British Telecom Swot Analysis

SWOT analysis of British Telecom (BT)

Strengths

• BT (a BT Group plc subsidiary) is the UK’s lead broadband Internet provider and fixed line telecommunications operator that:
• Provides global telecommunication services in more than 170 countries worldwide;
• Participates in London and New York Stock Exchange and is listed in the FTSE 100 Index;
• Provides most British fixed-line telephones with local loop and trunk network connections, and telephone exchanges;
• Operates more than 28 million UK telephone lines;
• Owns largest nationwide telecom coverage and penetration;
• On the basis of Universal Service Obligation, provides public call boxes fixed telephone lines nationwide;
• Extends communication operations on global markets through acquisition and re-branding of the domestic and overseas businesses, specifically: BT Infonet, 2005; BT Radianz, 2006; Dabs.com, 2006; PlusNet plc, 2007;
• International Network Services Inc, 2007; Comsat International, 2007; Wire One Communications, 2008; and Ribbit, 2008.
• Invests in new Internet Protocol century network 21CN.

Weaknesses

• BT main weaknesses are associated with the following factors:
• Underdevelopment of mobile business and lack of fixed-mobile convergence;
• Lack of business strategy towards the promotion of ‘cheap voice calls’;
• Occasional payphone problem due to BT operations;
• General complaints about customer services provided by BT.

Opportunities

• Transition to the new century network (21CN) in 2010 including the transfer of half of its customers by 2008;
• Expansion to more profitable products and services that are less regulated;
• Emphasis on telecommunications and IT solutions and broadband internet services;
• Extension of ‘BT Tradespace’ online service platform to serve small businesses;
• Advancement of ‘BT Vision’ to provide high-quality broadband television services;
• Expansion of Internet smart-phone services.
• Expansion of services on highly-dynamic UK telecom market and internationally;
• Contracting more overseas partners to further its global expansion;

Threats

• Fierce competition from BT’s main rivals: Carphone Warehouse; Google; O2; Orange and Vodafone);
• Global financial crisis;
• Workforce and management shortages in BT core business divisions, including retail, wholesale, Openreach, and BT Global Services);
• Overall increase of redemptions;
• Potential risk for BT bond markets;
• Fund management crisis with 6.6 b. slumps;
• Operating markets liquidity;
• Recent behavioural targeting scandal;
• Inability to foresee the successfulness of long-term projects considering current economic fluctuations.