Business Transformation at Telefónica De España
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Abstract:
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The case discusses in length about the business transformation initiatives and
the successful corporate turnaround reported by Telefónica de España, the
leading telecommunications operator in the Spain. Telefónica de España, started
off as a state run telephone company with monopoly over the telecommunications
market in Spain. The liberalization of the telecom industry in Spain led to
competition from new players who were providing several additional services at
lower prices. This change in business environment had an adverse affect on
Telefónica de España, which experienced dwindling EBITDA margins despite
marginal increase in revenues.
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In 2001, Telefónica de España initiated
a business transformation program, through which the company
started offering better services to its customers. The
company was able to reestablish itself in the Spanish
telecom market and its market share in fixed telephone
market reached 85% by 2005.
Issues:
» Gain insights into the challenges faced by a leading government-owned
telecommunication company in the light of growing competition and rapidly
changing business environment
» Understand how Telefónica de España planned and implemented its business
transformation program
» Study the importance of process improvement and quality initiatives and the
role played by them in business transformation
» Analyze the growing importance of new telecom services like double play and
triple play
» The importance of customer orientation in any business transformation program
Contents:
Keywords:
Telefónica De España, Business Transformation Program,
Spanish Telecom Industry, Liberalization, Telecom Services, Duopoly,
Transformation Modules, Growth, Competitiveness, Commitment, Financial
Performance, Service Parameters, Average Revenue Per User, Corporate Values
Business Transformation at Telefonica De Espana
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