XXXX University - 7003MKT: Telstra Opportunity Analysis Report

This report provides a comprehensive marketing opportunity analysis of Telstra, a major telecommunications company. It begins with an introduction to Telstra's background, including its services and market presence. The situation analysis encompasses a detailed market analysis of the Australi...Read More

Opportunity Analysis for
XXXXX
Student XXXXXXXXXXXXXXXXX
SID XXXXXXXXXXXXXX
7003MKT_ Marketing Foundations
Convenor: XXXXXXXXXXXXXXXX
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Table of Contents
Table of Contents
Table of Contents............................................................................................................... 2
1.0 Introduction and Company Background.......................................................................3
1.1 Introduction.............................................................................................................. 3
1.2 Company Background............................................................................................... 3
2.0 Situation Analysis......................................................................................................... 3
2.1 Market Analysis......................................................................................................... 3
2.2 Macro Environment Analysis.....................................................................................4
Political, Legal and Economic Analysis.........................................................................4
Social Analysis............................................................................................................. 4
Technological Analysis................................................................................................. 4
2.3 Micro Environment Analysis......................................................................................4
2.3.1 Company Analysis.............................................................................................. 4
2.3.2 Competitor Analysis............................................................................................ 5
Competitive market Summary.....................................................................................5
2.3.3 Consumer Analysis............................................................................................. 6
2.3.4 SWOT Analysis.................................................................................................... 6
3.0 Objectives.................................................................................................................... 7
Marketing Objectives...................................................................................................... 7
4.0 Reference List.............................................................................................................. 8
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1.0 Introduction and Company Background
1.1 Introduction
The marketing plan is one of the useful aspects which is essential as it helps in
focusing on the different resources along with the plan for the overall business growth.
The major objective of the marketing plan is to set the organization on a specific course
in marketing and the goals of the marketing generally align with the broader objectives
of the company and the marketing plan emphasizes the different strategies to increase
the customer base which will be beneficial for the overall growth of the company in an
appropriate manner. Lastly, the marketing plan allows the business to be proactive and
aligned with the goals and visions of the company as well, and it makes the goals
measurable.
1.2 Company Background
The company that has been selected in the respective assignment is Telstra, and the
products which are sold by them include internet data, network related services along
with a fixed line. Telstra Corporation Limited is one of the largest telecommunications
organizations which helps in building along with operating the telecommunication related
network and makes mobile, voice, access to the internet along with other products as
well as services (Telstra.com.au, 2019). The company was founded in the year 1975, and
it is headquartered at Melbourne, Australia. The areas served by the company is
worldwide on selected products along within the entire Australian economy. Furthermore,
it has been noticed that there has been a massive increase in the revenue of A$26 billion
until the year 2017 and the number of employees working at Telstra is 32000 till 2017.
Moreover, as per the positive aspects, the company has been able to develop different
kinds of sustainability related programs which helped them in managing the employees
and their behaviour accordingly. On the other hand, the negative aspects are inclusive of
the poor network which is complained by the different customers which affected the
overall growth of the company.
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2.0 Situation Analysis
2.1 Market Analysis
The market size of the telecommunication industry in Australia is one of the
largest sectors in comparison to the other sectors present in the market. Telstra has its
presence in more than 22 countries, and the number of smartphone connections alone is
set to reach more than six billion in the entire global market. The potential of the
telecommunication industry is positive, and it has the potential to capture the market as
the whole which will be helpful for them to gain competitive advantage (Morgan et al.,
2019).
The annual growth and revenue earned by the companies of the entire telecom
industry in Australia have been $38bn. The telecommunication falls under the matured
market as it has reached the state of equilibrium. There is an enormous scope of
innovation in the market which is affecting the growth of the company positively. The
level of competition in the telecom industry is moderate or less as the differentiation
aspect of Telstra has helped them in managing the respective space in an appropriate
manner (Kotler et al., 2015). Telstra is taking advantage of the economies of scale which
is fighting off the new entrants in the market.
There is an equilibrium in demand as well as the supply of the different
requirements of the customers along with the inclusion of the innovative products which
are sold by the companies.
2.2 Macro Environment Analysis
Political, Legal and Economic Analysis
 Telstra is operating in different countries; therefore, it is required for them to make policies
which are suitable for each country based on specific requirements of the communication
services. However, there is an increase in instability in the Australian market that affects the
growth of the company (Kotler & Armstrong, 2015).
 Moreover, the economic performance of Australia will remain stable soon which will one of the
significant opportunities for Telstra. Telstra can access vibrant financial markets along with
easy availability of the liquidity in the equity market which will be helpful for them in expanding
globally.
 The intervention of the government in the communications sector can impact the fortunes of
Telstra Corporation in the Australian economy (Kingsnorth, 2019).
 In addition to the same, there are different environmental laws and regulations which are
required to be followed by Telstra to meet those laws and regulations.
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 Moreover, the laws relating to data protection is required to be considered by Telstra to
determine whether Australia has a robust mechanism to protect the breach of data.
Social Analysis
 The broader attitude in case of migration can create a negative impact in Australia. It can
impact the ability of Telstra to bring international leaders along with managers to manage
various operations in the respective country.
 The level of education is high, and Telstra can leverage the different operations in Australia
and expand their business (Kotler & Armstrong, 2015).
 With the increase in liberalisation, attitude towards health and safety are getting lax and
Telstra needs to stay away from such attitudes as the cost relating to failure is high in
Australia.
Technological Analysis
• Telstra needs to restructure the supply chain to bring in more flexibility to meet the
demands of customers along with cost structure (Kotler & Armstrong, 2015).
• Telstra can receive a good insight on the position of the competitors which will be helpful
for Telstra to understand the position of the competitors in the market
• Technology has not reached maturity in the telecommunication industry, and Telstra can
implement new innovative techniques which will be beneficial for the overall growth of the
company
2.3 Micro Environment Analysis
2.3.1 Company Analysis
Positive Aspects Regarding Telstra Brand
It has been noticed that Telstra has included the sustainability-related
practices in the organization which helps in motivating the employees working in the
organization. It has been seen that at Telstra, the primary key performance indicators
are inclusive of the health and safety of the employees working in the organization,
gender equality as well as social and community development which is helpful for them
in appropriately managing the activities (Hunt, 2018).
Negative Aspects Regarding Telstra Brand
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On the other hand, there are few negative aspects regarding the Telstra brand
which is inclusive of the competition. There has been an increase in the competition in
the telecom sector which is affecting the overall brand image and revenues of the
company in comparison to the other competitors present in the market. The other issue
which is being at Telstra is relating to the poor network which is being complained by the
different customers, and it affects the overall growth of the company in a negative
manner (Telstra.com.au, 2019).
Summary
Therefore, from the positive and negative aspects of Telstra, it can be identified
that Telstra needs to mainly focus on managing the different needs of the customers
which will be helpful for them in managing the competition present in the market and it
will improve the overall success.
2.3.2 Competitor Analysis
The level of competition in the telecommunication industry is moderate, and there
are very a smaller number of competitors present in the market as well. The economies
of scale are relatively difficult to achieve in the respective industry in which Telstra
operates. The differentiation of product is strong, and the threat of other new entrants is
less for Telstra which is considered to be less volatile (Hapsari, Stoffers & Gunawan,
2017).
Due to the differentiation of the products and services which are sold by Telstra, it
has been helpful for them to compete against the other competitors present in the
market. The strong emphasis is provided on advertisement and customer services which
helps them in competing and differentiating with the other competitors such as
Vodafone, Optus and Virgin Mobile (Fahy & Jobber, 2015).
There are few substitutes available in the market which provides high quality
products to the customers. However, the threat is less, and it will be helpful for Telstra to
operate in the telecom industry effectively. Lastly, the differentiation is the aspect which
will be beneficial for Telstra to compete in the market in comparison to the other
competitors present in the market.
Key players
Vodafone, Optus and Virgin Mobile are the three primary and direct competitors of Telstra
Telecom company.
Competitive market Summary
Competitor Market
share
Product
or
service
Product or
service
features
Strength/
Weaknes
s
Marketing
strategy
Threat
level
(high,
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descripti
on
low,
medium
)
Vodafone 35.12% Offers the
customers
with
different
kinds of
mobile
handsets
along with
monthly
prepaid and
post-paid
plans
Sophisticated and
can be bought by
the different
groups of people
Innovative
products
and
stronghold
in the
European
market
Differentiation High
Optus 14.4% Offers the
different
monthly
plans for
the
subscribers
present in
the market
The offers are
flexible, and it is
approachable by
the customers of
various income
groups
Flexible
monthly
plans
Differentiation
focus and cost
leadership focus
Medium
Virgin Mobile 4% Virgin
Mobile has
less plans
available
for the
customers,
and there
are no such
monthly
plans
available
The main feature
is that the brand
equity gained by
the company
Old
fashioned
plans are
applicable
Cost Leadership
Strategy Low
Figure 1: Competitor Analysis
(Source: D’Souza et al., 2018)
2.3.3 Consumer Analysis
The significant demand for the primary target segment has been able to create a substantial
impact on the process of decision-making of the company. The central segment of Telstra are the
working professionals, and the maximum individuals belonging to the working class are fond
of the technological advancement, and it has influenced Telstra in making efficient strategies to fulfil
the demand (Cacciolatti & Lee, 2016). The working professionals are the early adopters of
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technological innovation and advancement, and due to the same, Telstra has been able to develop
new and innovative mobile phones with unique features for the different customers who are interested
in new technologies. Moreover, there is no such resistance to change among the customers as they
prefer to improvise technological advancements.
2.3.4 SWOT Analysis
STRENGTHS
Telstra is building a strong network of
infrastructure which helps in supporting their
operations (Baker & Saren, 2016)
The company has a pool of skilled workforce
which has enabled the organization to realize
faster growth in the telecom industry in
Australia
Telstra has the proper monetary base which
helps provide constant assistance related to
monetary aspects
WEAKNESSES
Telstra charges high prices in comparison to the
other competitors which is one of the negative
aspects of the company
As the organization expand its business operations
in the different geographical coverage, there is the
inclusion of various inefficiencies that have affected
the brand image of the company (Armstrong et
al., 2015)
There are other competitors present in the market,
due to which Telstra suffers from latency issues.
OPPORTUNITIES
The company can renew the focus on the
customer service which helps in reducing the
number of unsatisfied customers in the market
(Armstrong et al., 2015)
Due to the increase in the strategic growth
initiatives, it has been able to improve their
business operations in the market.
There is an increasing demand in the telecom
services which has helped them in improving
the business operations successfully.
THREATS
Due to high competition in the telecom
industry, the entire industry has been
saturated
The regulations of the government are
becoming complex, and it is affecting the
overall telecom industry in an ineffective
manner (Armstrong et al., 2015)
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3.0 Objectives
Marketing Objectives
 To develop the 4G services along with 3G services which will increase their market share by
10% within the next six months
 To offer more options to the customers in mobile plans to achieve customer loyalty and
generate 5% revenues in a year
From the marketing objectives, it can be identified that in introducing the different 4G and 3G
related services, it will help Telstra in achieving the goals and objectives. The company needs to
focus mainly on the cost leadership as well as differentiation strategy as it will be helpful for them in
gaining loyalty among the customers and increase the competitive advantage in the market in
comparison to the other competitors present in the market.
4.0 Reference List
Armstrong, G., Kotler, P., Buchwitz, L. A., Trifts, V., & Gaudet, D. (2015). Marketing: an
introduction.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation,
marketing strategy and organisational power. Journal of Business
Research, 69(12), 5597-5610.
D’Souza, C., Marjoribanks, T., Young, S., Sullivan Mort, G., Nanere, M., & John, J. J. (2018).
Environmental management systems: an alternative marketing strategy for
sustainability. Journal of Strategic Marketing, 1-18.
Fahy, J., & Jobber, D. (2015). Foundations of marketing.
Hapsari, C., Stoffers, J., & Gunawan, A. (2017). The Influence of Perceived Cultural and
Business Distance on International Marketing Strategy Decisions; A Case study of
Telkom Indonesia International. International Review of Management and
Marketing, 7(3), 238-245.
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Hunt, S. D. (2018). The prospects for marketing strategy and the marketing discipline in
Era V: is the prognosis promising or problematic?. Journal of Marketing
Management, 34(1-2), 86-95.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Kotler, P., & Armstrong, G. (2015). Principles of Marketing-Global Edition. Pearson.
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson
Higher Education AU.
Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing
strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.
Telstra.com.au (2019) Telstra - mobile phones, prepaid phones, broadband and internet
(online) Retrieved from https://www.telstra.com.au/ [Accessed on 4 April 2019]
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