Telstra's Strategic Management: Sustainable & Resource-Based Views

This report provides a strategic management analysis of Telstra, a leading technology and telecommunications firm in Australia, using three key approaches: sustainable approach, resource-based view (RBV), and dynamic capabilities. The sustainable approach examines Telstra's commitment to environmental solutions, responsible business development, and digital futures. The resource-based view utilizes the VRIO framework to assess Telstra's tangible and intangible resources, including brand extensions, access to capital, logistics, e-commerce capabilities, financial resources, intellectual property, pricing strategies, and global presence, determining their impact on competitive advantage. Finally, the report touches upon the dynamic capabilities approach, which focuses on Telstra's ability to adapt and innovate in the face of technological disruptions. The analysis aims to evaluate how these approaches contribute to Telstra's strategic objectives and sustainable position in the telecommunications industry.

Running head: STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
Executive Summary
The report is built on study of diverse approaches that are related to proper strategic
management and planning related actions of the modern organizations. The company that has
been considered for the study is Telstra. The three tactics that have been examined in the
report are, sustainable approach, resource based approach and dynamic capabilities method.
The approaches have been able to play a key part in the methods by which the organization
has developed its strategies and operations in order to maintain the sustainable position in the
industry for a lengthier period of time.

2STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
Table of Contents
Introduction....................................................................................................................3
Sustainable approach of strategic management.............................................................4
Resource based view approach of strategic management..............................................5
Dynamic capabilities approach of strategic management..............................................9
Conclusion....................................................................................................................11
References....................................................................................................................12

3STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
Introduction
As discussed by Barros, Hernangómez and Martin-Cruz (2016), the process of
strategic management is considered to be less reactive and more reactive in nature. The
decisions that are made by the management of organizations are mainly built on the strategic
plans that have been developed and applied. The strategic plans are implemented in order to
fulfil the objectives and goals of the organizations. The decision making process are
considered to be quite tough in comparison to the other activities that are performed (Daspit
et al. 2017). Strategic management is termed as a process based on the development of long
term based objectives and goals built on future processes of the firms. The long term based
strategic objectives are considered to be a significant aspect that can influence the methods by
which organizations can maintain their operations for a long a period of time (Demir,
Wennberg and McKelvie 2017).
The report will be based on the three major approaches of strategic management that
are implemented by different companies. Three tactics that have been considered for analysis
in the report are sustainable approach, resource based view and industry leadership approach.
The firm that has been taken into consideration for analysis is Telstra. The analysis will be
based on the ways by which Telstra has applied the three approaches in order to develop
different strategies.
Telstra is the leading technology and telecommunication based firm of Australia. The
firm provides huge number of services that helps the company to compete in different
telecommunications based markets. The organization provides its services to around 18.0
million retail customers and around 3.7 million retail based fixed services as well
(Telstra.com.au 2019). The major belief of the company is to develop effective connections
between people or consumers based on the opportunities that are offered to them. The firm

4STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
thereby aims at proving support to the customers in order to develop a connected future
(Telstra.com.au 2019).
Sustainable approach of strategic management
As discussed by Durand, Grant and Madsen (2017), the sustainable tactic of strategic
management is built on the methods by which business practitioners are able to manage the
processes of different organizations in a sustainable manner. The sustainable tactic is built on
the balance that is developed between systems approach and balanced values approach
(Engert, Rauter and Baumgartner 2016). The levels of interaction that the business has with
the external environment is an important part of the sustainable approach. The social
responsibilities are considered to be a significant part of the sustainability based approach
that has been implemented by the modern firms (Dyer et al. 2015).
The principle based on sustainability is related to the ways by which the mind-set by
the modern organizations. The levels of competitive success of the organization are affected
in a enormous way by the sustainability based actions that are accomplished by the firms. The
prominence that is offered to the levels of sustainability in the industry is considered to be a
key factor in the organizational processes (Ethiraj, Gambardella and Helfat 2018). The
principles based on sustainability have an impact on interest of the organizations and the
overall society as well. The activities or approaches that are applied by the firms have an
impact on the levels of sustainability that the organization aims at developing (Frynas and
Mellahi 2015).
Sustainability is a significant part of the processes that are developed by Telstra. The
organization aims at the development of an extremely inter-connected world that helps in the
proper usage of digital technology. The traditional operating based models have been
disrupted in a huge manner by the implementation of diverse technologies. The society has

5STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
also been supported in a huge way by the actions that are accomplished by Telstra in order to
maintain the levels of sustainability (Hill, Jones and Schilling 2014). The impacts related to
variations that have taken place in the climate have led to the development of different
policies based on increasing the levels of accessibility towards education and healthcare.
Telstra has developed its position in technology and telecommunications based firm in the
industry (Hubbard, Rice and Galvin 2014). The organization has been playing a key part in
the methods by which support can be provided to the society and customers in order to adapt
to the technological variations and the opportunities that are offered to customers. Telstra
thereby thrives as a major firm in the digital world with the support of sustainable processes.
The major focus areas that are a part of the operations of Telstra include, responsible business
development, development of digital futures and development of environmental solutions
(Karadag 2015).
Resource based view approach of strategic management
The resource-based view of the organizations is considered to be an important
managerial framework that is implemented in order to determine strategic resources that have
the potential of development of competitive benefit in the market. The resources are exploited
by the organizations for the achievement of a sustainable competitive benefit in the industry.
The resource based view or RBV mainly proposes that the firms are considered to be
heterogeneous in nature (Kasemsap 2014). The managerial attention is considered to be a
significant factor that has an influence on the resources that have been gained by the modern
organizations. The model mainly helps in the proper identification of the capabilities, assets
and competencies that have the potential of delivering superior stages of competitive
advantages in the market. The proper development of competitive advantage is considered to
be a key part of the methods by which the firms are able to operate in the industry for a
longer period of time (Meyer, Neck and Meeks 2017).

6STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
The resource based view is considered to be an interdisciplinary method that is
applied in order to develop processes that are considered to be helpful for the company to
outperform the competitors. The proper achievement of competitive advantage is an
important part of the strategic management literature and the activities of strategic marketing
as well. The VRIO framework is used in order to analyse the resources that have been gained
by Telstra in the telecommunications market (Michael, Storey and Thomas 2017). The value
of resources that have been gained by Telstra are able to play a major role in the methods by
which the firm is able to uphold its position in the telecommunications industry. The
resources that have been gained by Telstra have an impact on the technology, organizational
structure, processes, culture and policies (Morschett, Schramm-Klein and Zentes 2015).
VRIO can be considered as a strategic examination tool that is used by firms in order to focus
on the proper development of competitive advantages. The resource based analysis of Telstra
is mainly related to the appropriate usage of resources by the organization in order to gain a
competitive benefit. The opportunity that is provided to the organization in order to develop
an edge in the market is considered to be a significant part of the resource based analysis of
strategic management (Sakas, Vlachos and Nasiopoulos 2014). The resources of Telstra can
be examined with the support of VRIO framework in the following way,
The two major categories of the resources that have been increased by a firm include,
tangible resources and intangible resources. The tangible resources that have been gained by
Telstra are, physical entities, money and inventory. The intangible resources on the other
hand include, administrative levels of the managers, goodwill of the organization, copyrights,
relationship with the supply chain based partners and the trademarks (Simon, Fischbach and
Schoder 2014). The four different components that are a part of the VRIO framework are as
follows,

7STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
Resources Value Rare Imitability Organizatio
n
Competitiv
e advantage
Opportunities
for the brand
extensions
Yes, new
niches have
started
emerging in
the market.
No, most
competitor
s are
targeting
the niches.
Yes,
competitors
can imitate.
Brand
extensions
require high
budget.
Temporary
levels of
competitive
advantage.
Access to the
cheap capital.
Yes No Yes,
competitors
can imitate.
Have not
been
exploited.
Not highly
significant.
Logistics and
distribution
costs based
competitiveness
.
Yes, helps in
the delivery
of lower
costs.
No Yes,
competitors
can imitate.
Yes Medium to
long term
based
competitive
advantage.
Opportunities
in adjacent
industries and
new resources
that are
required to
enter the
industries.
Can be highly
valuable in
development
of the new
revenue
streams.
No Yes,
competitor
can imitate.
All
capabilities
of
organization
have not
been used
totally.
Has high
potential.
Opportunities
are provided by
e-commerce
space using the
IT capabilities.
Yes, the e-
commerce
space is
growing in a
rapid way.
No, the
competitor
have
invested in
IT space.
The in-
house and
AI
analytics
are difficult
to imitate.
It is the start
for Telstra.
In long run
sustainable
competitive
advantage
can be
provided.
Financial
resources
Yes No Financial
instruments
and the
levels if
market
liquidity
that are
available to
nearest
competitors
.
The company
has a
sustainable
level of
financial
position.
Temporary
level
competitive
advantage.
Vision of
leadership for
the next set of
the challenges.
Yes No Competitor
s cannot
imitate.
Can be
developed by
the
organization.
Can help in
developmen
t of the
string
competitive
advantage.
Intellectual
property based
rights.
Yes, the level
of value is
high.
Yes, the
IPR rights
cannot be
Risks relate
to the
imitation of
The firm has
not used IPR
totally.
Providing
high levels
of

8STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
imitated. industry
disruption.
competitive
advantage.
Pricing
strategies
Yes Yes Pricing
strategies
can be
imitated
regularly.
Yes, the
pricing
analytics
engine can be
used.
Temporary
levels of
competitive
adfvantage.
Local and
global presence.
Yes,
diversificatio
n of revenue
streams is
important.
Yes Yes,
competitors
can imitate.
Yes Provides
high levels
of
competitive
advantage.
Valuable – The levels of value that the resources have been able to grow. The critical
resources mainly include, human resources, financial resources, operations management and
the marketing expertise.
Rare – Telstra Australia has to take a decision based on the development of resources
in such a way that is able to increase the value of the firm in the highly competitive business
environment. The existence of competitors in the industry is able to the play a key part in the
levels of accessibility of the resources and the ways methods that are used in order to enter
the competitive landscape as well (Trigeorgis and Reuer 2017).
Imitability – The industries have stared facing huge levels of threats based on
disruption in the technologies that have been implemented. The core differentiation that has
been developed by Telstra in the telecommunications industry us built on the levels of
services that are provided to the consumers. The process of duplication of the resources are
not able to affect the operations of Telstra in the industry. The availability of substitute
products in the market is a major factor that has an influence on the resources gained by
Telstra (Sakas, Vlachos and Nasiopoulos 2014).
Organizational capabilities and competencies – The organization has used the
resources in an effective way in order to grow its position in market place. The levels of

9STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
exploitation of the resources are considered to be significant for the proper growth of the
operations of Telstra in the telecommunications industry. The levels of exploitation of the
resources is considered to be heavily dependent on the execution based strategy and
execution team of Telstra. The capabilities of Telstra can increase with the help of support
that is offered to the processes by high quality based human resources (Meyer, Neck and
Meeks 2017).
Dynamic capabilities approach of strategic management
The organizational theory based on dynamic capability is considered to be a
significant aspect that is able to influence the processes of the organizations in the respective
industries. The ability that has been formed by the firm based on the reactions that are
provided to the external changes have been able to play a key part in the formation of
dynamic capabilities. The combination of different types of capabilities is helpful in the ways
by which the dynamic capabilities based approach is implemented by the organizations
(Hubbard, Rice and Galvin 2014). The concept that had been previously developed based on
the formation of operational capabilities is an important part of the dynamic capabilities
approach. The development of dynamic capabilities is considered to be a significant portion
of the processes that are formed by the modern organizations (Engert, Rauter and
Baumgartner 2016).
The management and the other executives of the firm are able to play the most
important role in the growth of dynamic capabilities in the market for a long period of time.
The variations that are continuously taking place in the external environment have an
influence on the levels of success that are gained by organizations in the industry. The
managers need to be apply changes in the organizational processes in order to help in the
proper development of their place in the highly competitive industry (Meyer, Neck and

10STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
Meeks 2017). The changes that have been implemented in different organizational processes
are able to play a key part in the formation of their sustainable position. The dynamic
capabilities that are controlled by the firms are quite different from the ordinary capabilities
and resources (Hill, Jones and Schilling 2014).
As discussed by Durand, Grant and Madsen (2017), the major objective of the
dynamic capabilities theory is built on the methods by which an impetus is provided to an
organization in order to achieve the competitive benefit and maintain the benefit for a long
period of time. Tough levels of competition are offered by the firms with the support that is
provided dynamic capabilities that are gained in the industry. The resources and
competencies that have been gained by the organization are considered to be extremely
significant for the methods by which different resources can be used in an effective way
(Kasemsap 2014).
The dynamic capabilities that have been gained by Telstra are helpful in the
development of an effective customer experience. The costs and structures have been
simplified by the firm in order to develop an effective place in the market. The wholly owned
business unit of Telstra named “InfraCo” has played a key part in the growth of levels of
performance. The radical levels of transformation that have been noticed in the customer
plans have also played a key part in improvement of customer performances (Ethiraj,
Gambardella and Helfat 2018). The productivity levels of the employees are increased in an
active way with the help of support that is provided by the resources and the capabilities that
are developed by Telstra. Telstra has also developed a new strategy in the year 2018 that has
been named as Telstra 2022. The four major pillars of the strategy developed by Telstra
include, radical simplification of the product offerings and removing the customer pain points
(Engert, Rauter and Baumgartner 2016). Establishment of the standalone infrastructure based
business in order to drive the performance stages of the employees. Simplification of the

11STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
structure and the ways by which people can be empowered. The development of an effective
cost reduction based program that can support the future growth of Telstra (Telstra.com.au
2019).
Conclusion
The report can be settled by asserting that Telstra has been fruitful in maintaining its
place in the telecommunications industry with the help of three different approaches that have
been applied by the firm. The three approaches that have been considered based on their
study in Telstra are, resource based approach, sustainable approach and dynamic capabilities
method. The approaches have been able to offer support in the proper development of
strategies that can be implemented by Telstra.

12STRATEGIC MANAGEMENT ANALYSIS OF TELSTRA
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