This 9 page paper examines the largest Australian telecommunications company; Telstra Corporation Ltd, looking at the company’s current strategy the paper determines what, if any, changes are needed. To determine this the paper undertakes an analysis using Porters Five Forces, PEST analysis, looking at political, economic, social and technological factors and also a SWOT analysis, looking at the strengths weaknesses opportunities and threats. The bibliography cites 15 sources.
Name of Research Paper File: TS14_TEtelstra.rtf
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forms, but can be divided into two main categories, cost advantage and advantage by way of differentiation. Cost advantage usually goes to a large company where there are economies of
scale realised, the advantage here is that the cost of producing the product or service is below that of the competition , meaning that a company has a profit advantage
(Thompson 314). Only one company in each sector can have this advantage. The alterative is to gain an advantage by differentiation, this is making the product or service different
in a way valued by the consumer at a cost less than any additional amount which will be paid for that differentiation. The differentiation may be additional feature or facilities,
service levels or even the brand perception, advantages such as first mover advantage are included within this category (Mintzberg et al 96). However, it should be noted that only a
single advantage is a weak position, therefore a company, when developing a strategy should seek to have several competitive advantages. Looking at Telstra Corporation Limited, the Australian telecommunications company it
appears that this is a company that has the cost advantage and is also seeking to hold onto that advantage with an aggressive growth strategy. However, to look at how
the company can continue the strategy we needs to look at the position of the company and its pace with in the industry. To do these several tools may be
used, Porters five forces, SWOT and PEST analysis and may argue that differentiation is also needed to be efficient. 2. Porters Five Forces Existing competition The telecommunications market is very
competitive, globally there are more than 200 companies and the entire market is worth a total of US$1.4 trillion in 2002 (Telstra). The market itself has a dominance by the
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