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The Seeds of change : Telecom New Zealand

Abstract

Telecom Corporation of New Zealand Limited (Telecom NZ) is New Zealand’s leading telecommunications provider. Telecom NZ was formed in 1987 out of the telecommunications division of the New Zealand Post Office, government department at the time. Since privatization Telecom NZ's business has changed from simple telephony to complex communications. The case embraces the late 1990s period when competition within the New Zealand tele­com­munications industry intensified and widened in terms of the number of competing companies and the diversification of services offered. Although Telecom NZ continued to dominate the telecommunications landscape with an estimated 80% market share, a plethora of credible telecommunications service providers, such as Clear Communications, Vodafone and Telstra NZ, presented a serious threat for the company’s future growth. The major focus of this case study is on the sources of Telecom NZ’s competitive advantage and challenges the company faces in considering its future options.

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Case Description
Business Case Study NoUA-2005-025
Number of Pages15
CategoryDecision point; Teaching case
Teaching NotesTeaching notes available
CompanyTelecom Corporation of New Zealand Limited; TelstraClear Limited; Vodafone New Zealand
Setting - CountryNew Zealand
IndustryICT (Information and communication technologies)

Source
SourceAuckland, NZ. Publisher: University of Auckland Business Case Centre. Pages: 1 - 16