Telstra Situation Analysis and Marketing Objectives - Case Study Example

Executive Summary Telstra communication is in the telecom business and has grown and established its network over different places. The company has been able to spread its network over Australia and has enabled itself to be one of the largest service providers in the country. The report looks into the internal and external environmental analysis of Telstra Communication and looks to present the different areas they need to work on in the future. Identifying the market potential and the growing size of the population has enabled Telstra Communication to spread its wing. The report also looks into the customer analysis by finding out the customer base and areas they need to work so that they are able to provide quality service. The report finally dwells on the SWOT analysis which looks into the strengths and weakness of the company and then tries to present the areas they need to work upon to improve the performance of the company. The report thereby helps to identify the areas that Telstra Communication needs to work upon and the manner in which it will be able to grow its brand name and establish itself as a better service provider. Contents Company Background 3 Mission 3 Market Overview 3 Market Category 4 Market Size 4 Market Potential 4 Market Structure 4 Trend analysis (PEST) 5 Competitors 5 Target Customers 6 Internal Analysis 7 SWOT Analysis 8 Conclusion 9 References 10 Company Background Telstra Communication has been in the telecom business since 1977 and has established its network over Australia by becoming one of the largest telecom service providers in the country (Telstra Communication, 2011). The company has worked on a strategy where they offer different plans to different customers based on the requirements. Also providing different services through the same medium has enabled Telstra Communication to grow over the years (Telecom events, 2011) Mission Telstra Communication has identified a vision statement for the company and it looks to pursue it through the work carried out by the management. The mission of the company is to provide quality service by exceeding the wants of the customers through value, service and innovation (Vision & Mission, 2011). The company has matched its mission with the vision statement and has helped the employees and people associated with the company to achieve its objective. Market Overview This aspect of the report looks into the market by analyzing the different angles and drawing important facts which will help Telstra Communication to develop its marketing strategy accordingly. This will help to find out the potential the market presents for Telstra Communication. Market Category Telstra Communication looks to aim at the market by providing the basic need of communication. The company has looked into the income level and developed the different plans accordingly. This has helped Telstra Communication to ensure that they eye people from all segments. Market Size People of all use uses telecom and with the growth in trendy mobile handsets the market size for it has grown. This has ensured that the younger generation gets attracted to it. The telecom business is estimated to be 750 billion and is growing at a heavy rate of 250 million each year (Fat, 2004). The only concern out here is that the growth is varied as customers switch operators very easily Market Potential The telecom industry is on a growth phase and is growing at a rate of 18-20% (Brown, 2007) thereby increasing the potential for the market. Telstra Communication has been able to use it to its advantage by developing strategy and methods which helps to bring a change in the market structure thereby helping them to increase their market structure and have a good chunk of the market. Market Structure The telecom industry is very competitive as competitors match the products and services easily. This has made the players work continuously and develop different marketing strategies to ensure growth. Telstra Communication faces communication from Hutchison, Airtel and other players. All the players use similar strategy and work as price takers by ensuring similar pricing strategy so that the differentiating factors between the companies minimizes. Trend Analysis Analyzing the external factors will help Telstra Communication to understand the manner in which the external environment affects its working and the manner in which it needs to be integrated with the internal factors to fetch maximum rewards (PEST, 2010) Political Economic New legal restriction Decrease in national income reducing purchasing power Change in government policies Rise in interest rate affecting borrowing power Increase taxation rates Increasing inflation reducing purchasing power Changing future laws Reduction in wages   Increase in taxes Social Technological Decrease in population size Rise in capital expenditure due to changing technology Change in lifestyle Rapidly changing research and development growth Concerns about obesity Increase cost of machinery Rise of health conscious people Increase maintenance cost Competitors Telstra Communication faces competition from other players like Hutchison, Airtel and government bodies who provide similar service at similar rates. The degree of competition is very stiff as the differentiating factor is very low. Each player imitates the strategy of other player. This makes it important that the players’ continuously innovate and develop new strategy so that they are able to provide better services. Since, this players work in the service industry so it is important that the players are able to provide services which are of high quality Target Customer Telstra Communication is aimed at customers who prefer using the telecom. The company has identified the target market for itself by identifying the correct customer base. The company on this front targets customers of all ages and income. The company by adopting a flexible pricing strategy has ensured that they are able to provide different plan based on the requirements of the customers. This has enabled the company to identify the following target base for its service Targeted Segment Age Group Class of Customer Customer Needs Rural 12 - 60 years Premium Middle Class Lower Middle Class Providing quality service by using modern technology which enables faster communication Semi-Urban 12 - 60 years Middle Class Lower Middle Class Providing the basic services along with some additional features Urban 12 - 60 years Lower Middle Class Providing the basic service of talking over the phone Telstra Communication based on the above segment has been able to develop its strategy to ensure quality service for its customers Internal Analysis Understanding the internal analysis by concentrating on the 4P’s of marketing will help to understand the areas where Telstra Communication has been able to work on. Product Telstra Communication provides service by using telecommunication. The company helps people to communicate with other over long distances. Also development of better and newer features like e-mail on the phone has enabled the company to grow and meet the basic requirements of the people Price Telstra Communication has priced its service based on the plan the customer chooses. This has enabled the customer to use a pricing mechanism based on the customer requirements. The company has been flexible in this approach and the cost to be borne by the customer depends on the different features the customer chooses. Promotion Telstra Communication has been promoting their services through different advertisements, hoarding and in store promotions. Also providing different value offerings has been used as a mechanism to promote the services. A differentiating factor for Telstra Communication has been its ability to ensure better services as compared to its competitors. Place Telstra Communication has grown by ensuring that the provide service over entire Australia. The increased penetration level of the company and its ability to understand the external environment has helped Telstra Communication to ensure that they use it to their advantage. The company also has different call centres and establishment which it uses to solve the queries of the customer and sell its product. SWOT Analysis The SWOT analysis to find out the different areas that Telstra Communication needs to work on and improve its business in the future Strengths Telstra Communication has a strong brand name due to its year of operation Telstra Communication looks towards customer of all ages and incomes as they provide varied services The increased penetration level of the network has enabled Telstra Communication to grow its business Weakness Huge dependence on government bodies to use the network to improve the services Changing government polices with regard to telecom policies has made it difficult for Telstra Communication to ensure rapid changes Opportunities Merging and acquiring small network provides which will provide ready market and enable them to grow Developing new service and features which helps them to differentiate itself from the competitors Threats Increasing cost of optical fibres and network establishment making it difficult for Telstra Communication to ensure quality service Threats from other players like Hutchison and government players making it difficult to penetrate the market Conclusion The report thereby presents the different aspect of marketing that Telstra Communication needs to work on. The report helps to presents the internal analysis of the company and integrates it with the external environment to find the areas the company needs to work on and improve its brand image in the future. The report finally presents the strengths and weakness the company needs to look into thereby ensuring that the company is able to grow and establish its network. References Brown, S. (2007). Telecom Market. Destination for Telecom Marketing, Mark Out Fat. (2004). Telecom Tactics: Fat Profits. One minute World News, BBC News PEST. (2010). PEST Telstra. Research Paper. Times New York magazine Telstra Communication. (2011). Telstra Communication Website. Retrieved on Jun 21, 2011 from http://www.telstra.com.au/ Telecom Events. (2011). Telecom Events. Retrieved on Jun 21, 2011 from http://www.vtcif.telstra.com.au/info/communications.html Vision & Mission. (2011). Vision & Mission. Retrieved on Jun 21, 2011 from http://www.telstrainternational.asia/about-telstra/vision-and-mission/ Read More