Telstra's Competitive Advantage: A SWOT Analysis Response Strategy

This case study provides a SWOT analysis of Telstra, a major telecommunications and media company in Australia, and discusses how the company should respond to opportunities in its external environment to develop a competitive advantage, particularly in the context of the current COVID-19 environment. It highlights Telstra's strengths, such as a strong communication flow, a loyal customer base, and adaptability to new markets, as well as weaknesses like inefficient financial planning and lagging R&D. The analysis also identifies opportunities like increasing online client acquisition and reduced transportation costs, alongside threats such as limited skilled labor and currency fluctuations. The study suggests Telstra should focus on audit procedures, CSR, employee motivation, and remuneration policies to mitigate risks and capitalize on opportunities for growth and enhanced market position. Desklib provides solved assignments and study resources for students.

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Student’s Name
Institute
Professor
Course Code and Name
Date
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"Using Telstra's SWOT analysis discuss the way in which you believe Telstra should
respond to the opportunities in their external environment to develop a competitive
advantage. You may discuss the question using any or all of the lecture topics discussed
in the course so far and also considering the current COVID-19 environment that
Telstra is operating in".
Marketing knowledge in any circumstance is a handy tool for organizations. It is vital
to understand the complex environment and identify competitive strategies. Telstra needs to
take the condition of its workers and the results they deliver very seriously as a
telecommunications and media company (one of their greatest in Australia) (Xin, 2015).
Strengths
 A strong flow of communication
 Strong Clientele
 Ability to adapt to new markets
 Supplier reliability
 Product innovation
Weaknesses
 Inefficient financial planning
 Failure to merge with outside culture
 R&D behind the competitors
 Weak expansion strategies
Opportunities
 Increasing clients via online
channels
 Reduced transportation costs
 Low inflation rate
 Consumer trends
Threats
 Limited skilled labor
 A limited supply of innovative products
 Currency fluctuations
 The growing capacity of local
distributors
SWOT Analysis of Telstra
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S.W.O.T Analysis of Telstra
Strengths: The company has a strong flow of communication at various managerial
levels which enables it to strategize better. Moreover, its strong partnerships with its
stakeholders and its performance in designing and enforcing a great recording and reporting
program have ensured that the issues of data loss have been mitigated in the best possible
way. All these strengths have resulted in building a wide and loyal customer base, with the
members typically pleased by the company's services (Vaněk, Mikoláš & Žváková, 2012).
Weaknesses: The existing balances of assets and liquid assets suggest that the
company can use the capital more efficiently than it does. Not very good at merging
businesses with growing work cultures. Research and development spending is less than the
industry's fastest-growing teams.
Opportunities: Lower freight rates will also reduce the production of goods by
providing the business with a chance because of lower shipping prices. The company's
spending on the online platform in the past few years has been huge. The low inflation rate
gives the customers of Telstra more price stability and loans at a lower cost.
Threats: There have been more challenges to the saturation of the Australian
economy, with room for future development being hindered. However, the strained
relationship between the organization and the regulatory authorities can also pose a danger as
their impact is expected to grow in the future (Vaněk, Mikoláš & Žváková, 2012). Also, the rise
of local marketers is a great threat.
To gain the command over externalities, Telstra should lay more emphasis on its audit
procedures. Another area that demands focus is CSR as it helps increase the existing
customer base (Xin, 2015). The techniques to motivate employees should be followed so that
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the turnover rate at this time of COVID-19 is less. The remuneration policy should also be
strengthened so that the financial risks are reduced.
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References
Vaněk, M., Mikoláš, M., & Žváková, K. (2012). Evaluation Methods of Swot Analysis /
Metody Vyhodnocení Swot Analýzy. Geoscience Engineering, 58(2), 23-31. doi:
10.2478/gse-2014-0036
Xin, W. (2015). Telstra Financial Analysis Report Fy2009 – Fy2013. Journal Of Finance
And Accounting, 3(5), 150. doi: 10.11648/j.jfa.20150305.16
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