Environmental Analysis – BT PLC

Using a SWOT analysis, the BT PLC is evaluated in terms of the company's strengths,

weaknesses, opportunities, and threats to determine possible actions the firm can take to

increase its market share and profit. The internal components of the BT PLC SWOT Analysis

are the company's strengths and weaknesses, while the external variables are the company's

opportunities and threats.

SWOT Analysis

Since its founding in 1846, BT Group has grown into one of the most recognizable and

successful providers of telecommunications services in the entire globe (Shastri, 2022). Due

to its extended presence in the market, the company has some strong strengths over its

competitors. The company has built up a solid brand identity and reputation over the years,

which has enabled it to bring in new customers and keep the ones it already has. The BT

Group is responsible for the provision of a vast variety of goods and services. In the highly

competitive field of telecommunications, this grants the company a major advantage over its

competitors. The BT Group has a solid balance sheet as well as a strong flow of cash. The BT

Group has a strong global presence thanks to the fact that they operate in over 170 countries

throughout the world. This makes it possible for the organization to expand into new markets
and provide its goods and services to a more diverse group of customers (Fen Fort University,

2022). BT Group, on the other hand, has seen a decline in customer base over the past few

years as customers have switched to competing mobile service providers. In addition, BT

Group's high debt level hinders the company's ability to develop its business by investing in

new products and services and expanding its offerings. The fact that BT Group's

infrastructure is getting on in years is another big issue which creates a major threat. The firm

is going to have to spend a significant amount of money and time on the labour-intensive

process of updating its network. The argument that BT Group's customer service is inferior to

that of its competitors is one of the most prominent critiques levelled against the company.

Given that customers are increasingly looking for exceptional service from mobile service

providers, this constitutes a fundamental shortcoming in the industry (Shastri, 2020). These

factors are the major weaknesses of the company that hinders its growth.

On the other hand, the global demand for mobile data is fast expanding as an ever-increasing

number of people access the internet via their smartphones and other portable electronic

devices (Mbaskool.com, 2020). Because of this, BT Group has a big opportunity to boost its

revenue by increasing the number of data bundles it sells to its customers. Because it will

enable users to access the internet at substantially higher speeds, it is projected that the advent

of 5G technology would result in a rise in the demand for mobile data. The BT Group has a

number of key relationships with other large organizations, some of which include EE,

Vodafone, and O2. These contracts not only provide the corporation with a significant cash

flow but also shield it from the threat of its competitors. It is expected that the global market

for telecommunications services will rise at a compound annual growth rate of 4.1% during

the years 2018 and 2023 (Barakaat Consulting, 2023). This presents a big potential for BT

Group since the company will be able to increase its profits by penetrating new areas, making

this a favourable scenario for the business. Despite this, the number of mobile service
providers is continuously expanding as more businesses enter the industry in an effort to

profit on the growing demand for mobile data. Because of this, BT Group faces a huge risk

because the level of competition for customers will rise (Fen Fort University, 2022). The

rapidly expanding nature of the telecommunications business, combined with the relative

simplicity of breaking into it, makes it appealing to new entrants. As more and more products

become internet-connected in the coming years, the Internet of Things (IoT) is anticipated to

grow rapidly (Shastri, 2022). This poses a substantial threat to BT Group, since connectivity

service providers will increase their competition. Because of this, BT Group faces a huge risk

because the level of competition for customers will rise. The highly regulated nature of the

telecommunications business may impede the capacity of companies to produce new

products and compete with one another (Barakaat Consulting, 2023). Because of this, BT

Group has a very serious problem, since the company may find it difficult to compete with

the companies that it faces as competition.

REFERENCES

Barakaat Consulting (2023) British Telecom Swot & PESTLE ANALYSIS: SWOT & PESTLE,
SWOT & PESTLE.com. Available at: https://www.swotandpestle.com/british-telecom/
(Accessed: February 11, 2023).

Fen Fort University (2022) BT Group PLC SWOT analysis matrix (strengths, weakness,
opportunities, threats), Fern Fort University. Fern Fort University. Available at:
http://fernfortuniversity.com/term-papers/swot/nyse/3392-bt-group-plc.php (Accessed:
February 12, 2023).

mbaskool.com (2020) Parent company BT Group PLC Mobile Service Provider, BT Group
SWOT Analysis, Competitors & USP. Available at:
https://www.mbaskool.com/brandguide/telecom-service-providers/2117-bt-group.pdf
(Accessed: February 11, 2023).

Shastri, A. (2022) Elaborated SWOT analysis of BT - 2023 Study, IIDE. Available at:
https://iide.co/case-studies/swot-analysis-of-bt/ (Accessed: February 10, 2023).