Strategy Analysis Report: Telstra Essay


Discuss about the Strategy Analysis Report for Telstra.



In order to enhance the effectiveness of the business processes of any of the firm, it becomes very important to understand the desired issues coming between the strategic analyses of that firm. This research paper will help in evaluating the evaluation of the major issues coming in the execution of the strategic business procedures of Telstra Corporation of Australia. Telstra Corporation is one of the leading firms in the field of Telecommunication throughout the concerned market segments of Australia (Kotler et al., 2015). The paper critically present the analysis of the External Environment consisting of the PORTER’S five forces and PESTEL analysis as to collect the adequate information regarding the external factors affecting the entire business practices. The firm has created its brand reputation by offering superior quality of the network service to all its customers throughout the competitive market areas of Australia.

Company Background

Telstra is one of the fastest growing telecommunication companies throughout the targeted market segments of Australia. The company was founded on 12th June 1975 and has its headquarters in Melbourne Australia. The firm offers the wide range of telecommunication service to all its respective clients and is engaged in providing the best possible services as to increase the reliability and satisfaction level of the customers (Galliers & Leidner, 2014). It accounts for more than 9.3 million services including 3.3 million of the 3G services. The company is engaged in providing the best quality of telecommunication services such as the voice calling, messaging, internet services and others. The company has expanded its global reach throughout the different parts of the world in order to capture the different market segments.

External Environmental Analysis

The analysis of the external environment is basically a strategic tool, which helps in the recognition of the external factors affecting the business procedures of the concerned firm. There are some of the crucial factors mentioned below in order to analyze the issues coming between the strategic analyses of Telstra Corporation.

PESTEL Analysis

Political Factors

The political factors significantly affect the execution of the business processes of any of the firm and therefore it becomes more important to identify these factors effectively. The factor such as the imposing of the new tax duty from the Australian Government creates the major impact on the execution of the business practices of the organization (Yadav, 2014). Change in the new trade policies, as well as the fiscal policy critically, affects the strategic business procedures of Telstra in the concerned market areas.

Economic Factors

This reveals the desired economic performance of the entire country and is considered to be more important for the execution of the trade practices effectively. The rise in the inflation rate somehow generates enormous impact on Telstra (Lokuge et al., 2016). Moreover, it becomes very crucial to understand the demands of the customers as to maintain the desired balance between demand and supply.

Social Factors

There are certain factors like gauge determinants such as demographics, cultural trends, population analytics etc which needs to be identified as it can bring out the unwanted change in the business procedures of the firm.

Technological Factors

The use of the technological is vital as it provides the desired competitive advantage to the firm over the other competitors but the change needs to be implemented within Telstra as per the changing trends over the market segments (Simon & LaCava, 2014).

Legal Factors

This consists of both external as well as the internal sides. There are certain laws of the government which sometimes creates a problem for the firm in order to sell their respective product and therefore, it becomes very important for Telstra to recognize these factors and formulate effective strategies to increase the productivity d profitability of the firm (Picard, 2014).

Environmental Factors

There are certainly other factors weather, geographical locations and the global change in the climatic conditions which may create a great impact on the networking of Telstra corporations. Thus, it is important for the firm to improve its services in order to get the competitive edge over the competitors.

PORTER’S Five Forces

Buyer Power

This reveals that the power remains in the hands of the consumers if there are a number of options available for the clients. The customers can generate enormous impact on the sales percentage of the firm regarding the using of the services by all its customers (Kotler et al., 2015). Thus, Telstra needs to formulate effective strategies to get the desired elevation in their telecommunication business processes.

Supplier Power

If the firm is delivering superior services then the power comes in the hands of the suppliers as they provide the raw material required for the execution of the business processes. Telstra retains the supplier power as the firm is engaged in delivering the best quality of network services as per the satisfaction of the concerned customers (Bae Choi et al., 2013).

Competitive Rivalry

Identification of the competition throughout the targeted market segments is of great importance as they provide immense threat to the execution of the business or trade prices throughout the marketplaces. Use of the economic model helps in recognizing the fierce competition from the rival corporations.

Threat of the New Entrants

The entries of the new companies to the targeted market areas provide the potential threat to the company and it, therefore, lowers down the profits of the firm (Klettner et al., 2016). Thus, Telstra needs to increase the effectiveness of its business prices by improving all its services, which will restrict the new companies to divert its customers towards them.

Threat from Substitutes

This reflects the offering of the same products as well as the services from its competitors throughout the market segments (Poles, 2013). Some of the competitors of Telstra are Optus, Vodafone, and virgin mobile which creates a threat for Telstra by offering its substitutes to all the audiences throughout Australia.


This research paper critically reveals the key issues affecting the strategic measures of Telstra Corporation throughout Australasia. Telstra offers the broad range of telecommunication service to all its individual clients and is busy in providing the best possible services as to increase the consistency and satisfaction level of the customers. There are different factors evaluated throughout this research paper revealing its effect on the entire business functions of Telstra. Change in the new trade policies along with the fiscal policies critically affects the strategic trade events of Telstra in the concerned market areas. Thus, it becomes vital for the firm to formulate effectual strategies in order to reduce the issues coming between its business methods and this will help in bringing out the positive outcomes for the firm.


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