Strategic Tools: SWOT, Ansoff, PESTLE Analysis for Telstra HI6006
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This report provides a comprehensive strategic analysis of Telstra, a leading telecommunications company in Australia. It utilizes three key strategic tools: SWOT analysis, Ansoff Matrix, and PESTLE model. The SWOT analysis examines Telstra's internal strengths and weaknesses, as well as external opportunities and threats, providing insights into its market position and competitive advantages. The Ansoff Matrix explores growth strategies such as market penetration, product development, market development, and diversification, offering a framework for Telstra's future expansion. The PESTLE model analyzes the external factors influencing Telstra, including political, economic, social, technological, legal, and environmental factors, providing a holistic view of the company's operating environment. The report concludes by emphasizing the importance of these strategic tools in effective planning and decision-making for Telstra and similar organizations.

Running head: HI6006 0
Competitive Strategy
Student’s Name
8/22/2019
Competitive Strategy
Student’s Name
8/22/2019
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HI6006 1
Contents
Introduction.................................................................................................................................2
SWOT Model...............................................................................................................................2
Ansoff Matrix...............................................................................................................................3
PESTLE Model............................................................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7
Contents
Introduction.................................................................................................................................2
SWOT Model...............................................................................................................................2
Ansoff Matrix...............................................................................................................................3
PESTLE Model............................................................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7

HI6006 2
Introduction
Management of every organization is responsible to manage its affairs, to plan the activities
and for the execution of the same. Planning plays an important part in the whole management
process as it comes at an early stage and decides the rest of the activities. It establishes
organizational goals and different steps to achieve the same. For effective planning, different
strategic tools are there that helps managers to evaluate the current position of the business
and another factor that affects the same. By using these strategies, managers become able to
understand what factors are affecting the business or can affect in future and become able to
plan the activities more efficiently. Due to the increased competition and globalization, the
level of uncertainty also gets enhanced and therefore these strategic tools became even more
important. To understand these tools and their significance more properly, a company has
been selected hereby.
For the preparation of this assignment, Telstra has been selected. It is a telecommunication
company having it’s headquartered in Australia (Sedar.Com, 2019). The company is the
leading provider of home phones, mobile phones, mobile devices, and broadband internet.
Three strategic development tools namely SWOT, Ansoff matrix, and PESTLE will be
discussed in the context of Telstra.
SWOT Model
It is one of the basic strategic tools where four factors are used to be review namely Strength
weakness, opportunities, and a threat for the organization (Edrawsoft.com, 2019). By using
this tool, managers may develop several plans and policies concerning the business. Under
this model, strength and weakness are considered as internal factors as it generally includes
competency and capability of the firm, whereas rest of the two factors i.e. threats and
opportunities reflects external factors such as government policies, competition, changes in
environment and economy. If to apply this model in Telstra, the following would result:-
Strengths
Company has a strong position in the Australian market as the same has gained
goodwill and trust of customers over the period.
Introduction
Management of every organization is responsible to manage its affairs, to plan the activities
and for the execution of the same. Planning plays an important part in the whole management
process as it comes at an early stage and decides the rest of the activities. It establishes
organizational goals and different steps to achieve the same. For effective planning, different
strategic tools are there that helps managers to evaluate the current position of the business
and another factor that affects the same. By using these strategies, managers become able to
understand what factors are affecting the business or can affect in future and become able to
plan the activities more efficiently. Due to the increased competition and globalization, the
level of uncertainty also gets enhanced and therefore these strategic tools became even more
important. To understand these tools and their significance more properly, a company has
been selected hereby.
For the preparation of this assignment, Telstra has been selected. It is a telecommunication
company having it’s headquartered in Australia (Sedar.Com, 2019). The company is the
leading provider of home phones, mobile phones, mobile devices, and broadband internet.
Three strategic development tools namely SWOT, Ansoff matrix, and PESTLE will be
discussed in the context of Telstra.
SWOT Model
It is one of the basic strategic tools where four factors are used to be review namely Strength
weakness, opportunities, and a threat for the organization (Edrawsoft.com, 2019). By using
this tool, managers may develop several plans and policies concerning the business. Under
this model, strength and weakness are considered as internal factors as it generally includes
competency and capability of the firm, whereas rest of the two factors i.e. threats and
opportunities reflects external factors such as government policies, competition, changes in
environment and economy. If to apply this model in Telstra, the following would result:-
Strengths
Company has a strong position in the Australian market as the same has gained
goodwill and trust of customers over the period.
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HI6006 3
Company has a strong distribution network and therefore the same has the potential to
reach up to a larger customer base (1300australia.com.au, 2019).
Company has reliable suppliers and has a trustworthy relationship with them, therefore
there is no risk of supply chain bottlenecks.
Weakness
Services provided by Telstra are costly in comparison to service provided by
competitors.
Company has limited success when it comes to activities apart from the core ones. It
means the company faced challenges in moving to other segments.
Opportunities
Globalization is always open for company. By spreading its routes into the global
market, the company can enhance sales and its profits.
New customer trends seem to be an opportunity for Telstra where the same can
diversify the products and service and can prove itself different from the competitors.
Threats
The legal regulations are very though and are different in various nations. Slightly
changes in this can have a huge impact on working and success of the company.
Skilled labor is another issue for the company. At the times of expansion, the company
may face the issue of high labor demand and low supply for the same.
Ansoff Matrix
In the area of strategic planning tools, Ansoff Matrix is most used and widely accepted one
that helps senior managers and executives in developing strategies for future growth. The
model is also known as the Market Expansion Grid or Product Expansion Grid
(Mindtools.com, 2019). The model makes it focus on various options that are available to an
organization and helps managers to select the best one. The model includes four strategies
that may be used for the growth of the business. In the context of Telstra, these strategies
work as follow:-
Company has a strong distribution network and therefore the same has the potential to
reach up to a larger customer base (1300australia.com.au, 2019).
Company has reliable suppliers and has a trustworthy relationship with them, therefore
there is no risk of supply chain bottlenecks.
Weakness
Services provided by Telstra are costly in comparison to service provided by
competitors.
Company has limited success when it comes to activities apart from the core ones. It
means the company faced challenges in moving to other segments.
Opportunities
Globalization is always open for company. By spreading its routes into the global
market, the company can enhance sales and its profits.
New customer trends seem to be an opportunity for Telstra where the same can
diversify the products and service and can prove itself different from the competitors.
Threats
The legal regulations are very though and are different in various nations. Slightly
changes in this can have a huge impact on working and success of the company.
Skilled labor is another issue for the company. At the times of expansion, the company
may face the issue of high labor demand and low supply for the same.
Ansoff Matrix
In the area of strategic planning tools, Ansoff Matrix is most used and widely accepted one
that helps senior managers and executives in developing strategies for future growth. The
model is also known as the Market Expansion Grid or Product Expansion Grid
(Mindtools.com, 2019). The model makes it focus on various options that are available to an
organization and helps managers to select the best one. The model includes four strategies
that may be used for the growth of the business. In the context of Telstra, these strategies
work as follow:-
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HI6006 4
Market penetration: - As the name implies, this strategy develops the focus on an
increase in sales volume of current products. For instance, if Telstra would choose this
strategy then the same will grow its market share and would put effort to earn more
without providing any new products or spreading the current market. Here the
company may use different marketing tactics to increase sales of current services and
products. In addition to this, Telstra may upgrade the quality of current services.
Product development: - This strategy is just opposite to previous strategy i.e. market
penetration. It focuses on the development of new products. The strategy seems to
very significant from the perspective of competition as it allows customers to seek new
products and services. Company has used this strategy in the past and brought IoT
technology (Elstra.com.au, 2018). Under this strategy, managers think that what new
products or services may be useful for customers and then develops the same.
Market development:- The strategy demands an organization to increase its market
space while providing current products and services. Here Telstra would identify and
target new nations and different zones where services of the company are not
available or are not available as per demands. Using this strategy, Telstra is outing its
effort to spread the routes in Asia specific countries. Company is required to make
proper research regarding the targeted geographical area before the execution of the
strategy.
Diversification:- This dimension recognizes the importance of the new market as well
as of new products. The strategy reflects start-ups where neither old area nor old
products exist to support and everything seems new to the company. This would not
be wrong to state that diversification is somewhere risky to a company.
PESTLE Model
Every organization is used to be affected directly as well as indirectly by some of the factors.
Most of these factors are outside the control of the organization. Pestle model is another tool
of strategic planning. These frameworks are there to understand the external influence on a
business (Processpolicy.com, 2019). It mainly includes six factors namely political, economic,
sociological, legal, technological, and environmental factors. If to consider this tool in the
context of Telstra, this is to state, that the external environment of the company is highly
Market penetration: - As the name implies, this strategy develops the focus on an
increase in sales volume of current products. For instance, if Telstra would choose this
strategy then the same will grow its market share and would put effort to earn more
without providing any new products or spreading the current market. Here the
company may use different marketing tactics to increase sales of current services and
products. In addition to this, Telstra may upgrade the quality of current services.
Product development: - This strategy is just opposite to previous strategy i.e. market
penetration. It focuses on the development of new products. The strategy seems to
very significant from the perspective of competition as it allows customers to seek new
products and services. Company has used this strategy in the past and brought IoT
technology (Elstra.com.au, 2018). Under this strategy, managers think that what new
products or services may be useful for customers and then develops the same.
Market development:- The strategy demands an organization to increase its market
space while providing current products and services. Here Telstra would identify and
target new nations and different zones where services of the company are not
available or are not available as per demands. Using this strategy, Telstra is outing its
effort to spread the routes in Asia specific countries. Company is required to make
proper research regarding the targeted geographical area before the execution of the
strategy.
Diversification:- This dimension recognizes the importance of the new market as well
as of new products. The strategy reflects start-ups where neither old area nor old
products exist to support and everything seems new to the company. This would not
be wrong to state that diversification is somewhere risky to a company.
PESTLE Model
Every organization is used to be affected directly as well as indirectly by some of the factors.
Most of these factors are outside the control of the organization. Pestle model is another tool
of strategic planning. These frameworks are there to understand the external influence on a
business (Processpolicy.com, 2019). It mainly includes six factors namely political, economic,
sociological, legal, technological, and environmental factors. If to consider this tool in the
context of Telstra, this is to state, that the external environment of the company is highly

HI6006 5
complex and dynamic. With the help of this framework, strategic analysis of Telstra has been
made as follow:-
Political factor: - This factor includes government policies and decisions pursued by the
same. As per the policy of the government, an entry in the telecommunication market
became so easy by paying a minimal entry fee and fulfilling ongoing operational
environment (Communications.gov.au, 2019). Such factors influence the working of the
company as determine the scope of business activities.
Economics factor:- Telstra works in the Australian economy and is influenced by the
same. Inflation rate directly influences the business of the company as it affects the
purchasing power of the customer. Because of subdued GDP, commodity prices are
falling in Australia that again influences the sales and profits of the company.
Social factors: - In the word PESTLE, S stands for social. The factor makes its focus
on demographics, cultural trends, age structure and population analytics
(Pestleanalysis.com, 2019). If to talk about Telstra, many of the social factors are there
that needs to have a look upon. For instance, increasing expatriate population, product
development, and revenue are expected to be a boost in the future. Further health and
environmental consciousness also affect the sale and profits of the company as people
who are more concerned with the environment use fewer telecommunication services.
Technological factors: - It is the factor, which is the most fluctuating one. With the
development of time, people need new and advance technology, that makes their life
even more comfortable. Being a telecommunication company, Telstra is required to
upgrade itself with new technology and to invest much in the area be ahead of its
competitors. To attain these advantages, the company is leasing its telecom network
and infrastructure to bring new user experiences and services
Legal Factors: - An organization cannot assume to be regulated in the absence of a
legal and regulatory framework. Telstra has to plan its activities according to various
legislations such as Corporations act 2001, Australian Competition and consumer law,
listing regulations and so on. Many times Authorities prescribe new rules and laws that
affect the working of this company. For instance, in the past, ASX made compliance
with corporate governance principles mandatory for the company. Such new rules
increase the compliance cost of the company and the goodwill in the market.
complex and dynamic. With the help of this framework, strategic analysis of Telstra has been
made as follow:-
Political factor: - This factor includes government policies and decisions pursued by the
same. As per the policy of the government, an entry in the telecommunication market
became so easy by paying a minimal entry fee and fulfilling ongoing operational
environment (Communications.gov.au, 2019). Such factors influence the working of the
company as determine the scope of business activities.
Economics factor:- Telstra works in the Australian economy and is influenced by the
same. Inflation rate directly influences the business of the company as it affects the
purchasing power of the customer. Because of subdued GDP, commodity prices are
falling in Australia that again influences the sales and profits of the company.
Social factors: - In the word PESTLE, S stands for social. The factor makes its focus
on demographics, cultural trends, age structure and population analytics
(Pestleanalysis.com, 2019). If to talk about Telstra, many of the social factors are there
that needs to have a look upon. For instance, increasing expatriate population, product
development, and revenue are expected to be a boost in the future. Further health and
environmental consciousness also affect the sale and profits of the company as people
who are more concerned with the environment use fewer telecommunication services.
Technological factors: - It is the factor, which is the most fluctuating one. With the
development of time, people need new and advance technology, that makes their life
even more comfortable. Being a telecommunication company, Telstra is required to
upgrade itself with new technology and to invest much in the area be ahead of its
competitors. To attain these advantages, the company is leasing its telecom network
and infrastructure to bring new user experiences and services
Legal Factors: - An organization cannot assume to be regulated in the absence of a
legal and regulatory framework. Telstra has to plan its activities according to various
legislations such as Corporations act 2001, Australian Competition and consumer law,
listing regulations and so on. Many times Authorities prescribe new rules and laws that
affect the working of this company. For instance, in the past, ASX made compliance
with corporate governance principles mandatory for the company. Such new rules
increase the compliance cost of the company and the goodwill in the market.
⊘ This is a preview!⊘
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Trusted by 1+ million students worldwide

HI6006 6
Environmental factors:- Sustainability plays an important role in every business. People
are more concerned with the environment these days. For being a responsible
enterprise, Telstra has to consider environmental factors and sustainability in its
practices. Company is trying to reduce carbon emission by 50 % by 2020
(Exchange.telstra.com.au, 2018). This shows that climate changes and other
environmental condition influence the company's activities and efforts.
Conclusion
In the presented report, the discussion has been made on various strategic tools and models
that Telstra or any other company may use while deciding strategies for the future growth of
the company. SWOT, PESTLE and Ansoff matrix model has been discussed above that
emphasis on different factors. SWOT identifies positive and negative factors of a business
where a PESTLE model identifies various factors that influence the working of an
organization. How these factors influence the working of an entity in actual also been
understood with the help of the example of Telstra. Further different strategies that an
organization can come up with for its growth have been described under Ansoff model. In
conclusion, this is to state that managers must use these tools before making planning as
they provide a significant contribution to good outcomes of the management process.
Environmental factors:- Sustainability plays an important role in every business. People
are more concerned with the environment these days. For being a responsible
enterprise, Telstra has to consider environmental factors and sustainability in its
practices. Company is trying to reduce carbon emission by 50 % by 2020
(Exchange.telstra.com.au, 2018). This shows that climate changes and other
environmental condition influence the company's activities and efforts.
Conclusion
In the presented report, the discussion has been made on various strategic tools and models
that Telstra or any other company may use while deciding strategies for the future growth of
the company. SWOT, PESTLE and Ansoff matrix model has been discussed above that
emphasis on different factors. SWOT identifies positive and negative factors of a business
where a PESTLE model identifies various factors that influence the working of an
organization. How these factors influence the working of an entity in actual also been
understood with the help of the example of Telstra. Further different strategies that an
organization can come up with for its growth have been described under Ansoff model. In
conclusion, this is to state that managers must use these tools before making planning as
they provide a significant contribution to good outcomes of the management process.
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HI6006 7
References
1300australia.com.au. (2019) Telstra 1300 Numbers. [online] Available from:
https://1300australia.com.au/our-products/telstra-1300-numbers/ [Accessed on 21/08/2019]
Communications.gov.au. (2019) A competitive telecommunications regime for Australia.
[online] Available from: https://www.communications.gov.au/policy/policy-listing/competitive-
telecommunications-regime-australia [Accessed on 20/08/2019]
Corporations Act 2001
Edrawsoft.com. (2019) Components of SWOT Matrix. [online] Available from:
https://www.edrawsoft.com/swot-matrix-componets.php [Accessed on 21/08/2019]
elstra.com.au (2018) Media [Online] Available from:
https://www.telstra.com.au/aboutus/media/media-releases/Telstra-launches-5G-Innovation-
Centre-to-accelerate-the-deployment-of-5G-technology-in-Australia [Accessed on 21/08/2019]
Exchange.telstra.com.au. (2018) 2018 Sustainability Report. [online] Available from:
https://1u0b5867gsn1ez16a1p2vcj1-wpengine.netdna-ssl.com/wp-content/uploads/2018/08/
Bigger-Picture-Report.pdf [Accessed on 20/08/2019]
Mindtools.com. (2019) The Ansoff Matrix. [online] Available from:
https://www.mindtools.com/pages/article/newTMC_90.htm [Accessed on 21/08/2019]
Pestleanalysis.com. (2019) [online] Available from: https://pestleanalysis.com/social-factors-
affecting-business/ [Accessed on 21/08/2019]
Processpolicy.com. (2019) What Is Pestle Analysis? [online] Available from:
https://processpolicy.com/pestle-analysis.htm [Accessed on 20/08/2019]
Sedar.Com. (2019) Telstra Corporation Limited. [online] Available from:
https://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00017568
[Accessed on 20/08/2019]
References
1300australia.com.au. (2019) Telstra 1300 Numbers. [online] Available from:
https://1300australia.com.au/our-products/telstra-1300-numbers/ [Accessed on 21/08/2019]
Communications.gov.au. (2019) A competitive telecommunications regime for Australia.
[online] Available from: https://www.communications.gov.au/policy/policy-listing/competitive-
telecommunications-regime-australia [Accessed on 20/08/2019]
Corporations Act 2001
Edrawsoft.com. (2019) Components of SWOT Matrix. [online] Available from:
https://www.edrawsoft.com/swot-matrix-componets.php [Accessed on 21/08/2019]
elstra.com.au (2018) Media [Online] Available from:
https://www.telstra.com.au/aboutus/media/media-releases/Telstra-launches-5G-Innovation-
Centre-to-accelerate-the-deployment-of-5G-technology-in-Australia [Accessed on 21/08/2019]
Exchange.telstra.com.au. (2018) 2018 Sustainability Report. [online] Available from:
https://1u0b5867gsn1ez16a1p2vcj1-wpengine.netdna-ssl.com/wp-content/uploads/2018/08/
Bigger-Picture-Report.pdf [Accessed on 20/08/2019]
Mindtools.com. (2019) The Ansoff Matrix. [online] Available from:
https://www.mindtools.com/pages/article/newTMC_90.htm [Accessed on 21/08/2019]
Pestleanalysis.com. (2019) [online] Available from: https://pestleanalysis.com/social-factors-
affecting-business/ [Accessed on 21/08/2019]
Processpolicy.com. (2019) What Is Pestle Analysis? [online] Available from:
https://processpolicy.com/pestle-analysis.htm [Accessed on 20/08/2019]
Sedar.Com. (2019) Telstra Corporation Limited. [online] Available from:
https://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00017568
[Accessed on 20/08/2019]
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