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…show more content…
If I was a senior manager at the parent corporation, I think the complaints were reasonable. So I will recommend the CEO that: first, we should consider the new way to divide profit like according to the proportion of invested capital or shares. In this way, the management fees that should be reduced. So the subsidiaries can make more efforts on spread the concepts of theirs to the world. In this way, the subsidiaries can keep their competitiveness. Second, I would also suggest the CEO to developed more potential product line locally instead of transferring product lines with high growth potential from the subsidiaries to the parent, because of it may improve minor holders ' activeness on focusing daily management. Sometimes compensating them can be a effective way to reduce complaints. And it 's a effective way to make the corporation more united. Subsidiaries are also very important. Question4: Many South American countries are in the process of deregulating their telephone industries. How should Telefonica response to the increased likelihood of new entrants into its formerly protected markets? Answer: I will make a business strategy in following three parts: 1.Differentiation strategy: Telefonica is a state owned enterprise, it has strong economic background. And it has a competitive advantage vis-à-vis local entepreneurs in accessing

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