This website uses cookies to ensure you have the best experience. Learn more

Using Porter's Five Forces To Analyse Telstra Australia

808 words - 3 pages

Business StructureTelstra is Australia's leading fully integrated telecommunications and information services company. Telstra's organizational structure consists of Telstra Retail, Telstra Mobile, Telstra Country Wide, Telstra Wholesale, Telstra International infrastructure Services and Network and Technology Group. They offer a range of services from landline telephony, to complex mobile services, to high speed broadband. As required by the legislation, the Federal government remains 50.1% majority shareholders. However, the majority of the market shares are concentrated on several key market competitors.Rivalry among existing firmsThe telecommunication market is growing in a decreasing rate in the last few years due to competition increment after the industry's deregulation in July 1997. Major competitors of Telstra are Optus, Primus, AAPT, Orange and Vodafone, but Telstra still maintains its dominant position in the telecommunication market. With the diminishing growth in the Australia's telecommunication industry, Telstra has expanded its business in other potential market in Asia-Pacific regions, particularly in Hong Kong.The national long distance and international call, and mobile telephony service are the segments most intensively compete in the market. However, Telstra still capture a market share greatly over the competitors. Telstra, Optus and Vodafone each operate separate GSM mobile networks, capturing the market share of around 57 %, 31% and 11% respectively as of 2002 .Bargain power of supplierTelstra is the largest network and services supplier in the market, as well as a supplier to its, because its control of network capacity and large share of customer base. It has overwhelming dominance across the telecommunications market and in almost every segment of that market. Its wholesale share of land-based market is 94.1%, including basic access lines resold by its competitors (ACCC report). Telstra's dominant market position remains stable, as most of carriers are generally reliant upon leasing network capacity from Telstra. Other service provider's dependecy allows Telstra to have significant influence over the cost of its competitors in all markets where access to the network is necessary.Bargain power of consumersThere is not much product differentiation among all the other service providers and Telstra. The switching costs across different service providers are relative lower than before the deregulation in 1997. The pressure has been added to the industry on the provision the quality and coverage of the service network which consumer are most concern about.Threat of substitutesCompetition and development of technology have resulted in diminished profit margin in the industry. Prices have reduced most obviously in...

Find Another Essay On Using Porter's five forces to analyse Telstra Australia

Ryan Air: Analysis using SWOT & Porter's Five Forces

2073 words - 8 pages "use of electronic means and platforms to conduct a companys business". The advent of the internet has greatly increased the ability of companys to conduct their business faster, more accurately, over a wider range of time and space at reduced cost , and with the ability to customize and personalize customer offerings(Kotler 2003).2.3Analysis using Porters five forcesThe key question for new comers and no frills veterans alike is capacity. There

Use Michael Porter's five forces model to analyse the business environment in which your organization operates: Victor Chids

1691 words - 7 pages IntroductionAll organizations have got a set of forces and conditions outside their own boundaries that have the potential to affect the way the organization works. MoreMoney Banking Corporation Limited is no exception to this as it has got forces that it has to operate within. Michael Porter came up with the Five Forces Model commonly known as Porters' Five Forces Model which is used for analyzing an industry by looking at five forces believed

Discussing Optus' Competitive Market Position by Using Porter's Five Forces Model

1707 words - 7 pages that the degree of rivalry is only one of the five forces that influence the competitive state of the market. Profitable markets constantly attract new firms which impacts the overall profitability of the market. Optus is one of the largest telecommunications companies in Australia, second only to Telstra, making up thirty-three percent of the industry. As a significantly large employer of 10, 500 employees and serving 8 million customers

Using SWOT, Value Chain, Porter's Five Forces and other variables in Panera Bread Company, USA

2543 words - 10 pages , mission and strategic objectives by using major processes like strategy analysis, strategy formulation, implementation and corporate governance•Analyzing the micro and micro environments of PBC•Using Porter's five forces model and concept of strategy groupings to make PBC have competitive advantage over their competitors.•Using resource base view and value-chain analysis to identify possible opportunities and threats for PBC.2

Lowes’ Porter's Five Forces Competitive Analysis

1272 words - 5 pages Lowes’ Porter's Five Forces Competitive Analysis Michael Porter's Five Forces analyze the external and internal environment of a company to increase the awareness of threats and structure of the industry that company competes within. Thus, the Five Forces is an ideal tool which can help companies to maintain their competitiveness with a higher profitability. Porter’s Five Forces is defined as threats of new entrants, bargaining power of

Airline industry and Porter's five forces

567 words - 2 pages 1.Use Porter's five forces of competition' framework to show how the structure of the airline industry has caused low profitability during the past twenty years.Below are Porter's five forces of competition. In them you will understand what has caused low profitability.The bargaining power of suppliers: Labor is the airline industry's largest single expense. Most airline workers belong to one of a dozen unions, which give the airline workers

Reflective piece on usefulness of Porter's Five Forces model

893 words - 4 pages In the first seminar of the term, I was observing how Porter's 5 Forces model (5F) can be used to analyse the strategic business dynamics of the European Forestry/Paper sector in the post 2004 European Union.5F is an analytical framework, which allows competitive dynamics to be systematically appraised in assessing existing and future profitability of markets/industries by analyzing the influence of particular characteristics of each of the five

Porter's Five Forces, online marketing advantages, and marketing ethics

1447 words - 6 pages Essay QuestionsA.Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter's Five Forces Model to discuss that industry's competitive forces and their relative influence.B.Discuss how online marketing could provide competitive advantages in the industry you analyzed in question A.C.Do you think firms that market products for children have any special ethical responsibilities when they advertise? Why or

Porter's Five Forces Model and The Movie Rental Business

916 words - 4 pages or partners better by supplying quality products and virtual service to promote brand lifting, customer feedback, great customer experience, and offering the right product to the targeted market. Porter's Five Forces Model is one of the frameworks that help businesses develop their market strategy and analysis. This paper will focus on the Porter Model to evaluate a prospective market entrance for a potential movie rental business. Therefore, the

Comparing the resource based view, Porter's five forces

8332 words - 33 pages corporate. The banks are using Internet banking technology to meet the ever-increasing competition. It has also emerged as a strategic resource for achieving higher efficiency, control of operations and reduction of cost by replacing paper based and labour intensive methods with automated processes thus leading to higher productivity and profitability. Internet-based electronic banking is one of the newest and least researched but most promising

Analysis of Using Porter’s Five Forces

1567 words - 6 pages music device. The firm uses its Audible manager software in downloading, scheduling, managing and playing audio selections. The manager software also allows customers to listen and download spoken content and transfer to Audible Ready players. The firm is the exclusive provider of digital content. This essay analyzes Porter’s five forces assist to evaluate where the firm’s power lie in a given market and the attractiveness of the

Similar Essays

Using Porter's Five Forces To Analyse Telstra Australia

821 words - 3 pages and new sites are being added across Australia as the company ramps up its investment in infrastructure in a bid to retain customers. In 2013 the operator launched LTE services, being able to compete with Optus and Telstra in this market which has tremendous growth potential. These upgrades and new towers have also delivered improved quality bandwidth required to keep up with consumer demand for mobile broadband, and to address the shortcomings

Porter's Five Forces Essay

803 words - 4 pages competition was often too narrowly defined, and that managers almost always neglected other competitive forces such as customers, suppliers, other marketplace entrants, and the potential for substitutes products. Consequently, in 1979, Porter published an article in the Harvard Business Review titled How Competitive Forces Shape Strategy, officially introducing the world to Porter's five competitive forces that shape strategy (Porter, 2008

Porter's Five Forces Essay

2326 words - 9 pages Introduction.'Competitive strategy is the bases on which a business unit might achieve competitive advantage in its market '.There are two factors for a firm to be profitable: the fetching appearance of the industry in which it operates and its position in this industry.The best known and most used set of competitive strategies are Michael Porter's Generic Strategies; he calls these generic strategies because they can be applied to a firm in any

Porter's Five Forces Essay

2255 words - 9 pages tools and techniques that were covered in the Strategic Cost Management and Strategic Business Analysis courses are very useful in providing decision oriented information to senior management in my organisation and such information will ultimately enhance its corporate value.” The essay (How Porter’s Five Forces Model shapes strategy for a new and small-size stockbroker) may be one of applications of those techniques learnt from the Strategic Cost