Telstra Corporation Limited (Telstra) is the largest Australian media and telecommunication company, engaged in rendering the services of voice, mobile and internet access, as well as TV and entertainment programs for population. Telstra was formed in 1901 when telecommunications appeared in each colony. Since 2010, the company has changed its management under the leadership of David Thodey and became more sales and services oriented. The company’s personnel totals up to 32,000 people; there are 1.4 million shareholders and more than 1,900 stores all over the world.
“Telstra’s international businesses include Telstra’s global networks and managed services business and Telstra’s China-based search and advertising business, Autohome, Inc.” (Telstra, 2014). The analysis of any company’s positioning assumes the definition of its possibilities (a condition of assets, etc.) in the market, depending on dynamics of the environment. The analysis is conducted according to the two directions: resources and the company’s external positions. A competitive position is especially important.
The company offers a great variety of services, such as cable internet, ADSL internet, mobile broadband, satellite and dialup internet. However, the company has an opportunity to expand its services, offering VoIP phone systems. The prices for the telecommunication services in the company are democratic and competitive.
Telstra is positioned in relation to its competitors in Australian telecommunication industry. The industry picture is formed on a basis of the typology of the companies operating in it. Among the criteria which can be taken as a principle typology, market portfolios of the companies, geography of sales and services, turnover and other criteria can be singled out.
Analyzing the current position of Telstra in relation to the players and decision-making concerning the fact what position Telstra “wants and can” occupy in the industry, proceeding from own financial and other possibilities. General strategy of the company and its marketing strategy coincide in many respects. The marketing cares for the consumer’s needs and its ability to satisfy them. The same factors are defined by the company’s mission and goals. Many concepts of marketing, such as market shares, market development and its growth are used in strategic planning of the company. It leads to the fact that it is difficult to separate strategic planning from marketing. In practice, some companies call strategic planning “strategic marketing planning”.
A constantly growing competition forces the heads of Telstra to search for the new management methods directed at retention and expansion of the presence in the market, increase of the company’s profitability, implementation of new management methods of production and marketing. Moreover, the company strives to discover new regions and areas of interest. Telstra has been successfully working in Europe since 1992. The company expanded its presence in Singapore and Japan in 2011 and Ooyala in 2014.
A special role is played by the informational technologies which should provide support of all progressive managerial innovations. Moreover, new approaches to management of the company are initially guided by the possibilities of modern information technologies and are almost impossible without the use of computer systems. In these conditions, informational technologies become effective management tools for Telstra, and an integral part of its business infrastructure.
At present, IT infrastructure is a basis for stable functioning of Telstra. IT infrastructure should correspond to three parameters: availability, reliability and safety. The creation of IT Infrastructure, satisfying the given parameters becomes an impossible task for the small companies. IT infrastructure also should satisfy the company requirements. Besides, it is necessary to possess a considerable experience in construction of IT infrastructures, and also a great number of highly skilled specialists for the organization of a reliable, productive and scalable IT infrastructure.
The competitive strategy of Telstra is based on knowledge management strategy. In the company, knowledge management models are used both for new and existing products. Telstra puts the question of knowledge management as the priority of its work, while the others do not pay special attention to this point, putting it in the row with cost cutting or international expansion. A strong leadership is an important point, which directs the company, choosing a correct knowledge management strategy. The coordination and implementation of the chosen strategy requires the leadership skills from the top management of the company.
Telstra uses two knowledge management strategies: codification and personalization. The codification strategy includes knowledge, codified and stored in databases, while the personification strategy is based on person-to-person contacts. The choice of the strategy by a company depends on the methods the company uses in serving its clients, the business type it has and the people it recruits. Telstra uses the personification strategy. The top management of the company speaks to individuals in brainstorming meetings and finds the unique solutions to the existing problems. The personification knowledge management strategy creates the tacit knowledge which can be shared in communication. Communication is not only face-to-face interaction, but it is also communication via e-mail, telephone or videoconferences.
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All basic functions of technological management are inherent in strategic marketing, namely: planning, organization, control and regulation. However, a special technological character of marketing is connected not with the time features of management but with a necessity of environmental influence and is reflected in a specific “strategic” character of its main function - planning.
The competitive position of Telstra in the market is determined by a degree of conformity of the company’s goods by the key factors of decision making (KFDM) assessed by a consumer. Analyzing a degree of Telstra’s goods conformity and the goods of competitors, taking into consideration a current share of Telstra in the market, it is possible to predict a change of a competitive position of Telstra and to make purposeful efforts on strengthening the company’s position in the market. On the other hand, the analysis of the key factors of decision making in the different markets allows identifying the target markets for the company.