1.0 Introduction G-etl Telecommunications has been in existence for the last six years. it was incorporated in Sydney, Australia in 2007. From inception the company has continuously capitalized on innovation by investing heavily on research and development (RD). The company has a total of 8 products and services, mainly targeting individuals and small and medium enterprises. In ensuring that the products introduced to the market meet the customer’s needs the firm undertakes them through a process of quality control and testing. The company’s brand name “e-TL” is fairly distinguished by consumers considering the number of years it has been in operation.
The two leading products that the firm has in the portfolio are the G-etl 94Ri® and Rita-etl 7s®. PJ-etl 12Ri® is the recent introduction in the market that has tremendously increased the sales of the firm. The company has had successes and challenges over the last six years (ABC, 2010). The company experienced high challenges during its entry in the telecommunications industry but has consistently been able to overcome them. The market environment in which G-etl Telecommunications operates in is very competitive and has many opportunities which are yet to be exploited.
The telecommunication services have particularly been underexploited. The financial performance have consistently been improving, the firm was able to turn around net loss earnings in its first two years of operation to US$625281 in the last financial year. However, this could be greatly improved if the company had a strong strategic plan. Therefore, this strategic plan is expected to boost the company performance and competitiveness (Shepherd and Wiklund, 2005). 2.0 Situation analysisG-etl Telecommunications operates in four countries with diverse economic, political, legal, socio-cultural, and technological environments.
These environments present both opportunities and threats to the firm. G-etl Telecommunications has quite a number of strengths and weaknesses. The situation of the company could be understood by analyzing the following areas. These include; 2.1 External environment2.1.1 Political and Legal aspects G-etl Telecommunications operates in several countries across the world, Australia, Hungary, Croatia, Romania, Slovenia and United States of America. In these countries there are diverse political and legal environments. The company has to work in accordance with the set framework in these countries.
For instance, in its recent entry to the United States market G-etl has to adhere to the pricing law under the Pricing Surveillance Authority. The law acts as an identifier and control of excessive pricing and restrains selected companies from charging excessive prices. In addition, in all the countries it currently operates in, there are laws regarding employment where in most of them at least 75% of the employees must be sourced locally. In all its countries of operation, there is a stable political environment which reduces the risk of doing business significantly.
Successive governments in the countries of operation are keen to promote foreign investments such as G-etl Telecommunications. G-etl has been able to meet the legal requirements in the US although it took two years due to thorough scrutiny and testing that was followed (Jhawar, 2011; BCcampus, 2012). 2.1.2 Economic environment G-etl Telecommunications operates in the global economic environment. Therefore, the global economic trend affects the operations of G-etl in the market; demand and sales. The effect of economic environment has particularly been experienced during the global economic crisis; the willingness to buy a product and purchasing power of consumers is affected.
The global economic crisis in Europe negatively impacted on the company’s financial performance in 2008 which contributed to net loss earnings (Jhawar, 2011; BCcampus, 2012).