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TalkTalk Telecom Group SWOT & PESTLE Analysis

ID : 52652353| Oct 2020| 14 pages

COMPANY PROFILE -TalkTalk Telecom Group Plc

Business Sector :Telecommunication

Operating Geography :United Kingdom, Europe

About TalkTalk Telecom Group Plc :

Founded in 2003, TalkTalk Telecom Group Plc, otherwise known as TalkTalk Group, is a provider of internet services, mobile and fixed line telephony and digital television in the UK. Headquartered in London, this firm was formed as a subsidiary of Carphone Warehouse but later got separated from its parent company into a publicly listed company in 2010. TalkTalk has marketed itself as an innovative and reasonably priced service value provider to its consumers. TalkTalk offers three customer propositions: SimplyBroadband, providing unlimited broadband which is not bundled with inclusive landline calls, and Essentials TV and Plus TV, offering broadband, television and phone services.
TalkTalk Business is a business-to-business telecom provider serving the needs of over 180,000 business and public sector customers across the nation as of early 2020. TalkTalk features on the London Stock Exchange and is a part of the FTSE 250 Index. With its brand tagline as “It’s good to talk, but it’s better to TalkTalk”, the company has positioned itself as a one stop solution to all telecom needs for the market segment of small businesses and consumers in the age group of 25-55 looking out for safe and affordable telecommunication services. TalkTalk’s mission statement reads “To be the number one value provider of connectivity.” TalkTalk’s purpose is to “Provide simple, affordable, reliable, fair connectivity for everyone.” TalkTalk’s USP or unique selling proposition lies in being the largest wholesale broadband provider to businesses and end consumers as it currently owns more than 50 percent market share along with its partners.

TalkTalk Telecom Group Plc Revenue :


£ 1,609 million pounds- FY ending 31st March 2019
£ 1,605 million pounds- FY ending 31st March 2018

Competitive Analysis of TalkTalk Telecom Group Plc

SWOT
PESTLE
The SWOT analysis for TalkTalk Telecom Group Plc is presented below in a matrix followed by the detailed analysis report:
Strengths
Weaknesses
1. UK’s leading value for money connectivity provider
2. Continuous efforts to leverage the driving cost efficiencies
3. Delivery of Fibre products to its customers
4. Loyal and profitable customer base
5. Increased focus on connectivity
1. Limited investment in newer technologies
2. Controversies leading to degrading brand reputation
3. Frequent internet outages impacting customer experience
Opportunities
Threats
1. Establishment of resilience in the network
2. Investment in data and cyber security
3. OTT video services and online gaming driving data usage
1. Aggressive competition in the telecom industry
2. Increased employee attrition rate
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of TalkTalk Telecom Group Plc

Strength

1. UK’s leading value for money connectivity provider: Ever since entering the markets in 2000s, TalkTalk has positioned itself as a market leader for providing value for money connectivity to its customers. Currently, the company is involved in delivering fixed and mobile services, TV to its large customer base of nearly four million customers. The broadband customers of TalkTalk include end consumers (TalkTalk brand), small businesses (TalkTalk business) and resellers (wholesale), which account for 96% of the entire Britain’s population. Owing to the company’s quest for establishing itself as an innovative challenger brand and to be in alignment with the latest trends, TalkTalk has plans to invest further in the fibre connectivity. For instance, FibreNation was launched by TalkTalk with the intention to fulfill the outreach of Fibre to the Premises (FTTP) to three million customers.

2. Continuous efforts to leverage the driving cost efficiencies: With the company’s continuous efforts to provide its customer base of 4.3 million customers with best affordable prices, TalkTalk strives to achieve cost leadership over its competitors by operating in an efficient value chain. Over the previous two years as of FY19, the company has been successful in minimizing costs by cutting down transition costs and making notable savings thereby. Along with this, the shift of focus to a more non-core service provider has enhanced prioritization in making capital investments in different avenues. The self-serving customer service feature of the digital tools and digital incorporated business model of TalkTalk has enabled the network transformation initiatives to leverage the efficiencies of newer technologies by increasing the capacity and decreasing the costs. Moreover, TalkTalk has plans to shift the headquarters to a single campus at Salford from London to reduce the administrative costs.

The remaining section of “strength" is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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Major Competitors :

  • British Telecom
  • Ooredoo
  • Frontier Communication
  • Shaw Communication
  • Major Brands :

    • Talk Talk Business
    • Talk Talk Technology
    • Talk Talk TV store
    • Genius AFC
    • Panasonic Electric Works
    • Polestar
    • PROTON
    • Lotus
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    Check Out Analysis of Other Relevant Companies

    TABLE OF CONTENTS
    DELIVERY AND FORMAT
    WHY CHOOSE US?
    References used in TalkTalk Telecom Group Plc Analysis Report

    1.Bandwidth weirdness at TalkTalk has customers fuming at being denied on-demand I'm A Celeb: https://www.theregister.co.uk/2019/12/04/talktalk_broadband_issues/
    2.TalkTalk rated worst provider for broadband and landline service: https://www.moneywise.co.uk/news/2018-05-03%E2%80%8C%E2%80%8C/talktalk-rated-worst-provider-broadband-landline-service.
    3.BT, Vodafone and TalkTalk face “disruption” from new price war: https://www.proactiveinvestors.co.uk/companies/news/912170/bt-vodafone-and-talktalk-face-disruption-from-new-price-war-912170.html
    4.TalkTalk admits new failings in 2015 data breach notification: https://www.computerweekly.com/news/252463792/TalkTalk-admits-new-failings-in-2015-data-breach-notification.
    The detailed complete set of references are available on request in the 'Complete report' on purchase.

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    SWOT & PESTLE.com (2020). TalkTalk Telecom Group SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/talktalk-telecom/ [Accessed 27 Nov, 2020].

    In-text: (SWOT & PESTLE.com, 2020)

    Copyrights and Disclaimer

    TalkTalk Telecom Group PLC SWOT and PESTLE analysis has been conducted by Anindya Anindita and reviewed by senior analysts from Barakaat Consulting.

    Copyright of TalkTalk Telecom Group PLC SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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