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Elaborated SWOT Analysis of BT – A British Multinational Telecommunications Holding Company

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In our previous article, we had done an explicit SWOT Analysis of the 8th largest telecommunications company in the world, Movistar. In this article, we will see the SWOT analysis of BT, a telecommunication company. 

With a bold ambition to be the world’s most trusted connector of people, devices, and machines BT group is one of the leading British industries in the telecommunication world. They have very clear and simple ideologies which make them stand out and get maximum potential customers. 

BT Group has been always successful in providing the best solutions to their customers. BT Group has begun a digital advertising platform to provide aid to the business to run their digital marketing campaigns, also boost their goods and services online.

Looking into the brand’s giant reach to the people is because of the marketing strategy and BT’s keen interest in launching digital marketing portals. As the world today stands on the verge of being digitized you should get ready to delve into the new marketing strategies to get your potential customers. if you want to learn more about digital marketing and its different attributes do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.

With the motto to connect as much as people across the globe BT Group is always striving hard to be the best. In this blog, we will have an elaborate SWOT Analysis of BT. Before we delve, let us discover more about BT Group, its founding, products, financial status, and competitors.

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About BT

SWOT Analysis of BT - BT Headquarters

BT Group is one of the world’s leading providers of telecommunications services. Its main activities include local, long-distance and international telecommunications services, internet services, and providing IT solutions. Established in the year 1912 with reach to 180 countries supplying them fixed-line, broadband, and mobile services. 

Starting from the simple telegraph in the 19th and 20th centuries till smartphone services and launching digital portals BT Group has always been on its toes to grab maximum customers. BT Group manages several large subsidiaries worldwide.

BT Global Services division supplies telecommunication services to corporate and government customers across the globe and it also supplies telephone, broadband, and subscription television services in the UK to almost 18 million customers.

Quick Stats on BT
Chairman Adam Crozier
Year Founded 1912
Origin United Kingdom
No. of Employees 1,05,300+
Company Type Public
Market Cap £ 144.40 Billion (2021)
Annual Revenue £ 22.905 Billion (2020)
Net Income/ Profit £ 1.734 Billion (2020)

 

SWOT Analysis of BT - BT Products
(BT Products, Source: Daily Mail)


Products & Services by BT
 

BT contributes to the telecommunication industry with various products for more than a centenary.

  • IT and network services
  • Mobile telephony and fixed-line telephony
  • Fibre-optic communication
  • Broadband internet and telecommunications equipment
  • Digital television and home security 


Competitors of BT

BT contests with brands across the globe. The topmost brands are:

  • Telenor
  • Vodafone
  • Telefonica
  • Virgin Group
  • Orange

Now as we are familiarized with the company brand and business let’s shovel into the SWOT analysis of BT.


SWOT Analysis of BT 

SWOT Analysis is a useful technique for developing business strategies for both new and current businesses. This simplified methodology is used to assess a company’s competitive standing. SWOT analysis of BT can help the organization develop effective and efficient business strategies.

To better understand the SWOT analysis of BT, refer to the infographics below:

SWOT Analysis of BT - SWOT Infographics of BT

Below is an explicit guide to the SWOT analysis of BT.

Strengths of BT

The brand’s competence gives an edge over capturing the maximum market in the industry and earning more profits. Hence here we go with the strengths as follows:

SWOT Analysis of BT - BT’s Digital Impact & Sustainability
(BT’s Digital Impact & Sustainability, Source: BT)

  • Automation of Activities: One of the major strengths of BT is the automation of all the activities and projects which has brought a good amount of consistency in the quality of the products. This automation has given an edge-over to BT to scale up and scale down according to the demand and conditions of the market’s current situation which is working from home & office. 

We all know that during the pandemic, businesses, brands and even education sectors have shifted their work on digital platforms using various digital marketing skills. After unlocking also the shift is constant and even growing more because people understood the endless benefits of digital marketing. Also, the skills are proven beneficial for students who are looking for career growth and job opportunities. 

  • High Level of Customer Satisfaction: The company has efficiently managed loyal and dedicated customer relationships. Thus a high level of satisfaction can be seen in the customers and good brand equity among the potential customers can be seen. 
  • Skilled Workforce:  BT Group has invested huge resources for the training and learning programs for its employees. This results in the formation of a highly skilled and quality workforce, which is not only skilled technically but also highly motivated to achieve their aim and make innovations. 
  • Strong Distribution Network: BT Group has built a very strong widespread network and has always maintained its potential customers.
  • Strong Brand Portfolio: BT has invested over the years in building a strong brand portfolio. The brand portfolio is proven to be an asset to the company to dive in for expanding the business and for new products.


Weaknesses of BT

Every coin has two sides, now after a bunch of the strengths there come the weaknesses of BT Group

  • Competition with Brands Affecting the Market: Although BT Group has a unique marketing strategy the new brands and other existing brands are also coming up with new strategies. But to maintain the position of best telecom services they need constant advertising, improvement in their products and this causes the majority of the expenses of the brand.
  • Financial Planning: The BT lags in proper financial planning and efficiency. While the current asset ratio when compared to the liquid asset ratio it shows that the company can make use of the cash more efficiently than what is going on right now.
  • Brand Shift: The company has the challenge to tackle the competition caused by the new entrants who propose some more efficient technology use. And thus has also lost a small share of the market and its potential customers.  
  • Reliance in UK Market for Major Revenue: As BT has its main headquarters in the UK and it is providing the services more efficiently and gets major revenue from the UK. It is mostly dependent on the UK market and hence lacks revenue from worldwide.


Opportunities of BT

There is always a way to add an extra mile to your work and improve sales, marketing, and profit.

  • New Environmental Policies: The new opportunities will open doors to a level playing field for all the players in the industry. It provides a good opportunity for BT to drive the advantage home buying new technology and gain market share for new product categories. Also to sustain the potential customers as well as loyal ones.
  • Stable Free Cash Flow: The stable cash flow provides opportunities to invest in adjacent products. Hence when more cash is with the company can think of some new technologies and product segments to increase the market share. 
  • Geographical Expansion: As the world is moving to become more economically strong and coming out of the poor economy there stands an opportunity for the company to promote their business there as well. Because of this, the business keeps growing in more countries.
  • Improvement in the Customers: These days we see a very dynamic lifestyle of the people and hence lifestyle and standards mean more consumption of the products and services, and in turn more opportunities to encourage the purchase. This will eventually increase the market share of BT Group.


Threats of BT

The environmental factors can prove to be a threat to the company and are harmful. Here are some threats:

  • New Entries: The new entrants like Reliance are gaining market due to some policies and absorbing the market share of the existing telecom services. Hence, BT Group faces threats from such new brands as it may steal loyal customers.
  • Competition Escalating: There is a lot of competition rising day by day as new telecom industries are emerging with new, innovative ideas and technologies. Also, this competition is putting pressure on the prices.
  • Technical Advancement: The new competitors in the race are with some advanced technology reducing the overall market share of BT Group.
  • Politically Unstable Conditions: Sometimes the political instability in the country may cause an impediment in the business.

This ends our elaborated SWOT analysis of BT. Let us conclude our learning below.

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To Conclude

BT is a telecom industry with a well-known role to play in the global market. In the SWOT Analysis of BT, we observed that the company is heavily reliant and has very powerful brand recognition across the globe. With its extensive marketing skills, it has a wide reach but has to undergo tough competition due to an increase in demand and various other competitors coming up with new brands and strategies. 

In today’s dynamic world digital marketing is of utmost importance. Hence, meliorating marketing skills is very paramount for digital marketing enthusiasts. If you are intrigued with the above piece of information in learning more and upskilling, check out the 3 Months Advanced Digital Marketing Course by IIDE to know more.

We hope this blog on the SWOT Analysis of BT has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of BT, check out our IIDE Knowledge portal for more fascinating case studies.

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Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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