Posted at 10.01.2018
I have been utilized with the Telecommunications Services of Trinidad and Tobago
Company Limited (TSTT) for days gone by fourteen years. TSTT was historically, the single company of telecommunications services in Trinidad and Tobago before mid 1990's when, pursuant to a World Trade Organisation Arrangement in 1997 on Basic Telecommunications, 69 countries decided to liberalise their telecommunications industries and to start their domestic marketplaces to overseas companies.
This agreement resulted in the entry of several rivals in Trinidad and Tobago's telecommunications market in that way closing TSTT's monopoly status.
Against this backdrop, TSTT which provided generally fixed collection, mobile and internet services, involved Goulet Telecom International Inc. to look at the impact of globalization on its functions.
Gregory G. Dess, G. T. Lumpkin, Alan B. Eisner (2007) Strategic Management Text message and Conditions, 3rd ed. , New York, McGraw-Hill Irwin areas "One of the most basic approaches for analysing firm and industry conditions is SWOT research. SWOT means strengths, weaknesses, opportunities, and risks. SWOT analysis provides a framework for analyzing these four components of a company's inner and exterior environment. It offers "raw material"-a basic listing of conditions both inside and surrounding your business. The strengths and weaknesses portion of SWOT refers to the internal conditions of any firm-where your company excels (talents) and where it can be lacking relative to opponents (weaknesses). Opportunities and risks are environmental condition external to the organization. Opportunities and hazards are also present in the competitive environment among businesses rivalling for the same customers. "(p 49)
An research of the advantages, weaknesses, opportunities and hazards for TSTT in a competitive environment is outlined, at Appendix A.
One of the major strength of TSTT is its individuals resource capital and in particular, the authority and connection with its professional management team which has steered the Company through the process of liberalisation in 2006, to its current position of suffered profitability.
The durability of the Company is reflected in the control skills and managerial acumen of the executive team who ensured that the business maintained significant market share because the liberalisation of the sector. Management of TSTT have grown to be more proper in their thinking and in their of way expanding new and progressive technology. TSTT are also developing the intellectual capacity of the labor force through e-learning, training and development program and courses.
The durability of the Company's human reference capital is also shown in the business's middle management and Senior and Junior Staff employees who've successfully implemented the Company's strategic initiatives like the deployment on new customer services such as Internet Protocol Television (IPTV) and BLINK Broadband.
One of the major weaknesses which have been discovered at TSTT is its poor network infrastructure and aged plant which includes occasionally led to the delivery of poor customer service to its readers in many instances customers are created to wait for so long as a year to get their phones repaired particularly if it is wire related concern.
TSTT's aged exterior plant has also had a direct effect on the Company's capacity to provide new services such as IPTV for some of its customers because of the unavailability of improved plant facilities using areas of the united states.
As a result of the aged plant facilities, the Company has not "rolled out"its IPTV service throughout the united states, therefore precluding it from effectively contending with Movement, the dominant CABLE TELEVISION provider which services the entire country.
Another weakness is the fact TSTT was only in a position to focus on customer support when it was faced with competition, only then performed the prices of the business's goods and services were reduced.
TSTT has looked for to capitalize on by its foray in to the entertainment sector through the provision of IPTV, a new service which it now provides in determined areas in Trinidad.
The IPTV product which is brand name "Blink Entertainment"is an electronic television service which, instead of providing content through traditional broadcast and cable tv platforms, is received by the viewer using internet protocol technology.
TSTT, like many of the world's major telecommunications providers is discovering IPTV as a new revenue opportunity from its existing and potential subscriber base and as a defensive solution against encroachment from competition such as Move, a conventional cable television television provider which now provides internet and speech services.
Another new market which TSTT has desired to permeate is the security services sector with the start of its Blink Vigilance Security Service.
This product which was launched on November 3rd 2009 (along with Blink Entertainment) is a radio security surveillance system which TSTT offers to both commercial and residential subscribers.
Trinidad and Tobago Guardian Magazines, November 4th 2009 mentioned "The possibility to pursue this tactical initiative is because of this of the growing unlawful activity in Trinidad and Tobago which has motivated a demand for security services a spot which was created by Dennis Gordon, Vice President, Organisational Risk and Security Services at the release of the merchandise. "
TSTT provides the infrastructure used by security companies to operate their business, its access into the security services sector provides an outstanding opportunity for the business to increase its revenue streams and maintain its viability in a competitive telecommunications market.
The provision of the two new services, Blink TV and Blink Vigilance are therefore two examples of how TSTT has created new opportunities for itself predicated on consumer needs and changes in the sociable environment.
One of the most significant threats encountered by TSTT was that provided by its competitors in the mobile services market consequently of the deregulation of the telecommunications sector in 2006.
As a consequence of the liberalisation of the marketplace, Digicel, started offering mobile service which for the very first time gave the population of Trinidad and Tobago a choice of cordless providers.
The benefits of Digicel in to the Sector was expected to remove considerable market share from TSTT which got previously savored monopoly position.
TSTT Financial Reviews stated "The degree of the threat posed to TSTT by its main competitor is reflected in the Company's financial results in the immediate aftermath of Digicel's accessibility in to the market. Within the financial time 2006 to 2007, TSTT experienced a financial loss of TT $122 M as compared to the financial 12 months 2005 to 2006 where it made a income of $261 million. "
Likewise, FLOW, a corporation that had typically provided only CABLE TELEVISION service, became in-may of 2008, the first "Triple Play"provider of telecommunications services in Trinidad with its offering of Cable TV, Broadband and Landline Tone of voice Services to the populace at large.
As due to FLOW's strategic initiatives, TSTT is now faced with yet another threat to its revenue channels in the Broadband and Landline Voice sectors.
TSTT's PEST analysis focuses on the next factors, Political, Economic, Sociable and Technological check of the macro-environment where the organisation performs. The politics environment as it currently pertains to TSTT is one of doubt. This has been mainly consequently of the change in government of Trinidad and Tobago on 24 May 2010 the panel of directors resigned since they were politically appointed and also to time frame no board has been appointed. It has result in the administrative centre expenditure budget for the many departments not being previous. To this extent certain activities have been at a stand-still like the cut-over of new infrastructure in Penal, Fyzabad areas which allows the business to provide a better and reliable mobile phone service to people residing in these areas.
TSTT has also been influenced by monetary factors from the surroundings with the liberalisation of the telecommunications market TSTT hasn't given a rise in salary to its junior and older staff workforce. Because of the liberalisation of the marketplace as mentioned before it has led to TSTT loosing part its customer bottom to its competition producing a decrease in the business's income in 2005-2006 of TT$122m.
TSTT has been a socially responsible organisation, sponsoring local activities and clubs, TSTT has been but still is the main sponsor for the
"Soca Warriors" Trinidad and Tobago's nationwide football team.
Through its Worker Health and fitness Program various initiatives have been distributed around employees such as "Domestic and Substance Abuse Programs". Recently, because of the outbreak in the H1N1 trojan TSTT has used the effort to bring-in at the many work locations, personnel from the Ministry of Health to immunize personnel against the computer virus and other ailments.
Among the interpersonal and cultural incidents included in TSTT's Employee Relationships department are Thanksgiving prayer meetings by the end of the last year and begin of the new-year, Employees calypso competition, secretary's day, Sports and Family day, Emancipation and Indian entrance day activities etc. They are undertaken to permit the various levels staff in this multi-cultural, racial country to interact as one and revel in the social, cultural and sporting activities. It fosters a culture of trust, tranquility and cooperation between the hierarchical levels in the organisation. These activities also encourage or inspire both customers and employees to buy-in to the regulations of the company and encourage commitment.
Through the use of innovation, research and development TSTT has had the opportunity to develop new technologies which would allow it to maintain its competitive edge in the face of competition. This may particularly be observed through the company's use of technology to permeate new markets like the provisioning of Internet Protocol Tv and personal and business security and alarm systems.
In determining Industry Attractiveness, the problem of Competition must be taken under consideration, as this will impact on the threat of new entrants and competitive rivalry within the market from Stream and Digicel. TSTT no more enjoys being a monopoly but now has to promote its market with other competitors.
Buyers would likewise have more bargaining electricity given that they have a wider variance from which to choose because of the liberalisation of the telecommunications market consequently consumers are more likely to buy where they can get value for his or her money. TSTT also offers to compete keenly against alternative goods and services, for example customers may not purchase their mobile phones from TSTT but from its' competition. The client may simple pay TSTT for the utilization of the service of being mounted on its network, which means company loses on it sale of mobile phone.
Suppliers of TSTT would also have bargaining power as to what price they charge you for their goods since they can sell the same goods to your rivals and it you want to maintain competitive gain over your opponents you'll want to enjoy first market benefits and market management by providing new and development technology to your visitors before your competition. (See Appendix B)
Stakeholder Analysis is necessary since it provides information indicating the level of influence and goals of the various stakeholders within the surroundings.
As it relates to the business's (TSTT) relationship with its employees and the consultant Union a great deal of mistrust prevails between this group and Management. In addition during times of commercial unrest it is alleged that the Union can influence staff to either "work-to-rule" or "down tools".
With respect to the customers, if customers are not satisfied with the product quality or price, the opening-up of the Telecommunications Sector might lead to customers and also have brought on customers to migrate to other service providers. Customers feel that they can improving service for his or her money have chosen to migrate to Digicel or FLOW where they imagine they are receiving better value for his or her money.
The management group must understand, in addition to managing, emphasis needs to be located on effective Control and also to an extent control by example. Over the past seven years junior and older staff employees have not received an income increase while management level continue being paid incentives on a annual basis for achieving their set aims. This has remaining employees sensing disenchanted and de-motivated with management. (See Appendix C)
Having assessed the SWOT elements that TSTT is faced with in its inner and exterior environment because the arrival of competition, you can conclude that the organisation has had the opportunity to keep its position as the prominent entity Trinidad and Tobago telecommunications sector.
This has been facilitated by the management of the executive management team which has taken tactical initiatives such as the investment of over $700 million in new technology in order to handle the weakness from the Company's aged seed. This investment in addition has given TSTT a competitive gain in the IPTV and Security services market as the Company has exploited the opportunities in its exterior environment to set-up new revenue channels for itself.
"Porter's five pushes" is seen through the risk of potential entrants in this case Circulation and Digicel, since TSTT no more are present in a monopolistic market customers have bargaining power and this was seen when TSTT possessed to reduce its prices to become more competitive. Suppliers' in this case also bargaining electricity with an increase of than one telecommunications company to market mobile telephones so they could bargain as to which telecommunications company what things to sell them and at what price. Competitive rivalry is noticeable when TSTT stimulates it mobile phones at reduced prices and the competition Digicel also reduces its prices to be able to contend with TSTT.
The financial results of TSTT since the liberalisation of the marketplace therefore helps the proposition that the organisation has been able to control the threats posed by its competition as evidenced by its after taxes income since 2006.
In this type of agreement, emphasis is being placed on keeping Strengths, discovering and analyzing Opportunities, bettering or outsourcing Weaknesses and determining, developing and employing Plans to conquer Threats this is the strategic route of the company.
Through proper planning and implementation TSTT was successfully able to maintain steadily its authority position in the telecommunications market in Trinidad and Tobago in a liberalised, global market. The company could convert its weaknesses into talents and threats directly into opportunity to maintains competitive edge. Though its control and proper management, impressive strategies and systems were developed allowing for training and development of staff therefore providing opportunities for personnel to be marketed within the company.