BSBCRT501 Assessment 1 (1)

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BSBCRT501 Assessment 1 (1)

Assessment Task 1

BSBCRT501 Originate and develop concepts

Organisation information

Name of organisation: Lebara

Name of contact person (stakeholder): Marketing manager, Direct boss

Research

Research findings

Regarding the research findings from Lebara annual reports, interviews made to some employees it can be concluded that this company needs to implement new promotions to reach more clients. Furthermore, it is important that the company refine or write a new strategic plan to improve its current processes.

To provide services, Lebara mostly rents other competitors’ network infrastructure, and also uses the wholesale services of the National Broadband Network and Telstra. It provides services both directly to end users and also acts as a wholesaler to other service providers such as Exetel and Amaysim. Through its brand, it provides broadband, and wireless internet services. Other wholesale services include Satellite and 4G Mobile.

  • Their competitors in the market
  • The top 10 competitors in Lebara’s competitive set are Telstra, Vodafone, Optus, TPG, iPrimus, amaysim, Boost Worldwide, Kogan Mobile, iiNet, NBN and Exetel. Together they have raised over 912.6M between their estimated 139.7K employees.

    Telstra chief executive David Thodey and his competitor at Optus Allen Lew are set for a long-overdue escalation in competition in Australia’s mobile and fixed line broadband markets. Both men have plenty of excess cash to invest in growth businesses. That privileged position stems from the unique characteristics of the telecommunications market whereby investment in data transmission capability is welcomed by video-hungry mobile users willing to pay up.

    There are not many industries where capital investment can be conducted in the knowledge that customers will rush to take advantage of improved infrastructure. Customers are willing to upgrade to plans with higher data allowances, which pushes up the average revenue per user.

    It would be wrong to say Telstra has had the mobile market all to itself in recent years. But ever since Optus launched the iPhone 4 it has been flailing around in quicksand.

    Strengths of Lebara

  • Distribution and Reach: Lebara has a large number of outlets in almost every state, supported by a strong distribution network that makes sure that its products are available easily to a large number of customers in a timely manner.
  • Cost Structure: Lebara’s low cost structure helps it produce at a low cost and sell its products at a low price, making it affordable for its customers.
  • Dealer Community: Lebara has a strong relationship with its dealers that not only provide them with supplies but also focus on promoting the company’s products and training.

    BSBCRT501 Assessment 1 (1)
    Last updated: Jan 2022

    Page 1

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    Weaknesses of Lebara

  • Research and Development: Even though Lebara is spending more than the average research and development expenditure within the industry, it is spending way less than a few players within the industry that have had a significant advantage as a result of their innovative products.
  • High Day Sales Inventory: The time it takes for products to be purchased and sold are higher than the industry average, meaning that Lebara builds up on inventory adding unnecessary costs to the business.
  • Opportunities of Lebara

  • Internet: there has been an increase in the number of internet users all over the world. This means that there is an opportunity for Lebara to expand their presence online; by using the internet to interact with its customers.
  • E-commerce: There has been a new trend and a growth in sales of the e-commerce industry. This means that a lot of people are now making purchases online. Lebara can earn revenue by opening online stores and making sales through these.
  • Threats of Lebara

  • Technological developments by competitors; New technological developments by a few competitors within the industry pose a threat to Lebara as customer attracted to this new technology can be lost to competitors, decreasing Lebara’s overall market share.
  • Suppliers: The bargaining power of suppliers has increased over the years with the decrease in the number of suppliers. This means that the costs of inputs could increase for Lebara.
  • New entrants: there have been numerous players that have entered the market and are gaining market share by gaining existing companies’ market share. This is a threat to Lebara as it can lose its customers to these new entrants.
  • Increasing competition: there has been an increase in competition within the industry putting downward pressure on prices. This could lead to reduced revenue for Lebara if it adjusts to the price changes, or loss of market share if it doesn’t.
  • Research methods and sources

    The research methods were:

  • Analysis of annual reports of the company
  • Interviews made to some employees
  • Customers feedback consultation
  • Organisational needs

    This company is well structured; it seems that its marketing plans work effectively. However, after careful analysis of the research done. . The structure of the company is a basic structure with one board of executives and managers. Each city in Australia has a marketing representative manager that have under their charge supervisors and general staff. As this company is growing fast, its needs grow too. Therefore, consider applying new ideas to address business needs is worthy of consideration. It can be said that there are two main organisational needs:

  • The company needs to launch new promotions
  • The company needs to write a new strategic plan.
  • Opportunities
  • Influencing factors

    There are diverse factors that…

    ...

    BSBCRT501 Assessment 1 (1)
    Last updated: Jan 2022

    Page 2

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