Telstra or Telstra Corporation Limited is a multinational telecommunications based company that has its origin in Australia. The firm has been able to develop its position in the telecommunications industry with the help of its different types of services that are offered to the consumers. The company has thereby developed a history in telecommunications based industry of Australia. The services that are offered by the company mainly include, mobile access based facilities, internet based access, television services (Telstra.com.au. 2018).
The company had been privatized in the telecommunications industry after some years of its effective operations. Different change programs had also taken place in the company based on its operations in the industry. This change had thereby occurred in the organization under the leadership of the new CEO David Thodey. Telstra is however struggled to maintain its effective position in the industry (Telstra.com.au. 2018).
The Australian telecommunication industry and the growth which has been shown is mainly driven with the help of the government of Australia. The strict regulations which have been developed by the government have played a major role in the operations. The different telephone based services were first provided by companies to its customers in Australia. The telephone exchange was first developed in Australia in 1880 (Telstra.com.au. 2018).
The Australian telecommunications industry has been able to develop in a huge manner with the help of different organizations. The levels of competitiveness in telecommunications industry has increased due to the amounts of growth. The competitive advantage of different organizations has also decreased due to huge growth of the industry. Telstra has developed an effective position in the telecommunications industry due to the long term based organizations (Aghazadeh 2015).
Political factor – The different political factors which can affect operations and the revenues of Telstra need to be analyzed by the company. The various regulations and policies that are thereby developed in the countries are considered to be important factors for Telstra. The political stability of the area will thereby be able to play an important part in the ways by which Telstra is able to operate in the industry (Baporikar 2015).
Economic factor – The economic situation of different countries and the macro-economic factors are able to influence the ways by which Telstra is able to operate in the industry. The economic aspects that are thereby capable of affecting the organization mainly include, the inflation based rates, savings rate, foreign exchange based rate and the economic cycle. The stability of the economy of the country is thereby considered to be an important part in the revenues that can be earned by the company (Barros, Hernangómez and Martin-Cruz 2016).
Physical factor – The share which has been gained by Telstra in the market is mainly able to affect the levels of revenues in a huge manner. The share based prices of the company are thereby driven in an effective manner by the macro-economic environment. The physical presence of Telstra in Australia is considered to be important for the company (Cosenz and Noto 2016).
Socio-Cultural factor – The social condition which has been developed in Australia and the effective culture can affect the ways by which Telstra is able to operate. The people of Australia are thereby able to affect profitability of the company in a huge way. The effective levels of understanding are thereby required in order to create demand for the services that are offered by Telstra. The skills and the demographics of the consumers are thereby important to be considered by Telstra (Daspit et al. 2017).
Global factor – The turbulence that has been experienced in the industry can affect the Australian telecommunications based industry. The organization is thereby affected by different changes that have taken place in prices of the services which are offered by the competitors of Telstra (Demir, Wennberg and McKelvie 2017).
Technological factor – The disruptions which have occurred in the technologies have been able to affect the companies like Telstra. The developments that have occurred in the industry has major effects on revenues and profitability which has been earned by Telstra. The cost based structure that has thereby been formed in the telecommunications industry has been affected in a huge manner by technologies (Durand, Grant and Madsen 2017).
Demographic factors – The different demographics factors can play a huge role in effective processes of the company in telecommunications sector in Australia. The effective study of the demographics mainly includes the factors like, income based levels, occupation and the age of the consumers. The services and products of the company can be offered based on demographic factors (Dyer et al. 2015).
Threat of the Substitutes – The different needs of the consumers are fulfilled with the services that are offered by the competitors of Telstra. The company faces major threats based on the easy availability of the substitute services in the industry. This been able to increase the levels of competition in the telecommunications based industry. The operations of the company based on services that are offered by its competitors are able to affect the revenues (Dobbs 2014). The effect of this force is quite high in the industry.
Rivalry amongst the existing competitors – The levels of rivalry that is evident in the Australian telecommunications industry are high. The competitive industry of telecommunications has major effects on the profitability levels of Telstra. The high levels of competition in the industry thereby plays a major role in the ways by which profitability can be increased (Engert, Rauter and Baumgartner 2016).
Bargaining Power of the Suppliers – The suppliers of Telstra who are present in the industry are able to the company with the required raw materials. The various suppliers who have been able to form a dominant place in telecommunications industry can affect the revenues of Telstra. The organization can however increase the profitability levels if it is able to reduce power of the suppliers (Ethiraj, Gambardella and Helfat 2018). An efficient supply chain can be developed by the company in order to offer the services to the company.
Bargaining Power of the Buyers – The buyers of the telecommunications based industry are highly challenging in nature. The extreme amounts of pressure which has been created by the buyers is able to affect the revenues of the company. The power of these customers can thereby be reduced in an effective way with the proper assistance of huge number of consumers (Frynas and Mellahi 2015). This is further able to affect the prices that are decided for the services and products of Telstra.
Threat of New Entrants – The introduction of the new companies in the telecommunications industry is able to influence the levels of innovation. The lower levels of prices which are thereby set by the new companies have also affected the profitability based levels of the organizations. Telstra had developed an effective competitive advantage in the industry with the help of its long term based operations (Galliers and Leidner 2014). The levels of threats which are however provided by the new organizations are quite low.
The environment that is developed in Australian telecommunications industry is aggressive in nature. The various companies had also provided high levels of competition to Telstra in the industry. The company has created a position in the industry as compared to its competitors. The position that has been formed by the company in Australia is affected in a huge manner by the organizations like, Optus and Vodafone (James 2016). The share that has been gained by Telstra in the industry has thereby increased from around 42% to 53% from the years 2010 to 2014.
The mobile based division of Telstra has generated revenues of greater than 10 billion Dollars. The subscribers of the competitor of Telstra named Optus is reduced to 9.4 million Dollars. The services that are thereby offered by the competitors of Telstra to the consumers have a major effect on the revenue levels of the company. The company has faced huge amounts of threats from the ways by which different organizations in the industry have operated (Sakas, Vlachos and Nasiopoulos 2014).
The tough competitive environment has thereby played a vital part in affecting the revenues of Telstra Corporation in the country. Telstra thereby needs to manage the operations in such a manner which can help in maintaining the position which has been developed in the highly competitive telecommunications based industry.
Opportunities – The major opportunities that can be used by Telstra are based on the reduction in the costs related to transportation. The increase in usage of different online channels can also act as a major opportunity for the effective operations of Telstra in the industry (Shepherd, Mcmullen and Ocasio 2017). The reduction which has been depicted in the inflation based rates in the industry is an important factor that can affect the prices of Telstra. The trends that have been developed in the industry are also based on the effective behaviour of different consumers in the telecommunications industry of the country. Emerging markets are able to affect the revenues of Telstra (Tantalo and Priem 2016).
Threats- The effective lack of the levels of regularity of the supply based on the innovative products pose major threats to Telstra. New technologies and their applications in the competitor organizations of Telstra has played a main part in providing threat to the operations of the company (Teece 2017).
Human resources – The human resources or employees are considered to be the most important part of the effective operations and revenues of Telstra in the industry. The employees have provided best services to the organization and in turn satisfy the consumers as well. The development and training related resources that have been gained by Telstra have been able to play a key part in the process which is used by Telstra in order to gain its position in the telecommunications industry (Sakas, Vlachos and Nasiopoulos 2014).
Financial resources – Telstra has developed an effective financial position in the industry with the help of its long term operations in the industry. The organization has further invested the resources in order to develop the services. This is an important part of the effective operations of the company (Galliers and Leidner 2014).
Physical resources – The physical resources have been developed by Telstra with the help of its numerous stores all over the country. This has further increased the availability of its services as well (Engert, Rauter and Baumgartner 2016).
The capabilities and culture of the organization is mainly related to the technologies that are implemented by Telstra in the industry. The transformation in the workplace has been possible with the help of implementation of technologies. The environment in which organizations are able to operate are based on the skills and career related directions as well. The evolution which has taken place in roles played by different employees is affected by capabilities (Shepherd, Mcmullen and Ocasio 2017).
The different changes in workplace based environment have enhanced the capabilities of Telstra. The major capabilities of the firm have been developed in an effective way with the help of its long term actions. The organization has been able to provide tough competition to the other organizations with the help of its competitive advantage developed with the help of its services (Sakas, Vlachos and Nasiopoulos 2014).
First Competency – The industry in which Telstra operates is based on the huge levels of growth. The growth in network traffic is also a significant factor which helps in the growth of different competencies of the company. The company has developed its position among the changes (Ethiraj, Gambardella and Helfat 2018).
Valuable – High
Rarity – Moderate
Imitability – Moderate
Organization – Yes
Second competency – The effective services that are offered by Telstra in the industry can be considered as a competency of Telstra.
Valuable – Moderate
Rarity – Moderate
Imitability – Moderate
Organization – Yes
The telecommunications and the technology industry has faced major changes in the modern business environment. The application of the management information system is able to affect the proper maintenance of data. The technology which can thereby be used by the organization for managing the data and information is able to play a key part in the operations of Telstra. The different stages that can be effective addressed by the information system include, implementation, identification of the problem, needs of the system, testing and documentation, design of the system (Frynas and Mellahi 2015).
The software which can be implemented in the information system is Oracle. The data based on employees and the customers can be managed in an effective way with the help of this information system. The managers are thereby provided with help by the information system to manage different operations of the company. The marketing and sales based activities of the organization are thereby entirely based on the proper management of the information systems that have been implemented by the company (Soomro, Shah and Ahmed 2016). The management of data plays a vital part in the organizations in order to maintain the customers effectively. The technologies which have been provided in the modern business environment can thereby be used in an effective way in order to manage the organizational operations (Galliers and Leidner 2014).
The proper implementation of the information management system that has been proposed is effective for proper operations of Telstra. The maintenance of consumer data is important for the company and can affect the revenues of Telstra. The employees or human resources of the company will thereby be maintained in an effective way with the proper implementation of the management information based system.
Conclusion
The report can thereby be finished by stating that the external environment of Australia can affect the operations of Telstra Corporation. The external changes have played a key role in the ways by which the organizations are able to increase their revenues. The internal environment and resources of the company have played an important role in the profitability and the revenues. The capabilities and the resources that have been gained by the company are important for the implementation of the information systems. The information based systems which have been suggested in the report can play a significant part in the effective operations of Telstra.
References
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