment (PEST and porter five analysis).
External environment
PEST Analysis
Political:
Currently, the political atmosphere in Australia is quite stable; however, the telecommunications
industry is greatly affected by repeated alterations of government and policy makers’
Economic
The telecommunications industry can be altered by shifts in demand, rising inflation rates,
irregular interest rates, variable exchange rates and growing taxation rates. The company is
failing to safeguard its funds for the growth of the economy; it might think about lowering some
rate of its telecom and broadband networks as well (Reuters 2010).

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Social/Cultural:
The company is glad to afford a safe and friendly atmosphere where workers are appreciated and
have a prospect to attain their complete aptitude; it is also committed to stop pollutions of the
environment.
Technological:
Telstra is expecting to deliver the greatest technological support to customers by inspiring R&D,
enhancing its relationship with technology-providers, and developing its IT platforms (Telstra
Annual Report 2018).
Porter’s five forces model of Telstra
Threats from new entrants: The threats of new entrants are moderately low for Telstra
Corporation, as new companies would require large investment to penetrate telecommunication
market but investors would show less interest to invest this sector to develop new brand image
(Telstra.com.au 2016).
Bargaining power of suppliers: Telstra is continuously purchasing such network tools, IT and
software from national suppliers and maintain a sound and mutual relationship with them and
clear payment on time (Telstra Corporation 2010).
Bargaining power of buyers: the customers are continuously asking more and upgraded services
from the intended servers, the bargaining power is comparatively higher in telecommunication
industry.
Threats of substitute products: As Telstra is Australia’s dominant provider of fixed line services,
Cell Phone and Internet services, and industry is not facing a higher competition from substitutes
that indicates the threat of substitute products is low (Telstra Corporation 2010).
Rivalry among existing firms: Some major industry competitors of Telstra Corporation are
SingTel Optus, Hutchison, and AAPT, whose are targeting and operating at the same market in
terms of engaged themselves in stronger price, market share, and technology war (Lancaster and
Harpur 2015).

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Internal environment
Telstra’s Vision, Mission and Values
Culture: the Telstra’s products and series are most famous to the users as its value is to
comprehend client demand, uphold good relationship with the subscriber, ensure reliability, and
keep promise (Telstra.com.au 2016).
Vision: the firm is operating upon the wide vision of keeping its leadership operational
orientation over the Australia and its vision is to grow the way individuals live and work.
Mission: all the routine of the company is geared by its mission who is to create the best and
simple “technology & content solutions” (Telstra Corporation 2010). The company strives to
understand and serve its users better than anyone else in the market, which lead them being a
responsible and profitable corporation.
TOWS analysis
Threats: the key threats encountered by the company are Australia tax rate keep varying.
Therefore, the company keeps on varying the services prices and this makes the users to get
confused. Even though the country is leasing in the communication and technology markets, the
rival firms are not less either (Reuters 2010).
Opportunities: The firm takes full advantage of its associates Hutchinson and is attempting to
create a full control over the 4G services (Telstra Annual Report 2018). As a result of advanced
of 3G and 4G, the company is generating a massive profit annually. The company is controlling
their 4G service by spreading it to cover about 80 locations in Australia (Strang 2010). The
enterprise has come up with a novel advertisement to represent the customers’ diversity.
Weaknesses: The firm has set a high rate for its products and services as matched to its
competitors business such as Vodafone and Optus. The populace living in metropolitan centres

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and regional town areas are still not being capable to use 4G services. The marketing approaches
of the company are wholly concentrated only in the Australia users (Telstra Annual Report
2018).
Strengths: the company is successful is minimizing the labour cost. It has a dominance rank in
the market as result of high revenue and profitability and has earned a good repute in the market
over the previous years. The present distribution channel is an effective and user’s demonstrates
a high level of satisfaction for the services that has been offered through such distribution
channels. The firm has been able to install their websites and stores all over the globe (Telstra
Annual Report 2018).
Competitive Advantage (Resources and Capabilities)
Telstra has more than 1.7 million broadband customers, about 2.1 million square kilometres
GTM network, and 80,000 retail customers, who visit its store every day (Telstra Annual Report
2018). In addition, it has strong financial, organisational, and technological capabilities for
further development though there are complain against that Telstra violated competitive
neutrality concept by asking higher charges (Ting 2010).
Recommendation
 It should enter overseas market by following foreign entry mode strategy because it has enough
financial and technological capacity to capture global market (Walker 2015).
 Telstra should concentrate on the monetary functions for having greater visibility as well as
control on financing activities.
 Moreover, it should concentrate on mass customization, functions and co- branding with other
companies.
 It should emphasis on the reporting systems and monitoring strategic risk management systems.

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Conclusion
Telstra customers are the key asset of the company, so it works to advance customer satisfaction
by upgrading its service and product range. It has strategy to invest for long-term growth, to
sustain in the market as a market leader, and to differential products to increase market share. For
revitalizing revenue and lowering rate of its telecom and broadband networks as well, Telstra has
brought Telstra Technology together with business-unit product development parts, network
technologies, IT systems and Telstra Research Laboratories.

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References
Crozier, R. (2010). Testra promises to cut prices to keep customers. Retrieved on 29 March,
2019 from: https://www.crn.com.au/news/telstra-promises-to-cut-prices-to-keep-customers-
224378
http://www.reuters.com/finance/stocks/overview?symbol=TLS.AX
Lancaster, H and Harpur, P. (2015). Australia – Telco Company Profiles – Telstra, Optus and
Vodafone Publication Overview. Retrieved on 29 March, 2019 from:
https://www.budde.com.au/Research/Australia-Telco-Company-Profiles-Telstra-Optus-and-
Vodafone
Reuters (2010). Telstra Corporation Limited (TLS.AX). Retrieved on 29 March, 2019 from:
Strang, K. (2010). Comparing Learning and Knowledge Management Theories in an Australian
Telecommunications Practice. Asian Journal of Management Cases, pp. 33-54.
Telstra Annual Report. (2018). Telstra Annual Report. Retrieved on 29 March, 2019 from:
https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf%20F/2018-Annual-
Report.pdf
Telstra Corporation (2010). Culture, Vision, Mission Statement. Retrieved on 29 March, 2019
from: http://www.telstra.com.au/abouttelstra/company-overview/vision-and-mission/
Telstra.com.au. (2016). Purpose & Value. Retrieved on 29 March, 2019 from:
https://www.telstra.com.au/aboutus/our-company/present/purpose-values
Ting, J. Y. (2010). More responsibility needed in advertising related to encouraging mobile
Internet device use while engaged in another activity. Australian and New Zealand Journal of
Public Health. vol. 34 no. 4
Walker, O. (2015). Marketing Strategy: A Decision-Based Approach. McGraw-Hill Education
Australia, pp. 12-16.

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Appendices