Telstra Telecommunications - Case Study Example

TELSTRA TELECOMMUNICATIONS Name of Student Institutional Affiliation Date Introduction The future of the world economy is currently, more than ever, dependent on the technological advancements. More particularly, the mobile telephony that has made life not only an easy venture but also an enjoyable experience. Services got from mobile telephony are not limited to calling, internet services, banking, and games, among others. Governments have, therefore, been encouraged to insulate companies that provide mobile phone services from harsh business environments (Lindgaard & Narasimhan 2009). This may include providing incentives to encourage them to do more business. It is normal for business to fail but it is painful and clear show of negligence for business to fail due to lack of customer feedback. The art of doing business is to understand the nucleus of that business and the nucleus of mobile telephony business lies squarely with the mobile subscribers. Understanding the interest of customers and acting on them in a timely manner is a step in the right direction (Lindgaard & Narasimhan 2009). Any corporate entity, like Telstra, going into business must appreciate the need for customer feedback. Since all services are aimed at pleasing the customer, ignoring their feedback can only be equated to a suicidal mission. According to Davidson (2010), there are a number of strategies that every business must put in place to ensure that good and timely feedback is received and acted upon. In this paper, we shall base our discussion on Telstra mobile service provider in Australia. One key principle to success in mobile telephony business it to have is to appreciate that the core mandate of business is to serve the interest of customers. The business can therefore only do well by providing quality services that meet the market driven by the customer. Some of the key attributes to such a company include quality of service, efficiency, consumer retention, and cost. This paper seeks to explore the customer feedback with regard to Telstra mobile service provider. The paper will also highlight some of the issues around the mobile industry with a keen interest on pricing and attempt to offer possible solutions to some of the problems. Background Information In the Australian media and telecommunication services sector, Telstra is one of the leading mobile service provider (Davidson 2010). Telstra has a capital base of approximately $25 billion. In the worldwide market, it is ranked as the 11th largest telecommunication company .some of the services provided by Telstra include; internet services, fixed line and mobile services. Customer feedback is an important practice in any corporate society. This provides a more direct platform to evaluate the progress of the business enterprise. Research based on an outstanding and exceptional mobile service provider might seem to be a daunting task. However, with insights of new market trends and the applications of good marketing strategies has transformed many economies (Australian National Audit Office 2000). Telstra, as one of the leading telecommunication companies, offers an extensive range of services in the communication world. It provides internet services, voice calls, pay television, among other services in the telecommunication industry (Hoang 2010). Its history is closely linked to the government postmaster general. It has a customer base of about 1.4 million subscribers, 32,000 employees and is present in 1.900 points across the globe. Their customer bases include consumers of services, small and large businesses, and government agencies. Currently, there are 362 Telstra retail stores fully branded, 90 business points, 127 business partners among other points of business (Ardagna 2012). In Australia, Telstra provides 16 million services based on mobile phone, 7.5 million voice services and 3.7 million data services. In the global sphere, Telstra collaborates with global networks and Autome, a Chinese bases advertising and search firm. Since they appreciate through customer feedback that their primary need is to have a reliable technological hardware and software, they have heavily invested in the largest Internet Protocol (IP), which is trusted by many customers in the Australian market. The privatization of Telstra took three phases namely; T1, T2, and T3.They constantly update their customers and stakeholders on information related to sustainability issues that can build and sustain business for posterity. This information is carried in the websites and in the annual sustainability reports (Ardagna 2012). Telstra digital was formed in 2011.it was meant to help in improving the digital channels. Some of the services that the digital service provided include electronic bills and banking. The entry into social media came later so as to meet customer feedback. Their presence in face book was recognized and ranked ninth Australian company. Their fast internet made them the darling of many customers in Australia. In fact, Telstra has had to promptly respond to their customer feedback by improving on the areas of concern raised by customers (Ardagna 2012). This is the only reason they are leading in the Australian market. Pricing Prices attached to a product or service is one of the main factors that determine whether it will attract a large market segment or lose the existing market (Joia 2003). It is a workable strategy by Telstra to ensure advocating for customer is improved as they gain value and ensure new businesses are built and are growing steadily (Citizens Against Selling Telstra 2002). For instance, all shareholders were paid a total of 15% of each share they hold in the company. The same year the company purposed to buy back at least $1 billion of their off the market shares. Fixed businesses such as the fixed data, voice and other revenues that include carrier services also provide income to the company. They boost the company greatly because of the undying demand for data usage, voice calls and a means by which people can get physical products moved from one location to another. Mobile sale is another area that Telstra has ventured into. This is continually growing with the re venue accumulated increasing steadily each year. Telstra sells mobile phones at both wholesale and retail levels. It has also opened many shops country wide to deal with the sale of these products at the standard prices set by the company’s marketing team. They provide retail mobile services which include post paid and prepaid services at very competitive costs that make the company earn competitive advantage in the market (Pathan, Sitaraman & Robinson 2014). These services are smooth and almost free of disruptions and incase of any issue the customers are attended by Telstra’s team of experienced customer care services. Again the company has invested in technology that delivers a 4G network with a network coverage that takes four times the geographical area as compared to other 4G network providers. This network and their 4G enabled handsets make it preferable to any other network provider in Australia. People also pay to access IP, ISDN and other calling and data services that Telstra offers and this access is increasing in revenue collection every single year. The company’s IP network is widely used by the government, business people and enterprise to conduct communication, manage security and control the network services. Such contracts increase the revenue margins for Telstra immensely. There are several costs that Telstra as a company incurs. Labor, for instance, is a necessary cost and includes the full time and part time staff. Salaries and wages paid to employees by the company increase each year due to the continued demand for more ser vises with increased customer base and operations. The company also outsources for goods and services outside. For instance, they may ship mobile phones and mo bile accessories from china. An example of outsources service is the Network Applications and Services which include unified communication, managed network, integrated services and cloud connectivity (Pathan, Sitaraman & Robinson 2014). Other money was spent in the process of getting and signing contracts with other support companies and mobile phone manufacturers. Figure (1): Telstra Market Segments They have a market segment that is subdivided to provide services to consumers at different levels as shown in figure (1) above. The retail shops which comprise of Telstra Consumer, Telstra Media Group, Telstra Health and Telstra Business dispense telecommunications solutions, services and products to the immediate user. The Global Enterprise and Services is the market segment that takes care of contract management and sales support on Australian government and global consumers as well as provide business support to business people. It manages IP networks, Data networks and advanced technology such as the Network Applications and Services products. There is also Telstra Wholesale which dispenses services in bulks to dealers or retail shops. Other levels of product and service delivery are the Telstra Operations and the Telstra International groups (Blecker & Friedrich 2006). Issues Affecting Prices In every business, there are issues that affect the company and can be identified from the feedback customers give. These issues can be either external or internal and directly or indirectly impact on the quality or pricing of the products or services delivered. Business material risk is one of the issues that affect pricing of Telstra products and services. One type of such a risk is the disruption of business (Sabat 2010). Telstra is a company that entirely depends on technology in running its business and to integrate its customer services. It is therefore important that its operations run smoothly all the time. Any alterations in the system will lead to reduced service delivery to customers and a consequent loss to the company. It is also important to note that Telstra as a network provider uses geographical area. This may disrupt business in case a natural disaster strikes and make their operation impossible. According to Sen (2008), another issue is related to security of information. There is an extra cost incurred in the quest to protect customer privacy and security of data. This extra cost calls for investment if security controls that can control threat attacks of known threats such as cyber attacks. Programs have to be developed to combat these threats such as antivirus and efforts made to ensure privacy of information. All these come with extra costs that the company distributes between it and the customers therefore leading to an increase in their prices. The issue of third parties offering services on behalf of the company poses a risk also. An example is when a dealer who delivers core business like mobile sale for the company has issues, there will be effect felt by the customers. This greatly impacts on the company because its real worth is equal to its customer satisfaction. Customer Feedback Swift & Piff (2014) state that Customer feedback is an important t aspect for improving any business entity and Telstra is not an exception. It is a driving force for Telstra as a company to steer customer experience from one level to higher standards and this can only be achieved by listening to consumer demands and satisfy them. Technology is an important aspect in of customers (Singh 2012). However, many find it difficult to keep their expenditure on track. This has led to Telstra developing means for tracking data usage for their consumers by introducing Mobile Accelerate plans that cut the excess charges, reduced charges when on international roaming and standardizing domestic voice charges. Telstra Broadband Assistant and free Telstra Wi-Fi also have reduced prices immensely (Telstra 2009). Customers are also followed up any time after a purchase to ensure they are satisfied. Customers have also called out for their need of a personalized service. This service gives them a platform to engage at personal level with the company. Such a service may be connecting online or physically. However, according to statistics, most customers have preferred the online method and are conducting online business in bulks, efficiently and effectively (Tracy, 2014). Solutions According to Warkentin (2002), Telstra as an organization should continually conduct reviews and monitors any issues that can affect their business by conducting Enterprise Risk Maturity Assessments. This places them on informed of any disasters that may strike such as climatic changes and develop a meant to go through without major effects on business. Innovation should also be at optimum. This is because as technology advances, new and more efficient means of delivering cost friendly services and products to the consumer is an important factor. The company should focus on getting technology that lasts for longer period without being faced out of the market and simplify network processes. This means that there will be less cost in the long run and prices of their products and services can be reduced. Conclusion To conclude, Telstra has a commitment to develop a long-term relationship with their customers. The customers are also known as the ‘engine’ of Telstra Company and this explains their willingness to develop an enduring and flourishing relationship with their customers. They are very much aware that having customers who are unsatisfied or disgruntled will most certainly lead them to incurring losses in their business. These explain the reason Telstra has heavily invested in systems that will guarantee prompt customer feedback .there timely response to some of the issues raised by customers has also been a key point behind their dominance in the Australian telecommunications sector. A good customer relation builds mutual relations between the company and their customers and is an indicator of increased revenue. Key areas like in service provision, pricing and responding to customer complaints should be the basis of Telstra operations. Areas such as in the post paid services; the customer is in constant communication with the relevant department to establish their level of satisfaction. Telstra understands that the behavioral patterns of customers towards their services have greater implications on their business. In the provision of efficient services, quality products and at a friendly cost, customers will obviously be impressed. References Ardagna, CA 2012, Business system management and engineering from open issues to applications. Berlin, Springer. http://dx.doi.org/10.1007/978-3-642-32439-0. Australian National Audit Office 2000, Second tranche sale of Telstra shares. Canberra, Australian National Audit Office. Blecker, T & Friedrich, G 2006, Mass customization challenges & solutions. Springer E-Books. New York, Springer. http://public.eblib.com/choice/publicfullrecord.aspx?p=303008. Top of Form Citizens Against Selling Telstra 2002, Citizens Against Selling Telstra. Canberra, Citizens Against Selling Telstra. http://www.citizensagainstsellingtelstra.com. Bottom of Form Davidson, A 2010, 1000 CEOs. London [England], DK Pub. http://www.credoreference.com/book/dkceos. Hoang, P 2010, Business & management. [Melton, Vic.], IBID Press. Joia, LA 2003, IT-based management challenges and solutions. Hershey, PA, Idea Group Pub. http://www.books24x7.com/marc.asp?isbn=1591400333. Lindgaard, G & Narasimhan, S 2009, ‘Mobile HCI: Thinking Beyond the Screen-Keyboard Mouse Interaction Paradigm’, International Journal of Mobile Human Computer Interaction. 1,46-60. Pathan, M, Sitaraman, RK & Robinson, D 2014, Advanced content delivery, streaming, and cloud services. Sabat, HK 2010, ‘Why Mobile Wireless Carriers Share Networks & Services Provisioning’, International Journal of Interdisciplinary Telecommunications and Networking. 2, 18-50. Sen, M 2008, Business management. Jaipur, India, Oxford Book Co.http://site.ebrary.com/id/10417537. Singh, NP 2012, ‘Operational Strategies of Ethnic Mobile Virtual Network Operators’, International Journal of Interdisciplinary Telecommunications and Networking (IJITN). 4, 1-30. Swift, L & Piff, S 2014, Quantitative methods for business, management & finance. Top of Form Telstra (Firm) 2009, Telstra exchange what's your view? Sydney, Telstra Corporation. http://exchange.telstra.com.au. Bottom of Form Tracy, B 2014, Management. New York, AMACOM http://public.eblib.com/choice/publicfullrecord.aspx?p=1596432. Warkentin, M 2002, Business to business electronic commerce challenges and solutions. Hershey [Pa.], Idea Group Pub. http://site.ebrary.com/id/10019314. Read More