Swot Analysis of "Australia's Telstra Corp. (B): The Countdown" written by W. Earl Sasser Jr., Carin-Isabel Knoop, Cate Reavis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Countdown Telstra facing as an external strategic factors. Some of the topics covered in Australia's Telstra Corp. (B): The Countdown case study are - Strategic Management Strategies, Competitive strategy, Economy, Regulation and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Australia's Telstra Corp. (B): The Countdown casestudy better are - – challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , there is backlash against globalization, central banks are concerned over increasing inflation, increasing commodity prices, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models,
geopolitical disruptions, increasing energy prices, etc
Introduction to SWOT Analysis of Australia's Telstra Corp. (B): The Countdown
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Australia's Telstra Corp. (B): The Countdown case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Countdown Telstra, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Countdown Telstra operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Australia's Telstra Corp. (B): The Countdown can be done for the following purposes –
1. Strategic planning using facts provided in Australia's Telstra Corp. (B): The Countdown case study
2. Improving business portfolio management of Countdown Telstra
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Countdown Telstra
Strengths Australia's Telstra Corp. (B): The Countdown | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Countdown Telstra in Australia's Telstra Corp. (B): The Countdown Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Countdown Telstra in the sector have low bargaining power. Australia's Telstra Corp. (B): The Countdown has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Countdown Telstra to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Countdown Telstra in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Countdown Telstra
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Countdown Telstra does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Countdown Telstra has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Countdown Telstra to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Countdown Telstra has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management
– Countdown Telstra is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Sustainable margins compare to other players in Strategy & Execution industry
– Australia's Telstra Corp. (B): The Countdown firm has clearly differentiated products in the market place. This has enabled Countdown Telstra to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Countdown Telstra to invest into research and development (R&D) and innovation.
Ability to lead change in Strategy & Execution field
– Countdown Telstra is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Countdown Telstra in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Countdown Telstra has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Australia's Telstra Corp. (B): The Countdown HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Countdown Telstra has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Countdown Telstra has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Operational resilience
– The operational resilience strategy in the Australia's Telstra Corp. (B): The Countdown Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Countdown Telstra is one of the most innovative firm in sector. Manager in Australia's Telstra Corp. (B): The Countdown Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Australia's Telstra Corp. (B): The Countdown | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Australia's Telstra Corp. (B): The Countdown are -
Interest costs
– Compare to the competition, Countdown Telstra has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Countdown Telstra has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Countdown Telstra even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Countdown Telstra is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Australia's Telstra Corp. (B): The Countdown can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Countdown Telstra supply chain. Even after few cautionary changes mentioned in the HBR case study - Australia's Telstra Corp. (B): The Countdown, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Countdown Telstra vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Countdown Telstra, firm in the HBR case study Australia's Telstra Corp. (B): The Countdown needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Australia's Telstra Corp. (B): The Countdown, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Countdown Telstra products
– To increase the profitability and margins on the products, Countdown Telstra needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Australia's Telstra Corp. (B): The Countdown, it seems that the employees of Countdown Telstra don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Capital Spending Reduction
– Even during the low interest decade, Countdown Telstra has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Workers concerns about automation
– As automation is fast increasing in the segment, Countdown Telstra needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Australia's Telstra Corp. (B): The Countdown, in the dynamic environment Countdown Telstra has struggled to respond to the nimble upstart competition. Countdown Telstra has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Australia's Telstra Corp. (B): The Countdown | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Australia's Telstra Corp. (B): The Countdown are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Countdown Telstra in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Countdown Telstra can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Countdown Telstra can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Countdown Telstra can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Countdown Telstra can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Loyalty marketing
– Countdown Telstra has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Countdown Telstra to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Buying journey improvements
– Countdown Telstra can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Australia's Telstra Corp. (B): The Countdown suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Countdown Telstra can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Countdown Telstra can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Australia's Telstra Corp. (B): The Countdown, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Countdown Telstra has opened avenues for new revenue streams for the organization in the industry. This can help Countdown Telstra to build a more holistic ecosystem as suggested in the Australia's Telstra Corp. (B): The Countdown case study. Countdown Telstra can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Countdown Telstra in the consumer business. Now Countdown Telstra can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Countdown Telstra to increase its market reach. Countdown Telstra will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Countdown Telstra is facing challenges because of the dominance of functional experts in the organization. Australia's Telstra Corp. (B): The Countdown case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Threats Australia's Telstra Corp. (B): The Countdown External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Australia's Telstra Corp. (B): The Countdown are -
Shortening product life cycle
– it is one of the major threat that Countdown Telstra is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Countdown Telstra needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Countdown Telstra can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
High dependence on third party suppliers
– Countdown Telstra high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Countdown Telstra in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Countdown Telstra.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Countdown Telstra business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Countdown Telstra needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Australia's Telstra Corp. (B): The Countdown, Countdown Telstra may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Countdown Telstra will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing wage structure of Countdown Telstra
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Countdown Telstra.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Countdown Telstra can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Australia's Telstra Corp. (B): The Countdown .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Countdown Telstra in the Strategy & Execution sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Countdown Telstra can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Australia's Telstra Corp. (B): The Countdown Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Australia's Telstra Corp. (B): The Countdown needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Australia's Telstra Corp. (B): The Countdown is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Australia's Telstra Corp. (B): The Countdown is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Australia's Telstra Corp. (B): The Countdown is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Countdown Telstra needs to make to build a sustainable competitive advantage.
