Essays on Mission of Telstra Corporation Limited, SWOT Analysis Case Study

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The paper "Mission of Telstra Corporation Limited, SWOT Analysis" is an outstanding example of a management case study.   Telstra Corporation Limited (herein referred to as Telstra) is a Telecommunication Company located in Australia. The Company provides Telecommunication and information services for customers in Australia as well as those across the borders of Australia. The Company provides communication access services to business, local, homes and long-distance call services. It has also been rivaling its competitor when it comes to internet service and such has included about 3.5 million broadband subscribers as well as over 15 million mobile telephony users (Telstra Environmental Guidance Document, 2013).

The cornerstone of the company’ s success is based on its mission---to improve the way people work and live. The vision is encapsulated in a number of ways. First, the company has been signing agreements with other partners and the latest being VeCommerce. In addition to this, the Company uses theoretical models and modern management structures to achieve its mission. Due to competition from companies such as Optus Telecommunication, Telstra have adopted contingency theory where they have tried to identify the situational variables which can predict the most effective and appropriate outcome for a given circumstance.

It is for this reason that in 2004 the Company invested A$ 210 million to upgrade its broadband asymmetric digital subscriber line (ADSL) to conform to its mission statement (Baigh, 2013). Baigh also notes that a company’ s mission statement can be justified and or aligned in accordance with transformation theory. The relationship between the Company’ s mission and transformation theory was conceptualized when it engaged in the opening of its first national WiFi network hotspots by the end of August 2014 (Schermerhorn et al. , 2014).

To be in line with its ‘ improve the way people work and live’ the company launched its Next G platform and the 4G platform that now integrates its mission statement as it now covers about 70% of the population (Daley et al. , 2012). Strategic Position of Telstra Corporation Limited The mission statement as postulated above should be embedded on both the internal and external environment in which the Company operates. Firstly, the internal environment should be based on a comprehensive data and information of the Company.

To underscore this statement, the study will carry out the internal environment by assessing its Strengths, Weaknesses, Opportunities and Threats (SWOT) framework. Figure 1: Telstra Corporation Limited SWOT Analysis Strengths and opportunities of the Telstra Telecommunication industry in Australia has been driven by stiff competition from rival companies such as Vodafone and Optus. Therefore it has been driven by such competition to re-structure its platform so as to accommodate the ever-dynamic demands of its customers. This includes its strong broadband performance thus making it have a market share of about 45.3% in the mobile segment (ResearchMoz, 2013).

Additionally, Telstra is dominating the fixed broadband market besides controlling about 78% share of the industry thus a large revenue base. Thirdly, the Company enjoys favourable and strong legal framework and such is underscored by the recent case with Optus over the shifting of billions of dollars in untaxed profits offshore. Strengths and Threats The level of competition dictates the Company towards sustainable competitive advantage. The operational structure of the Company describes the extent of its operations. All these have been brought by economic, social, political and legislative environment under which it operates.

Additionally, the Company has had a series of restructuring measures that bring the understanding that traditional fixed-line is no longer the driving force of its revenue growth. To this regard, it is also noted that Telstra had made the way of technical revolution by the end of 2005 (Hubbard, 2008). Such a revolution built the most needed wireless broadband system. This has enabled the Company wade off competitions from rival companies. For instance, Optus exaggerated its network coverage area in a TV advertisement---a move that aimed at providing unfavourable condition for operation.

Despite these challenges and opportunities, it is apparent that the Company (Telstra) is enjoying the floated economies of scales. To conceptualise this understanding, Peng (2014) explains that in April 2013, Telstra made an introduction of bundles with the aim of providing affordable access to popular Foxtel on T-Box channels. This step gave the Company strength in light of ‘ Entertainer Bundle Range’ compared to what other companies are offering. Despite these strengths, it has been established through the 2013 financial year that unlike other rival companies, Telstra is over-relying on Australia for a good number of its revenue (Telstra Environmental Guidance Document, 2013).

In case such revenues are diversified, Telstra will be weakened and thus giving rise to companies such as Optus and Vodafone Hutchison Australia which are subsidiaries of international diversified Singapore Telecommunications groups and Vodafone respectively (Schermerhorn et al. , 2014).

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