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MKT550-Issues In The Global Expansion Of Telstra

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  • Course Code: MKT550
  • University: Charles Sturt University
  • Country: Australia


Discuss about the various important issues in the global expansion of the organizations.



The following paper discusses about the market entry of the Telstra Corporations in Australia. The organization is one of the largest organizations in Australia regarding the telecommunications. The organization builds and sells the various types of mobile phones, provides the internet access to the users and other products and services. The aim of this research would be to prepare the plan for the market entry of Telstra into Singapore market by going through the business environmental factors and developing the proper marketing plans (Baldwin & Yan, 2012).  

Overview of Telstra

The organization serves in the telecommunications industry and it is considered to be the largest player in that industry (, 2018). In order to proceed in a different global market, the organization will need to make some plans and strategies by which they can expand into Singapore successfully. The company has around 150 subsidiaries all around Australia and it will be much profitable for them to tap into the Asian market through Singapore. The headquarters of this organization is located at Melbourne in Australia (, 2018). The organization will like to make the proper strategies by which they can assess the consumer behavior of Singapore and provide them with the best products and services indeed. 


Business objectives

The business objectives of the company are to make the proper strategies by which they can provide the customers with the best services and products. They only want to simplify their product offerings. The authority of the organization will surely look to reduce the problems of the customers through their potential feedbacks. They would also focus on improving their portfolio management and stressing on their cost reduction programs. The standalone infrastructure they want to implement will surely eliminate the problems the customers face in the current times (Baldwin & Yan, 2012).  When they will expand into Singapore it will be very important for them to discover the potential opportunities in terms of comparing with their local competitors in Singapore. They will like to provide the customers with the various simplified products with the new innovated model. They will also like to extend the 5G network in Singapore as well.

Mission and vision statement

The mission statement for Telstra is ‘To create a brilliant connected future for everyone’.  

The Telstra Corporations always wants to assure their customers that they care for them, and they are looking to work together collaboratively to achieve the future success (Solomon et al., 2014). This factor will be highly important for Telstra to be successful in an Asian country like Singapore. It is because there are already some tough competitors at place in the Asian telecommunications market from the countries like China and Japan. They are quite aware of the fact there strategies are quite complex and they will have to make them simple so these strategies could be assumed by the people of Singapore (Campbell, Coff & Kryscynski, 2012). They believe that they have the proper courage to take the challenges in the foreign markets in Singapore and their employees are also ready to take the proper responsibilities as well (Baldwin & Yan, 2012).

SWOT analysis


§ Telstra has a strong market position with a very high market reputation. This will attract the attention of the customers (Fifield, 2012). 

§ They are very much updated and they have invested in the latest technologies.

§ They are strategically much different from their competitors since they are the market leaders in the communications network.

§ The process of tapping into new markets has given them a huge advantage (Solomon et al., 2014).

§ They have quite good relations with the regulatory bodies.


§ The customer service of the company has not always been satisfactory enough.

§ They have been suffering from the issues of latency than their big rivals like Vodafone.

§ The price of the products and services of Telstra are generally higher than their competitors (Armstrong et al., 2015).



§ This venture into Singapore will always give them a proper opportunity to increase their business profits.

§ If they attempt to step into some new business and projects it will definitely result in the rise of their market shares (Armstrong et al., 2015).

§ They must shift their focus on improving their services for the customers and simplifying their services in the best manner (Campbell, Coff & Kryscynski, 2012).


§ The mobile technology market has been saturated as of late and this has been a threatening factor for the organization to thrive in different markets as well (Fifield, 2012). 

§ The telecommunications compliance has been much complicated in Singapore. This might raise a concern among the managers because the local competitors always have an upper hand in this matter (Armstrong et al., 2015).

§ The technology has been increasing rapidly and this has been a huge concern for the operators who have not updated their services yet (Wagner & Hollenbeck, 2014). This might pose a serious threat in the process of succeeding in a blooming market like that of Singapore.

PESTEL analysis

The different criterion for working successfully in the Singapore market and increasing the profits will be discussed in this section.


Singapore is considered to be a politically stability. This will be helpful for Telstra to operate in this country. The business negotiation policies and compliances are less (Fifield, 2012).  Telstra will not be facing many difficulties in operating in this country since the interference from the government bodies will be less (Wagner & Hollenbeck, 2014). The changes in policies might affect the business operations of the company in great many ways as well.


The economic problems have been noticed in Singapore for many times. The GDP of the Singapore is not very high and this has impacted heavily on the business success of Telstra. However, Telstra might face the problems of labor shortages as well (Jurevicius, 2013). Another issue in the business success of Telstra in Singapore can be caused by the rise of the labor costs. They will have to use the labor of Singapore to get rid of the financial troubles while operating in Australia (McAuliffe, 2015).


The social issue like the approach to the business will also have an impact on the business as well. The employees of Singapore are completely contrasting with that of Australian individualism. The employees of Singapore generally believe in the collectivist approach as they stress on the collective success of the organization (Jurevicius, 2013).


Singapore has been very much efficient in the technological advancement. This will be a huge advantage for Telstra to capitalize on this opportunity. The technological innovation will play a huge part in this context and Telstra will benefit from this aspect in a huge manner (Fong et al., 2014). The networking systems could be upgraded from time to time by Telstra for the overall benefit of the customers. This great infrastructure will benefit the customers in numerous ways and pave the way for Telstra to succeed (McAuliffe, 2015).


The environmental factors will have to be kept in mind and Telstra should take part in the Go Green initiatives (Fong et al., 2014). They should use the renewable energy for the preparation of their products and services.


The government legislations of Singapore should be obeyed by Telstra while doing their business in the country (Hill & Brierley, 2017). The cross-border laws and policies should be maintained by Telstra in the best ways to avoid any kind of penalty being imposed on them.

Market Analysis 

The nation of Singapore in the recent times has emerged as one of the major technological hubs of the world and it is seen that more than 93% of the people take the help of one form of technology or the other for the conduct of their daily activities (, 2018). Thus, it can be said that the organization under discussion can use these 93% of the people as their potential customer base. However, Singtel holds more than 45% of the market share of the nation and thus the organization would have to redesign the products or the services offered by them not only in terms of quality but also in terms of pricing as well (, 2018). 


Porter’s Five Factors 

Porter’s Five Factors is a framework which helps an organization to analyze the competition that an organization faces in the business market of a particular nation (Weaven et al., 2014). The analysis of the competition faced by an organization is important since it helps an organization to formulate the necessary business strategies which are essential for the mitigation of the same (Baker, 2014). An analysis of the organization under discussion here is likely to reveal the following the facts-

Threat of new entrants 

The organization under here is one of the largest ones of the world and as a matter of fact because of the high quality of products and services offered by them to the customers enjoys a positive brand or market image (, 2018). On the basis of this fact, it can be said that the organization faces a very low level of threat from the entry of new business enterprises in the business market of Singapore.

Threat of substitutes 

The quality as well as the affordability of the products and the services offered by the organization has made it a favorite brand of the customers. In addition to this, the customers are likely to incur a substantial amount of capital if they want to switch over from the products or the services offered by the organization to its competitors (Daunt et al., 2017). On the basis of this fact it can be said that the organization faces a very low amount of threat from the various other organizations which are offering the same kind of products or services.

Bargaining power of suppliers

The organization Telstra in order to reduce the bargaining power of the suppliers who are associated with them takes the help of multiple suppliers (Scarborough, 2016). This not only reduces the bargaining power of these suppliers but at the same time also ensures the timely delivery of the raw materials that are needed for the manufacture of the products or the services offered by them to the customers (Brown, 2016). Thus, it can be said that the bargaining power of the suppliers who are associated with the organization is very low. 


Bargaining power of the buyers 

The nation of Singapore is a developed one yet there are very organizations in the nation like Singtel and others which offer the same kind of products and services that the organisation Telstra offers to the customers (, 2018). However, at the same time, the price of the products or the services offered by them is very high because of the oligopoly nature of Singaporean business market (McColl-Kennedy et al., 2015). Thus, it can be said that the bargaining power of the customers in the nation of Singapore is very low.

Industry Rivalry

Singapore has an oligopoly business market which means that the business market of the nation is being monopolised by one organisation, namely, Singtel (, 2018). However, apart from this organisation there are no other significant organisations in the nation which offers similar kinds of products or services to the customers. Thus, it can be said that although the business market of the nation has already been monopolised yet Telstra can make significant inroads into the same through the use of effective business strategies.

Competitor Analysis 

Singapore has an oligopoly business market and one single organisation, namely, Singtel holds more than 45% of the market share of the entire business market (, 2018). It is pertinent to note that the organisation Singtel offers almost same kind of telecom and other services to the customers and at the same time the price charged by them is on par with the current market standards. In addition to this, there are other organisations in the business market of the nation however the quality of the services offered by them is not very high and at the same time the price charged by them is also very high.   

Market entry strategies

Some of the important market entry strategies are Direct Exporting and Franchising. Through the first market entry mode strategy, the company will have to hire some agents by whom they will sell their products and services through the direct selling process (Fong et al., 2014). These agents and distributors will surely represent their companies through this process. These agents will be working with the company in a very close manner that will help to attract the interests of the customers. Telstra might find this process very attractive since this will help them to expand their market throughout Singapore because of the economic infrastructure of Singapore. Thus Telstra might face some problems while implementing the Direct Exporting strategy. 


On the other hand, it can be said that Telstra is doing good amount of business through the franchising system in Australia. This will have a positive impact on Telstra if they opt to adopt the same strategy in Singapore as well (Wu, 2015). If they implement this strategy they will surely get more information on the overall Asian market. They can fulfill the necessary desires of their customers if they apply this strategy. Telstra will get the opportunity to make an analysis of the different individuals in Singapore and cater to their needs prominently. The franchising method will be the most appropriate to apply in this context since Telstra will acknowledge the best policies and methods implemented by the other big organizations. This will be highly beneficial for the organization for Telstra for a quick success in Singapore (Wu, 2015).

Marketing strategy 

The SWOT analysis clearly reveals that the organization is likely to face a high level of business competition in the concerned host nation. However, at the same time, it can be said that the organization can mitigate this high competition through the effective use of the business opportunities presented by the business market of the host nation. The primary marketing objective of the organization for the first 12 months of their business operations in the host nation will be increase their sales by 10% and also to establish a stable customer base. The below given marketing mix provides an overview of the recommended strategies that the organization can utilize for the marketing and also the promotion of the products or the services offered by them to the customers of Singapore-


· Telstra can offer the same kind of telecom services that it provides to the customers of the customers.

· The use of innovations to modify the nature of the services offered by them to the customers would help them in a significant manner.

· Use of the strategy of product differentiation and product adaptation


· Singtel has already monopolized the business market of Singapore and the quality of the services offered by them is on par with Telstra. Thus, the organization in order to have a better chance of success would have to use the cost leadership strategy.

· The use of this strategy would help the organization to offer better quality services to the customers at affordable prices (Kowalkowski et al., 2015).


· The use of digital media for the process of promotion is likely to help the organization in a significant manner (Camillo, Holt & Marques, 2014).

· Use of campus events and other kinds of promotional events would also help the organization in a significant manner (Baker, 2014).


· The organization can begin by providing services in the major cities of Singapore however after establishing a stable customer base in these cities the organization can expand into the remote areas of the nation.


To conclude, the business world of the contemporary times has become much more complex than that of the earlier times. This can be attributed to the various kinds of innovative measures and strategies followed by the various business enterprises. Furthermore, the concept of marketing has the become the focus of the different organizations and it is seen that the organizations not only take the help of digital marketing and others for the effective promotion of the products or the services offered by them to the customers. In addition to this, for the pricing the strategy of cost leadership has also become important and taking the help of this strategy the various organizations offer high quality products or services to the customers at comparatively lesser prices. Moreover, market entry strategies in regard are also important and to a great extent determine the future prospects of an organization. 



Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher Education.

Baldwin, J., & Yan, B. (2012). Market expansion and productivity growth: Do new domestic markets matter as much as new international markets?. Journal of Economics & Management Strategy, 21(2), 469-491.

Brown, S. (2016). Postmodern marketing: dead and buried or alive and kicking?. In The Marketing Book (pp. 43-58). Routledge.

Camillo, A. A., Holt, S., & Marques, J. (2014). Strategic transcultural marketing management and global competitiveness. In Transcultural marketing for incremental and radical innovation (pp. 316-338). IGI Global.

Campbell, B. A., Coff, R., & Kryscynski, D. (2012). Rethinking sustained competitive advantage from human capital. Academy of Management Review, 37(3), 376-395.

Daunt, K. L., Greer, D. A., Pancer, E., McShane, L., & Poole, M. (2017). The Dark Side of Marketing. Journal of Marketing Management, 33(15-16).

Fifield, P. (2012). Marketing strategy. Routledge.

Fong, C. M., Lee, C. L., & Du, Y. (2014). Consumer animosity, country of origin, and foreign entry-mode choice: a cross-country investigation. Journal of International Marketing, 22(1), 62-76. (2018). Home. [online]. Retrieved from

Hill, N., & Brierley, J. (2017). How to measure customer satisfaction. Routledge.

Jurevicius, O. (2013). Pest & pestel analysis. Strategic Management Insight, 13, 2013.

Kowalkowski, C., Windahl, C., Kindström, D. and Gebauer, H., 2015. What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies. Industrial Marketing Management, 45, pp.59-69.

McAuliffe, R. E. (2015). Gross Domestic Product. Wiley Encyclopedia of Management, 1-1.

McColl-Kennedy, J. R., Gustafsson, A., Jaakkola, E., Klaus, P., Radnor, Z. J., Perks, H., & Friman, M. (2015). Fresh perspectives on customer experience. Journal of Services Marketing, 29(6/7), 430-435.

Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.

Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson. (2018). Telstra - mobile phones, prepaid phones, broadband, internet, home phones, business phones. [online] Available at: [Accessed 14 Oct. 2018].

Wagner III, J. A., & Hollenbeck, J. R. (2014). Organizational behavior: Securing competitive advantage. Routledge.

Weaven, S., Grace, D., Dant, R., & R. Brown, J. (2014). Value creation through knowledge management in franchising: a multi-level conceptual framework. Journal of Services Marketing, 28(2), 97-104.

Wu, C. W. (2015). Antecedents of franchise strategy and performance. Journal of Business Research, 68(7), 1581-1588


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