British Telecom Services Analysis: PESTLE, Five Forces, SWOT, and More

This report provides a comprehensive analysis of British Telecom (BT), a major player in the telecommunications industry. The analysis begins with an executive summary outlining BT's background, services, and recent challenges. The main body of the report delves into a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting BT's operations. Following this, a five forces analysis assesses the competitive landscape, including competitive rivalry, bargaining power of suppliers, threat of new entrants, and threat of substitute products. Furthermore, the report explores BT's internal resources, skills, capabilities, and core competencies. Finally, a SWOT analysis is conducted to identify BT's strengths, weaknesses, opportunities, and threats, providing a holistic view of the company's strategic position. The report concludes with a summary of key findings and recommendations.

British Telecom Analysis

EXECUTIVE SUMMARY
British telecom global service is company is division of the united kingdom
telecommunications. This was established in the July 2000. Currently it is working in the 180
countries. Earlier it was working as private firm. But after the Telecommunication Act 1984 this
became the public one. Employees working in the company are 17000. CEO of the company is
Bas Burger. In the beginning of the 2009 firm has faced the loss of £340 due to the resignation
of CEO François Barrault. Instead, if the sales of the company has face losses of £ 2.1 bn. after
the leaving of the Chief Executive Officer the company had faced many losses. The
headquarters of the company is in BT Centre London, EC 1 United Kingdom. This is providing
the services like telephone, broadband and many more. This report will study about the PESTLE
Analysis of British telecom. This report will more explain about the porter's five forces which
will impact the business. Furthermore, it will tell about the resources, skills, core competencies
of the company. It will also define the SWOT analysis of the company.

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
SECTION 1 PESTLE Analysis of the British telecom services ................................................1
Section 2 Five Forces Analysis ..................................................................................................3
Section 3 Resources, skills, capabilities and core competencies about the British telecom
services........................................................................................................................................6
Section 4 SWOT analysis of British telecom .............................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Telecom services mean the company that is handling the services of telephone and
broadband. It also involves the internet services, which are connecting the people of different
regions with the world. Telecom services not only provide facility of telephone but now internet
services is also there which are trending in the world. Telecom services is increasing the
connection of people. British telecom to provide quality services to customers. Without these
services, no one is able to talk or connect to people. This report will study about pestle analysis
of the British telecom services. It will explain further five forces framework which will define
about the micro environment analysis. This study will explain the internal analysis which
includes resources, skills, capabilities and core competencies. It will also study about the telecom
services.
MAIN BODY
SECTION 1 PESTLE Analysis of the British telecom services
British telecom services is a company which is providing the services that are connecting
to people. This company is a division of United Kingdom Telecommunication Company.
Currently, it is working in 180 countries. It was established in the July 2000 from the name BT
ignites. In this PESTLE analysis of British telecom services is explained:
 Political factors - internet facility is used by all people. Rules are frequently changing in
this industry. Now internet facility is the right of every consumer. This service is used
for educational purpose. It is the duty of British telecom services to provide good
network facility for the company. In these factors, laws are changing on instant basis and
it is affecting the work of the firm (Gillespie and Goddard, 2017). Person find it
difficult to work in this complex environment. There are various trade barriers which
affect the business. In this, lot of risk is involved, if any of the rules break in that case it
will affect directly to the business. Government is involved in this business because it is
making the rules related to it and by seeing them the company is making changes in the
working pattern . It is making the efforts to make changes in the
 Economic factors - it includes conditions which are prevailing in the market. Like
telecom industries are more affected by economic situations like inflation, depression,
recession and many more. At the time of inflation, prices are high through which the

customers have to face challenges in using that service. In cities, people are not worried
about it but in local area or regional area is get affected. In village there are not more
towers of the electricity as well as network the so it will affect their marketing.
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Nowadays, people are more affected by the economic situation. At the time of inflation,
Income level of the persons decrease. They will not be able to buy products and services.
This will affect their sales of the company. Firm will suffer loss in this situation. People
cut their spending and start to save money. Sale of the company becomes low. In this
situation, company’s owner minimises prices of the services as well as product.
 Social factors- it is now trending that most of the work will be done by the internet only
whether it is for educational, fun, marketing and many more. However, in rural area, it is
very difficult to spread the internet facility. People living there are more affected by
prices. It is a telecommunication industry is following the monopoly in the market. In
these, persons are more likely to connect the people. This industry is more affected by
social factors like more persons are not connected to the internet, only those people are
connected that are living in the city (Bai and et.al., 2017). Here, people are more aware
about society and make changes in that. In this, due to changing lifestyle of people, it is
affecting their preferences. Now the most important change is need of the telecom
services, on priority basis phone is there. Without phone person can't live. Life style of
people is also changing. Earlier for all related work people has to go to shop but now it
seems easier. Many new system are introduced which makes the work easy by online
method.
 Technological factors - now there is more technological advancement in recent years.
Earlier telephone wires were not coated properly now they come in fibres over copper
cover. Now all system is using the wireless connections like in cars, ACs and many
more. Payment is also through online basis. People want features in phones are caller id,
messaging, voice mail, the latest features.
Through technology, there is a need of advancement for people. Telecom industries need
to be more advanced to reach rural sectors. The deficiencies of product as well as
services are recovered by the regular improvement in the product. By making the
technological advancement is boon to the company as well as industry. The world need
changes on the instant basis. This is making the people to do work in smarter way. On
regular basis, there is improvement in the product and all companies need to adopt
changes so that they can be ahead of their competitors.
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 Legal factors - under the telecom industry impact is directly affecting their business.
There are many issues with the government, monopolies and customers. Earlier, there
were problems in international calls but now the issue is resolved. There are more
changes in the industry which are due to the laws (Bai and et.al., 2017).
According to the laws, changes are implemented in this. It will contribute in the
development of this industry. The employees under this are more likely to changes
which are prevailing. Only in laws the changes are there and which has to be
implemented in the industry. It is helpful for workers and their overall development.
 Environmental factors - due to the climatic changes, industry's products and services
are more affected. Due to this reason, it needs to adapt changes in services. For
advancement here is needed to employ more people. There are more products which are
lacking in advancement of the product. One version of the product is updated with
making changes in the existing product. Telecom services must take care of the
environment because mobile phones are made up of plastic and it does not get disposed
easily. Company make sure that make one recycle bin in which all the waste material are
kept and company will use that material again. It will contribute in keeping the
environment clean.
Section 2 Five Forces Analysis
Under this five forces analysis how firm can move ahead from its competitors this is
affecting the internal factors. The five forces are:
11 Competitive rivalry - in this, it covers telecom companies which are facing the high
competition. There is more intense competition because of the increase in the
competitors. It affects their pricing strategies. Then more will be the competitor because
all the companies are selling the same products (Mezza and et.al., 2018). In this, all the
company has to determine the different pricing strategies to differentiate from others. It
is the duty of firm to ensure that all the implantation of different advertising can more
affect business. All firms are making sure that all they are moving ahead from other
firms. All entities want be on the top. For this, all of them set different prices in order to
achieve company's objectives. British telecom company is also facing many challenges
due to the increase in the competitor. Company is facing many issues because of the
increase in competitor and these threaten the company to grow properly. Solution to this
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problem can be, add new features in the product and services which will attract the
customer. In this business all about making the changes in the existing product and
services. To differentiate from others adding changes in the product is necessary and
without this survival will be difficult.11 Bargaining the power of suppliers - at the time of supplying, material it is the duty of
company to minimise the cost of material which are prevailing there. Suppliers have
more power in comparison to others because they are the sole of the company and
without them, the work of company can stop. By getting regular bargain the cost of the
company will decrease and profit will increase. There are number of the supplies
available but by making good relations with them, there will be minimum chances of
facing this type of situation. The more customers will bargain and it will directly affect
the customers. In British telecom company supplier is more important is in the business.
If prices are increased by the supplier in that case their will be loss to the company
(Zhouand and et.al., 2018). The more bargain is by the supplier more loss to the
company. For changing the supplier for the company is the more costly. So before
making the decision must consider the all factors and consequences for this decision, it is
the duty of the firm only to work with making good relation.11 Threat of the new entrant - the more competitor will be enter the market the more it
will affect the working of the industry. It will be more threat to them. There is more risk
in the company the more will be new entrant the chances of existing company to become
unsuccessful are higher. It will be difficult for any of the firm to enter in the new market.
It is riskier. For entering in the industry it is more difficult for new firms because all the
firms are more established already and in that case new entrant is very difficult to make
place in between. In initial years company has face loss but once it is settled properly in
that case there are chances of becoming the successful. For entering in this industry is
more difficult for the British telecom industry. Company has faced many challenges in
the initial years now it has become more successful in making changes in services which
maker the product more interesting .11 Threats of the substitute products- the more will be substitute products the more will
be competition in the industry. In thus all the firms has the threat of lacking behind from
competitor. If other company is selling the same product at low cost and because of that
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firm is facing problems of the in moving of moving ahead from the others. At low cost
products, customers will move to that firm only (Namiot and Sneps-Sneppe, 2017). it is
the duty of the firm to try with additional features in the services which will help them to
increase in the sales as well as fear from competitors. Other firm want to attract the
customers by keeping low cost and after that they have started to high the prices . This
pricing strategy is called penetration. Most of the companies attract the customers
through this only. For example all telecom companies has faced the challenges when the
reliance firm has launched the jio at free of cost. Through this strategy all other
companies couldn't cope up with that and face losses. This was to attract mass audience
and after that company is charging prices because all the customers has already moved
towards them and now they have to pay the prices of that.11 Power of the customers - it ids the power of the customers to rise and fall any company.
Every company wants to attract the customers by fulfilling the needs and wants of them.
It is duty of the owner to fulfil l the demands which are desired by consumers. More the
company is attracting the customers the more will be profit earned by them. Customer is
the only one who has the ability to rise and fall the company. By providing quality
services and post sale services will attract customers. Customer only want that product
which are made fulfilling demands. Company which has more customer power is having
good position in the market as well as in the eyes of world. Once the client become loyal
to firm in that case no one can influence him. British telecom services is having the large
number of the customer base and it is attracting the others to join them. Due to two
reasons the firm is successful are providing the quality services and the making the long
term public relation and post sale services are increasing customer base and sales as well
(Ali and et.al., 2017).
All these five porters forces us helping the company to attract the customer and support firm to
increase the more sales. British telecom services are more helping the firm to get the attention of
the firm. Mostly all firms follow this and try to make regular improvement in the product as well
as company. This telecom services are using this make lot of change for the growth of entity.
Services are provided by the firms are same but knowing to differentiate the one firm from other
and try to achieve targets of the company. In order to achieve targets firm has followed this
strategy.
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Section 3 Resources , skills , capabilities and core competencies about the British telecom
services.
British telecom company has facing many challenges that's why they shut down the all
call centres of the company which are present in India. This company is facing issues which are
very difficult for the firm is to continue in the business.
Human resources: in same industry every firm has employees who make differentiate
from others. All firm has the employees who has different backgrounds and culture and mindset
and it is up to the owner to make the only how to deal with them. These are the employees who
are doing all the work at initial level. Superior shows the path to employees and make them
understand the prescribed rules under which they have to work (Bain and Taylor, 2017). To
retain employees the firm has to provide the facilities which workers is deserving. If all the
issues as well as facilities are provided to employees in that case retention of employees are more
in the firm. British telecom is training the employees so that they can work in better way. In
order to achieve objectives of company make sure that all workers are satisfied by the firm .
Employees are doing the main work of company and if they are satisfied then it will be more be
opportunity for the firm to achieve bigger targets.
Financial resources: company must have the enough funds from which the entity can
run its business. Money is necessary for all the work which is essential for organisation. Finance
department has allotted the funds according to their need. Every department must manage their
funds in that only. Proper planning is necessary so that employees can do their work without any
scarcity. Fund availability is most important and without it no one can do its business. Money is
needed in the every task, from the promotion as well as purchasing raw material. Pre planning
makes it easy. Firms allot money through needs of every department. In British telecom services
the funds are given according to decided by the finance section(Bissyande and et.al.2017) .
Server system: in British telecom company , its work is related to computers only. All
computers are connected to servers. So the server system must be working properly. It is internal
factors of the company. If any problem is faced due to server then firm has to face huge loss . It
is the duty of the technical department to look after all the issues which are prevailing in the
industry. Server system of the company must be advanced enough so that any discrepancy can be
handled easily. If server system is affected then all the computer that are connected with it and
its working will affect organisation.
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Network distributors: network distributors are one who are providing the network to the
company but the company has to look after the resources and work accordingly. The company is
related to providing telecom services and make the quality network so that working will be
easier. For this different tools which are used in the providing the quality services. British
telecom services is American company which is providing the best facility at global level (Dike,
and Rose 2017).
Tangible: it includes the all the physical resources on which firm is working. This
includes the computers, raw material, customer base and many more. Computers are core part of
the firm on which workers are working. Owner or authorise person are responsible that any
issues which are prevailing in the entity and try to solve them. For various industries their
tangible assets differs from other. Like in manufacturing industry the firm is having machines as
the assets, in telecom computers are the tangible assets. To maximise customer provide them
quality services to customers. By attracting the customers towards the company automatically
sales will increase.
Intangible: it includes the services which are provided by the company. It cannot be
touched. This includes the knowledge, skills, aptitude. Knowledge about the work is most
necessary through these workers knows about their work. For getting knowledge it is preferred to
read magazines and learning by working. Skills having by the employees know the most of the
functions of the computer, know that if any problem which is faced in that case he can easily
solve them. At the time of appointment only ensure that persons who are coming must know the
skills related to the computers. British telecom services is doing the work on computers only.
Core Competencies:
Regulatory experience - unfortunate business opportunities firm can make any time but
the telecom services remains the regulated enterprise. For making the optimistic results firm is
making the relationship with the personnel of the government department.
Market intelligence - now the market scenario in changing, consumer are becoming more
advance (Gillespie and Goddard, 2017). They need to make changes in their strategy relating to
the product or service which will help them in differentiating in the product or service. For
understanding the market also the firm needs to make a plan for future purpose that reduce the
future risk from this it will help to take appropriate decisions. It is making helping the firm to
move ahead in development path. Buy adding the more features to services will make the service
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separate from the others. In order to increase the sales of the firm only quality services with low
prices will make the firm more recognition in the eyes of the world. British telecom services is
doing the work to achieve the target of the firm.
Innovative thinking- in every business something is new is needed by the firm. It will
help the firm to sell it with adding more features of it. Customers shows more interest in new
products and if they found suitable in then it will help the firm to grow its market size. It is more
likely by the customer to consume that product and services which is fulfilling the demand of
them. Owner always try to make something new in product and services so that it will maximise
the status in the market (Kentis and et.al., 2018). It supports the company to make recognition in
the market.
Multi generational organisational skills - in this organisation is making the efforts to
follow the multi tasking by the persons. Person can do different tasks at one time and many
managers and the persons who are authorised can doing the work. In organisation multi skills are
required and for that people has to use the different skills at one time. Like manager is doing the
multi tasking of planning, directing, organising. Controlling and more and using these skills to
take decisions.
Analytical skills - in changing environment the people has to take the diverse decisions.
In the telecom company the firm is taking the decisions according to that. Firm is making the
decision and it will recover the all the gaps which are hindering in the development path. British
telecom company is making to cover up the deficiencies which are prevailing in the market.
Implication of taxes is also affecting in the business. British telecom services is the company
which is taking the decisions which are related to the growth and development of the company.
All the skills, knowledge, resources and more is affecting the firm internally (Levi-Faur, 2018).
It is the duty of the company to take decision which are contributing towards the moving ahead
of its contenders.
Section 4 SWOT analysis of British telecom
British telecom (BT) is a multinational telecom service company. Internal and external
analysis show the currently report of the company.
Strength
 BT has healthy balance sheetwith
strong financials and also strong cash
Opportunities
 British Telecom developing their 5G
network though partnership strategies
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flow of 18,909 million in last financials
year 2016.
 They have maintained strong
relationship with customers.
 They also provide lot of offers services
to their consumer with effective price.
 This company has 90,000 employees
for providing the services to their
customer.
 They provide excellent services rather
than other telecom industry and have
560 communication providers use their
network services.
 They gave better potions in the UK
market .
 They providing quality services to their
customer in digital television, mobile,
broadband internet and IT services.
 This company are also the second
largest services provider in TV sport
channels and leader in broadcasting
technology.
with Nokia and Huawel.
 Today 5G connectivity is better than
any of the network so they have huge
opportunities.
 BT take first steps in collaborating with
Nokia for the purpose of developing
5G.
 This company is also introduce new
products and services. They launch new
European football content in previous
year.
 They expand their business in
according to customer demand.
 They also increasing their services
demand in 3G technologies as well as
growing their business in
telecommunication services.
 They have to need major revival to
compete and they face global
economic depression in their
workplaces and improper management.
Weakness
 They have limited liquidity in the high
growth Asia pacific Region. They have
no effective business strategies towards
promotion of product and services and
some times they also arise financials
crises.
 They have to need large global
Threats
 Large number of competitors in market
like Vodafone so they decrease their
profit dues to cheaper competitors
offering.
 Pressure of government rules and
regulation regarding prices, licenses
means government control all the
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network, it is very important for
improving their services, if these
organisations is not focusing their
quality services so they have no value
on their products from market as well
as customer perspective.
 Customer are not satisfied with their
services and they have nor developing
their mobile business in proper way.
policies of the business. They select
their prices in according to government
norms.
 Poor economic condition is also threats
in their business. These organisations
sell their product and services with
effective communication, but is not
important if other competitor are not
trying to cut their budget.
 So they need to improve their
technologies and need to introduced
new product with innovation.
Strengths, weakness, opportunities and threats are also showing the current status of the
company. It also helps to coming opportunities and threats of the business. BT company is
focusing on maintaining good record with providing quality services in phones calls, and they
sell their products in according to customer demand.
Strengths is also used in decision making of the BT company. They maintain their strong
relationship with their customer and difference types of nation. This aspect is very important if
these organisations is maintained their network with peoples so they increase their profit margin
and produced quality products. They also expand their business in different country. So strength
is also helpful for making effective decision regarding growth of the company. Strength shows
the healthy and strong connectivity with clients (Yoon and Jeong, 2018). It will help to
generating revenues of this firm. They also maintained their image not only UK market as well
as almost country. It will help to making better position in the not only local area they also make
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great position all over the world. If they make effective decision regarding their
telecommunication business.
Weakness shows the actual condition of the business this factors is also used in decision
making of BT company. So they need to explore their business national and international level.
They also making business strategies like internal audit. It is very effective in decision regarding
to the long term growth of the company. These organisations need to internal audit, it helps to
make independent objective of the business. It will help to improve organisations operations
and help to achieve the goal of the organisations. It is also important for indemnifying the risk
factor of this company and help to control financials crisis. They need to maintain their budget it
will be helpful for adopting new technologies in their firm. If they make better decision so to
develop their mobile business in all nations as well as they promote their services, products.
They also focus on their customer complaints so these organisations is try to remove consumer
general problem like voice calls, network issues. So they need to take right decision regarding
their business strategies.
Opportunities is also helpful in making effective decision in BT organisations. They
make better decision regarding increasing their demand so they use new technologies and
expand their business in different regions. They need to improve their technologies for the
growth of the telecommunication services it will be very helpful for coming opportunities of this
company. They increasing their work in effective manner (Zhouand and et.al., 2018). It will also
helpful for launching new products and services in the market. So opportunities is also helpful
for decision making it is very essential part of the business it provides lot of chances for growth
of the firm. This concept is also helpful for making decision it also useful for the coming
opportunities of the business increasing their product value in UK market.
Threats it is also essential factor that is used in decision making so BT need to improve
their services quality so they make better decision quality. So this company focus on their
quality services, it is important for increasing the profit margin and it will help to face
competition with their competitors in marketplaces. If this company focus on profitability so
they need to raise their fund and taking risk for high return. So the need to manage their fund in
proper way. It is useful for stability of the business in long time and all the operation work in
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smoothly manner. It will be helpful for growth of economic as well as improve the financial
conditions of the company.
CONCLUSION
It can be concluded that challenges faced by the British Telecom industry with internal
environment. This report can explained the main factor impact on the company performances.
This report is also described the micro environment with applying external forces f the industry.
It is important for identifying the need of the UK Telecom organisations. This assignment
report is also defined the structure analysis of the internal environment of the BT company. The
main purpose of the report identifying the key issues of the industry. It is helpful for inform
decision making related to the recent business strategies. BT is key player in UK
telecommunication sector. This company is also faced internal and external challenged in their
business. So they also improve their quality services and making effective decision for the
growth of the industry. This report is also discussed the strength, weakness, opportunities and
threat of the business and is effects on decision making. It is also helpful for showing the actual
performances and need of the business. This company is also contributes their services several
nations and they main motive to increasing their profitability of the business with making
effective business strategies. It is helpful for stability of the business in long time.
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