Telstra (A): Home and Away

Published 16 May 2002
Reference 5023
Topic Strategy
Region Other Regions
Summary

This case relates the efforts of Australia’s incumbent Telstra, to establish its mobile arm as a competitive force, both in its domestic market, and in the wider Asia-Pacific region. With the development of third generation (3G) technologies, the next round of mobile communications was emerging as a global industry and Telstra was increasingly forced to share its domestic market with key international players. Results from the first stage in its own Asian expansion strategy had been disappointing. Could the company afford not to build its presence in the region in the short term? Or should it attempt to prosper as a national player in an international market?

Teaching objectives

The case stimulates debate on the potential advantages and disadvantages of overseas expansion in an uncertain industry, namely the third generation (3G) mobile communications industry, and the feasibility of competing as a national champion in an international market. It also enables discussion of the role of foreign competitors in a changing market, in addition to the advantages and disadvantages of collaborating with overseas companies to achieve a dominant regional position.

Keywords
  • AR2002
  • RD0302
  • SINGAPORE
  • INTERNATIONALISATION
  • STRATEGIC ALLIANCES
  • ACQUISITION
  • CAPABILITIES FOR INTERNATIONALISATION
  • MOBILE TELECOMMUNICATIONS
  • GLOBAL COMPETITION
  • CROSS-BORDER SYNERGIES
  • DOMESTIC STRENGTHS