Competition
The prime importance of this unit of the paper is to focus on all Porter’s 6 six forces considering the 5G and its connectivity aspects in the telecommunication industry of Australia and the key issues and challenges that has been detected in the industry within the business years of 2017 and 2018:
Figure 1: The Porter’s six forces model
(Source: Created by the author)
In the latest years, mostly in between the years 2017 and 2018, the telecommunication industry of Australia faced severe threats from the competing telecommunications organizations that are also established in Australia. These organizations are all trying to implement the use of 5th Generation of telecommunication and has already tried to trial the technology to expect the rollouts by 2019 (Wollschlaeger, Sauter and Jasperneite 2017).The telecommunication industry of Australia has a huge global presence and marketing network. The rivalries among the telecom industries within the country are making every other company in Australia to implement latest technologies to be ahead of the other, which in turn is helping the telecommunication industry of Australia.
There are different types of competitions which are faced by telecommunication industries of Australia, mostly in the year 2017 to 2018. The other telecommunication industries such as the TPG and National Broadband Network are making the most out of this industry with better services even in the remote areas. The key issues related to the new entrants of this organisation are its reliability among the end users over the years (Rajapaksa et al. 2018). Large amount of funds are used by the telecom industry of Australia, the experts who are operating the service should be very much experienced and capable to deal with the complexities of this industry. The new companies in Australia are also trying to bring about the 5G technology faster than the other and thus, the competition between the existing companies have increased much more given the latest development of new entrants.
The fact that Australian telecommunication industry has still not implemented the 5G networks are a huge factor that the buyers or the customers have a huge probability of shifting towards other telecommunication services that offer the latest technologies. On the other hand, reports have also found out that there have been incidences in the second half of 2017 regarding the huge number of complaints that the buyers of the Australian telecommunication imposed due to the connectivity problems in the landline, mobile and internet services (Hamilton 2018). The power of the buyers is such that these complaints had caused a drop of 30 per cent in business for the ingenious telecommunication industry in Australia, which made them revive the business by 16 per cent by the first six months of 2018.
Figure 2: Increasing consumer of telecom industryof Australia.
(Source: Created by the author)
The external stakeholders of the telecom industry of Australia are very much important for the growth and development of the company given that the industry is worth 1 billion AUD by the year 2017 and 2018. Cash flow is very much important for the growth and development of the industry. The suppliers and the other external stakeholders of this industry are always connected via private network with the help of wireless technologies. This falls under the trial phase of the 5G network and the suppliers are helping the telecommunication industry of Australia so that they could implement the development by the year 2019. The key issues related to the suppliers of telecom industry of Australia are the variations in the market costs and the bargaining power of the suppliers as a lot of changes in the market has been by the year 2017 and 2018.
Threat of new entrants
The telecom industry of Australia is very unique marketing and its strategic helps them to grow in the global telecom market. In this case, the telecommunication industry of Australia has also housed other telecommunication companies from other countries which act as substitutes to the buyers (Kirchner and Mondschein 2018). Since, the substitutes offer 5G connectivity to the buyers and the buyers are demanding the technology, hence, Australian telecommunication industry needs to buck up and implement the 5G connections as soon as possible, even before the supposed time.
There is a high level of competition with the telecom industry of Australia with the other telecom industries of the other nations and given the challenges of implementing the 5G technology in the latest times, the competitive rivalry also is present within the other telecommunication companies in Australia. The needs and requirement of the people are constantly are increasing, the development of the generation wireless technology by Telecom industry of Australia will be beneficial for both the country as well as from the perspective of the telecom industry (Tucker 2017). The key issues related to complementary products are the quality of service which is very high in the telecom industry of Australia.
Figure 3: Revenue of the competitors of telecom industry of Australia
(Source: Created by the author)
Figure 4: Components of PESTEL Analysis
(Source: Created by the author)
Political interventions in the Australian Telecommunications industry are one of the major factors why even in 2017 and 2018 Australia is still in the trial phase for implementing 5G connectivity (Cave 2018). The NBN policy that has been proposed in this regard is not being supported by the political entities uncritically. Although, the trial phase has taken the political inputs into consideration in this regard, but there are issues regarding the implementation, which is supposedly on the verge of completion by 2019.
The economic factors such as the inflation may play a huge role in the growth and development of the 5G technology and connectivity in the telecom industry of Australia. The efficiency of the financial markets can be significantly impacted after the incorporation of the 5G in the IoT smart cities. The key issues related to the economic factors are unemployment rates and labour costs and productivity. The discretionary income is the other issues related to the economic factors of the telecom industry in Australia considering 5G and connectivity.
The skills of the employees of the telecom industry of Australia are one of the key trends related to the social factors. The employees and the other concerned individuals working on this industry are very much skilled and experienced to handle any kinds of complexities associated to the development of the telecom industry of Australia (Gregory 2018). The key issues related to the social factors are problems such as racism as it can significantly hamper the reputation of this industry. The other issues related to the telecom industry of Australia are the social factors such as entrepreneurial spirit which is a huge issue as it is not often accepted in all industries.
The discussed competitors of telecom industry of Australia are bringing up updated and innovative technologies which are a very trending issue in this telecommunication industry (Mehmood et al. 2017). There are plenty of issues associated to the technological aspects of this industry and there are various discrepancies about the industry that prevent the ready implementation of the 5G technology is still not in motion by the year 2018 and is still in the trial phase.
Environmental aspects that are responsible in this regard are not the climatic components but the organizational environmental aspects. The identification of the internet environment in the year 2017 and 2018 has found that the key challenges that Australia would be facing for the implementation of 5G networks is the problem in setting up relevant business models (Dwyer et al. 2018). Based on the internet environment and business environment in Australia at this point of time, there still needs to be several trials to be carried out to make these environments synchronize the technological needs for 5G.
The legal factors which play an important role in the telecom industry of Australia considering the 5G are the anti-trust law, employment law, data protection law, consumer protection law and the laws related to the intellectual properties. The key issues related to the legal factors are the legislative issues which have to be given prior importance by telecom industry of Australia to achieve growth and development.
Reference
Cave, M., 2018. How disruptive is 5G?. Telecommunications Policy.
Dwyer, T., Shim, Y., Lee, H. and Hutchinson, J., 2018. Comparing Digital Media Industries in South Korea and Australia: The Case of Netflix Take-Up. International Journal of Communication, 12, p.20.
Gregory, M.A., 2018. Australian wholesale telecommunications reforms. Australian Journal of Telecommunications and the Digital Economy, 6(2), p.1.
Hamilton, C., 2018. China’s Influence Activities: What Canada can learn from Australia.
Kirchner, S. and Mondschein, J., 2018. DEAL-BREAKERS? REGULATING FOREIGN DIRECT INVESTMENT FOR NATIONAL SECURITY IN AUSTRALIA AND THE UNITED STATES.
Mehmood, Y., Haider, N., Imran, M., Timm-Giel, A. and Guizani, M., 2017. M2m communications in 5g: State-of-the-art architecture, recent advances, and research challenges. IEEE Communications Magazine, 55(9), pp.194-201.
Tucker, R., 2017. The Tragedy of Australia’s National Broadband Network. Australian Journal of Telecommunications and the Digital Economy, 5(1), pp.116-126.
Wollschlaeger, M., Sauter, T. and Jasperneite, J., 2017. The future of industrial communication: Automation networks in the era of the internet of things and industry 4.0. IEEE Industrial Electronics Magazine, 11(1), pp.17-27.
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