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Optus is the first private telecommunications company in Australia. It was established in the year 1992 due to the major deregulatory initiatives of the telecommunications market in Australia by the Federal Government. Since then, the company has built a telecommunications network that consists of three primary components which include wire line, mobile, and satellite. The services offered by Optus Company include distant, local telecommunications services and mobile services, pay television services, local call services, and it facilitates communications and business network services to many homes and businesses in Australia. This essay discusses the objectives of the marketing plan, marketing problems and the environmental forces for Optus prepaid & cable services.
Objectives of the market plan
In order to provide excellent services to its customers, Optus strives to achieve many of its set objectives. Firstly, the company wants to innovative and fast growing world class Communication Company which assists many customers and businesses to realize success in the company’s services which are delivered by the capable professional people in Australia. Secondly, it needs to be the best customer focused leader in the provision of voice services, data services and on-line communication services and solutions. It wants to achieve the highest standards for its employees, customers and also to satisfy its shareholders. The company is committed to using the world s most advanced technology in helping the Australians communicate to each other and with the entire world in a more reliable and cost effective way.
Finally, the Optus Company aspires to provide very efficient and a cost effective telecommunications services to customers in motion by providing highly developed mobile products and ensuring a wide range of the pricing plans.
Challenges facing Optus Company
In its day to day operations, Optus Company faces many challenges. First, it pays heavy interconnection fees to Telstra Communications Company for the use of its long distance networks and analogue mobile, revenue that goes straight to Telstra. The Optus Communications Financial History report (1997:2) showed that about two thirds of Optus payments are paid to Telstra Company.
Secondly, Optus experiences inability to operate successfully in its pay TV venture which leads to a lot of losses to the company because part of the profits generated from the mobile market is used in compensating these losses in pay TV as well and also other losses in the traditional wired markets.
Thirdly, the company faces stiff competition from other companies which offers similar services in the market. For instance, it faces competition from One Tel, Hutchison and AAPT companies which have been selling their mobile services very seriously in the market. Due to the new deregulation in Australia, the companies are free to compete with Optus across the entire spectrum services and they are be free to establish their own cables or wireless networks and make use of any satellite facilities. Therefore, the deregulation is a threat for Optus as it has been unable to establish a secure initial position in the local call market, which is affected by serious technical problems.
Finally, the Optus customers have raised concern on health hazards attached to the use of the company’s products. For instance some products produce radiofrequency energies to human bodies which in turn cause diseases such as cancer and Alzheimer's disease. Because of this, Optus mobile is pressurized to generate extra money to cater for health growth.
Environmental forces for Optus Company
All of Optus perspective, resources, problems and opportunities are generated and conditioned by the environment and therefore it should be aware of all the changes taking place in its environment and come up with suitable strategies to adapt to these changes. The Australian Economic Environment has a slow growth together with very low inflation and high unemployment rate. Generally, the economy is moving slowly towards the temporal decline. Therefore the Optus Company is forced to expand the investment in cable network and improve the quality of reception.
The present Asian Crisis will have a negative effect on the performance of Optus. For instance, Asian customers may not use its services as much because each unit of service consumed becomes more expensive with time when converted to their own currencies. Further, devaluation in currency discourages the Asian students who make use of Optus services. This means the loss of Optus customers.
Also, Optus mobile must be aware of the changes in its regulatory environment which are brought about by the liberalization of the Australian telecommunications market for example the Telecommunications Act and the Trade Practices Act of the year 1997 because ignorance and non-conformance of such laws always results in very heavy penalty to the organization. For instance, in 1995, Optus Mobile was declared to have gone against Section 52 and 53 of the Telecommunications Act and the Trade Practices Act by misrepresenting that the Optus Freestyle Plan allows free local mobile calls on weekends of up to $52 per month, whereas in fact calls from mobile phones under such were not free. Optus mobile non-conformance with the law has resulted in a restrain order against Optus from making such misrepresentations. The Court has required Optus Mobile to use corrective advertising for the alleged misrepresentations, as well as to send all Freestyle Plan participants a letter pointing out the exclusions and inviting them to make an application for compensations, refunds or credits. Recently, MP Pauline Hanson claimed that Australia was being swamped by Asians and this lead to racial hatred towards the Asian community in Australia. This resulted to reduction of the company’s profits because the Asians migrating to Australia as well as the Asian students studying in Australia were affected and they were part of potential customers to the company.
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In the Social Environment, the public raises concern over suggestions that the repeated use of mobile phones from Optus triggers brain cancers, leukemia and lymphoma. The and community objects the erection of digital mobile towers, as the transmitters emit low levels of electro-magnetic radiation which in turn poses a very big challenge towards the expansion of Optus Mobile networks.
Optus cables and prepaid company should consider the affordability because it makes mobile services to be chosen by many low-income users. Another important aspect is to ease the use through pre-paid services.