BBA102 Principles of Management: Telstra Corporation Report

This report provides a strategic analysis of Telstra Corporation, a major Australian telecommunications company. It examines the company's internal environment using a SWOT analysis, identifying strengths such as its market position and weaknesses like limited liquidity and high prices. The external environment is analyzed using a PESTLE analysis, considering political, economic, social, technological, environmental, and legal factors impacting Telstra. The report highlights the competitive pressures from companies like Optus and Vodafone. Recommendations are provided, including improving customer service through social media and reducing service costs to attract customers. The conclusion emphasizes the importance of strategic tools in identifying key factors and suggests that Telstra should focus on customer service and competitive pricing to achieve growth in a challenging market.

Telstra Corporation

Telstra Corporation
Executive Summary
This report was commissioned to evaluate the strategic tools considered by the Telstra Company.
In this paper the internal and external environment is conducted in relation to the SWOT
ANALYSIS and PESTLE ANALYSIS. It is evaluated that the company has to face the challenge
related with high competition level in the market and also due to poor customer service. So, the
paper has highlighted the recommendations that should be used by the company as it will help to
attain the set targets. The two recommendations that are discussed relates with customer service
and also reducing the prices of the services. The customer service should be offered by the social
media sites as it boosts the satisfaction level of the customers. To reduce the competition level, it
is important to focus on reducing the prices as it assist in attracting the customers towards the
services.
Introduction
In this paper, the focus will be given on the Telstra Corporation which is one of the biggest
Australian companies. The company emphasizes on building and operating the
telecommunications networks, market voice, and internet access. There are different subsidiaries
of the company such as Foxtel, Pacnet, Ooyala and Wholesale. The paper will discuss about the
internal and external environment of the company. The internal analysis will be explained by
considering the SWOT ANALYSIS and external analysis will be elaborated by considering the
PESTLE ANALYSIS strategic tool. The purpose of the paper is to analysis the external and
internal business environment of the company in the highly competitive market. In the first phase
of the report the internal environment will be analyzed and the second phase will focus on the
external environment. The last phase of the report will be based on the recommendations in
reference to the issues that will be identified.
Internal environment analysis
SWOT ANALYSIS
 Strength
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Telstra Corporation
It has been analyzed that Telstra is one of the largest company in the telecommunication and
information services of the company and the operating margin is enhancing. There is a wide
range of the service portfolio offered by the company in the highly competitive market. It has
been observed that Telstra is actively focused on the sporting events that help to boost the
demand of the services. In the company, there are more than 35,000 workers serving customers
from more than 230 countries and territories (Bellin, 2015).
 Weakness
Telstra has limited liquidity position in the market which can be considered as one of the barriers
for the company to attain growth. It has been observed that company expands in the geographical
coverage which simply states that there is inefficiency in the activities that are witnessed by the
different reasons of unsatisfactory customer service. In comparison to the other companies that
are conducting its activities in the same market, it can be said that Telstra has to suffer from the
different issues such as high prices as compared to the competitors (McDougal, 2017).
 Opportunities
In the present scenario, the demand for the telecom services is enhancing and also the IT services
in the market are growing. By launching the 4G Mobile brand band network the company has the
scope to attain growth in the market. There are also business opportunities in the international
markets such as in Asia pacific and China. The scope in the market is wide and the company can
easily renew the customer service to minimize overall percentage of the unsatisfied customers
(Gökgöz and Güvercin, 2018).
 Threats
The mobile market is facing more saturation due to high level of competition. Competitors of the
company are Optus, Vodafone and Virgin Mobile. The policies of the government are becoming
more complex. It can be said that the difference in the government regulations depending on the
different country is limiting the entry of the Telstra in the international markets (Burgess et al.,
2015).
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Telstra Corporation
External environment analysis
PESTLE ANALYSIS
 Political analysis
The company enjoys government support also after it was privatized but from the few years the
infrastructure of Australia is calling for the reform in Universal services obligations. The
company has maintained its diplomatic relations an also the strategic geographical locations that
developed the infrastructure for the biggest submarine cable network (Krämer, Jung and
Burgartz, 2016).
 Economic analysis
The GDP due to commodity prices in Australia and NZ has affected the telecom growth.
Inflation has been low and cyclical unemployment has also pressured the economy. In 2017, the
Chinese demand for the commodity exports and coal is reduced and due to these prices has also
been reduced (Kilroy and Schneider, 2015).
 Social analysis
Media outlets have an essential role which influences the opinion in Australia. Both traditional
and social media is expanding in Australia. The company also leverages this trend in maintaining
the large market and also the position of the products is maintained.
 Technological analysis
The development in the mobile technology has brought change in the expectation level of the
customers in the service sector. Telstra has managed the expectations and also innovatively
stayed ahead of the competitors (Teh and Corbitt, 2015).
 Environmental analysis
It has been observed that the regular scrutiny by the environmental agencies has added the cost
of the company. The customers have the expectation from the company to not only follow the
legal standards but also focus on becoming the responsible stakeholders in the community
(Grechyn and McShane, 2016).
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Telstra Corporation
Legal analysis
It can be seen that Telstra Company has to consider the different robust mechanism to secure the
data breaches. The business law procedure focuses on the international institutions like world
trade organization and European Union.
Recommendations Customer service
It is recommended for the company to solve the queries of the customers through social media
sites so that it could be easy to maintain the large customer base. It will help in improving the
satisfaction level of the customers towards the services.
 Reduce the cost of the services
To compete in the market, it is important for the company to focus on reducing the cost of
service of the competitors. By minimizing the prices it would be easy for the company to induce
the customers to avail the services apart from the competitor’s services.
 Innovative technology
It is important for the company to consider innovative technology so that it could be easy to
compete in the market. It will help to attract the customers towards the services.
 Increase in the Customer band width
The router should be set by the company so that automatically reboot can be done. Also, the
right wireless network should be identified as it will help in maintaining customer base.
Conclusion
It is concluded that it is important to focus on the strategic tools so that it could be easy to
identify the different factors. One of the factors that are analyzed through SWOT ANALYSIS is
high level of competition. Also, it is identified that the company has faced the issue with the
customer service. So, to maintain these operations, it is recommended that the Telstra should
emphasize on maintaining its customer service through solving the queries by social media
platform and also the prices of the services should be reduced so that growth can be attained in
the competitive market.
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Telstra Corporation
References
Bellin, H., 2015. Commitment Versus Campaign: Improving Resellers’ Performance Through
Commitment. Journal of Marketing Channels, 22(1), pp.74-76.
Burgess, S., Sellitto, C., Cox, C. and Buultjens, J., 2015. Strategies for adopting consumer‐
generated media in small‐sized to medium‐sized tourism enterprises. International Journal of
Tourism Research, 17(5), pp.432-441.
Gökgöz, F. and Güvercin, M.T., 2018. Investigating the total factor productivity changes in the
top ICT companies worldwide. Electronic Commerce Research, 18(4), pp.791-811.
Grechyn, V. and McShane, I., 2016. What influences international differences in broadband
prices?. Australian Journal of Telecommunications and the Digital Economy, 4(4),pp.98-100
Kilroy, D. and Schneider, M., 2015. The real economic challenge for the leaders of a listed
company Part 1: Establishing the right understanding. Governance Directions, 67(11), p.653.
Krämer, A., Jung, M. and Burgartz, T., 2016. A small step from price competition to price war:
understanding causes, effects and possible countermeasures. International Business
Research, 9(3), pp.1-13.
McDougal, M., 2017. Insights from the company monitor: Telstra. Equity, 31(11), p.15.
Teh, D. and Corbitt, B., 2015. Building sustainability strategy in business. Journal of Business
Strategy, 36(6), pp.39-46.
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