Module 2 External Analysis
Case 2 Telstra
Module 2 External Analysis
1. Define the industry of the company (2.6)
Australian mobile telecommunications carrier industry
2. What are the characteristics of the industry that the company is in and how is the industry changing over time?
Characteristics:
Technology innovation is a key driver for changes and success in this industry.
The industry is under scrutiny of government. Government policies play an important role in market competition and pricing.
*ongoing price competition in japan and government support in Korea
Changes over time:
Changes in market
Voice segment used to be the most profitable segment, however, it has been experiencing significant drop in revenue recently. Improvement in mobile phone …show more content…
Increase costs here because ACCC impose very low cost charged on customers.
Deregulation has increase competition in the industry
Summary
8. What are customer market segments? - Customer market segmentation (2.57)
9. The basis of competition (2.59)
What drives demand for the products and services of the industry?
Technological progress in communication devices and networks capacity, speed, coverage and reliability.
What drives price, product performance and supply availability?
Technological progress in communication devices and networks capacity, speed, coverage and reliability.
Government has important influence in supply availability as a spectrum license is required to establish rollout network, which is essential in AMTC industry. And the industry is also subject to government regulations.
How is price determined in the industry?
Price is strongly influenced by government as ACCC has power to set a price range for the products and services in the industry.
Moreover, price is determined by strong competition in the market as two major players are competing via lower price over Telstra
What are the main drivers of cost in the
Module 2 External Analysis
1. Define the industry of the company (2.6)
Australian mobile telecommunications carrier industry
2. What are the characteristics of the industry that the company is in and how is the industry changing over time?
Characteristics:
Technology innovation is a key driver for changes and success in this industry.
The industry is under scrutiny of government. Government policies play an important role in market competition and pricing.
*ongoing price competition in japan and government support in Korea
Changes over time:
Changes in market
Voice segment used to be the most profitable segment, however, it has been experiencing significant drop in revenue recently. Improvement in mobile phone …show more content…
Increase costs here because ACCC impose very low cost charged on customers.
Deregulation has increase competition in the industry
Summary
8. What are customer market segments? - Customer market segmentation (2.57)
9. The basis of competition (2.59)
What drives demand for the products and services of the industry?
Technological progress in communication devices and networks capacity, speed, coverage and reliability.
What drives price, product performance and supply availability?
Technological progress in communication devices and networks capacity, speed, coverage and reliability.
Government has important influence in supply availability as a spectrum license is required to establish rollout network, which is essential in AMTC industry. And the industry is also subject to government regulations.
How is price determined in the industry?
Price is strongly influenced by government as ACCC has power to set a price range for the products and services in the industry.
Moreover, price is determined by strong competition in the market as two major players are competing via lower price over Telstra
What are the main drivers of cost in the