The company was started by the name of The Electric Telegraph Company in the year 1846. It took 10 years for the company to become internationally recognized. Later on it was changed into BT (British Telecommunication) Group. Today it is one of the major players in providing communication solutions to different customer segments. It operates in about 172 countries in European, Asian and American regions with its product-brand matrix comprising of internet services, telecommunication services and IT services. The companys headquarter is located in London. Today it employees about 111, 858 people throughout worldwide. It has a subsidiary by the name of BT (British Telecommunication) plc. The company generated the revenue of about 22, 704 million. At the end of the fiscal year for 2008 the company made the profit of 1,738 million as compare to 2,356 million in 2007 resulting in the decrease of the net profit by 39.1 (BT plc 2009).
Analyzing British Telecommunication Group Mission Statement
The BT Group focuses of building long-term relationship with its potential customers. The customer oriented firm believes that the prospective of the business can be enhanced by delivering quality to the customers at the economic prices. The business endeavors to prioritize its marketing function for the emergent pricing strategy and accomplishing the notion of quality service. The deem for continuous improvement has enabled the firm to turn up innovative technological advancements in its products and services like ICT (information communication technology), high-speed internet services, value added services etc (Maps of World 2006). According to BT plc (2009), the prime concern of the business is to integrate all its products and services in the form of a junction comprising of networking, mobile services, visual services, IT services and internet services which could meet the value requirements of the potential customers.
Objective of British Telecommunication Group BT plc (2009) instigates that
It exists because of its customers. It consistently works to deliver easiness, simplicity and low cost services to its customers while managing its heritage of quality.
The company has diversified its portfolio around its core competencies while maximizing the benefits of globalization.
It aims to provide communication solutions to different customers comprising of both B2B as well as B2C markets. In B2B operations the company works on activities so that its business customers could gain competitive edge over their competitors.
PEST analysis of British Telecommunication Group
It was acknowledged by Synergyst (2007) that 3G licensing had shown an impact on the telecom industry world wide. BT plc group along with its major European competitors namely Deutsche and France telecom had faced difficult situations. The PEST analysis has been explained as follows
Political factors Developed countries have seen changes as far as deregulation is concerned as compare to developing nations which are still striving for these factors. However OFTEL (office of telecommunication) specifically in UK prevail its strict control since large number of players in telecom sector has attempted to provide diversified services in order to capture the major share. At the same time intimidation of copyright issues have increased because of the raise in the number carriers as well as ISPs. Communication act 2003 has also shown positive impact.
Economic factors Factors like deregulation, liberalization and privatization have spread in telecommunication industry, which has resulted into increase in the level of competition along with ease for new entrants and negative slope towards the profit margin for companies. Moreover research shows that developed countries will face more market penetration in the telecom sector however future growth opportunities lies in the developing economies. It is also found that telecom industry has seen decrease in growth and profits because of the prevailing recession worldwide. The economy of UK has faced lots of fluctuations.
Social factors It seems that developing economies will come across major increase in population specifically in Asia and Africa and research also shows that there will be positive impact on their per capita disposable income therefore majority will be demanding advance technological mechanisms for data and voice transfer. Due to changing demographics the traditional society has transformed into an information society which prefers mobility. Impact of commercialization and communication tools have provided positive for route for the telecom industry.
Technological factors Advancements like Ethernet technology and IT integration will further decrease the operating cost and provides an opportunity for new entrants. In additional open door as well as strapped developing countries will be given priority and it will further decrease cost. Today the role of wireless as well mobile technology, the concept of convergence, the role of residential VoIP and real-time along with on-demand communication have been given preference.
Michael Porters five forces model for BT plc Group
Boards (2001) explained the implication of 5 forces for BT plc Group as follows
Rivalry It seems that the level of competition will increase specifically in developed countries as there would be high market penetration. Moreover due to decrease in profit margins few global telecom players will be able to survive.
New entrants It requires establishing entire infrastructure for players to enter into the market. Further more it comprises of strong major players in the existing market therefore it will be low.
Buyer power Both residential as well as corporate buyers seem to have power because of proliferation of service providers hence the switching cost is also low.
Supplier power Usually buyers like BT Group give huge order for raw material therefore buyer has the power to ask for discounts and due to more number of suppliers available buyer can switch to other supplier as well. Therefore there exists an intensive competition among suppliers.
Substitutes Substitutes seem low because of the expensive technology for capturing major market share however as per current data BT plc Group has its substitute available.
SWOT Analysis of British Telecommunication Group
Business teacher (2009) demonstrated the SWOT analysis of BT Group as follows
Strengths
It is the leader in two major product lines namely broadband internet service and fixed line service. The business operates in about 172 countries and is listed in London as well as New York stock exchange.
It captures the major market share of 28 million fixed line customers while offering local loop, telephone exchanges, public call boxes and trunk network services.
The firm entered into different countries through acquisitions and rebranding like Infonet, Plus Net, Radianz etc.
It spent in an advance technology of internet protocol as 21CN.
As one of the national firm of the country, the business establishes its monopoly.
Weaknesses
The business remains unsuccessful in providing low cost voice call service.
The business extended into mobile services however up till now it could not develop sustainability in either convergence of fixed mobile services as well as development of mobile business.
Corporation is still facing occasional payphone issues. Further more the business is lots of complains from its potential customers.
Opportunities
Deregulation has allowed the company to extend into more profitable businesses in the future.
Complete transformation into 21CN model while enhance the business to fulfill customers requirements in more efficient manner. One of the competent projects of blue phone is also of the opportunity.
The business is focusing to avail major opportunities in their existing businesses.
Enhancement in BT trade space for its SMEs (small and medium enterprise) customers will result into profitability.
Further improvement in BT vision for its broadband television services and smart phone service will be going to be the priority for its potential customers.
There exist a lot opportunities for the business from the global perspective and the company is undergoing several contracts worldwide.
Threats
Some of the major competitors like Vodafone, O2, Orange, Carphone Warehouse etc might decrease the market share of British Telecommunication.
The prevailing recession has one of the major influences on the company.
Moreover crisis related to bond market, fund management and redemptions have caused negative impact on the business.
One of the recent scandals related to behavior targeting is one of the major issues. Further more there are several liquidity issues as well.
Managing information system in British Telecommunication Group
Linex legal (2009) instigates that the strategic management level of BT plc Group usually questions about increasing the productivity in order to maximize the profits with similar available resources. Considering the role of empowerment or decentralization has shown dramatic changes which resulted into development and productivity in most recent years. The formulation of legal function has brought efficiency along with proactive nature. In order to allocate time appropriately employees are being assigned home based assignments where online webinars are conducted. The advance approach towards adopting flexible knowledge management system has provided the firm to gather information from diverse pattern of sources.
According to beep (2005) the company has developed information portal by the name of Intellact and all the employees and major suppliers of the company can access the portal throughout worldwide. BT plc IRC (information resource center) went through transitional periods to achieve the key objective on specializing in five core competencies. Today the five major functions of the business focus on IT, marketing, strategy, sales and customer service. Although the business believes in the concept of shared identity but they prefer upper management to participate in group decision making methods comprising of focus group and individual participation.
MIT Sloan (n.d.) stated BT Group understood the importance of internet in its earlier stages and decided to opt for partnership with MIT Sloan who was the generator Worldwide Web. MIT Sloan facilitated the business with productivity and change management tools to cope with changes. The change Matrix was one of the reasons for the success story for providing future direction to the business. Recently they went for partnership with MIT Sloan center related to research institute for information systems. Currently the business has installed NetApp in order to build its storage infrastructure stronger and integrate its resource centers in order to support BT VDC. Further more the company has enhanced in developing its broadband footprint which is recognized as the fastest broadband. Moreover they came up with mis-spelling campaign in order to analyze, measure and overcome scams occurring in telecom industry.
According to Google Doc (n.d.) the company came up with the concept of project sovereign where they gave top notch priority to customers. Later on they established development and procurement division. All the financial and strategic functions are performed at Group HQ. Soon after that they introduced CSS (customer service system) and NUG (national user group). Oracle (2009) stated that the business has installed Oracle Web center interaction module which provides flexibility to staff, reduces training cost, improves process flow and instills virtual interaction.
Recommendations regarding information systems
SAP implications should be the primary concern regarding integration and collaboration of suppliers and business buyers.
CISCO leading management softwares should be selected for enhancing productivity throughout the multimarket.
Applications like CRM (customer relationship management) on the front end and ERP (enterprise resource planning) on the back end should be designed in order to develop systematic approach.
Intranet and Extranet should be developed with security measures while prioritizing potential customers.
Customization related to media products and IT related product should be done to offer flexibility in value offering.
Implications of E-Commerce on the website should be further enhanced with SSL encryption. The best option is to opt for VeriSign services.
CISCO can deliver services related to Hybrid AI systems and robotic engines.
It can be concluded that BT plc Group have lots of opportunities. The major reason why company could easily lead in the future is because of its main characteristic of adaptability and expertise in marketing and IT function. The management understands the importance of technology and strongly believes that in order to develop competitive edge the business needs to deliver value that could match the benefits with the value requirements. Management information system is the primary concern in this era and the major issue which disturbs most of the companies is related security measures. Therefore business needs to take security measures along with focusing towards the entire multimarket.
Analyzing British Telecommunication Group Mission Statement
The BT Group focuses of building long-term relationship with its potential customers. The customer oriented firm believes that the prospective of the business can be enhanced by delivering quality to the customers at the economic prices. The business endeavors to prioritize its marketing function for the emergent pricing strategy and accomplishing the notion of quality service. The deem for continuous improvement has enabled the firm to turn up innovative technological advancements in its products and services like ICT (information communication technology), high-speed internet services, value added services etc (Maps of World 2006). According to BT plc (2009), the prime concern of the business is to integrate all its products and services in the form of a junction comprising of networking, mobile services, visual services, IT services and internet services which could meet the value requirements of the potential customers.
Objective of British Telecommunication Group BT plc (2009) instigates that
It exists because of its customers. It consistently works to deliver easiness, simplicity and low cost services to its customers while managing its heritage of quality.
The company has diversified its portfolio around its core competencies while maximizing the benefits of globalization.
It aims to provide communication solutions to different customers comprising of both B2B as well as B2C markets. In B2B operations the company works on activities so that its business customers could gain competitive edge over their competitors.
PEST analysis of British Telecommunication Group
It was acknowledged by Synergyst (2007) that 3G licensing had shown an impact on the telecom industry world wide. BT plc group along with its major European competitors namely Deutsche and France telecom had faced difficult situations. The PEST analysis has been explained as follows
Political factors Developed countries have seen changes as far as deregulation is concerned as compare to developing nations which are still striving for these factors. However OFTEL (office of telecommunication) specifically in UK prevail its strict control since large number of players in telecom sector has attempted to provide diversified services in order to capture the major share. At the same time intimidation of copyright issues have increased because of the raise in the number carriers as well as ISPs. Communication act 2003 has also shown positive impact.
Economic factors Factors like deregulation, liberalization and privatization have spread in telecommunication industry, which has resulted into increase in the level of competition along with ease for new entrants and negative slope towards the profit margin for companies. Moreover research shows that developed countries will face more market penetration in the telecom sector however future growth opportunities lies in the developing economies. It is also found that telecom industry has seen decrease in growth and profits because of the prevailing recession worldwide. The economy of UK has faced lots of fluctuations.
Social factors It seems that developing economies will come across major increase in population specifically in Asia and Africa and research also shows that there will be positive impact on their per capita disposable income therefore majority will be demanding advance technological mechanisms for data and voice transfer. Due to changing demographics the traditional society has transformed into an information society which prefers mobility. Impact of commercialization and communication tools have provided positive for route for the telecom industry.
Technological factors Advancements like Ethernet technology and IT integration will further decrease the operating cost and provides an opportunity for new entrants. In additional open door as well as strapped developing countries will be given priority and it will further decrease cost. Today the role of wireless as well mobile technology, the concept of convergence, the role of residential VoIP and real-time along with on-demand communication have been given preference.
Michael Porters five forces model for BT plc Group
Boards (2001) explained the implication of 5 forces for BT plc Group as follows
Rivalry It seems that the level of competition will increase specifically in developed countries as there would be high market penetration. Moreover due to decrease in profit margins few global telecom players will be able to survive.
New entrants It requires establishing entire infrastructure for players to enter into the market. Further more it comprises of strong major players in the existing market therefore it will be low.
Buyer power Both residential as well as corporate buyers seem to have power because of proliferation of service providers hence the switching cost is also low.
Supplier power Usually buyers like BT Group give huge order for raw material therefore buyer has the power to ask for discounts and due to more number of suppliers available buyer can switch to other supplier as well. Therefore there exists an intensive competition among suppliers.
Substitutes Substitutes seem low because of the expensive technology for capturing major market share however as per current data BT plc Group has its substitute available.
SWOT Analysis of British Telecommunication Group
Business teacher (2009) demonstrated the SWOT analysis of BT Group as follows
Strengths
It is the leader in two major product lines namely broadband internet service and fixed line service. The business operates in about 172 countries and is listed in London as well as New York stock exchange.
It captures the major market share of 28 million fixed line customers while offering local loop, telephone exchanges, public call boxes and trunk network services.
The firm entered into different countries through acquisitions and rebranding like Infonet, Plus Net, Radianz etc.
It spent in an advance technology of internet protocol as 21CN.
As one of the national firm of the country, the business establishes its monopoly.
Weaknesses
The business remains unsuccessful in providing low cost voice call service.
The business extended into mobile services however up till now it could not develop sustainability in either convergence of fixed mobile services as well as development of mobile business.
Corporation is still facing occasional payphone issues. Further more the business is lots of complains from its potential customers.
Opportunities
Deregulation has allowed the company to extend into more profitable businesses in the future.
Complete transformation into 21CN model while enhance the business to fulfill customers requirements in more efficient manner. One of the competent projects of blue phone is also of the opportunity.
The business is focusing to avail major opportunities in their existing businesses.
Enhancement in BT trade space for its SMEs (small and medium enterprise) customers will result into profitability.
Further improvement in BT vision for its broadband television services and smart phone service will be going to be the priority for its potential customers.
There exist a lot opportunities for the business from the global perspective and the company is undergoing several contracts worldwide.
Threats
Some of the major competitors like Vodafone, O2, Orange, Carphone Warehouse etc might decrease the market share of British Telecommunication.
The prevailing recession has one of the major influences on the company.
Moreover crisis related to bond market, fund management and redemptions have caused negative impact on the business.
One of the recent scandals related to behavior targeting is one of the major issues. Further more there are several liquidity issues as well.
Managing information system in British Telecommunication Group
Linex legal (2009) instigates that the strategic management level of BT plc Group usually questions about increasing the productivity in order to maximize the profits with similar available resources. Considering the role of empowerment or decentralization has shown dramatic changes which resulted into development and productivity in most recent years. The formulation of legal function has brought efficiency along with proactive nature. In order to allocate time appropriately employees are being assigned home based assignments where online webinars are conducted. The advance approach towards adopting flexible knowledge management system has provided the firm to gather information from diverse pattern of sources.
According to beep (2005) the company has developed information portal by the name of Intellact and all the employees and major suppliers of the company can access the portal throughout worldwide. BT plc IRC (information resource center) went through transitional periods to achieve the key objective on specializing in five core competencies. Today the five major functions of the business focus on IT, marketing, strategy, sales and customer service. Although the business believes in the concept of shared identity but they prefer upper management to participate in group decision making methods comprising of focus group and individual participation.
MIT Sloan (n.d.) stated BT Group understood the importance of internet in its earlier stages and decided to opt for partnership with MIT Sloan who was the generator Worldwide Web. MIT Sloan facilitated the business with productivity and change management tools to cope with changes. The change Matrix was one of the reasons for the success story for providing future direction to the business. Recently they went for partnership with MIT Sloan center related to research institute for information systems. Currently the business has installed NetApp in order to build its storage infrastructure stronger and integrate its resource centers in order to support BT VDC. Further more the company has enhanced in developing its broadband footprint which is recognized as the fastest broadband. Moreover they came up with mis-spelling campaign in order to analyze, measure and overcome scams occurring in telecom industry.
According to Google Doc (n.d.) the company came up with the concept of project sovereign where they gave top notch priority to customers. Later on they established development and procurement division. All the financial and strategic functions are performed at Group HQ. Soon after that they introduced CSS (customer service system) and NUG (national user group). Oracle (2009) stated that the business has installed Oracle Web center interaction module which provides flexibility to staff, reduces training cost, improves process flow and instills virtual interaction.
Recommendations regarding information systems
SAP implications should be the primary concern regarding integration and collaboration of suppliers and business buyers.
CISCO leading management softwares should be selected for enhancing productivity throughout the multimarket.
Applications like CRM (customer relationship management) on the front end and ERP (enterprise resource planning) on the back end should be designed in order to develop systematic approach.
Intranet and Extranet should be developed with security measures while prioritizing potential customers.
Customization related to media products and IT related product should be done to offer flexibility in value offering.
Implications of E-Commerce on the website should be further enhanced with SSL encryption. The best option is to opt for VeriSign services.
CISCO can deliver services related to Hybrid AI systems and robotic engines.
It can be concluded that BT plc Group have lots of opportunities. The major reason why company could easily lead in the future is because of its main characteristic of adaptability and expertise in marketing and IT function. The management understands the importance of technology and strongly believes that in order to develop competitive edge the business needs to deliver value that could match the benefits with the value requirements. Management information system is the primary concern in this era and the major issue which disturbs most of the companies is related security measures. Therefore business needs to take security measures along with focusing towards the entire multimarket.
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