Strategic Analysis Report of Telstra Corporation Limited in Australia

This strategic analysis report focuses on Telstra Corporation Limited, a leading telecommunications company in Australia. It examines various strategic issues influencing the organization's performance, providing a background of the company, its business strategies, and an internal and external environmental analysis using PESTEL, Porter's Five Forces, and SWOT frameworks. The report identifies key challenges and core competencies, and offers recommendations for enhancing Telstra's strategic approach in the competitive telecommunications market. It also discusses factors contributing to sustainable development and the impact of environmental analyses on the organization.

Running head: STRATEGIC ANALYSIS REPORT
Strategic Analysis Report
Name of the Student
Name of the University
Author Note:

STRATEGIC ANALYSIS REPORT
Executive Summary
The foremost determination of the paper is to focus on the strategic analysis of Telstra
Corporation Limited. The different types of strategic issues which influence the performance of
the organization will be stated in details in this paper. The background of the organization will be
stated in the paper in a detailed manner. The different aspects of the business strategies of this
organization will be discussed in the paper. Internal and external environmental analysis of this
business organization will be stated in a professional manner in this paper. The paper will also
provide the analysis of the internal and external environmental analysis. The different types of
factors which contributes to the sustainability development of this organization will be discussed
in the paper. The impact of the discussed environmental analysis and its impact on the
organization will be stated in the paper with primary importance. The key issues and challenges
faced by this organization will be discussed in the paper with primary importance along with the
core competencies. The recommendation unit of the paper will be very much useful for the
readers of the paper to understand what aspects are lacking in the strategic analysis of the
selected organization.

STRATEGIC ANALYSIS REPORT
Table of Contents
Introduction......................................................................................................................................4
External Analysis.............................................................................................................................4
PESTEL Analysis of Telstra........................................................................................................4
Application of Porter’s 5 forces model on Telstra.......................................................................7
Internal Analysis..............................................................................................................................8
SWOT Analysis of Telstra...........................................................................................................8
Analyse the issues of the internal and external analysis................................................................10
Conclusion.....................................................................................................................................12
Recommendation...........................................................................................................................13
Reference.......................................................................................................................................14

STRATEGIC ANALYSIS REPORT
Introduction
The foremost determination of this paper is to focus on the strategic analysis of Telstra
Corporation Limited which is one of the leading telecommunication and technology company in
Australia. This business organization provide around 17.7 million retail mobile services, 3.6
million fixed retail broadband services and around 4.9 million retail services (Telstra, 2018).
Connectivity around Australia has improved significantly after this business organization gained
popularity because of its fast networking services. This global telecommunication industry has
lots of subsidiary companies and they are tied up with different communities and government
organizations (Grant, 2016). The present directors of board in this company are John P Mullen,
Andrew Penn, Roy H Chestnutt, Craig Dunn, Peter R Hearl, Jane Hemstritch, Nora L
Soheinkestel, Margaret L Seale, Niek Jan van Damme and Sue Laver. This telecommunication
company has a great deal of responsibility towards all of its clients. There are different types of
internal and external stakeholders associated with this organization and each of those
organizations takes huge responsibility in their work. There are few challenges associated with
the strategies of this organization which are needed to be revised so that this organization can
grow more considering the competitive telecommunication market in Australia (Brunswicker &
Vanhaverbeke, 2015). The following units of the paper will be analysing the different types of
internal and external factors which contributes to the growth and development of this
telecommunication organization.
External Analysis
PESTEL Analysis of Telstra
Macro-environmental analysis of Telstra will be conducted in this section of the paper
which will be identifying the key factors such as opportunities and threats, the factors

STRATEGIC ANALYSIS REPORT
responsible for the growth of the organization can be understood with this external strategic
analysis
Political Economic Social Technological Economic Legal
Stability
with the
government
official and
the other
communities
is beneficial
for the
organization,
it helps to
decrease the
corruption in
the
organization
al level.
Adverse
market
conditions
such as
recession
and
inflation
have little
influence in
this
organizatio
n. Financial
markets is
better
managed
by this
organizatio
n with the
help of this
economic
stability of
this
organizatio
n.
Demographic
s is a social
concern for
this
organization.
This organization
is very much
efficient in
coping up with
the advanced
technologies
used in the
telecommunicati
on industry.
Recycling of
the possible
products and
technology
is highly
considered
in this
organization.
Discriminatio
n law is
present for
all the
stakeholders
of this
business
organization.
Protection of
the
intellectual
property is
instigated
with the help
of the
political
connections;
the trade
regulations
of Australia
can be better
maintained
with the help
of the
political
This
organizatio
n have a
very skilful
workplace
(Epstein,
2018).
Culture of
the
organization
is not an
issue for this
business
organization
as they
maintain a
very healthy
culture
within the
working
environment
of this
organization.
The advanced
technology have
great impact on
the products and
services of this
organization.
This
organization
focuses
hugely on
the laws
regulating
the
environment
al pollution.
The
organization
focus on
renewable
energy on
the possible
production
units.
Copyrights
and
intellectual
properties are
very well
maintained in
this
organization

STRATEGIC ANALYSIS REPORT
connections.
The
association
with the co-
sponsors and
trading
partners are
very much
useful from
business
perspective.
The
different
types of
cost
involved in
this
organizatio
n is
sometime
not very
well
managed
by the
managemen
t squad due
to the
varying
market
conditions.
One of the
main
limitations of
this
organization
is the leisure
interests.
The cost
structure of the
organization is
positively
impacted with
the help of the
technological
advancements.
Eco-friendly
tools and
approaches
are
encouraged
in the
working
environment
of this
organization.
Health and
safety of the
employees is
one of the
major
concern for
the internal
stakeholders
of this
organization.
Taxation and
regulation of
the prices is
done in a
professional
way with the
help of the
political
stability of
this
organization
Discrepanc
y is
sometimes
a bit issue
in the
organizatio
n due to the
outdated
policies in
specific
department
s
Environment
al
consciousnes
s is a very
important
issues which
is very well
maintained
by this
organization.
Better customer
service is one of
the other
advantages of the
technological
advancements.
Climatic
factors such
as global
warming
have a huge
impact on
the strategies
of this
organization.
The data
regulated
among the
clients as
well as the
internal
stakeholders
are very well
protected by
this
organization
Table 1: PESTEL Analysis of Telstra
(Source: Created by the author)
From the above macro environment analysis, it can be concluded that this
telecommunication organization have a good business strategy but there are few areas which are
needed to be focused so that this organization can evolve more in the competitive market in
Australia.

STRATEGIC ANALYSIS REPORT
Application of Porter’s 5 forces model on Telstra
This type of external analysis will be helping to understand the position of this
organization in the telecommunication market in Australia. The business aspects of this
organization such as the loss and profitability due to various factors such as the external
stakeholders such as buyers and sellers can be understood in a better way with the help of this
model (Theaker, 2017). The driving forces of this organization can be understood with the help
of this analysis.
Forces Description
Threat of new entrants Lower pricing strategy and economies of scale
puts this organization in an advantageous position
compared to the other new telecommunication
industries (Hill, Jones & Schilling, 2015).
Bargain power of suppliers Best offerings of this organization to the suppliers
puts this organization in a better place from the
business perspective. Huge discounts and offers
are provided to the suppliers of the products.
Bargain power of buyers This organization have large base for the
customers which reduces the bargaining power of
the buyers. New and innovative methods are
always there for the buyers which is a huge
prospect of this organization.
Threats of substitute products and services There are many telecommunication industries in
Australia and there is a huge threat coming from
the substitute products and services. This
sometimes takes a toll on overall profit in a
calendar year.
Rivalry among existing players Sustainable differentiation offered by this
organization is a plus point in this organization.
Scale and the range of players are often evaluated
for implementing better strategies (Elmes &
Barry, 2017). This organization often collaborates
with the rival corporations which reduces the
threats coming from them.
Table 2: Application of Porter’s 5 forces model on Telstra
(Source: Created by the author)

STRATEGIC ANALYSIS REPORT
Based on the above analysis it can be concluded that this organization faces
threat from the substitute products and services. The other strategies such as the collaboration
with the rival organizations puts this organization in a better position compared with the other
similar organizations (Aithal, 2016). Large base of customers and the lower pricing strategy are
the main driving forces of this organization. Thus from this analysis the different types of forces
having an impact on this telecommunication organization can be identified.
Internal Analysis
The core competencies of this organization can be identified with the use of this analysis
which helps them to outperform their competitors.
SWOT Analysis of Telstra
Strength
This organization provide a wide range of
products and services to their clients which
helps them to be one of the leading
telecommunication industry in Australia
(Bounfour, 2015). The organization provide
huge sponsorship to the management team
which is one of their prime strengths.
Weakness
The liquidity position of this organization is
one of their main weakness. The higher
market competencies and substitute products
and services are the other drawbacks of this
business organization.
Opportunities
The subsidiary companies of this organization
provide huge opportunity for this organization
to grow and attain sustainable development.
The increasing integration of the advanced IT
products in the production units provide a
huge opportunity for this telecommunication
industry (Helfat & Peteraf, 2015). The
launching of new wireless telecommunication
networks boosts the business sales of this
organization.
Threats
The technological changes due to the
extensive development in the field of IT
helped is a huge threat for this organization
(Pearlson, Saunders & Galletta, 2016).). The
stringent government regulations are the other
types of threats of this business organization
apart increasing competition from the rival
telecommunication industries such as Virgin
mobiles, Optus and Vodafone Australia.
Table 3: SWOT Analysis of Telstra
(Source: Created by the author)
Based on the internal environmental analysis it can be said that this tele-communication
industry has different types of strengths such as the sponsorship with the subsidiary companies

STRATEGIC ANALYSIS REPORT
and the rival organizations and weakness such as the liquidity position of the organization which
are needed to be focussed so that sustainable development can be achieved (Baumgartner, 2014).
The business opportunities of this organizations come from the use of the advanced IT products
and services (Pan, Chen & Zhan, 2018). This business organization faces huge amount of threat
from the stringent government regulation which sometimes restricts the strategic analysts to
create and implement updated concept in this environment (Jenkins & Williamson, 2015). There
are different types of market competitors of this business organization and they are a huge threat
to the progress of the organization. The core competencies of the organization can also be
understood with the help of the above discussed internal analysis.
Competencies/ Resources Description
Customer service Helps the organization to have better
relationship between the organization and the
client. This is very much useful from the
business perspective of this organization.
Network investors The network investors who are considered as
the major resource plays a huge role in the
research purposes of this organization as well
as the subsidiary organizations (Lin & Wu,
2014). They are considered as one of the most
important resource of this organization.
Strategic Analyst Considered as a vital resource, strategic
analyst helps this business organization to
revise their existing strategies. This
organization have well combination of the
experienced professionals as well as new
employees as they focuses hugely on the
latest concepts in their production units as
well as in the sales and marketing strategies.
IT Department The huge development in the field of science
and technology has led to the growth of new
technologies which are always being
incorporated in the business environment of
this organization. This advanced technology
is not only useful from the business
perspective but there are also useful to
maintain the good reputation of this
telecommunication organization (Trigeorgis

STRATEGIC ANALYSIS REPORT
& Reuer, 2017). Competitive advantage can
be obtained with the help of this resource.
Distributors There are different types of distributors
associated with this telecommunication
industry as all of these distributors are equally
responsible for the sustainability development
of this organization.
Table 4: Competencies/ Resources of Telstra
(Source: Created by the author)
The above discussed competencies and resources are very much useful for this
telecommunication industry, all of their joint efforts makes this business organization as one of
the best telecommunication organization in the world (Olins, 2017). The role of the different
types of resources such as the distributers, network investors, customer service department can
be understood with the help of this unit of the paper.
Analyse the issues of the internal and external analysis:
There are different types of issues associated with this tele communication organization
which is the leading telecommunication organization in Australia. The retail service in terms of
the broadband and mobile service can be significantly improved if these issues are purposefully
solved (Theaker, 2017). This paper had both internal and external analysis of Telstra Corporation
Limited and found out few issues which are restricting the growth of this organization which will
be discussed in this section of the paper (Gerow, Thatcher & Grover, 2015). The unit will be
prioritising those issues according to the priority which is the business perspective. The
following table will be focussing on those issues.
Issue Issue obtained
from
Priority Analysis
Leisure Interests External analysis Low Efficient and
professional utilization
of the resources will be

STRATEGIC ANALYSIS REPORT
helping this
organization to solve
the issues from the
leisure as there are
instances which states
about the
unprofessional attitude
of important
stakeholders such as
the marketing.
Added costs External analysis Medium The extra costs should
be minimized with the
help of more accuracy
of the strategic
analysts. The changing
business conditions are
needed to be predicted
in a well-defined
manner.
Discrepancy in the
production unit
External analysis High The discrepancies in
the production unit of
this organization can
be solved purposefully
with the use of
advanced IT products
and services such as
the surveillance camera
with notification
sensors which alerts
the team leaders in case
of any discrepancies
with the help of
automated
technologies.
Higher market
competencies
Internal Analysis High The market
competition should be
predicted by senior
most experts of the
organization (Molnár,
& Lendvay, 2016).
Substitute products Internal Analysis High The reason behind the
wide spreading of the
substituted products
should be understood
by the management
team of this

STRATEGIC ANALYSIS REPORT
organization.
Technological
changes
Internal Analysis Medium There should be
effective planning
regarding the
incorporation of new
technologies in the
working environment
of this business
organization (Booth,
2015). The
implementation of the
new and advancements
should be done in a
professional way so
that there are no issues
such as change to
resistance.
Stringent government
regulations
Internal Analysis Low The strategic analysts
should well aware of
the current political
conditions of the states
as the rule and
regulation are always
subjected to changes.
Table 5: Issues from the internal and external analysis of Telstra
(Source: Created by the author)
Conclusion
From the above paper it can be concluded that the success of this telecommunication
depends entirely on the competencies and the resources. The success of the organization is also
dependent somewhat on the management team for choosing effective resources for the
organization. Based on the internal environmental analysis it can be found that the there are few
issues such as the stringent government rules, technological changes, substitute products and
market competencies in the organization. The external environmental analysis helps in
concluding issues such as the leisure interests and the extra costs added to the production units
which changes due to the dynamic market conditions. The role of the internal and external

STRATEGIC ANALYSIS REPORT
stakeholders can be understood with the help of this analysis. The different types of challenges
faced by the stakeholders can also be understood with the help of this paper. The paper helps in
concluding why Telstra is one of the biggest telecommunication industry in Australia which is its
progressive thinking in the development and the implementation of the strategic. The strategic
issues responsible for the growth of global business organization be understood with the help of
this paper. The factors affecting the performance of the organization is understood with the help
of this paper. Thus, from this paper we can understand the different business aspects of Telstra
Corporation Limited. The different internal and external factors affecting the growth and
development of this global telecommunication organization are discussed in tabular forms in this
paper.
Recommendation
The issues obtained from the internal and external analysis of Telstra can be solved
purposefully with the help of the following recommendations:
o Leisure Interests: It can be solved with effective project management skills.
o Added costs: This issue should be solved by strategic analysists.
o Discrepancy: in the production unit it be solved by automated technologies
o Higher market competencies: This issue can be solved by project managers.
o Substitute products: This issue can be solved by the future planning team.
o Technological changes: Professional IT experts can minimize this issue.
o Stringent government regulations: Strategic analysts can minimize this issue to a
significant extent.

STRATEGIC ANALYSIS REPORT
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