Telstra Corporation

a. Determine why each organization decided to take a certain course of action Telstra Corporation is a leading Australian telecommunications and information services company providing a wide range of services including internet access, fixed line services, and business solutions. Telstra is well known brand name and a market leader in the Australian telecommunication industry. However, the company is increasingly facing stiff competition on its products and operating services. Therefore, embarking on a enhancing customer experience will come in handy not only for marketing but also for the long-term business development. Excellent customer service will help the company in creating stickiness-customer loyalty. Price/cost significantly influences stickiness however does not by itself create the sticky factor. In the telecommunication industry, it is difficult to have a competitive advantage based on price/cost alone is extremely difficult to sustain advantage based on price because the model is relatively simple for a competitor to imitate and consumers switching costs remain low when based on pricing alone. Therefore, stickiness relates to quality or features. And this is where Telstra wants to distinguish itself in the Australian telecoms sector. b. Identify critical events related to the implementation strategies adopted by the organization and comment on the achievement of the desired outcomes. Early July 2011, Telstra CEO David Thodey announced a series of appointments and key strategies that were meant to sharpen the companys focus on customers. These developments were aimed at positioning Telstra for industry changes with the National Broadband Network. The appointments and strategies are consistent with the companys long-term strategy to improve service, attract customers, remove frill (simplify processes) and create new growth businesses. By creating a single retail sales and service team, teams are free-up of customers queries thus, allowing them to focus on their primary role of serving and attracting customers, hence capitalising on the opportunity to grow new and build on existing revenue streams.

c. Critically examine shortcomings in the processes adopted. The idea of putting the customer first is an excellent one, considering that it may seem relatively easy to attract new customers. But, to keep them is an entirely different thing. Since the plan is long-term, it is too early to comment on its shortcomings. d. Determine each organizations ability to harness necessary resources

In the past two financial years, the company has successfully put in place measures and strategies to achieve that objective. This was done through the empowering of local managers, unifying two retail businesses into a single unit, launching digital business to improve online customer service, implementation of 24/7 call centres, introduction of weekend customer appointments, and creation of toll free numbers for customers. The company has made significant progress over the past two years, especially in the last quarter of 2010 and the first quarter of 2011 when the companys customer base increased by more than one million (Lower Gavin 2011). Therefore, the current initiatives are auxiliary evidence that Telstra is putting its by customers first, creating new growth businesses, and making the way of doing things easier. Telstra is a household brand in Australia and dominates the telecommunications and information services in the country. The company owns and operates a far-reaching network infrastructure which gives it a competitive advantage over industry rivals, whose networks cover only a part of Australia and fail to cover other parts, especially the remote and rural areas. In addition, the company has the latest mobile technology (Next G Network) and broadband (ADSL 2 Plus) that makes it competitive among the telecomm operators. Further, Telstra owns about 115 branded outlets and 153 licensed retail outlets that are strategically located across Australia.

e. Describe any problems encountered and how they were dealt with.

The problem with this strategy lies with the companys weaknesses; Telstra lacks the initiative to diversify internationally. Therefore this limits its growth strategy. In addition, one cannot ignore the fact that the price of mobile phone and broadband plans offered by Telstra are relatively higher than those of the other companies. In addition, the launch of new products such as Next G Network has consumed financial resources, reducing fixed line advertising. This might affect the companys brand visibility (WebWire, 2011). Another problem encountered is that, Telstra is maintains its focus on post-paid mobile phone plans rather than the popular prepaid plans. This limits its market expansion, leaving it to competitors.

f. Describe how the external environment affected the outcomes These appointments and initiatives are inline with the companys long-term strategy to enhance service, attract more customers and to remove frills in its operations. The move tag along the recent $11bn deal between Telstra and NBN Co, a federal government-owned company rolling out the internet network, aimed at shifting its customers to an expanded infrastructure provided by NBN. These initiatives will help Telstra take advantage of the Australian governments contracted internet supplier. Through a joint initiative with the government, Telstra expanded its CDMA network to cover rural areas. As a result, the company has the most extensive CDMA networks in Australia. In addition, Telstra has currently expanded its services into 3G, a highly demanded section of the telecommunications market. It leads to the increasing demand for broadband internet hence need for excellent customer service (WebWire, 2011).

References

Lower Gavin, 2011, Telstra management changes designed to put 'customers first', Retrieved July 29, 2011 from [Link] WebWire, 2011, Telstra structure geared to customers, growth, Retrieved July 29, 2011 from [Link]