Telstra Corporation
International expansion is able to play a major role in the effective operations of the global organizations. The companies are able to increase their revenues and levels of reach to the other countries with the help of this process. The global organizations can aim at targeting different countries or areas with the help of their services and products. This will be help them in increasing the customer base in an effective manner (Brouthers, Nakos & Dimitratos, 2015).
The report will be based on the analysis of the expansion based plans that are made by an Australian organization named Telstra Corporation. The company operates in the field of telecommunications in the country.
Telstra Corporation Limited is an Australian organization which operates in the telecommunications based industry of the country. The company is mainly responsible for the development of different products which are based on the proper development of telecommunication networks. The different services which are offered by the company include, mobile access, telecommunication based networks, pay television, internet access. The company has its operations in Australia for a long time and has been able to develop its competitive position in the telecommunications industry as well (Telstra.com.au, 2018). Telstra has acquired the position of one of the largest telecommunications service provider in Australia.
Telstra is known in the market for different types of services and products that are able to fulfil different types of demands and needs of the consumers. The services that are offered by Telstra include, Foxtel, Bigpond movies, Foxtel Now, Telstra TV App, Smart Home, Mobile Phones, Tablets and Home Phone. The products are thereby able to fulfil different needs and demands of people in an effective way. The company is thereby planning for an expansion of its products to another country in order to improve the revenues and levels of profitability. The product which has been selected for expansion is Telstra TV. Telstra TV is a product which is able to stream movies, TV shows, sports and more. Different types of the services are thereby combined within the Telstra TV (Telstra.com.au, 2018).
The services that are a part of Telstra TV include, Bigpond Movies, Nerflix, Stan, Tenplay, Foxtel Now, You Tube and many more. The Telstra TV will thereby be able to satisfy the customers of Australia by providing SMART TV applications. Telstra TV can thereby be considered to be a service which is able to change the normal television sets into SMART televisions which are able to offer all the services that are provided by the smartphones (Telstra.com.au, 2018). The website based series and movies that are offered by different apps can be watched on the large screen. This product of Telstra has proved to be effective for the younger generation of the country. The SWOT analysis framework can be used for the purpose of deciding the effectiveness of the product in the market (Cavusgil & Knight, 2015).
|
Strengths Telstra has acquired a leading position in the telecommunications industry of Australia. The performance of Telstra has been highly effective in the new countries or markets. The cash flow of the company is highly strong in nature (Contractor, Kumar & Dhanaraj, 2015). |
Weaknesses The positioning and the selling positions of products are not defined in a clear manner. The challenges that have been posed towards the company have not been faced in a successful manner. The range of products that are sold by the company have shown a huge gap (Gowers, Paj?k & Klusa, 2018). |
|
Opportunities The cash flow of the company is a major opportunity which is able to support the expansion based plans of Telstra. The core competencies of Telstra have been a huge success based on the similar products that are offered by other companies. The new trends which have been seen in the behaviour of consumers is able to play a major role in organizational operations (Gulanowski, Papadopoulos & Plante, 2018). |
Threats The rise in levels of pay can pose huge threats towards the operations of Telstra in a new country or market area. The strengths of the local distributors have increased and this has posed a threat towards the profitability based levels of Telstra. The intense competition levels that are being faced by Telstra in the industry have been a threat towards the profitability and revenues (Haapanen, Juntunen & Juntunen, 2016). |
Telstra TV
The analysis of Telstra Corporation with the help of SWOT framework has been able to depict that the company has been able to operate in the telecommunications industry in a profitable manner. The effective resources based on financial strength and the human factors are major factors which can help in the effective operations of Telstra in the industry. The company can thereby expand its operations in an effective manner with the help of its financial strength and availability of capital (Haapanen, Juntunen & Juntunen, 2016).
The country which has been selected for the expansion based policies of Telstra Corporation is India. The booming telecommunications and technology based industry of India is able to attract the consumers towards the company in an effective manner. The expansion of Telstra Corporation in India will thereby provide effective opportunities of growth to the company. The effectiveness of India as an attractive company for Telstra can be analysed with the help of PESTLE framework (Jiang & Holburn, 2018).
|
Political |
Ø India is considered to be one of the biggest democracies in the entire world. Ø The environment is thereby highly influenced by interests of the politicians, government policies and ideologies of different parties. Ø The different types of taxes that are imposed by the government need to be considered by Telstra in order to operate in the country in a profitable manner (Jones & Kierzkowski, 2018). |
|
Economic |
Ø The stable economy of the country has been developed after the industrial reforms have taken place. Ø The regulations which have been developed in the country are mainly aimed at liberalization of foreign investment in an effective manner. Ø The ease of entry in the market has thereby been able to provide opportunities of growth to Telstra in the industry. Ø The GDP of the country has been able to show high amounts of growth after the industrial reforms had taken place in the country. India had registered a GDP of 3.965 Trillion US Dollars in the year 2009, which was 6% more than previous years (Liesch, Welch & Buckley, 2014). |
|
Social |
Ø Social factors are mainly based on the changes which can take place in the trends which are followed by people in India. Ø There has been immense level of rise in the pension based costs due to the increase in ageing population. Ø The huge population of the country is a major factor which is able to facilitate the growth of Telstra. Around 70% of the total population of the country belongs to the age group between 15 and 65. |
|
Technological |
Ø The technology based levels have been able to influence the process of product development in a huge manner. Ø India has the base of effective technology which can provide effective levels of opportunities to Telstra based on its growth in the industry Ø The internet based environment in the country is highly effective in nature and is able to provide a base for expansion to Telstra Corporation (Jin, Ramkumar & Chou, 2018). |
|
Legal |
Ø The changes that have taken place in the legal environment of the country has been based on the development of many different regulations and policies. These policies need to be analysed by the company in order to start its profitable operations. Ø The minimum wage based laws in the country are also quite effective and need to be considered by Telstra in order to operate in India in an effective manner (Wu & Chen, 2014). |
|
Environmental |
Ø The heavy industrialization based process has affected the external environment of India. Ø This has also been able to cause huge number of issues based on pollution in the country. Ø The different regulations that have been formed based on the waste disposal related issues in India need to be taken into consideration by Telstra Corporation in an effective manner (Jin, Ramkumar & Chou, 2018). |
The analysis of different factors based on the external environment of India has been able to prove that the plans which have been made by Telstra Corporation to enter the market can be effective for its growth and revenues.
Conclusion
The report can be concluded by stating that the expansion based plans of the company are affected in a huge manner by the external factors of the country in which it offers the products and services. The analysis of the external environment of Telstra is thereby based on the ways by which the company is able to set up its operations in new area with the help of proper policies. The discussion has also been able to suggest that India can be selected as the most appropriate country where the products of the company can be provided in a profitable manner. The company will thereby be able to develop its position in India with the help of efficient policies and procedures.
References
Brouthers, K. D., Nakos, G., & Dimitratos, P. (2015). SME entrepreneurial orientation, international performance, and the moderating role of strategic alliances. Entrepreneurship Theory and Practice, 39(5), 1161-1187.
Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3-16.
Contractor, F. J., Kumar, V., & Dhanaraj, C. (2015). Leveraging India: Global interconnectedness and locational competitive advantage. Management International Review, 55(2), 159-179.
Gowers, R., Paj?k, A., & Klusa, E. (2018). Cultural Determinants and Perspectives of International Expansion of Enterprises from Economies in Transition. Central European Review of Economics & Finance, 25(3), 21-35.
Gulanowski, D., Papadopoulos, N., & Plante, L. (2018). The role of knowledge in international expansion: Toward an integration of competing models of internationalization. Review of International Business and Strategy, 28(1), 35-60.
Haapanen, L., Juntunen, M., & Juntunen, J. (2016). Firms’ capability portfolios throughout international expansion: a latent class approach. Journal of Business Research, 69(12), 5578-5586.
Jiang, G. F., & Holburn, G. L. (2018). Organizational performance feedback effects and international expansion. Journal of Business Research, 90, 48-58.
Jin, B., Ramkumar, B., & Chou, W. H. C. (2018). Identifying sources and roles of networks in international expansion among small businesses in a less-technology-intensive industry. International Journal of Entrepreneurship and Small Business, 34(4), 421-444.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Liesch, P. W., Welch, L. S., & Buckley, P. J. (2014). Risk and uncertainty in internationalisation and international entrepreneurship studies. In The Multinational Enterprise and the Emergence of the Global Factory (pp. 52-77). Palgrave Macmillan, London.
Telstra.com.au (2018). Telstra – About us, investors, media, community & environment and our company. [online] Telstra.com.au. Available at: https://www.telstra.com.au/aboutus [Accessed 20 Sep. 2018].
Wu, J., & Chen, X. (2014). Home country institutional environments and foreign expansion of emerging market firms. International Business Review, 23(5), 862-872.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
