Conclusion and Recommendations
In order to sustain the competitive advantage in the industry, TalkTalk should continue following its strategy, which is based on some elements of cost leadership and differentiation by features and quality. The first element is justified by the fact that TalkTalk is able to offer its Business and private customers services at significantly lower cost than its cable and incumbent competitors. Moreover, TalkTalk is differentiated by its clear and simple tariff structure, low prices, flexibility and inclusion of high quality services and unique products. Below are the options, which TalkTalk should follow, in order to sustain its competitive advantage.
1. Simplifying its systems through the improved data standards and processes, and launching innovative new products through heavy R&D. This will also help to keep the costs low.
2. Expand the bandwidth capacity on TalkTalk’s network. This will allow the company to support its growing customer demand for greater data consumption and higher speed.
3. Maintaining strong partner relationships with customers, Ofcom and rivals. For example, joining strategic projects, like in the case of the large five-year contract with Fujitsu, which is testimony to the appeal of TalkTalk’s network for partners seeking quality, flexibility and competitive terms (TalkTalk Group, 2014).
4. Building on its strategic resources and capabilities: human knowledge and skills, technology and brand identity.
5. Continue to invest in employee engagement through employee recognition schemes and “Share ownership” – issue employees with gift shares, provide discounts on shares. Employees are one of the key contributors to TalkTalk’s success as a business, and they need to stay committed to TalkTalk’s business success.
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