Competitve Advantage of Telecom Products

Total Products/Service Offering:

The core product of telecom is to give ease of communication to users.

Telecom product/services include fixed line calling, mobiles, broadband, data services, toll free numbers, PABX services, web services like web hosting, web designing, business mail, domain name etc. Their product range also includes ICT products and solutions for all public and private sectors.

In Business Hubs direct interaction and assistance are given to the businesses in customizing their plans to fulfill their organization communication need which is an added advantage to Competitive Advantage

Competitive advantage refers to the situation where company reaches ahead of its competitors with the help of different ways such as recruitment of qualified and experienced employees, innovative yet cost-effective marketing strategies, strong distribution channels and adapting new technologies etc. (Riley, 2012)

Telecom Corporation of New Zealand Limited (Telecom) was the first telcos that was privatised fully. They enjoy competitive advantage by having their presence across nation, their strong brand acknowledgment among country people, product development keeping in mind all retail, wholesale and even international customers. Other than this, its large scaled networks & strong strategies work for them as competitive advantage. (Telecom H2 FY13 Results and Annual Report, 2013)consumers.

(Home) (Business)

Direct Competitors: (pg 27)

Direct competitors are those who compete directly with the company. They may or may not be physically located at a same place but they are the one who offer same sort of products or services to the same customer base. It is easy to find direct competitors as they are serving the same market. Hence advertise on TV/Radio, social media, direct conversation with customers etc can help identifying the direct competitors. (What Is the Difference Between Direct and Indirect Competitors?)

Telecom faces competition from companies like Vodafone, 2degress in retail market and IT service providers like HP, IBM, Vodafone, TelstraClear, Orcon etc. (Telecom H2 FY13 Results and Annual Report, 2013)

Segmentation – Consumer Market

Consumer segmentation means forming groups of customers by their gender, age, needs, spending habits/capacity. That helps an organization in developing appropriate marketing strategy for the same set of customers. (Customer Segmentation)

Consumer segments for telecom includes youngsters/students, home users, SMEs, business class people, wholesalers etc. Youngsters are one of the key segments. Below are the characteristics of variables of this segment.

Geographical Characteristics: Distribution centers and selling points near educational