Telus in the Economy

Essay by chase06University, Bachelor'sA-, February 2010

download word file, 8 pages 0.0

Downloaded 1104 times

Since it's inception in the late 1990's Telus' economic position in our national market is one to watch. In this paper, we will discuss final recommendations on pricing, production, and comparison of inputs for the Company. Furthermore, we will discuss and address how global competition affects the organization, whether or not the company should expand or reduce operations for the sake of profits, and also analyze government policy, social diversity and business ethics in relation to the recommendation.

PriceMajor competitors of Telus being Shaw communications as well as Rogers communications are because they all offer very competitive rates. Shaw and Rogers are offering free installation services and also require no contracts. Telus certainly has the capability to match their prices or beat them. However, if high competition were to come about, it will be a lose-lose situation I all major competitors are fighting and reduce the price, so all companies are losing money and customers become the final winner.

The best way to find a win-win solution, so everyone can get their needs, and the majority is to maximize the profits. Telus can offer a combo deal when people sign up for home Internet service, mobile and home phone services, and television service. Customers have to sign a 3-year contract with Telus in order to get the best deal. Thus, customers can get a good deal on the services and Telus can lock them in with the company for 3 years. Shaw is not able to do mobile service in this state, and Rogers has no TV service in BC. Thus, this is the strength of Telus. Some people may not need all their services, so they may still go for Shaw or Rogers; however, it is fine because Telus has taken most of the percentage from the market share. In this case, Telus does not have to be the cheapest service for individual service; however Telus can be able to provide the one stop solution for customers and offer the unbeatable deal when people go for the full service (combination of services).

ProductionTeam A mentioned regarding productivity in previous papers, as firms are able to obtain less expensive production through cheaper labour, additional technology can be purchased that will increase productivity levels. Team A recommended that Telus needs to get a handle on their productivity levels of their individual field service employees so the company could measure their output, and ultimately drive efficiency. Thus, Telus has to increase efficiency and productivity by measuring what its workers are doing, so the company turned to Information Builders' iWay (IB) product, which tracks employee productivity for about 3,000 field service personnel, suite to optimize service delivery and it's WebFOCUS tools to measure employee success. The company should select WebFOCUS because of its strong web reporting capabilities, mature information delivery environment and intuitive dashboard interface. Telus should select iWay for its broad data access, integration, and extract, transformation, and load capabilities (Telus, 2009).

As well, to increase its productivity, Telus should research market power, which can be directly measure if the responsiveness of customer purchases to increase in the firm's price is known. If customers can easily switch to other products or services, in the face of a small increase in price, demand is said to be "elastic". If, in the face of a small increase in price, rivals can easily increase their production of the products or services or reallocate existing productive capacity in order to produce the products or services, supply is said to be elastic.

In addition to the new direction that Telus has chosen for cablevision, expansion with their existing products and services is continual. As Telus continues its reach across Canada by means of expanding its networks, this ultimately increases coverage for its customers both private and commercial. Naturally, a growing company with expanding services and products in a demanding market will ideally increase revenues.

Composition of inputsTelus, through various operational divisions, mostly operates in an oligopoly environment. Overall, the barriers for others to enter Telus' current operating market are very high due to enormous amount of capital required to build the infrastructure. However, the existing competitors such as Shaw Communications may be able to enter Telus' current stronghold, such as local telephone service without the significant capital outlay by using its existing cable network, using the voice over internet protocol (VoIP) technology. Vice versa, Telus may expand into Shaw's traditional territories such as television program delivery service. Therefore, Telus must be very careful when deploying it's resources in order to maximize its return on investment (ROI). Capital allocation is the foremost input that Telus has taken a priority interest. In 2008, it has increased capital expenditure by five percent to $1.9 billion to invest in strategic growth initiatives including Koodo Mobile, Telus TV, construction of the next generation wireless network, and expansion of data in central Canada. These investments are expected to provide meaningful dividends to Telus in the near term. Human resources is another important input Telus has mapped out clear initiatives. While implementing a management salary freeze, Telus will continue to invest in training and recruitment of experienced employees in order for it to deliver the best customer service. It will continue its strategy of keeping the salary and benefits above market standards to recruit and retain the best employees in the industry and to reduce turnover. However, it will continue to consider outsourcing when it is more feasible by establishing call centres in overseas locations. Another important input Telus has undertaken is investment in technology as a mean to differentiate itself from its competition. For example, Telus will be the first provider of the voice mail to e-mail function. These are just some of the key inputs that will ensure Telus will continue to survive in the marketplace.

How global competition impacts TelusAll agree that cross-border trade has grown at an extraordinary pace in the last several decades, and most predict that it will continue to grow or even accelerate in the early years of the 21st Century. One consequence of this level of cross-border activity is that mergers, joint ventures, distribution arrangements and other transactions that affect the interests of consumers in two or more nations have become commonplace.

If it is to continue to be relevant, antitrust must adjust its perspective, though not necessarily its basic rules, to take this new commercial reality into account. To date, most attention justifiably has been directed to arrangements concerning international coordination and cooperation in enforcement - the procedural side of the ledger. Enforcement officials in many countries recognize that, in most matters, they cannot be effective on behalf of their consumers, nor fair to the business community, unless there are coordinated approaches, similar deadlines for review, and consistent remedies applied to particular transactions. This kind of coordination requires arrangements for exchange of information and views among enforcement officials, while respecting, of course, valid concerns about confidentiality. While this exchange of information proves to be vital to many corporations both local and international, Telus is able to maintain the global market pricings of their own services in comparison to their competitors.

Expansion in the market: Operations PatternIn order to recommend the best future strategy for Telus, we shall consider market changes during the past five-years. In advance, we shall foresee future market probabilities. During past years Telus market, first, spend a steady period between years of 2004 and 2006; then, it faced the golden years of market expansion between years of 2007 and 2009.

Telus as one of the larger organizations in northern North America was predicting and planning for these trends. During their golden periods between 2007 and 2009, Telus has implemented expansive infrastructural changes. Usually such changes addressed upcoming demands, which were a result of the rapid technology changes within the market. It was during the same period of time, Telus launched multiple services such as TV broadcasting services, in order to enter into other fields of communication industry. As a result, to such improvements, on top of the pressure of high investments, now Telus is involved in new competitions with other parties.

During 2009, global organizations have experienced a sudden recession trend. There were multiple viewpoints leading to the perception that this global trend was an outcome to the market collapse in United States. However, far before the time of recession, global economists informed their nations of an upcoming crisis.

Expansion in the market: StrategyIn order to overcome the situation of current recession era, Telus shall follow a more conservative pace. As mentioned earlier, Telus took an improvement strategy during the steady time, maintaining enhancements while using fewer resources; future, during the inflation period or the golden era, it implemented an expansion trend leading to new involvements, this was while there were multiple available resources.

One suggested response in order to maintain the same level within the market and to success among competitors would be implementation of price-reduction strategies. During the recession time, customers' primary concern would be the quality of products they receive over the price they pay for them; or, to pay less for the same products that they are using.

Among other competitors, Telus is in a good shape from a technology investment point, and with its number of active users. Therefore, Telus is able to provide competitive services to its current users. However, according to recent investments made by Telus, there are issues with price reduction while the quality has already been improved among the provided services. For instance, actions such as providing no-contract services, or higher internet speed for less payment, made some other competitors large numbers in new users; and, indirectly disturbed Telus previous achievements.

Therefore, Telus shall drive new strategies in order to facilitate current user demands and to enter the 'price per value' competition. Although this might outcome multiple impacts on the current situation of Telus, but in a long-term period, this pattern will gather the required users in order to expand during the upcoming steady and growth periods within economy.

Another important fact is that, successful approaches will take place while Telus maintains rationality with the decisions made, and focuses on the five-year competition instead of this year's competition. As an outcome, Telus will not destroy the future to rush payment for its current debts; also, rational perception of the market will prevent possible collapse in present due to optimistic strategies that are impatient to the current market situations.

Effects of government policyGovernment policy on Telus is from the Canadian Radio and Telecommunications Commission, CRTC. The effects of government policy that TELUS must comply with have a great influence on the decisions that company makes. TELUS must ensure that personnel are properly trained to perform various testing methodologies. TELUS must carefully review its capabilities before making a decision to add new telecommunications capacity, and prior to the testing being implemented; the company must ensure that there is proper validation and documentation of all phases of the testing process. Due to the strenuousness of government policy it must abide by, TELUS must limit the capacity implementation. This limitation on testing has the effect of limiting the potential revenues that TELUS can generate.

Social DiversityChanging demographics is an urgent reason for the increased interest in managing social diversity in the workplace. The growing numbers in TELUS labor force and its customer base are composed largely of women, minorities, and immigrants. TELUS has developed specialized programs to deal with the social diversity issue. Some of these programs, known as "valuing differences programs," are geared to the individual and interpersonal level. TELUS' objective is to enhance interpersonal relationships among employees and to minimize blatant expressions of racism and sexism. (TELUS)Business EthicsTELUS has the power through its ability to spend vast amounts of money. TELUS also has the ability to enhance or change situations that the common individual does not. As organizations affect many people, they have obligations to their employees, consumers, community and the world. TELUS has the responsibility to conduct business in a way that is not harmful and which positively benefits as many people as possible and themselves. Although this sounds simple, it is easier said than done! There will always be a conflict of interest between various special interest groups. Any decisions made by TELUS needs to be made with an informed awareness of the specific situation and then act according to some sort of system of principals which is Business Ethics.

ReferencesTELUS. (2009). About TELUS. Retrieved August 13, 2009, from (2008). Financial Review. Retrieved August 15, 2009, from (2009). About TELUS. Retrieved August 14, 2009, from