Telstra Corporation's International Expansion into the Indian Market

This report analyzes Telstra Corporation's international expansion strategy, specifically focusing on its potential entry into the Indian market. The report begins with an executive summary and an introduction that highlights the importance of international expansion for organizations. It provides a background of Telstra Corporation, detailing its operations in the telecommunications industry in Australia and its position as a leading service provider. The selected product for expansion is Telstra TV, a service that streams movies, TV shows, and sports, targeting the large customer base in India. The report employs SWOT analysis to assess Telstra's internal capabilities and external challenges, identifying strengths such as its strong financial position and weaknesses like undefined product positioning. Opportunities include strong cash flow, while threats include increasing competition. The PESTLE framework is then used to analyze the Indian market, considering political, economic, social, technological, legal, and environmental factors to evaluate India's attractiveness for Telstra's expansion. The conclusion suggests India as a suitable market for Telstra's products, emphasizing the importance of adapting strategies to the country's external environment. The report highlights the importance of strategic planning for successful international expansion.

Running head: INTERNATIONAL EXPANSION
INTERNATIONAL EXPANSION
Name of the Student
Name of the University
Author Note

1INTERNATIONAL EXPANSION
Executive Summary
The report will be based on the analysis of the expansion based policies that have been
developed by an organization in order to increase its revenues and profitability levels. The
organization which has been taken into consideration is Telstra Corporation and the country
that has been selected for expansion of its products is India. The product that has been
selected in order to offer in the Indian market is Telstra TV. Telstra TV can thereby prove to
be an effective product for the large base of customers who are present in India. The SWOT
analysis framework has been used for the analysis of the company and PESTLE framework is
used for analysing the country in which the product will be launched.

2INTERNATIONAL EXPANSION
Table of Contents
Introduction....................................................................................................................3
Background of the company..........................................................................................3
Selected product or service which is to be launched in the market...............................3
Selection of the country in which the product or service can be sold............................5
Conclusion......................................................................................................................7
References......................................................................................................................8

3INTERNATIONAL EXPANSION
Introduction
International expansion is able to play a major role in the effective operations of the
global organizations. The companies are able to increase their revenues and levels of reach to
the other countries with the help of this process. The global organizations can aim at targeting
different countries or areas with the help of their services and products. This will be help
them in increasing the customer base in an effective manner (Brouthers, Nakos & Dimitratos,
2015).
The report will be based on the analysis of the expansion based plans that are made by
an Australian organization named Telstra Corporation. The company operates in the field of
telecommunications in the country.
Background of the company
Telstra Corporation Limited is an Australian organization which operates in the
telecommunications based industry of the country. The company is mainly responsible for the
development of different products which are based on the proper development of
telecommunication networks. The different services which are offered by the company
include, mobile access, telecommunication based networks, pay television, internet access.
The company has its operations in Australia for a long time and has been able to develop its
competitive position in the telecommunications industry as well (Telstra.com.au, 2018).
Telstra has acquired the position of one of the largest telecommunications service provider in
Australia.
Selected product or service which is to be launched in the market
Telstra is known in the market for different types of services and products that are
able to fulfil different types of demands and needs of the consumers. The services that are
offered by Telstra include, Foxtel, Bigpond movies, Foxtel Now, Telstra TV App, Smart
Home, Mobile Phones, Tablets and Home Phone. The products are thereby able to fulfil
different needs and demands of people in an effective way. The company is thereby planning
for an expansion of its products to another country in order to improve the revenues and
levels of profitability. The product which has been selected for expansion is Telstra TV.
Telstra TV is a product which is able to stream movies, TV shows, sports and more. Different
types of the services are thereby combined within the Telstra TV (Telstra.com.au, 2018).

4INTERNATIONAL EXPANSION
The services that are a part of Telstra TV include, Bigpond Movies, Nerflix, Stan,
Tenplay, Foxtel Now, You Tube and many more. The Telstra TV will thereby be able to
satisfy the customers of Australia by providing SMART TV applications. Telstra TV can
thereby be considered to be a service which is able to change the normal television sets into
SMART televisions which are able to offer all the services that are provided by the
smartphones (Telstra.com.au, 2018). The website based series and movies that are offered by
different apps can be watched on the large screen. This product of Telstra has proved to be
effective for the younger generation of the country. The SWOT analysis framework can be
used for the purpose of deciding the effectiveness of the product in the market (Cavusgil &
Knight, 2015).
Strengths
Telstra has acquired a leading
position in the telecommunications
industry of Australia.
The performance of Telstra has been
highly effective in the new countries
or markets.
The cash flow of the company is
highly strong in nature (Contractor,
Kumar & Dhanaraj, 2015).
Weaknesses
The positioning and the selling
positions of products are not defined
in a clear manner.
The challenges that have been posed
towards the company have not been
faced in a successful manner.
The range of products that are sold
by the company have shown a huge
gap (Gowers, Pająk & Klusa, 2018).
Opportunities
The cash flow of the company is a
major opportunity which is able to
support the expansion based plans of
Telstra.
The core competencies of Telstra
have been a huge success based on
the similar products that are offered
by other companies.
The new trends which have been
seen in the behaviour of consumers
is able to play a major role in
organizational operations
Threats
The rise in levels of pay can pose
huge threats towards the operations
of Telstra in a new country or
market area.
The strengths of the local
distributors have increased and this
has posed a threat towards the
profitability based levels of Telstra.
The intense competition levels that
are being faced by Telstra in the
industry have been a threat towards
the profitability and revenues

5INTERNATIONAL EXPANSION
(Gulanowski, Papadopoulos &
Plante, 2018).
(Haapanen, Juntunen & Juntunen,
2016).
The analysis of Telstra Corporation with the help of SWOT framework has been able
to depict that the company has been able to operate in the telecommunications industry in a
profitable manner. The effective resources based on financial strength and the human factors
are major factors which can help in the effective operations of Telstra in the industry. The
company can thereby expand its operations in an effective manner with the help of its
financial strength and availability of capital (Haapanen, Juntunen & Juntunen, 2016).
Selection of the country in which the product or service can be sold
The country which has been selected for the expansion based policies of Telstra
Corporation is India. The booming telecommunications and technology based industry of
India is able to attract the consumers towards the company in an effective manner. The
expansion of Telstra Corporation in India will thereby provide effective opportunities of
growth to the company. The effectiveness of India as an attractive company for Telstra can be
analysed with the help of PESTLE framework (Jiang & Holburn, 2018).
Political  India is considered to be one of the biggest democracies in
the entire world.
 The environment is thereby highly influenced by interests of
the politicians, government policies and ideologies of
different parties.
 The different types of taxes that are imposed by the
government need to be considered by Telstra in order to
operate in the country in a profitable manner (Jones &
Kierzkowski, 2018).
Economic  The stable economy of the country has been developed after
the industrial reforms have taken place.
 The regulations which have been developed in the country
are mainly aimed at liberalization of foreign investment in
an effective manner.
 The ease of entry in the market has thereby been able to
provide opportunities of growth to Telstra in the industry.
 The GDP of the country has been able to show high

6INTERNATIONAL EXPANSION
amounts of growth after the industrial reforms had taken
place in the country. India had registered a GDP of 3.965
Trillion US Dollars in the year 2009, which was 6% more
than previous years (Liesch, Welch & Buckley, 2014).
Social  Social factors are mainly based on the changes which can
take place in the trends which are followed by people in
India.
 There has been immense level of rise in the pension based
costs due to the increase in ageing population.
 The huge population of the country is a major factor which
is able to facilitate the growth of Telstra. Around 70% of the
total population of the country belongs to the age group
between 15 and 65.
Technological  The technology based levels have been able to influence the
process of product development in a huge manner.
 India has the base of effective technology which can
provide effective levels of opportunities to Telstra based on
its growth in the industry
 The internet based environment in the country is highly
effective in nature and is able to provide a base for
expansion to Telstra Corporation (Jin, Ramkumar & Chou,
2018).
Legal  The changes that have taken place in the legal environment
of the country has been based on the development of many
different regulations and policies. These policies need to be
analysed by the company in order to start its profitable
operations.
 The minimum wage based laws in the country are also quite
effective and need to be considered by Telstra in order to
operate in India in an effective manner (Wu & Chen, 2014).
Environmental  The heavy industrialization based process has affected the
external environment of India.
 This has also been able to cause huge number of issues

7INTERNATIONAL EXPANSION
based on pollution in the country.
 The different regulations that have been formed based on
the waste disposal related issues in India need to be taken
into consideration by Telstra Corporation in an effective
manner (Jin, Ramkumar & Chou, 2018).
The analysis of different factors based on the external environment of India has been
able to prove that the plans which have been made by Telstra Corporation to enter the market
can be effective for its growth and revenues.
Conclusion
The report can be concluded by stating that the expansion based plans of the company
are affected in a huge manner by the external factors of the country in which it offers the
products and services. The analysis of the external environment of Telstra is thereby based on
the ways by which the company is able to set up its operations in new area with the help of
proper policies. The discussion has also been able to suggest that India can be selected as the
most appropriate country where the products of the company can be provided in a profitable
manner. The company will thereby be able to develop its position in India with the help of
efficient policies and procedures.

8INTERNATIONAL EXPANSION
References
Brouthers, K. D., Nakos, G., & Dimitratos, P. (2015). SME entrepreneurial orientation,
international performance, and the moderating role of strategic
alliances. Entrepreneurship Theory and Practice, 39(5), 1161-1187.
Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and
capabilities perspective on early and rapid internationalization. Journal of
International Business Studies, 46(1), 3-16.
Contractor, F. J., Kumar, V., & Dhanaraj, C. (2015). Leveraging India: Global
interconnectedness and locational competitive advantage. Management International
Review, 55(2), 159-179.
Gowers, R., Pająk, A., & Klusa, E. (2018). Cultural Determinants and Perspectives of
International Expansion of Enterprises from Economies in Transition. Central
European Review of Economics & Finance, 25(3), 21-35.
Gulanowski, D., Papadopoulos, N., & Plante, L. (2018). The role of knowledge in
international expansion: Toward an integration of competing models of
internationalization. Review of International Business and Strategy, 28(1), 35-60.
Haapanen, L., Juntunen, M., & Juntunen, J. (2016). Firms' capability portfolios throughout
international expansion: a latent class approach. Journal of Business
Research, 69(12), 5578-5586.
Jiang, G. F., & Holburn, G. L. (2018). Organizational performance feedback effects and
international expansion. Journal of Business Research, 90, 48-58.
Jin, B., Ramkumar, B., & Chou, W. H. C. (2018). Identifying sources and roles of networks
in international expansion among small businesses in a less-technology-intensive
industry. International Journal of Entrepreneurship and Small Business, 34(4), 421-
444.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international
trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Liesch, P. W., Welch, L. S., & Buckley, P. J. (2014). Risk and uncertainty in
internationalisation and international entrepreneurship studies. In The Multinational

9INTERNATIONAL EXPANSION
Enterprise and the Emergence of the Global Factory (pp. 52-77). Palgrave
Macmillan, London.
Telstra.com.au (2018). Telstra - About us, investors, media, community & environment and
our company. [online] Telstra.com.au. Available at:
https://www.telstra.com.au/aboutus [Accessed 20 Sep. 2018].
Wu, J., & Chen, X. (2014). Home country institutional environments and foreign expansion
of emerging market firms. International Business Review, 23(5), 862-872.