Gap Analysis: Global Communications
Introduction
With the onslaught of competition in the telecommunications industry, Global Communications has come under tremendous economic pressure. Over a three-year period, stockholders have seen their investments decline more than 50% and are now questioning the ability of the company to rebound. Global Communications publicly announced that it will outsource thousands of its technical support jobs overseas and a layoff is expected. Citing contract manipulation, the Union has spoken out against the strategy stating that Global Communications failed to look at the Union as a partner and all other options should have been evaluated prior to the decision to send union jobs overseas. The Union is threatening legal action. This analysis examines Global Communications' current situation, issues and opportunities, and the stakeholders' perspective. This analysis concludes with the considerations of the desired end-state vision, the current situation, and the course concepts.
Situation Analysis
Issue and Opportunity Identification
Increased competition in the telecommunications industry and a significant 50% depreciation in stock value have jeopardized shareholder value, decreased confidence in the industry, and placed Global Communications under extreme economic pressure. The industry suffered a tremendous loss in market share when cable companies began offering complete solutions to its customers providing voice, data, and video services. The decision to implement off-shore outsourcing places Global Communications in a position to expand and grow its market share by turning its goal of becoming a highly profitable global source of telecommunication services into a reality.
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