2 Introduction
The following case study will focus on Telstra, Australia’s largest telecommunications company. Utilising the eight environmental areas as defined by Morris as the means of conducting and focusing the analysis. These eight area consist of technological, economic, competitive, labour, resource, customer, global, legal and regulatory concerns. Using this information, a review of the current life cycle stage of Telstra will be discussed to further provide context for a related discussion on potential innovation practices that could be introduced into the business.
The reason Telstra was chosen is the recent issues they have had in providing services to its customers, resulting in negative publicity as well as significant brand …show more content…
Essentially this is aimed demonstrating the dynamic and ever evolving nature of the modern marketplace. This is an intriguing concept when applied to Telstra, they have both a multiple sided business model (Blank, 2012) as well as being in a market undergoing significant change in recent years. The main driver of this change has been due to the evolution of communication technology and the evolution of Telstra itself, spurred by deregulation and the resulting transformation from a government to shareholder owned …show more content…
The positives for them is they are perceived as a safe investment option, due to longevity in the market as well as its history of profits and dividend payments ().
The other key area to be considered is that many of the products and services are procured from international markets. This results in a large portion of its profit margin being dictated by fluctuations in the Australian dollar in relation to that of its suppliers.
Looking closer to home the Australian economy is boarding on stagnant and as such would suggest a limited potential for growth in the short term. Again Telstra can use this as an advantage due to its existing position in the market as customer retention alone sees them maintain market leader status.
3.3 Competitive environment
With the advent of deregulation, Telstra has found itself in a highly competitive marketplace. The multi sided nature of Telstra’s business makes this a particularly interesting dynamic. As Telstra maintains the majority of the network infrastructure it rents out this network to its competitors. Therefore, even if they are not able to secure the customer directly, they still acquire funds from the rental of their network. As mentioned in 3.1 the introduction of the NBN threatens this dynamic moving forward and would seem to suggest that in coming years Telstra will rely on its mobile network
The following case study will focus on Telstra, Australia’s largest telecommunications company. Utilising the eight environmental areas as defined by Morris as the means of conducting and focusing the analysis. These eight area consist of technological, economic, competitive, labour, resource, customer, global, legal and regulatory concerns. Using this information, a review of the current life cycle stage of Telstra will be discussed to further provide context for a related discussion on potential innovation practices that could be introduced into the business.
The reason Telstra was chosen is the recent issues they have had in providing services to its customers, resulting in negative publicity as well as significant brand …show more content…
Essentially this is aimed demonstrating the dynamic and ever evolving nature of the modern marketplace. This is an intriguing concept when applied to Telstra, they have both a multiple sided business model (Blank, 2012) as well as being in a market undergoing significant change in recent years. The main driver of this change has been due to the evolution of communication technology and the evolution of Telstra itself, spurred by deregulation and the resulting transformation from a government to shareholder owned …show more content…
The positives for them is they are perceived as a safe investment option, due to longevity in the market as well as its history of profits and dividend payments ().
The other key area to be considered is that many of the products and services are procured from international markets. This results in a large portion of its profit margin being dictated by fluctuations in the Australian dollar in relation to that of its suppliers.
Looking closer to home the Australian economy is boarding on stagnant and as such would suggest a limited potential for growth in the short term. Again Telstra can use this as an advantage due to its existing position in the market as customer retention alone sees them maintain market leader status.
3.3 Competitive environment
With the advent of deregulation, Telstra has found itself in a highly competitive marketplace. The multi sided nature of Telstra’s business makes this a particularly interesting dynamic. As Telstra maintains the majority of the network infrastructure it rents out this network to its competitors. Therefore, even if they are not able to secure the customer directly, they still acquire funds from the rental of their network. As mentioned in 3.1 the introduction of the NBN threatens this dynamic moving forward and would seem to suggest that in coming years Telstra will rely on its mobile network