1.0 Executive SummaryTelstra is an Australian telecommunication company service provider that offers fixed-line and mobile internet services to its customers. Due to the influence it got as a government-run corporation, it built a wide network of infrastructure that saw it expand to other sectors like the media, and to be specific, pay television. In this respect, it managed to gain a staggering 9.2 million fixed-lines and 5.2 million mobile internet customers. All this led to the government feeling the need to privatise a section of it so as to allow for the private sector to benefit from the company in line with government policy.
Effectively, it was floated and an amount of $14 billion rose from the exercise. The privatization of the organization proved to be a challenge as it mostly led to the company operating as a monopoly. This, probably due to the vast and majorly copper wire-based telephone system that customers had grown accustomed to, did not take into consideration the dynamic nature of the current telecommunication sector. Consequently, the company did not practise standard industrial procedures and failed to change accordingly and in consistence with the dynamics involved.
Furthermore, the failure by its management to appreciate product differentiation served to make matters even more complicated as the departments of production and marketing suffered general neglect. As a company operating in line with practises that easily identify with monopolies, its competitors faced difficulties in assessing basic services that it initially offered as a government organization. However, policies stipulated by the Australian government did not allow such practises to go unpunished. 2.0 Introduction First off, Telstra Corporation seemed to have it all nice and planned initially when copper wire-based technology was the main telephone system employed by telecommunication companies.
Secondly, the floating of its stake to the public was made in such a way as to allow it to operate as a monopoly. The governments in most countries are wont to protect other companies from the ones that adopt monopoly-like modus operandi. This did not auger well with Telstra. The involvement of stakeholders in decision-making may also not have been exploited to the maximum as a way of finding ways of running the organization.
Finally, an internal audit of the external environment might not have been done to assess what the company may have been missing in its operations. AnalysisEnvironmental Factors to be considered in PlanningAny market segment in the telecommunication sector is as important as the next. In addition, all the products offered by a company need to be in line with the demands of the market. A company can never model its product without due consideration of the market demands. In line with this thought, we find that Telstra failed to adapt to the market demands by sticking to its copper-wire based telephone system instead of acquiring fibre optic cables like the other competitors.
Any telecommunication company that seeks to establish its presence as a new entrant needs to understand customer needs. In addition to this, it needs to design its products or services in such a manner as to enable it to stay abreast with information on the evolving markets.