Optus: Innovation, Market Analysis, and Commercialization Report

This business report focuses on Optus, the second-largest telecommunications company in Australia, and its innovation process. The report delves into market and economic analysis, identifies problems in the innovation process, and proposes solutions. It explores the commercialization of innovation within the organization and its impact, utilizing tools like SWOT analysis to assess strengths, weaknesses, opportunities, and threats. Key topics include market segmentation, perceptual mapping, and the influence of factors like 5G and cloud computing. The report concludes that continuous innovation in services is vital for Optus to attract and retain customers, emphasizing the importance of strategic planning, effective marketing, and addressing challenges like competition and changing consumer behavior to improve customer satisfaction and productivity. The report also includes detailed research findings, a problem statement, and a 'big idea' section that leverages internal strengths to capitalize on market opportunities, and provides recommendations for improvement.

BUSINESS REPORT
(ENTERPRISE INNOVATION
AND MARKETS)

EXECUTIVE SUMMARY
Present report focuses on Optus Company which is the second largest
telecommunications company in Australia and its innovation process. It is a wholly owned
subsidiary of SingTel since 2001. It has brands like, Virgin Mobile Australia in the mobile
telephony market, Uecomm in the network services market and Alphawest in the ICT services
sector. It includes topics like, market and economic analysis. Problems related to innovation
process and its solution as well. It also discusses about commercialization of the whole process
in the organization and its impact on them. This report also explain about various analysis which
is very useful for them in analyzing their own strength and weaknesses, such as, SWOT
analysis. This report concludes that it is very important for Optus to bring innovation in their
services to increase or attract customers to buy their service.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. Research Findings..............................................................................................................3
Part 1: Market Analysis..........................................................................................................3
Part 2: Economics Analysis....................................................................................................5
2. Problem Statement..............................................................................................................6
3. The Big Idea.......................................................................................................................6
4. Commercializing the Innovation........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDICES...............................................................................................................................11

INTRODUCTION
Innovation is process which is used by any organization to bring any change into their
existing or upcoming products and services to increase their productivity and customers rate as
well. This process has to be done very carefully by the organization get effective results. Present
report will focus on Optus which is the second largest telecommunications company in Australia
and its innovation process. It will include topics like, market and economic analysis. Problems
related to innovation process and its solution as well. It will also discuss about
commercialization of the whole process in organization and its impact om them.
TASK
1. Research Findings
Part 1: Market Analysis
This is the most important task for the organization to understand their business more
precisely. Market research can be done my implementing various model in company, such as,
 SWOT Analysis
SWOT analysis for the study of their internal environmental factors which will give them
information related to their strength, weaknesses, opportunities and threats. From this process it
becomes easy for Optus to analyze the areas where they need to bring innovation in their
products and services. SWOT analysis a highly interactive process and requires effective
coordination among various departments within the organization such as – marketing, finance,
operations, management information systems and strategic planning (Optus SWOT Analysis /
Matrix, 2015).
Favorable Unfavorable
Strengths Weaknesses
Internal
factor
 Optus has strong brand
portfolio which is very
useful for them to sustain
their customers.
 They have poor financial
planning.
 High level of customer
satisfaction.
 Does not have a good
command on product
demand forecasting which

leads to decrease in customer
rate.
 Superb Performance in
New Markets
 High attrition rate in work
force compared to their
competitors.
 Strong dealer community.  Poor marketing department.
Opportunities Threats
External
factor
 Great chance of market
development.
 The Greatest threat for Optus
is that there is no regular
supply of innovative
products or services.
 Implementation of
innovative processes to
introduce new services
(Epifanova and et.al., 2015,
p.137).  Intense competition.
 Shortage of skilled
workforce.
 Changing consumer buying
behavior.
 Perceptual Mapping
Perceptual mapping is a process which is used by company to visually display their
perceptions of potential customers, which includes basically, the current position of a company's
product, product line or how its brand is displayed to their competition in the market. It can be
highly useful for Optus to identify their current position in the market (Hall and Roelich, 2016, p.
286-298).
 Target Market and Segmentation
This process is used to identify their respective market and can deliver their services
according to their customers needs and preferences. It can be done by implementing the 4 P's of
marketing mix, which is
1. Product : This can be very useful for them to evaluate the effectiveness of their products
to bring any innovation in them.

2. Price : They should set their pricing strategies according to their customers which they
can easily afford (La Rocca and Snehota, 2014, p. 441-447).
3. Place : It should be carefully analyzed the places where they are delivering their services.
It should be easily accessible by their customers.
4. Promotion : It should be very effective which can reach to maximum number of
customers. It will also increase their productivity as well.
Part 2: Economics Analysis
It is a process which is used to analyze the optimum use of their resources which involves
comparison between two or more alternatives in order to achieve their objective in the given
assumptions and constraints (Rosca, Arnold and Bendul, 2017, p. S133-S145). There are various
factors which has affected the telecommunication industry in so many ways, for example,
evolution of 4G and 5G services has a huge impact on this industry. Several fundamental
changes that have far-reaching impacts on the consumption of communications services and on
firms in this sector:
 The Internet of Things: The Internet of Things or IoT is the collection of smart devices
that talk to each other (and to us) through wireless technology. IoT is going to be the
future of telecommunication industry which will connect everything to everyone. IoT is a
newarea for telecommunication companies and mobile operators, it can prove to be a
challenge as well as an opportunity for customers who depend heavily on
telecommunication companies for reliable and high-speed internet connection (Latest
trends in the telecommunication industry, 2018).
 5G Wireless: Due to the ever-growing demand for faster internet, every major
telecommunication company is competing hard among themselves to win the race for
dominance over the 5G network which is probably one of the hottest telecom trends of
this year. 5G is important because it is essential to meet the ever-increasing demand for
higher data rates and capacity.

 Platform based Services: Another big trend of this year which got everybody into
talking is the rise of platform-based services. Since one of the challenges, today faced by
the telecommunication industry is that of stagnating revenues, more and more operators
are shifting from connectivity providers to platform providers in order to generate greater
value.
 Cloud Computing: Cloud services have enabled telecom industry that offer call center
services to deliver cloud capabilities, manage connectivity and leverage network assets in
order to enhance computing capacity, cloud offerings, and deliver-on-demand
applications. Telecommunication sector is keenly interested (and therefore have heavily
invested) in this technology due to its efficiency, convenience and pay-per-use models
from geographically independent third-party suppliers.
2. Problem Statement
From the above analysis it can be concluded that there are various area in which company
needs to bring innovation in their system to increase their customer rate as well as its
profitability. The first area in which they have to work on is their financial planning. Without
having proper financial support it can not be possible for them to implement all the changes they
want. Apart from this they have to get a good command over their service demand forecasting
which can help them to increase their customer rate (Teece and Leih, S., 2016, p. 5-12). They
also have to improve their marketing process to make aware their customers about their services
and products.
3. The Big Idea
PLANNING TOOL
Strengths Weaknesses
 Optus has strong brand
portfolio which is very
useful for them to
sustain their
customers.
 They have poor financial
planning.
 High level of customer
satisfaction.
 Does not have a good
command on product
demand forecasting

which leads to decrease
in customer rate.
 Superb Performance in
New Markets
 High attrition rate in
work force compared to
their competitors.
 Strong dealer
community.
 Poor marketing
department.
Opportunities
Ideas that leverage internal
strengths to maximize our
opportunities
Ideas to correct our internal
weaknesses in order to
maximize our opportunities
 Great chance of
market
development.
They have strong brand
portfolio which makes them
an effective company in the
respective industry.
Working as an effective team
will help them to increase their
productivity.
 Implementation
of innovative
processes to
introduce new
services.
Bringing innovation in their
products can help them in
increasing their customers
(SingTel Optus SWOT
Analysis, USP & Competitors,
2018).
Having proper strategic planning
of all the processes will be very
useful for them to manage their
work.
Having skilled and qualified
staff members is also very
important for Optus to give
better result for the company.
Threats
Ideas that leverage internal
strengths to overcome
external threats
Ideas to correct our internal
weaknesses to overcome
external threats
 The greatest
threat for Optus
is that there is no
regular supply of
innovative
products or
services.
To resolve the issues which is
arising from the external
threat can be minimized by
having a strong management
team to deal with it.
To increase their customer rate,
it is very important for Optus to
have an effective marketing
departing.
 Intense
competition.
This can help them in doing
market analysis which can be
useful to evaluate their
customers needs and
preferences.
 Shortage of
skilled
This will also ensure to bring
innovative change which will

workforce.
attract more consumers to buy
their services as well.
 Changing
consumer buying
behavior.
Understanding the changing
behavior of their consumers will
be very beneficial for them
4. Commercializing the Innovation
By the implementation of the process like market analysis to understand the choices and
preferences of their customers can have a huge positive impact on the overall performance of the
organization. By this they are able to implement all the required changes to bring innovation in
their services. It can be achieved by following process,
 Market assessment and target customers: This is a very useful method for Optus to
apply into their system to enhance their services related to the required change. This
process can be used for the evaluation of the potential of their new product, new business
idea or new investment in the market and its impact on them. It includes factors, like,
environment forces, market trends, barriers, competition, risks, opportunities and the
company's resources, etc. Targeting their customers can also be very useful to deliver
right service to right customers. This process will also help them to bring innovation into
their products and services (Winterhalter, Sauer and Csik, 2015).
 Commercialization of the Idea: To bring change in their products and service, market
analysis plays an important role to understand all the requirements which their customers
are seeking from the organization. It will help Optus to increase their customer rate in the
business. By analysing all the steps of marketing mix, it will become easy for them to
implement all the changes in their services.
CONCLUSION
From the above report it can be conclude that for any organization it is very important to
bring innovation in their existing products and services which can be very useful to increase their
customer rate. For this company has applied various models, for example, SWOT analysis, target
marketing and segmentation, etc. By evaluating all the strength and weaknesses of Optus, it
became easy for them to bring innovation in their services which will help them to increase their
customer rate.

REFERENCES
Books and Journals
Epifanova, T. and et.al., 2015. Modernization of institutional environment of entrepreneurship in
Russia for development of innovation initiative in small business structures. European
Research Studies. 18(3). p.137.
Hall, S. and Roelich, K., 2016. Business model innovation in electricity supply markets: The role
of complex value in the United Kingdom. Energy Policy. 92. pp.286-298.
La Rocca, A. and Snehota, I., 2014. Relating in business networks: Innovation in practice.
Industrial Marketing Management. 43(3). pp.441-447.
Rosca, E., Arnold, M. and Bendul, J. C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services. Journal of Cleaner Production. 162.
pp.S133-S145.
Teece, D. and Leih, S., 2016. Uncertainty, innovation, and dynamic capabilities: An
introduction. California Management Review. 58(4). pp.5-12.
Winterhalter, S., Sauer, R. and Csik, M., 2015. Business Model Transfer to Emerging Markets:
A Case in the Construction Business.
Online
Optus SWOT Analysis / Matrix. 2015. [Online]. Available through:
<http://fernfortuniversity.com/term-papers/swot/1433/1371-optus.php>
Latest trends in the telecommunication industry. 2018. [Online]. Available through:
<https://yourstory.com/mystory/d9f0150ca5-latest-trends-in-the-t>
SingTel Optus SWOT Analysis, USP & Competitors. 2018. [Online]. Available through:
<https://www.mbaskool.com/brandguide/telecom-service-providers/10444-singtel-
optus.html>

APPENDICES