Telenor Group Case Study

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Telenor Group Case Study

Company Name

Telenor Group

Type of Industry

Telecommunications

Headquarters

Fornebu, Norway

Sales/Revenue

NOK 131.40 billion (2016)

Area Served

Worldwide

Number of Stores

Telenor owns networks in 13 countries, and has operations in 29 countries

Competition

Vodafone, Three Mobile, O2, AT&T

USP

Diversified product and service range

Target Group

People of all ages and groups

Products

Fixed line and mobile telephony, internet digital television, IT services IPTV

Website

www.telanor.com

Telenor Group Introduction

The Norwegian multinational telecommunications giant, Telenor ASA (Telenor Group), has emerged as a leader in the telecommunication industry serving the global customer segments. Telenor Group has been able to establish itself as a formidable name on a global basis and specifically in Scandinavia, Eastern Europe, and Asia. A SWOT and PESTLE analysis of the Company is essential to strengthen the Telenor Group case study and to determine how the Company is operating within a given business environment adapting to overcoming different business challenges. It is in order to review the effectiveness of the business position of Marks and Spencer that the Telenor Group case study has become essential.

Telenor Group Swot Analysis

The Telenor Group case study should have its inception with a Strength, Weakness, Opportunities and Threats (SWOT) analysis of Amway. This inception is needed ensure a logical flow in the Telenor Group case study.

Strenghts

The brand image of Telenor Group, as the Telenor Group case study reveals, itself is a strength of the Company. The expansiveness of business of the Telenor Group has helped the Company to establish its brand image in a positive manner. Moreover, it should be noted that, being the leading provider of television and broadcasting services in the Nordic region, Telenor Group has been able to strengthen its market hold in the concerned region in a thorough manner. Besides, the Company’s potential to invest in the marketing and promotional activities for expanding its business globally is yet another considerable strength. Furthermore, effective business contracts with giants like Siemens and Nokia has also strengthened Telenor Group’s business. It should also be taken into account, as revealed by the Telenor Group case study, that, Telenor provides VAS at a lower price compared to its competitors, and this adds to the strength of the Company.

Weakness

Despite having several strengths, Telenor Group suffers from certain weaknesses. For instance, compared to other cellular companies, Telenor Group has a shorter span of market presence. This has contributed to the weakness in the Company’s marketing strategies. Also, it must be noted that compared to some of its competitors, as the Telenor Group case study reveals, Telenor Group provides less coverage. This again is a weakness of the Company. Also, being newer to some markets, Telenor Group is ingrained with the weakness of having less experienced employees compared to several of its competitors. Besides, the Company has been unable to capitalize on start, and this is yet another weakness of Telanor Group.

Opportunities

A developing telecommunication market should be considered as the primary opportunity for growth for Telenor Group. Moreover, there are scopes for Telenor Group to expand its business through mergers, joint ventures, and strategic alliances. Opportunities are also there for Telenor Group to invest in business expansion worldwide owing to the huge demand for telecommunication services. It should also be noted that that low cost of penetration into new cellular markets is an opportunity for Telenor Group. The Telenor Group case study reveals that decline in the businesses of major competitors also has allowed Telenor Group with the opportunity to growth its business. Also, the technology of mobile number portability (MNP) has also provided growth opportunities to Telenor Group.

Threats

The low cost of penetration into the cellular market should be considered as a potential threat to Telenor Group’s business. It should also be noted that the boom in the wireless technology has posed serious threat to Telenor Group’s business on a global basis. Moreover, as the Telenor Group case study reveals, political instability in some countries of operation has also posed threats to the Company’s business. Furthermore, the existence and prevalence of the MNP technology poses threat of customer loss to the Company in a thorough manner.

Telenor Group Pestel Analysis

To make sure that the completion of the Telenor Group case study is done effectively, it becomes essential to conduct a thorough analysis of the political, economic, social, technological, and legal environments in which Telenor Group operates. Evaluation of the aforesaid factors against the backdrop of some precise environmental factors will provide a deeper insight into Telenor Group’s global business position.

Political Environment

Political environment plays a crucial and decisive role in determining the success or failure of a business. This holds true for the business of Telenor Group. The Telenor Group case study reveals that, regulation issues related to the telecommunication industry erupts quite frequently in the countries of Telenor Group’s operation, and this often put hindrances on the way of Telenor Group’s business success. Moreover, government favoritism towards the WiFi and Internet technology also poses threat to the existing business of Telenor Group. The issue of net neutrality, which has gained thorough global political attention, also should be considered thoroughly impacting on the business of Telenor Group.

Economic Environment

The existing economic environments in different countries of operation have impacted both positively and negatively on Telenor Group’s business in a thorough manner. The Telenor Group case study reveals that higher interest rates in certain economies have affected Telenor Group’s business. Moreover, phenomenon like inflation has also affected Telenor Group’s business quite explicitly. It should also be noted that expenses related to set up the pricing policies offered to customers have thoroughly affected the Company’s business mostly in the rural areas where cost of building network towers is huge.

Social/Socio-Cultural Environment

It should be noted that the very nature of its business limits the social mobility of Telenor Group in a thorough manner. In this respect it should be noted that as horizontal growth is limited in the telecommunication industry, it becomes quite difficult for Telenor Group to capitalize on corporate social responsibility (CSR) activities. For instance, it become often quite difficult for the Company to provide its urban and rural customers with same benefits of cost-effective communication (Frue, 2016).

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Technological Environment

Advancements in the telecommunication technologies have characterized the growth in the concerned industry. These advancements have impacted positively on the business of Telenor Group in a thorough manner. Advancement in the fiber wire technology has made the services of Telenor Group more developed and responsive. This has added to the Company’s business strength quite explicitly. Moreover, the development in the wireless technology has also allowed Telenor Group to make its services more compact and more cost-effective.

Legal Environment

Telecommunication regulations impact largely on the business of Telenor Group. It has been observed that legal issues with monopoly cause trouble for Telenor Group in different regions of operation. But it should also be noted that favorable legal environment has allowed Telenor Group to indulge in importing and exporting of telecommunication products, and this has enhanced the Company’s business growth and development.

Environmental Factors

Certain environmental factors like climate change and global warming have affected the services of Telenor Group in a thorough manner. In this respect it should be noted that it has become quite difficult for the Company to provide service to those regions that are characterized by abrupt climatic changes. But it should be noted that Telenor Group has succeeded in establishing itself as an environment-friendly business entity. Materiality assessment and sustainability governance are two factors that have helped Telenor Group to emerge as a eco-friendly business entity on a global basis (Telenor Group, n.d.).

Conclusion

The Telenor Group case study has shown how the Company has been able to establish its market repute through investing in social, legal, and environment needs. Both the SWOT and PESTLE analyses suggested the fact that Telenor Group is continuing to emerge as a leader within its industry, promoting itself as a customer and community-oriented, environmental-friendly, and energy-efficient business entity. 

References

Frue, K. (2016). PESTLE Analysis of the Telecommunication Industry. Retrieved August 11, 2019, from https://pestleanalysis.com/pestle-analysis-of-the-telecommunication-industry/

Telenor Group (n.d.). Sustainability. Retrieved August 11, 2019, from https://www.telenor.com/sustainability/

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