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Essay / Research Paper Abstract
This 3 page paper looks at the Spanish telecoms firm Telephonica S.A looking at the different strategies the firm has used to grow to its current size, operating in 23 different countries and achieving respectable increases in profits. The bibliography cites 4 sources.
Page Count:
3 pages (~225 words per page)
File: TS65_TEtelefon.doc
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2009 where the amount of profit was less and the profit margin of 13.99% was lower. The strategies that have resulted in this growth are well planed and diverse. The
firm has been undertaking international expansion for some time, establishing themselves in Latin American while still the incumbent monopoly supplier in Spain. Since linearization and privatization in the home market
the firm has increased the focus on international expansion. International expansion has been through acquisition and organic growth with acquisitions helping to increase the presence in the Americas and Europe
such as the acquisitions of the UK firm O2 in 2006. The acquisition strategy is supplemented with the gaining of licenses in less developed communications markets. The growth is also
aided by the convergence of technology and knowledge brought from acquisition and the servicing of different segments of the market, such as consumer and business as well as rolling out
a series of related diversification strategy, such as digital entertainment. The firm has strong core competences and has been able to adapt and change, the firm may continue with the
existing strategies, but it is recommends that there is a period of entrenchment to ensure the most recent acquisitions and investment yield the desired results. Analysis of Telefonica
Telefonica S.A. is a large Spanish telecommunications group. The firm was once the state owned monopoly telecoms supplier in Spain. The market was liberalized and the government interest in
the firm was privatized in 1997, since that time the firm has undergone a major transformation. The firm now operates in 23 countries, through a number of subsidiaries, in Europe
and the Americas, as well as owning 9.7% of China Unicom (Telefonica, 2012). With a turnover of ?60,737 millions in 20101 up from ?56,732 in 2009, and a net profit
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