Strategic Analysis Of Telstra Corporation Limited

External Analysis

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.

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 responsible for the growth of the organization can be understood with this external strategic analysis

Political	Economic	Social Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	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 organizational level.	Adverse market conditions such as recession and inflation have little influence in this organization. Financial markets is better managed by this organization with the help of this economic stability of this organization.	Demographics is a social concern for this organization.	This organization is very much efficient in coping up with the advanced technologies used in the telecommunication industry.	Recycling of the possible products and technology is highly considered in this organization.	Discrimination 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 connections.	This organization 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 environmental pollution. The organization focus on renewable energy on the possible production units.	Copyrights and intellectual properties are very well maintained in this organization
The association with the co-sponsors and trading partners are very much useful from business perspective.	The different types of cost involved in this organization is sometime not very well managed by the management  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	Discrepancy is sometimes a bit issue in the organization due to the outdated policies in specific departments	Environmental consciousness 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

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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.

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)

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.

PESTEL Analysis of Telstra

The core competencies of this organization can be identified with the use of this analysis which helps them to outperform their competitors.

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 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 & 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.

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 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 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 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.

The issues obtained from the internal and external analysis of Telstra can be solved purposefully with the help of the following recommendations:

• Leisure Interests: It can be solved with effective project management skills.
• Added costs: This issue should be solved by strategic analysists.
• Discrepancy:  in the production unit it be solved by automated technologies
• Higher market competencies: This issue can be solved by project managers.
• Substitute products: This issue can be solved by the future planning team.
• Technological changes: Professional IT experts can minimize this issue.
• Stringent government regulations: Strategic analysts can minimize this issue to a significant extent.

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