Strategy Bt Broadband

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  • Topic: BT Group, British Telecom, Broadband
  • Pages : 13 (1853 words )
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  • Published : July 4, 2012
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Strategy: BT Broadband

By:

Rahul Sarkar
21st May 2012

British Telecom - Broadband
• BT is one of the largest telecommunications services companies in the world •

170 countries and Its biggest market is UK with more than 21 million customers BT has operations in more than Its product include telephony, broadband and subscription television services. BT group is primarily divided in to following four companies

• •


  

BT Retail
BT Wholesale BT Global Services Openreach



This paper aims to discuss

superfast broadband in detail

Target Market (s)
• BT Broadband has approx North Ireland, Scotland, Wales, England)

5.83 million customers in UK (comprising 15 –



Customers comprises both business and household users with age group of

70 yrs.
• • Broadband provided via

fixed line only. Doesn’t comprise mobile broadband.

Broadband gaining popularity and primarily used for :       education communication sport Music entertainment Information

Competition

• 289 telecom operators are in UK including BT • 67 operators who provide broadband services • Top 6 have market share close to 94% • BT one of the largest in all parameters • Main Competitors are

Virgin, BskyB, Talk

Talk, Orange

and

O2.

Based on Avg Broadband Speed (MB/s)

Based on number of customers (millions)

PEST Analysis
1. 2. 3. 4. Highly Regulated Industry Strict Competition Act Government watchdog very active Technology pro government

1. Developed Economy 2. Buying Power high 3. Telecom product prices are very regulated 1. 2. 3. 4. One of the developed economies People spend more time at home Take pride in knowing everything first Atleast one gadget per household

1. Infrastructure state of the art 2. Basic telephony already very old 3. Pioneer of technology driven growth

Porter 5 forces of Industry
H
Potential Entrants
Threat of New Entrants

H
Suppliers

Bargaining power of Suppliers

H

Industry Competitors
Bargaining power of Buyers

H
Buyers

Rivalry among existing firms Threat of Substitute products

H

Substitutes

Industry Highly Unattractive

Strategic Maps (Price Vs Network Coverage)
High Low

Low

High

Strategic Maps (Price Vs Network Coverage)
1. BT and Virgin telecom both have same market share & are the market leaders. 2. Virgin is high in speed while BT is high in network coverage 3. Hence Speed/Network coverage is not sole reason of larger market share

Strategic Maps (Speed Vs Price)
High

Speed
Low

Low

Price

High

1. Virgin is high in both Price and Speed 2. Both BT and Virgin have same market share 3. Which means price/speed cannot be the sole reason of higher market share

Strategic Maps (Brand Image Vs Product Offering)
High

Brand Image
Low

Low

Product Offerings

High

1. 2. 3. 4.

Brand image for Virgin is same as that of BT However BT has more products in broadband category than others Both Virgin and BT have same market share Brand image/product offerings is not sole reason for higher market share

Strategic Maps (Quality Vs Price)
High

Broadband Quality

Low Low High

Price

1. Virgin scores high in broadband quality 2. However both BT and Virgin have same market share 3. Price/Broadband Quality is not the sole reason for higher market share CONCLUSION – NO SINGLE KSF FOR HIGHER MARKET SHARE

KSFs & Threshold Success Factors
• KSFs
 Brand Image


 

Network Coverage
Price – Refers to appropriate pricing based on features Speed



Threshold Success Factors



Broadband Quality
Product Offerings

Competitive Matrix
KSF Weightage Network 35% Coverage Price 20% Speed 25% Brand Image 10% Broadband 5% Quality Product 5% Offerings Score 100% Market Share Threshold Factors

BT 9 9 7 9 7.5 9 8.375 23%

Virgin 7 9 9 9 9 7 8.3 22%

Sky 6 8 7 7 8 8 7.45 19%

Talk Talk 5 6 5 4 7 7 5.35 10%

O2 5 8 5 5 7 7 5.75 12%

Orange 4 6 4 5 7...
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