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h 2 >Executive Summary Telstra is Australias largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra, originally Telecom Australia was established in 1901 by the Postmaster Generals Department to manage all domestic phone services. Telecom Australia continued to be operated by the Postmaster Generals Department until 1975 when it was created as a separate entity. In 1982 Telecom Australia became the official Telecommunications Corporation for all domestic and international telephone services. On the 1 st of July 1995 Telecom Australia changed their name to Telstra for the purpose of differentiation from other global telecommunications companies.
The company has been trading international since 1993. Currently Telstra operates in over 19 countries worldwide (Appendix One). Telstra's vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. Telstra recognises that Data and Internet services are the way of the future. Telstra is redefining the telecommunications industry and therefore are redefining their markets to offer a more extensive array of products to compete effectively in these markets. Telstra has made many international investments in the Asia-Pacific region.
As well as this, Telstra continues to review all investment opportunities, which will provide substantial strategic and financial placement in overseas markets.
Since Telstra operates in over 19 countries worldwide (Appendix Four), the drop in the domestic market is having a smaller effect on the overall market.
Success or otherwise of past expansion in the Asia-Pacific region as well as in other regions. Economic and business trends in the Asia-Pacific Region. Research was undertaken by Telstra to show the potential of expansion in to the Asia Pacific region. The target market was assessed in accordance to their array of products and links were found in both the Australian and Asia-Pacific markets.
Looking at consumer trends in the region, who uses the products, how much they pay and what they expect from their telecommunications providers. The current telecommunications providers were assessed and analysed in accordance to what the consumer needs were in the current environment.
The Strategic Alliance was with a Hong Kong Based company called Pacific Century Cyber Works Ltd (PCCW) (Appendix Six). This alliance comprises of: A 50: 50 joint venture with Reach Ltd (REACH), which is one of the leading providers in Voice data and Internet connectivity in the Asia Pacific Region. (Appendix Seven) A 60 % controlling interest in Regional Wireless Company Ltd (RWC), which operates of Hong Kong's leading telecommunications businesses CSL Ltd (CSL). The strategic alliances were focused primarily in the Asia-Pacific region because at this current time, there is a large growth in this telecommunications in this regional area and there for provides the largest source of profit for the company. Telstra also obtained a 35 % equity interest in Xantics, a satellite company located in the Netherlands. Xantics company information is discussed in section 3. 1. 2 as well as in appendix five. Telstra also have a 50 % share in Telstra Saturn Ltd located in New Zealand which is discussed in Appendix four.
These are broken down in to 4 key areas Financial, Political, Legal and Social/Cultural influences. 5. 1 Financial Influences 5. 1. 1 Currency Fluctuations Telstra has substantially expanded its business outside Australia and...
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Research essay sample on Asia Pacific Region Foreign Direct Investment