Tallest Corporation Limited Executive Summary Tallest Corporation Limited (Tallest) is an Australian leading telecommunications and information services company, building and operating telecommunications networks and marketing voice, mobile, Internet access and pay television products and services. Tallest strives to provide more services and value for money so customer can enjoy the benefits of mobile communications services in day-to-day activities (Tallest, 2012). Telltale’s business strategies to Improve customer satisfaction, retain and grow customer base, simplify the business and invest in new growth businesses.
Tallest has the viability to succeed in providing telecommunications and information services and much more considering the demand cost, market settings and economic conditions (Tallest, 2011 Background Tallest offers a full range of products and services to meet the needs of the customers. The telecommunications services provide vast geographical coverage through both fixed and mobile network infrastructure – servicing more than 99% of Australian population. It has also an international presence spanning 15 countries, Including China.
Tallest was originally controlled by Postmaster-Generals Department (OMG) which was formed in 1901, transferred to Telecoms Australia in 1975, and then renamed to Tallest Corporation Limited in 1993. The name “Tallest” is derived from the word Telecommunication Australia (TELL from Telecommunication and STAR from Australia). Tallest currently is the first largest telecommunication carrier in Australia market with 2. 4 million retail fixed broadband customers and more than 2. 5 million mobile broadband customers.
Tallest has faced competition since the early asses from Opts (Australia’s 2nd largest communication company) and a number of smaller providers (Tallest, 2012). Product Pricing Component utility of Service As a national leading telecommunications and information services company, Tallest is committed to providing customers with more services and value so they can enjoy the benefits of mobile communications throughout their dally activities. Tallest also incorporate itself to the latest technologies and innovations for high-quality, consistent connection to voice calls, data, e-mail, and more.
Tallest markets to the young and trendy audience and therefore competes on price, and on features such as “FALL Alive” (watching FALL games live), “Caller Tones” (ring back tones), and “Hip Ringers” (rhinestones which are clips of an actual song). Its corporate slogan is connected through Tallest. Tallest offers an array of cool phones and plan packages to choose from. To cater to each consumer’s needs and wants, their plan packages selection ranges from individuals, family, Internet and e-mail, prepaid and businesses.
Within each plan type, Tallest offers an assortment of packages to fit each consumers calling style. Tallest also prides itself in providing the highest quality of customer service. Only in 2012, Tallest has captured a total of 12 various wards in the areas of customer care, TV service, call quality, and overall customer satisfaction (Tallest, 2012). Complementary Products After selecting a phone and plan, you can add services or accessories. Tallest offers a variety of services to help the consumer “connected to the future” from their wireless such as vocalism or equipment protection.
Tallest provides a full complement of messaging services such as text messaging, instant messaging, and picture/video messaging so customers can communicate with friends, family, and colleagues whenever and however they want. Other services available are personalized ammunitions such as My Tallest, where customers can change services and plans online as often as they want. Tallest has handled 3. 0 billion local calls, 4. 7 billion national long distance minutes, 12 billion text messages and more than 16 billion mobile voice minutes, provided 8. Million fixed line and 13. 8 million mobile services, including wholesale services; handled more than 300,000 calls in our contact centers each day, and operated and maintained more than 11,000 telephone exchanges, on average, completed around 23,000 customer service Jobs (new services and fault pairs) a day, sent out more than 100 million bills every year. Tallest also offers high-speed wireless broadband Internet called Tallest Ultimate@ Mobile Wi-If that is provides blistering download speeds ranging from 1. Mbps to Mbps in Ultimate coverage areas which include Australia’s capital city CBS and associated airports, selected metropolitan hubs and more than 100 regional centers. Thus, internet is accessible if people have a Wi-If enabled device, such as a laptop, the Tallest MAD or SAD handheld. In addition, Your Tallest Homelike@ service gives you easy options for calling family and friends in over 230 countries. Within the Homelike@ service there is International Value Packs which is let customer call overseas for as little as c per minute plus a ICC call connection fee.
So all customer need to stay in touch with their loved ones overseas is to add an International Value Pack to an eligible Homelike plan (Tallest, 2012). Price Elasticity of Demand The demand for Tallest service is relatively price elastic. Since some Tallest target market audience are transient and homeless people, and also indigenous Australian consumers, as Tallest changes the price of its phones and plan packages the consumers respond through purchases.
These consumers want to have the quality phones and features, but want flexible spending plan with added value such as unlimited weekend minutes. Although Tallest has the biggest and fastest network in Australia, it has roaming arrangements with major competitors Opts, Avoidance, and Virgin as well as with a number of regional carriers, such as Toeless, Tumor Telecoms, Singapore Telecoms. However, the limitation of data at G and prepaid customers has roaming on only some of those carriers.
Tallest exclusively uses the Global System for Mobile Communication (GSM) 1900 Maze frequency to build out its network. However, affiliate arises using GSM 850 or 1900 Maze frequency provide most roaming coverage. Tallest also launched an EDGE (Enhanced Data Rates for GSM Evolution) network in 75% of its GSM footprint in September 2005, and they plan to spend more time improving coverage and filling gaps in suburban areas, as their network is already well built out in urban areas (Tallest, 2012).
Cost Component A company’s annual operating expenses that the tax laws count as total cost are explicit costs. These costs include the company’s factors of production including the wages and salaries of the firm’s employees, rental payments on rented capital, interest payments on borrowed funds, transportation services, and payments for resources such as materials. In addition, a company may use certain resource the firm itself owns. The cost of such self-owned resources is implicit costs.
To the company, those implicit costs are the money payments the self-employed resources could have earned in their best alternative employments (McConnell, 2005). A company’s costs of producing goods and services will depend not only on resource materials, but also technology – “the quantity if resources it takes to produce that on output. It’s the technological aspect of cost, which is considered. In the short run a firm can change its output by adding variable resources too fixed plant. If a more efficient technology were used, then the productivity of all resources would increase and the average cost would be lower (McConnell, 2005). Usually, the entry of new companies offers up resource prices and therefore raises unit cost for individual businesses in the industry. When an industry is using a significant portion of some resource whose total supply is not readily increased, the entry of new businesses will increase resource demand in relation to supply and increase resource prices. This is so supply is not readily increased.
Higher resource prices will result in higher long- run average total costs for firms in the industry (McConnell, 2005). Market Structure The classification of market structure for Tallest is perfect competition. Perfect competition involves a very many companies where the companies are the price taker; new businesses can enter or exit the industry very easily, producing a standardized product and both producer and consumer have perfect knowledge of the market. Perfectly competitive product markets respond to consumer’s demands.
An increase in consumer demand is driven by changes in prices and profits. Prices production in the short run in reaction to the higher prices and profits. Production increases even more in the long run as firms lower their production costs by adjusting fixed factors and new companies enter the industry. Supply continues to increase until price is driven down to minimum and all firms are breaking even once again. The reverse applies too decrease in demand, which leads to price decrease, losses in the short run, and exit from the industry in the long run.
Commonly, perfect intention is a good thing due to the factors such as price equals marginal cost, the combination of (long run) production being at minimum average cost and the company making only normal profit which is keeps price at a minimum, facing a case of ‘survival of the fittest’ (Slogan,J. , Norris, K. And Garrett, D. , 2010). Economic Forecast Several factors in the economy that will impact the demand for Telltale’s products and services include domestic output, employment and price levels. The economic indicators that reflect these factors include unemployment rate, consumer pricing index, and retail sales.
Unemployment Rate Unemployment rate is the percentage of the total labor force that is unemployed at any one time” (McConnell, 2005). Unemployment results from insufficient effective demand for goods and service in the economy. Therefore, due to the lack of demand there are fewer Jobs to produce the product and/or service as well as future reductions in output. Unemployment rates have been steady this year. Australia’s unemployment rate rose to 5. 4 per cent in September, as more Australians Joined the hunt for work.
It has hovered a little above 5 per cent for around 18 months, far below equivalent rates in Europe and the United States. Creighton, 2012) Consumer Pricing Index “Consumer Price Index (ICP) is the main measure of inflation” (McConnell, 2005). The government uses this index to report inflation rates periodically as well as adjust Social Security benefits and income tax brackets for inflation. The ICP reports the price of a market basket of consumer goods and service and is based on spending patterns of consumers in a specific period (McConnell, 2005).
As an economic indicator, it points out of the effectiveness of government policy and is used as a guide in making economic decisions. The ICP reports have also been steady this ear. The most significant price rises this quarter were for medical and hospital services (+2. 8%), rents (+1 . 1%), vegetables (+5. 2%) and furniture (+4. 5%). On the other hand, the most significant price falls this quarter were for domestic holiday travel and accommodation (-4. 0%), audio, visual and computing equipment (-3. 8%) and cakes and biscuits (-2. %). In Australia, the annual inflation running at 2. 4 per cent for the year to September, slightly up on Augustus 2. 2 per cent result, but still below the midpoint of the Reserve Bank’s 2-3 per cent inflation target band And, M. , 2012). Retail Sales are a measure of the total revenue of retail stores. Monthly percentage changes reflect the rate of change of sales and are used as an indicator of consumer spending. Retail sales are an important economic indicator because consumer spending drives much of our economy.
When consumers are spending, the economy tends to move forward. However, if consumers feel unsure about their financial future and decide to hold off spending, the economy slows down. This is why politicians have used tax breaks to give the economy a boost. If consumers have disposable income at hand, they can spend their way out of a recession (Little, K. 2012). Monthly, the Australian Bureau of Statistics releases the Retail Trade Index, which is a measure of retail sales from the previous month as determined by a sampling of stores both large and small across the country.
According to its latest report, consumer spending has increased modestly within the months of June through August of 0. 2%. The past and present trends in retail sales as well as future projections exhibit modest increases (Australian Bureau of Statistics, 2012). The implications of this economic forecast and the income elasticity of demand for the racing strategy is that if there’s a small change in price it will be led by a large change in quantity demand.
Conclusion In order to prevent a negative impact of the elasticity of demand and supply, for Tallest to enhance their revenue and continue growing as an Australian leading telecommunications and information services company, it must spend time improving their national coverage by putting up more towers in their network. Also with phones being used increasingly for entertainment such as games and Internet services, Tallest must continue to integrate the latest and best technologies and innovations for high-quality products and services covered whole Australian rural Areas where the target groups are living.
