Testra Case Summary
Telstra Case Scenario 2 (12 Marks, 4 marks and 8 marks each)
PORTER 8 FORCE, PAGE 38 Case study 1
Monopoly until 1997, wholesale and retail Telecommunications Company
Fixed line copper wire network fast become obsolete
Strategy:
Former CEO say adding value for our customer base is our driving force and idea of service and the drive for improvement must be at the core of the culture of the organsiation CEO David Thodey said the company need to transform from an engineering and technology led company to a truly sales and marketing led company, and he the first one have really did sth
13 years later, still try to make customer service part of its corporate structure
Need to implement strategy for increasingly competitive and technologically evolving …show more content…
cannot stop the steady decline in market share and traditional sources of revenue
Labor government policy is to build a fibre network to 93 % of houses, with the rest serviced by wireless and satellite (this will structurally separate Telstra)
Or pull back in market driven environment with tougher competition rules with no structural change
This will see Telstra transfer copper network customer to govt-owned national broadband network company’s wholesale fibre network and receive 9 billion in cash as compensation and for leasing pipe network
Statistical figures:
1.5 mil fewer residential home phones (fixed line) then 1997, home phone calls drop by half decline as previous need a second line to use dial up internet but now no need
They will be in much worse position if former CEO Sol Trujillo had not invested in the new billing system and the 3G network
Opportunities, Advantages:
Goldman Sachs analyst, the whole world is going wireless and they can leverage it when going forward with this phenomenal network, because smartphone users need
3G everywhere
Competitors:
2G network of Optus and Vodafone incomparable to Telstra network now
Going forward: start cut price in early 2010 to match
PORTER 8 FORCE, PAGE 38 Case study 1
Monopoly until 1997, wholesale and retail Telecommunications Company
Fixed line copper wire network fast become obsolete
Strategy:
Former CEO say adding value for our customer base is our driving force and idea of service and the drive for improvement must be at the core of the culture of the organsiation CEO David Thodey said the company need to transform from an engineering and technology led company to a truly sales and marketing led company, and he the first one have really did sth
13 years later, still try to make customer service part of its corporate structure
Need to implement strategy for increasingly competitive and technologically evolving …show more content…
cannot stop the steady decline in market share and traditional sources of revenue
Labor government policy is to build a fibre network to 93 % of houses, with the rest serviced by wireless and satellite (this will structurally separate Telstra)
Or pull back in market driven environment with tougher competition rules with no structural change
This will see Telstra transfer copper network customer to govt-owned national broadband network company’s wholesale fibre network and receive 9 billion in cash as compensation and for leasing pipe network
Statistical figures:
1.5 mil fewer residential home phones (fixed line) then 1997, home phone calls drop by half decline as previous need a second line to use dial up internet but now no need
They will be in much worse position if former CEO Sol Trujillo had not invested in the new billing system and the 3G network
Opportunities, Advantages:
Goldman Sachs analyst, the whole world is going wireless and they can leverage it when going forward with this phenomenal network, because smartphone users need
3G everywhere
Competitors:
2G network of Optus and Vodafone incomparable to Telstra network now
Going forward: start cut price in early 2010 to match