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Question :

Discuss about the Fundamentals Marketing ?

Answer :


The assignment discusses about Telstra which is a telecommunication and information service provider. Assignment discusses about marketing environmental factor comprises of macro and micro factors. Macro factors are known as external to the company, while micro factors are known as internal for the company. Besides this there are some recommendations in which company should focus so to increase the competitive advantages (Telstra foundation, 2014).

External or macro environment factors

  • Supply power: Telstra has realized that its suppliers can have an impact over environment and society of Australia. Besides this, it was also analyzed by the company that it would have a major impact over its employees and society. The company has made rules for suppliers in such a way that it accomplishes safety, health and environmental aspects.
  • Buyer power: Now days the focus of the company has been shifted from product based to accomplishing the needs and preferences of its customers.
  • Competitor rivalry: the main competitor of Telstra is fixed line voice service providers. The completion has leaded the company to set better prices, innovation and investment plan.
  • Threat from substitute: because of huge demand in telecommunication gadgets, has opened the availability of high level of protection.
  • Threat of the new entry: due to innovation in technology, Telstra faces threats from new entrants as they would be well acquainted with hi-tech knowledge.
  • Environmental factor: the company has ensured that its operations would least impact on environment. The company has established a private operator which can save up to 3000 tons of CO2 (Blythe, 2006).

Internal or micro environment factors

  • Competitive advantage: the company has a competitive advantage of Telstra are its wealth and size. This has resulted into making the company as the largest brand in Australia providing telecommunication strategy.
  • Strength: the strength of the company is in making wireless and ADSL fixed line which provides 14.4mbps speed of internet.
  • Corporate and business strategy: the employers of the company feel happy and satisfied in working with the company. The company considers satisfying its stakeholders as its primary responsibility (Nerney, 2008).

Change in marketing environment and effect on competitive advantage

In case of micro factors Telstra should make some changes in its pricing strategy; the prices set by the company are much higher as compare to other competitive companies. This would lead to competitive advantage because as the company is the market leader due to which it can easily achieve economies of scale. Besides this in case of macro factors Telstra should focus on diversifying its business operations. This would enhance the competitive advantage, as it would be very difficult to acquire Telstra Company and the market of the company would also increase (McGrath, 2013).


After analyzing the assignment it can be said that though Telstra has a brand image in the minds of Australian consumers, but to remain competitive for longer period company must diversify its operations and target market.



Blythe, J,. (2006) Principles & practice of marketing, Cengage learning EMEA, London

McGrath, R, G,. (2013) The end of competitive advantage: how to keep your strategy moving as fast as your business, Harvard business press, United States of America

Nerney, C, M,. (2008) The influence of macro and micro contextual factors in interracial romantic relationships, ProQuest, Parkway

Telstra foundation,. (2014) Making the connection essays on indigenous digital excellence. Retrieved on 7th March, 2017 from

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