TELUS company - Research Paper Example

This paper gives a detailed case analysis of TELUS Corporation and describes its current financial status. Keywords: telecommunication industry, competitive advantage, business strategy TELUS Case Analysis The telecommunication industry is viewed as being highly dynamic and is characterized by ever growing competition. The communication industry has gone through a revolution from the postage of hand written letters, to telephone communication and to mass communication through wireless gadgets and the internet (Rens, 2001).

TELUS Corporation is one of the key telecommunication companies competing in the global market for customers’ usage and advancing communication technology. The company focuses on more than the telephone services by allowing use of IP, data, voice and wireless technology to provide their customers with fast, convergent, efficient and convergent solutions. The company was started in Alberta in 1990 and entered into a merger with BCTel in 1999. Currently, the corporation provides services in entertainment, internet, video, satellite, internet access and voice services.

The corporation is considered to be the third largest telecommunication operator in Canada having approximately 7 million customers. The company’s major competition comes from Roger with over 8 million users and Bell with slightly over 7 million users. In 2010, the company posted annual revenue of over 9 billion dollars (TELUS Corporation). The condition of the industry environment is favorable since the number of wireless subscribers in the Canadian market is fast growing and has a medium level penetration.

The 21st century has presented the corporation with new challenges which have had an impact on its financial status. The major challenge facing the company is the high level of competition that is experienced in the telecommunication industry (Aburdene, 2007). It can be observed that although the company is among the largest mobile operators in Canada, it takes up the lowest market share. Rogers has 36 percent, Bell has 29 percent while TELUS has 28 percent. Recent studies have found out that the company’s market share is affected by three major aspects.

First, the brand awareness of the company’s products and services is relatively lower in comparison to the other two key players. Secondly, their variation strategy is poor and fails to yield the desired results. Finally, the company’s average price is higher, for example it is 38 percent higher than Bell’s and 7.58 percent higher than Rogers’. The company faces increased competition as it operates in the deregulated market place. The competition does not only arise from the giant telecommunication company but also from emerging companies that provide improved services such as the IP telephone (Aburdene, 2007).

Here, the greatest challenge is holding on to their market share and remaining at the top of all market segments. The competition in the market has been intensified by dynamic customer needs and high levels of consumer sovereignty. Consumers can easily switch their good and service providers in the telecommunication industry depending on their tastes and preferences (Aburdene, 2007). The company is advised to adopt the use of the latest technology in order to satisfy needs of the customers and to compete