Global Communications GAP Analysis
Profitability for telecommunication companies has gotten very difficult as competition increased. The need for creative solutions to problems has become a must for companies to break free from the trend of decreasing stock prices. Global Communications (GC) is no exception to the hard times facing the telecom industry. This paper looks at the current problems for GC, the opportunities facing them to eliminate the problems, and finally the end-state goals of the company.
Increased competition is a major concern for everyone in the telecommunication industry. Company mergers and acquisitions have created bundled communication products that combine local, long-distance, and international calling markets into one bill for the consumer. This new product suite pushed many companies into competition for the same customer base in major metropolitan areas. To make matters worse, cable and cellular companies have stepped into the same market to offer one stop communication packages for consumers. These packages include broadband internet, free local and long distance calling, and cellular service for a low monthly fee. GC must look for an alternative product line to increase the company's value for small to medium sized businesses.
Two opportunities are in the works for GC that would help the company become more profitable and increase the company's global market share. The first opportunity is the introduction of new services that will allow GC to compete with local telephone and cable companies. The new services will include a partnership with a satellite provider that will allow the customer internet access along with wireless telephone access.
Secondly, the company has decided to outsource call centers to India and Ireland ...