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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Case Details:


Case Code : BSTR256 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra


Business Transformation | Corporate Growth Strategies
Case Length : 20 Pages
Period : 1998-2006
Pub Date : 2007
Teaching Note : Not Available
Organization : Telefónica de España
Industry : Telecom and Broadband
Countries : Spain


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.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

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.


» 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


  Page No.
Introduction 1
Background Note 2
The Transformation Program 4
Growth 5
Competitiveness 6
Commitment 9
The Results 11
Exhibits 14


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

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