Telstra Case Study

Telstra Background

The Telstra Group Limited, based out of Australia, is indeed a telecommunications provider that offers a variety of services, including network construction and maintenance, product & service marketing, as well as the provision of voice, 7, internet access, & pay television. Among the S&P/ASX 20 companies, it is the biggest in Australia's telecoms sector. As of the year 2020, Telstra has 18.8 million customers, making it Australia's most popular wireless provider. Telstra and Australia Post both have deep roots in Australian history, having been established as part of the Postmaster-Department General's in the year of federation, 1901. Telstra, once a government-owned monopoly, is now a privately held corporation with an eye toward expansion into new markets and the development of innovative products. Additionally, Telstra has connected the whole continent of Australia. From the largest urban centres to the most remote outposts, the country is covered by its fixed telephone network. Telstra has built a wide range of service delivery systems, including transactions and digital data connections, a hybrid fibre coaxial cable broadband connection, Internet protocol connections, and connectivity to worldwide satellite technology.

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Vision & Mission Statement

Telstra's mission is "to strengthen our position as the premier full-service, telecommunications and information Services Company in Australia and to increase our footprint abroad." People are what give Telstra's technological advancements meaning. Innovating for the benefit of our customers, our company, and our communities, we strive to create a brighter future for everyone. Even as digital technologies advance and we continue to pave the way with our networks, technology, and experiences, the things that really motivate us haven't changed in a century. The most exciting element is that we have only just started constructing linked futures to ensure the success of all people.

"To create a connected future so everyone may prosper" is Telstra's stated goal. As a result, we will always be accessible to our clientele and strive to exceed their expectations. Also, providing cutting-edge innovation. The top network available. Since our goal is to create a prosperous future in which everyone participates, we must work to make connections amongst people.

Situation Analysis

Australia's mobile telecommunications business has boomed in recent years, and a further 6% expansion in the services market is expected this year. With an estimated 18 million users, Australia's mobile penetration rate is close to 90.1%, proving that the country's mobile phone services are highly competitive and increasing rapidly. It was also reported that Australia's mobile phone saturation rate hit 100.76% in 2013. The purpose of this research is to examine and comprehend Telstra Australia's current state. The report's first section provides a brief overview of the organization's background, followed by an examination of both its internal and external settings. Telstra's client base and competitive landscape are then broken out in detail.

Industry Structure & Economic Feature

Over the projected period, the Australian telecom market is anticipated to grow at a CAGR of 1.5%. Telstra, Optus, and TPG are the big three in the Australian retail market for mobile phone service. These three mobile service providers operate large, vertically integrated telecommunications businesses and provide a wide array of retail items for use with their services.

• Australian telecommunications firms are capitalising on the benefits of a cloud transformation by using cloud services like analytics, machine learning, and artificial intelligence (AI) to develop into data-driven enterprises. Deloitte reports that 38 percent of Australian businesses have made significant AI investments. In the year 2020, with the broad use of cloud computing, telecom companies throughout the nation have more oversight over their data.
• Australian telecommunications companies may serve as a benchmark for effective use of the intelligent edge. Australia is one of the pioneering countries to adopt 5G, and the country's market for technology and system integration services is booming as a result. Australian companies may experiment with the integration of these technologies to boost their digital transformation initiatives.
• Australia is at the front of 5G adoption with three operational networks. By the end of 2021, mobile network operators (MNOs) in Australia had built around 4,000 5G base stations, with more being added in 2022. Australia's government has launched the 5G Innovation Initiative to aid business in testing 5G networks. By GSMA Intelligence's count, Australia has the third-highest density of 5G-enabled devices per capita.

Competitive Advantage

Telstra's networks are an important part of our competitive edge; therefore, we must keep spending money on innovative new networks to provide customers with the best possible experience in terms of coverage, speed, dependability, and security. We are digitising our procedures and infrastructure to improve our service to customers and reduce administrative burdens. To better serve our customers and streamline operations, we are digitising our systems and procedures. We also need to foster significant cultural transformations in our workforce and develop the proper competencies. We will also keep the Telstra values in mind as we work to simplify and increase responsibility throughout the company.

SWOT Analysis

Strengths

• The firm has a solid foundation of dependable raw material suppliers, which helps it to avoid and overcome supply chain bottlenecks, according to the SWOT analysis.
• The firm has encouraged its distributors and dealers to cultivate a culture in which they not only promote the company's goods, but also invest in training salespeople to provide advice to consumers on how to get the most out of those products.

Weaknesses

• Innovative technology needs more investment. Since Telstra aims to grow into so many different countries and regions, it will need to spend more on technology to standardise its processes across the board.
• The company's current R&D expenditures lag behind those of similarly positioned businesses that are expanding at a faster rate. Telstra has spent more on R&D than its competitors, but it hasn't helped it catch up to the market leaders when it comes to innovation.

Opportunities

• In the previous several years, the company has invested heavily in its online infrastructure, which presents a number of promising new avenues for growth. Because of this funding, Telstra now has access to a hitherto untapped sales avenue.
• Using big data analytics, Telstra may be able to expand into new areas as a consequence of shifting consumer preferences. It's a great opportunity for the firm to expand into untapped markets while also bringing in more money.

Threats

• The corporation has produced a number of items throughout the years, although many of them have been reactions to innovations made by competitors.
• Second, sales statistics fluctuate wildly because of the erratic nature of new product releases; third, the rising influence of local distributors presents a problem in several industries since the competition offers local distributors larger margins.

PESTLE Analysis

Political Factors

1. First, Australia's current form of government has been effective for quite some time, and I doubt that it will undergo significant change very soon, despite the fact that it may produce leaders capable of implementing policies that deviate from the norm. Telstra Corporation. has to monitor government objectives in the sector as a whole in order to foresee future developments.
2. Allocation of government resources and timeliness of policy changes are two factors that might boost investor confidence in Australia's services industry. Assuming the proposed policies have widespread support among the populace, they will likely continue to be implemented for much longer than the current Australian government's authorised tenure.

Economic Factors

1. To continue its worldwide expansion, Telstra Corporation. may take use of (1) Australia's efficient financial markets by tapping into the country's thriving financial markets and the abundant liquidity of its equities market.
2. The rising disparity in the society will have a negative influence on consumer mood, which in turn will affect consumer buying behaviour, even while disposable income has stayed consistent.

Social Factors

1. Changing gender roles in Australia. Telstra Corporation. may try out new ideas to accommodate and encourage the shifts in gender roles that are occurring in Australia.
2. Second, the societal conventions and hierarchies in Australia are distinct from those in the United Kingdom, where Telstra Corporation is headquartered. To better service its consumers in Australia, it should recruit and train locals who are familiar with the country's culture and customs.

Technological Factors

1. One, technology hasn't fully matured yet, therefore companies in the Communications Services industry are all competing for new developments that will help them increase their part of the Australian market.
2. Customers' expectations in the Services market have been revolutionised by the widespread use of mobile technologies. Telstra Corporation. must not only deliver on and control existing expectations, but also create new ones in order to remain competitive.

Legal Factors

1. What Telstra Corporation. has to do to comply with Australian health and safety regulations, and how much it will cost.
2. It might take years to resolve a commercial dispute in court, even if some nations adhere to international principles. Before expanding into overseas markets, Telstra Corporation must carefully analyse the average duration of certain situations.

Environmental Factors

1. First, consumer activism - The growing concern for the environment among its consumers has prompted Telstra Corporation to prioritise this issue. Telstra Corporation customers depend on it to not only meet but also exceed all applicable legal requirements as it strives to become a respected member of the community.
2. Second, Telstra sees great potential in renewable technologies. It's positioned to take advantage of the current climate in this industry. Australia is encouraging investment in renewable energy by offering tax incentives.

Marketing Mix

The 4Ps of Marketing Mix are -

1. Product - The goods now being manufactured or planned for manufacture by Telstra Australia in order to corner future markets.
2. Price: Telstra Australia's pricing approach across its major customer categories.
3. Place: The rise of online shopping and the dominance of companies like Amazon have changed Telstra Australia's distribution mix in significant ways.
4. Fourth, Promotion (Telstra Australia's Communication Strategy) - The advent of social media and online advertising has altered the landscape of Telstra Australia's communication mix and communication strategy.

Competitive Analysis

Competitors Marketing Mix (Vodafone.com)

1. Products: Vodafone's primary offerings include prepaid and post-paid service plans, as well as value-added services (Value added services). Vodafone's product strategies are as follows. Products from Vodafone span the spectrum of modern communication, including mobile phones under the Vodafone name, smartphones, voice and message services, handsets, Internet services, and value-added offerings.
2. Price: As a result of their competitive pricing and reliable service, Vodafone has won the loyalty of its customers. It tailors the prices in its marketing mix to the specific requirements of each market group it serves. The cost of a service is established in accordance with its characteristics, such as its speed and bandwidth.
3. Place: Thirdly, as far as location goes, Vodafone's telecommunications services are available in 20 countries, while the company's IT services are used in another 150. Vodafone's services are mostly offered via its own network of stores and call centres, but are also available through third-party retailers. As a global company, Vodafone has a sizable retail presence in every region.
4. Promotion: When it comes to advertising, Vodafone is one of the most recognised names in the telecommunications industry worldwide. Vodafone's promotional approach in the marketing mix includes widespread advertisement of the company's wares through various media (television, newspapers, websites, billboards, etc.). Mary Kom, David Beckham, Michael Schumacher, and other global celebrities and athletes help spread the word about the product.

Problems & Issues at Telstra

After being knocked down for more than five hours due to severe outages caused by flooding, Telstra services are slowly being brought back up. On Tuesday morning, some 500 customers of the national telecom complained that they had lost mobile coverage. Telstra customers along the New South Wales/Victoria border have taken to Twitter to complain that they have been without cell service since 3 a.m. In excess of 5.5 hours after the first report of the widespread outage, a Telstra official confirmed that the problem had been resolved. Telstra was able to get a technician to the damaged location in southern NSW and hook up a generator despite the flooding roads.

Financial Analysis

For the fiscal year ending June 30, 2022, Telstra Corporation Limited announced its financial performance. The company's annual revenues came in at AUD 21,277 million, down slightly from AUD 21,558 million the year before. Sales dropped to AUD $22.045 billion from AUD $23.312 billion in the prior year. Revenue came in at AUD 1,688m, down from AUD 1,857m the previous year. Compared to the same period last year, basic profits per share from continuing operations decreased to AUD 0.144. The company's diluted profits per share from continuing operations came in at AUD 0.143, down from AUD 0.156 in the prior-year period.

Conclusion

Telstra, one of Australia's most prominent telecom providers, provides a wide variety of services to customers all around the country. The primary focus of Telstra's business is introduced briefly in this report. The strategy analysis, competitive analysis, and environmental analysis of Telstra Corporation are also included in this study. Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is used to evaluate Telstra. Finally, this study uses the SWOT analysis to examine the company's tactics. Conclusions may be drawn about Telstra's future as a media conglomerate.