BT Group Plc

free essayBT Group Plc. is a telecommunication Multinational Corporation that serves customers in more than 175 countries. It is based in the UK where it has been the major telecommunications network provider. For its global customers, the corporation facilitates the provision of communication, computing and IT services. Operations of BT Group are within the IT sector where it is serving to increase the usability. The company also increases its accessibility to converged services and networks, media and communication and mobile and fixed products (Johnson, Whittington, Scholes, Angwin, & Regner, 2014). Recently, the company rolled out an advanced ADSL, copper broadband whose speed is up to 20Mbs. The company is also having a keen eye on providing super-fast broadband by investing in fiber-based broadband.

Impact of the Company’s Mission, Vision, and Primary Stakeholders on Its Overall Success

The mission of BT Corporation aims at granting utter dedication to product’s quality as well as the services it offers to its customers. It aims at the establishment of the platform that will enable its employees to gain optimum experience, hence accord an exemplary customer experience to its customer. Its mission has an impact on the overall success of the company because it aims at providing tailored services. The company also offers differentiated solutions to its consumers globally by building new routes that will profitably manage and market services portfolio, as well as product development (Andersen, 2004). The vision of the company paints a clear picture of the future it wants to create for its customers. The future captures what the company wants to achieve and how the achievement will positively impact its global customers so as to see the company through its operational success (Havaldar, 2010).The impact of the primary stakeholders on the overall success of BT Group is a part of the company’s generic strategy to meet demands for IT solutions and infrastructure among global organizations.

Porter’s 5 Forces Analysis

The porter’s five force analysis will give a succinct analysis on the status quo of BT Group Corporation within the telecommunications industry.

Entry Barriers

In the UK, BT Ltd owns 27% of its market share while the competitors own 35% of the European markets share (Khanna, Palepu, & Bullock, 2010). Even though competitors such as Vodacom and AT & T entered the market much later, the greater market share is due to their customer satisfaction

Rivalry Determinants

Due to the intense competition that BT Group has to face, it has come up with landline smartphones that are touchscreen and which will grant the company a competitive edge over its competitors. It has already made huge investments in Canvas and Chrysalis in attempts to beat its rivalry (De Wit & Meyer, 2004).

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Customer’s Bargaining Power

As compared to its competitors, BT Group has an array of substitute goods that it offers at lower prices. The customer’s budgets are always highly price sensitive, and this has received compensation from the high range of products that have a lesser price variance. The biggest price challenge for the company in regards to this aspect is the ability to improve the quality of the customer service at the current lower prices.

Supplier Power Determinants

The bargaining power of the suppliers is a function of raw materials. BT Group deals with various suppliers hence keeping check on the most appropriate quality. Openreach acts as guardians of local access networks in the country.

Substitution Threat Determinants

The company has an added advantage due to the high number of fixed lines. Major substitutions are, therefore, accorded to unacceptable product quality and poor customer service. Moreover, switching costs are relatively high because acquiring a new broadband comes with installation charges.

SWOT Analysis

The strength of BT Group Corporation is that the company has built and portrayed a better image and perception in the global scale. The image has given the company a better position to market and advertise its contemporary technology advancements (De Wit & Meyer, 2004). BT Group’s weakness is that the executive management turnover is relatively high, thus negating the effects of the strategic visions of the company. The opportunity that is at the company’s disposal is the emergence of a new Asian market while the threat is new entrants in an environment that is traditionally monopolistic.

The Strategy Based on the SWOT Analysis

The strategy for BT Group in catering for its domestic market involves diversifying new markets such as online gaming, TV and IT services. The strategy has been embedded in the strategic position the company aims at by making it difficult for emerging competitive corporations to enter the market. However, there still subsists a competitive parity from competitors such as Verizon Business and AT & T. Moreover, a large client base of BT group has played a vital role in their strategy for targeting world governments and multinational corporations. However, the weakness is that the company’s senior management turnover is relatively high which may pose detrimental effects to the process of strategic formation of BT Group (Khanna et al., 2010).

It has also been difficult to judge the success of the strategies that BT Group adopts due to the corporation’s size. However, as a corporation and a business unit, BT Group has some inconsistency in the financial results that potentially shows the necessary improvements that ought to be made. The strategy comprises embarking on the combination of their global networks and a standard network, which aims at the transformation of its costs and expenses. Following its global service expansion, BT Group has been compelled to adopt new strategies for the protection of its dominant target market more so in the UK (Andersen, 2004).

Types of Strategies to Maximize Profitability

Strategic plans for the company are functions of adoption of technology and technology advancements. BT Group can try to differentiate itself from competitors such as Verizon Business and AT & T through technology advancement and innovation (Johnson et al., 2014). In the 21st century, for example, BT Group is strategizing on fully embracing copper and fiber access services through the provision of more efficient data services and higher internet speeds that can be more reliable. In Europe the company can also concentrate on the telecommunications and IT market as it will secure exclusive contracts with multinational corporations that are headquartered there. Another strategy is the creation and sustenance of a precise strategic option of maintaining the senior staff in the management.

Ansoff Strategy will entail market penetration, product development, market development and Diversification. The strategy can describe the objective of BT Group Limited in the sense that the growth decisions are based on methods that the company can utilize to leverage the current competitive advantage. Competitive advantage largely depends on how the company will embrace the Ansoff marketing strategies (Turner & Gardiner, 2007). The company’s need to expand and grow have driven market and product innovation, thus prompting the company into the adoption of new organizational strategies based on its target markets and the products it sells.

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A Communication Plan to Acquaint the Stakeholders with the Company’s Strategies

The strategies can be communicated to the stakeholders through internal communication. Internal communication will encompass the company’s newsletters, meetings, electronic mail messages and bulletin board messages. However, the communication plan that the company adopts should not be rigid because it will adjust depending on how effective it was. Communication should be an on-going activity that will have correlation with the organizational objectives.

Corporate Governance Mechanisms

The company has shown commitment towards the implementation of better corporate governance practices through operation in accordance with the acceptable business integrity. The company also maintains the highest standards in financial reporting. The corporate governance mechanisms of the company have been devised to facilitate the achievement of maximization of the value of the organization. An example of a corporate governance mechanism embraced by BT Group Ltd is an internal mechanism. The mechanism takes a closer look at the progress of activities taking place in the organization and enhance the internal control fabric (Johnson et al., 2014).The mechanism has been effective because it monitors various facets such as policy development and performance measurement systems. External mechanism is imposed by the external stakeholders, and it has been effective in serving objectives such as regulators and financial institutions.

Effectiveness of Leadership

The essence of good business leadership is to have the ability to inspire and impact the teams working together. Effectiveness of leadership at BT Group ensures that those in charge utilize good leadership techniques for the overall organizational management. The leaders conform to the visible part of leadership which comprises how the leader works and the invisible leadership aspect that encompasses the actions and statements of the leaders. The leaders also embrace leadership models that revolve around employee motivation and the duties they deliver towards the company. The recommendation for improvement conforms to Maslow’s leadership theory by ensuring the Maslow’s hierarchy of needs has been observed in the leadership process.

Corporate Social Responsibility

BT Group has been balancing between its earnings, the benefits of its customers and the society through the development of sustainable products, services and environmental protection of climatic conditions. It also protects the climatic changes by getting 40% of its electricity supply from renewable sources and 60% from normal channels that manage energy data centers more efficiently (Turner & Gardiner, 2007). The company has also been looking forward to developing the consumer product that will help save energy. For instance, it offers new phone models that are cordless and energy efficient, thus serving to replace the fixed-line phones and antique cordless telecommunications. The effect of these new models helps reduce about 195,000 tons of carbon dioxide emissions and save on the electricity bill.


BT Group is among the largest multinational companies. Its main aims are meeting the demands for IT solutions and infrastructure in global organizations as well as the satisfaction of the UK’s broadband needs. The company has a larger market share in its home country and a substantial market share in other countries within the globe. Vodafone and Deutsche are the major competitors whose operational existence poses a threat for BT Corporation. However, the overall analysis of the company’s performance portrays it as being highly profitable and owing its operation mode both globally and locally. It has an abundant business that it utilizes to enhance its competitive edge and to attain a more favorable business environment for its staff members. However, the company is overstretching its business portfolio to threaten its earnings in case of economic downturn. Its main strategy concentrates on telecommunications and IT market in Europe as it will secure exclusive contracts with the multinational corporations that are headquartered there.

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