The General Environment Consists Of Six Segments Marketing Essay

The familiar surround Consists Of sise Segments Marketing Essay telecom Corporation of reinvigorated Zealand confine telecom is a community based on media and tele dialogues industry offering telecoms and information, communication and engineering (ICT) answers in untried Zealand and Australia. The participation has a headcount of about 8297 employees as of 2011 (Annual report of telecommunication sunrise(prenominal)found Zealand, 2011). telecom Corporation of b atomic number 18-assed Zealand Limited is the largest telecommunications service provider in New Zealand providing consumers and crease multitude with a wide range of products and services. telecom operates under the following business units Telecom Retail , Gen-i, AAPT, Telecom New Zealand International, Chorus and Technology divided up services (Annual report of Telecom New Zealand, 2011).Today, Telecom plays a momentous marketplaceing leader role by witnessing more than(prenominal)(prenominal)(pr enominal) than than one one thousand million fixed line customers and all over two million bustling connections in the New Zealand telecommunications market (Annual report of Telecom New Zealand, 2011). nevertheless, the companys total operate revenues and total promotes for the financial year 2011 (ending June 2011) is about NZ$ 5122 million, a decrease of 2.8% over the financial year 2010 (Annual report of Telecom New Zealand, 2011).Environmental factorsGeneral Environment AnalysisAccording to Hanson, Hitt, Ireland Hoskisson (2011), the general environment consists of six segmentsdemographic segmentTelecoms major operations ar carried out in New Zealand and Australia which contributes to rattling less population ball-shapedly. The region consists of people from different heathenish groups like Maoris, Europeans, Asians and Pacific Islanders with lots of immigrants from different parts of the world. The major stock of income is through salaries and wages others include i nterests, investments and self-employment.Economic segmentThe New Zealand scrimping is suffering a quite slow recovery with the GDP resolution growing by 0.3 % in December 2011 quarter (New Zealand Statistics, 2012). Furthermore, the companys revenue decrease in the year 2011 which is not a good thing in the industry. It overly depends on the nations economic condition in the World Market. sometimes recessions may similarly affect the companys performance.Political/ effectual segmentTelecom has its own governance objectives, policies, taxation virtues and regulations for its employees. It should withal be following the telecommunication Act set by the political science. Furthermore, the Telecommunication Amendment Act in New Zealand response simplify telecommunications regulation and increase the marketing competition in spite of appearance the telecommunication service industry in New Zealand (Telecom New Zealand, 2012). The incorruptible should similarly be following t he Human Rights Act and Employment law for the ho holdholds employees. Legal proceedings are carried out for violation of laws and regulations.Socio-cultural segmentTelecom consists of diverse set of people in the workplace who helps in the companys achievement in the Global Market. The employees face a lot of challenges in social club to meet the Companys goals and objectives. It has a wide range of diversity programs such as Leadership programmes, Global Women programmes and flexible works policies (Annual report of Telecom New Zealand, 2011). Telecom foundation was recently started to do charity and community works. The firm also have concerns about New Zealands environment (Telecom New Zealand, 2012).technical segmentSince Telecom macrocosm a part of the telecommunications Industry, there are a lot of new technologies and innovations being created at a very fact pace. So the company must learn the new applied science very fast so as to adopt the new engineering science ah ead of its competitors. The company has also shown interest in the new technology telephone called the Ultra Fast Broadband initiative which is a new technology for faster broadband connections (Telecom New Zealand, 2012). There is also a more focus of globalisation of technology and internet enabled services.Global segmentTelecom is company that is based in New Zealand and Australia. So the company is not globally attracted. It should expand the organisation globally so that it can gain a competitive improvement over its competitors when they have a global front in the industry. Globalisation always helps in creating opportunities and challenges for the firm which moderates them more successful in the industry.Industry Environment AnalysisAccording to Hanson et al (2011), the five forces of Industry environment consists of Threat of new entrantsEntry into the telecommunication industry requires a huge capital because they need to build a great infrastructure within New Zealand . The threat of new entrants will be lower in the industry because they have to compete with its well-established competitors. However due to lower merchandiseing costs between service providers, the new entrant may have an opportunity in the existing market share when their services are speciouser than the existing competitors. The government policies are also liberalized for entry in the telecommunication industry which is an added proceeds. Overall, the threat of new entrants in the telecommunication industry is medium.Planning Process and StrategiesFrom the above General Environment we can find factors that influence and also affect the industry in the form of opportunities and threats. These factors mainly depend on the competitiveness, market share, substitute products, write out and demand.Opportunities can be listed asGrowing broadband market with the installation of ultra-fast broadband initiative in New Zealand which helps the company to gain more customers.Mobile dat a services are being used more these days as people tend to use mobile for browsing the internet.Increasing growth of mobile payment service which is an easy and a convenient way to do transactions due to more use of Smartphones.Threats can be listed asGlobalisation of the company is important to abide in the industryLegal proceedings of the company involves more legal costsIntense competition among the competitors acts as a threat in the industryTeam Structure And DynamicsThe industry consists of only a few potential competitors which is an advantage for the company. But there are also new competitors and also the threat of new entrants which lowers the companys market share in the industry. The company has its own substitute products due to advancements in technology and frankincense when people want to switch from fixed to mobile connection the company ultimately retains its new customers. When the company is updated in the technological world, it will eventually gain new cust omers and also retain its own customers as well. thus the bargaining power of suppliers is comparatively spirited.Bargaining power of buyersThe industry is characterised by large number of potential buyers who are independent in choosing their own service provider. Customers tend to choose their service provider based on the companys customer service and price range. So the customers gain an advantage to switch to other service providers when required which decreases the suppliers power. However when the buyers are in a contract period, the switching costs are relatively high which is an advantage to the suppliers. Thus the bargaining power of buyers is medium.Threat of substitute productsTelecom is a part of the telecommunication industry and it has its own substitute products as the company has both fixed and wireless connections. Since the substitute products are there within the own company it is not found to be a paint issue for the company. Thus overall the level of threat of substitute products is relatively low.Rivalry among competing firmsThe New Zealand Telecommunication Industry has its major competitors like Vodafone, Telecom, Telstra go by and 2degrees. The rivalry among these competitors is relatively high because of their different approaches in the industry. Vodafone is said to be the major competitor of telecom because of its global presence in the industry. 2degrees has also set a mark in the industry due to its cheaper prices and role plans. Thus the rivalry among the competing firms is said to be high.CompetitorThe key competitors of Telecom across various business units are Telstraclear, Vodafone Group PLC, Hutchison Telecommunications (Australia) Limited, AirNet Systems, Inc, Woosh Wireless, CallPlus Ltd, Hewlett-Packard Company, IBM Corporation, Singapore Telecommunications Limited (SingTel), Two Degrees Mobile Limited, Orcon Internet Limited. Though Telecom is one of the largest communication industries in New Zealand, there are al so potential threats because of its competitors. Vodafone is the largest mobile phone operator in New Zealand which is mainly because of its global presence in over 30 countries. 2degrees is also gaining advantage with low call rates and innovative plans. So Telecom should gain competitive advantage by expanding the organisation globally by providing quality service and cheap products.LeadershipTelecom following the democratic leadership. Democratic leaders make the final decisions, but they include aggroup members in the decision-making process. They encourage creativity, and team members are often highly engaged in projects and decisions.There are many benefits of democratic leadership. Team members tend to have high business sector satisfaction and are productive because theyre more involved in decisions. This tendency also helps develop peoples skills. Team members feel in control of their destiny, so theyre motivated to work hard by more than just a financial reward.Because participation takes time, this approach can slow decision-making, but the result is often good. The approach can be most suitable when working as a team is essential, and when quality is more important than faculty or productivity.The downside of democratic leadership is that it can often hinder situations where hasten or efficiency is essential. For instance, during a crisis, a team can bungle valuable time gathering peoples input. Another downside is that some team members force not have the knowledge or expertise to provide high quality input.ConclusionTelecom has a leading marketing stupefy within the highly competitive marketplace. Currently the management of Telecom is veneer some strategic issues in telecommunication industry. Some of the key issues are the Ultra Band Broadband initiative introduced by the New Zealand Government which is said to be the future of broadband connections in New Zealand. So Telecom should be very keen in providing better service to the custom ers with the new broadband initiative so as to gain a competitive advantage over other competitors.The companys profitability and revenue has also decreased in the financial year 2011 which is considered to be an issue in the market value of the company, so the company should try to gain more profits and revenues in the future. The company should also change its marketing strategies so that it can attract more customers in the future. With lots of new technologies being innovated the company can use these technologies to market their products and services so as to create positive market position in the industry.