Case Study

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Question 1:
Go back in time to 1986.Do a SWOT analysis for Telefonica de Espana. Does your analysis lead to the same conclusions as Telefonica’s managers? Answer:
According to the question, I’ll do a SWOT analysis in the following article. SWOT is an acronym for ‘Strengths, Weakness, Opportunities and Threats.’ I’ll do the analysis in two ways: internal factors and external factors. First analysis for internal factors:

Strengths: 1.Telefonica is a state owned enterprise(SOE), it has strong economic background. So it is not vulnerable to financial crisis. 2.Telefonica has a competitive advantage vis-à-vis local entrepreneurs in accessing technology, capital and managerial talent. 3.Telefonica is the ‘culture tie’ between Spain and South America. Weaknesses: 1.Its price is high compared with the other company. So it is lack of market competitiveness. 2.Telefonica has a lot of redundant projects, that is a waste of money and there is no benefit. Then analysis for external factors:

Opportunities:1.According to the case, we know the market demand for more and more telecommunication services, Telefonica has opportunities to expand the market as a large fixed-line and mobile telecommunications company. 2.Telefonica is an old Spain telecommunication enterprise. Telefonica had three quarters of market in Spain. So it’s easy for Telefonica to establish a foundation to promote new businesses. Threatens: 1.Telefonica did a bad work, there is a chorus of complaints about the poor services and minority shareholders in the subsidiaries have made complaints. 2.Telefonica has many competitors. There are too many enterprise competit for the market. 3.Telefonica wants to enter the South America market. But many countries in South America invest in the local telecommunication enterprise, the competitors of Telefonica have strong economic background. It will be difficult for Telefonica to enter...
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