Swot Analysis Of Telstra Corporation Limited

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Telstra Corporation Limited is Australia’s oldest telecommunications provider within Australia, coming from a place of monopoly within the Market to limited competition, following a full privatisation of the company from government owned to market driven. Telstra positions itself as a leader in innovator and has shaped their company’s vision towards “doing for a customer what no one else has, with 1 click, 1 touch, 1 button, 1 screen, 1 step solutions that are simple, easy and valued by individuals, business, enterprise and government” (Telstra, 2014). This report will look deeper into the telecommunications industry and the market into which it competes, who the main players are and what Telstra will need to do to remain competitive.…show more content…
With key players showing large net profits within 2013 with Telstra profiting the most at $3,865 million (Telstra 2013), closely behind Optus with $3508 million (Optus 2013) and Vodafone approximately $1215 million, they are creating an oligopoly within the telecommunications industry. The cost of infrastructure and increasing profits of Telstra, Optus and Vodafone, wholesales are looking to negotiate deals to attract businesses and consumers who are going directly to the supplier for service, however Telstra maintain a majority ownership of infrastructure within Australia and leases approximately 45% of their services to competitors (Ramil 2014) allowing Telstra to influence pricing and what is passed onto the customer.
3. Power of suppliers
Telstra leads the telecommunications industry with the highest returns on investment and with a monopoly on leasing their infrastructure to competitor, it can be argued that any changes Telstra makes to fees and products influence the market as competitors are forced to follow proving their power in the supply chain. A recent article published in the Financial Review reported Telstra’s petition to the Australian Competition and Consumer Commission requesting to increase access fees by 7.2% to fixed line costs to

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