British Telecom Communicators now known as BT Group plc

British Telecom Communicators now known as BT Group plc

British Telecom Communicators now known as BT Group plc is an international telecommunication holding business that has its headquarters based in London, UK. It’s the biggest supplier mobile, broadband and fixed-line services in the UK. It also supplies IT services and subscriptions television in 170 countries where it operates.

BT Group plc uses the porters five prices to discover profitable prospects and also foster a strategic position in the diversified communication service industry. A porter five forces analysis is a strategic managing means used to analyze and understand the core levels of profitability in an industry. Insert

New entrants put pressure on the BT Group plc because they can bring about innovations and new ways of doing things where they have lower pricing strategies, reduce service cost and new value offers to the consumers. For BT Group plc to manage these challenges, it has to develop practical barriers to protect its competitive power for instance through lowering the fixed cost per unit or spending money to research and develop new innovative products. The overall impact of the bargaining power of suppliers affects the total cost of profitability in an industry. To tackle the suppliers bargaining power threat, BT Group plc engages into structuring effective supply chain with several suppliers, also experimenting various product designs using numerous materials and develops relationships with dedicated suppliers who depend on the company.

Customers regularly demand a lot hence the smaller and the more dominant a customer base is, the higher the bargaining power with more exceptional ability to seek offers and increased discounts.  By building a larger customer base, BT Group plc can effectively reduce buyers bargaining power. The treat of substituted services and products is high if it bids a value proposition that is unique from the present offering of BT Group plc. To block this, the company tends to be more service-oriented instead of product-oriented, increase substituting cost for clients and understanding the core needs of the consumers. If the competition from the substituting industries is intense, it can cause a reduction of overall profitability through a decrease in prices. The British telecommunication tackles this rivalry through building sustainable uniqueness, cooperating with competitors to increase the market size instead of competing for small markets and also building scale to compete better. Through the porter’s concept, British telecommunications is one of the attractive and most competitive industry, but it faces shortcoming of intense rivalry from the upcoming industries.

The approach determines the telecoms lifestyle it uses to manage its processes, spending, technology, people and policy. BT Group plc lifecycle is increasing since most organizations are becoming more dependent on telecoms with the need to equip their organization with the right solutions and tools to control their fixed-line, wireless and mobile telecoms disposition usage, performance and cost.

Using the strategy clock analyses BT Group plc its able to compare its competitiveness concerning cost advantages and differentiation advantage. To improve its competitive advantage, it can maintain its product and service values since the low pricing strategies of rival companies are disadvantageous to the business. Through the porter’s generic strategy Britain telecom company can pursue its competitive advantage within the chosen market scope. Its lead lies in maintaining its highest statistics of fixed lines and low figures. BT Group plc uses the strategy canvas to formulate strategic proposals to compare product value with that of its competitors. The company uses the advantage of having a web spread throughout the UK.

British telecommunication is one of the oldest telecommunication services supplier in the UK.  Its strategy is to make value for stakeholders by being the best provider of communication services and solutions in the UK; however, it lacks long-term foresight and vision. Its market approaches are highly challenged by the upcoming telecom industries who are captivating a broader client base because of their better services and client satisfaction. Using Barney’s strategic capabilities framework, the BT Group plc can use its vast trading space to provide high definition broadband telecasting services.

The analysis using the web culture shows that BT Group plc has failed to advance its low-cost services and merchandises. This culture has severely hindered the significant growth of the company. British telecom company’s main issues include lack of foresight and long term vision, stiff competition, and lack of improvement on quality and customer services.

For BT Group plc to improve its penetration into the market, it should consider seeking and constructing its reputation amongst its customers by providing them with excellent services preceding the sales and at every moment. It should take maximum attention to product quality and client satisfaction for future merchandise launches. To develop its market, it should test its products and services before offering them to the consumers to guarantee a better quality of the products acquired by clients. Sustainability of BT in the market is possible through adopting strategies that develop viable competitive products and services.