Extensive SWOT Analysis of Telia – An Swedish Based Telecom Company

Products of Telia

• Tier-1 network provider
• Mobile network operator
• Internet service provider
• Fixed-line communications
• IT hosting

Competitors of Telia

• Telenor
• Tele2
• Teleste
• Maple Tele

Now that we have taken a glance at what Telia is, let’s take a look at the SWOT Analysis of Telia.

SWOT Analysis of Telia 

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 Telia can help the organization develop effective and efficient business strategies.

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

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

Strengths of Telia

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:

(Telia said “Digitalization Is More Important Than Ever”, Source: Telia)

• Digitalization of Activities: One of the major strengths of Telia is the digitalization of all the activities and projects which has brought a good amount of consistency in the quality of the products. Understanding the importance of digitalization has given an edge-over to Telia 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, especially the students who were looking for career growth and job opportunities got benefited endlessly by learning these skills. 

• 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:  Telia 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: Telia has built a very strong widespread network and has always maintained its potential customers.
• Strong Brand Portfolio: Telia 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 Telia

Weakness is a barrier that obstructs a company’s success in certain ways.

• High Workforce Turnover Rate: As compared to other firms, the attrition rate of Telia is relatively higher indicating the downward sign on the number of employees on Wikipedia, which is one of the biggest weaknesses of Telia.
• Inefficient Financial Planning: By looking at the Current Asset Ratio and the Liquid Asset Ratio one can simply tell that the company is not using its financial resources as it should.
• 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 on Sweden for Major Revenue: As Telia has its main headquarters in only one city of Sweden which is Solna and it is providing the services more efficiently and gets major revenue from Sweden. It is mostly dependent on the Sweden market and hence lacks revenue from worldwide.
• Competition with Brands Affecting the Market: Although Telia 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.

Opportunities for Telia

Opportunities are areas of focus for a company to improve results, increase its sales, hence resulting in increased profits.

• Technological Advancements: The new technology provides an opportunity for Telia to practice a differentiated pricing strategy in the new market. It enables the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions.
• Opening of New Markets: The adoption of new technology standards and government free trade agreements has provided Telia with an opportunity to enter a new emerging market.
• 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 Telia.
• Increasing Consumers through Online Medium: For the last few years, Telia has invested a huge amount of money in operating online. This investment has benefited Telia in many ways.
• Environmental Policies: The new opportunities will create a level playing field for all the players in the industry. It represents a great opportunity for Telia to drive home its advantage in new technology and gain market share in the new product category.

Threats to Telia

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

• Competitor’s Growth: New technologies developed by its competitor Tele2 which has covered most of the areas of Sweden or market disruptors by this competitor can turn out to be a serious threat to the industry concerning the long term future.
• Increasing Pay Levels: Rising pay level movements such as $15 an hour and increasing prices leads to serious pressure on the profitability of Telia.
• Legal Problems: Telia has been caught in some legal actions such as being accused of indirectly supporting dictatorships and illegally acquiring licenses in Uzbekistan and Azerbaijan. Such steps by Telia can destroy the brand name sooner.
• 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, Telia faces threats from such new brands as it may steal loyal customers.
• Technical Advancement: The new competitors in the race are with some advanced technology reducing the overall market share of Telia.

This ends our thorough SWOT analysis of Telia. Let us conclude our learning below.