Corporate Strategy Case Study

Telstra, The Australian Telecommunications Company: CEO Sol Trujillo's 'Transformational' Strategic Plan

OR

Abstract:
After holding a major share in the local telecommunications market in Australia, Telstra started facing competition from other mobile phone operators. To counter competition the government decided to privatise Telstra. Solomon Trujillo was appointed as the new Chief Executive Officer of the company in July 2005 to formulate a strategy, which could enable Telstra to regain its market position. But the strategic plan announced by Trujillo was met with scepticism from analysts and politicians. Analysts were doubtful whether Telstra could accomplish the targets it set for itself.

Pedagogical Objectives:

• To discuss whether the plan of action announced by Solomon Trujillo is enough of a measure to regain Teltra's lost glory in the light of competitive pressures in the Australian telecommunications industry.

Keywords : Telstra Corporation; Sol Trujillo; Australian telecommunications industry; Restructuring / Turnaround Strategies Case Study; Privatisation; ‘Transformational’ strategic plan; Integrated company; Cost structure; Retrenchments; 3G Networks; Internet services; Cost-effective services; Government regulations