Talk Talk Plc and its Service Marketing Literature review

Talk Talk Plc and its Service Marketing - Literature review Example ecided on maintaining market transparency and competition rather than resort to prescriptive regulation to protect consumers’ interests (Annual Report 2011, p. 11). 2.1.3 The UK government has made it a priority to support and fund the rollout of superfast broadband networks in rural communities. This should aid in the development of viable markets in places in the UK which were considered economically unfeasible (Annual Report 2011, p. 9). 2.2 Economic 2.2.1 The protracted recovery in the broad economy and the continued economic weakness in the European region will continue to influence the performance of UK business in general, including internet service providers (Annual Report 2011). 2.2.2 Competition is fierce such that if network services proved unreliable compared to the rival firms, this creates customer churn (turnover). The cost of switching among ISP services is low and therefore customers may easily abandon their service in favour of a rival firm (Annual Report 201 1). 2.3 Social 2.3.1 Social networking continues to gain momentum among internet users, aside from the growing dependence on the internet as a source of information for work and school. In addition, the continued popularity of television as a broadcast entertainment medium presents an opportunity for the convergence of television content with ISP services (Annual Report 2011). 2.4 Technological 2.4.1 Data security and integrity is a continuing concern in the digital telecommunications industry. Loss of customer data attributable to data protection breaches may damage the firm’s reputation and cause the imposition of fines (Annual Report 2011). 2.4.2 The development in fibre optic technology has begun to push demand for fibre access, precipitating the need for wholesale product development that... This essay discusses that TalkTalk is presently making a bid to gain higher quality service and thereby improve the profit margins, even at the expense of losing 43,000 or more customers who have chosen the company only on the basis of low prices. By doing so, the firm adopts a bolder strategy that accomplishes the twin purpose of (1) adjusting from weaknesses created by the recent demerger on the one hand, and (2) assuming a better position to address the increasingly competitive environment in the face of a challenging regulatory and economic environment. PESTEL shows that there are challenges as well as opportunities which face the entire industry. SWOT shows that TalkTalk is equipped with strengths in the form of technological innovations and strategic partnerships, and that its weaknesses are being remedied by adopting a revised strategic outlook and resolving its problems with service quality, customer billing problems, and lacklustre performance. TalkTalk is innovating in its service product, has the advantage of place and time, is rethinking its price strategy, and linking promotional efforts in a meaningful way to people’s economic realities. Process, physical evidence and people are seen to support the innovations being adopted in the product strategy. Finally, the firm is adopting more profitable service strategies as defined by Lovelock and Wirtz in building loyal ties based on quality, adopting greater transparency in handling complaints, and providing enhanced service quality and productivity.

Analyse and critically assess Baumol's model of innovationbased of Essay

Analyse and critically assess Baumol's model of innovationbased of growth - Essay Example For this reason he states that competition and the free market economy has played a major role in encouraging innovation by enterprises in the economy which has resulted into economic growth. According to Baumol (2002) capitalism is unique in its innovation characteristic and that the product of the capitalist society is economic growth. he notes that past economies such as medieval China were characterized by innovative and invention ideas but due to the economic system and characteristics innovation did not result in economic growth, the difference between these economies is that the modern economy is characterized by free competition and also that innovation is used as a competition tool in the market. Firms in the modern world have two competitive weapons and they include prices and innovation, innovation in the modern world is the prime weapon and has become mandatory in the modern firms. The firm that do not undertake innovation face closure in the modern world, therefore they compete to outperform their competitor in innovative ideas in the market other than the use of price, this form of competition results into new and better products and processes that benefits consumers. Firms result in frequent innovation as a competitive strategy and this innovation results into further innovation, innovation therefore becomes a routinised process. ... He also notes that the Capitalist economy is driven by profit motives, these motives makes firms to perform tasks efficiently and effectively, and that the invisible hand controls firms in the market from deriving abnormal profits forcing a firms to provide better products in the market than its rivals. Baumol (2002) however states that economic growth does not solve other problems the society may face such as inequality and this is because economic growth only solves problems that depend on it. On large and small entrepreneurs he noted that small and independent innovators provide a significantly startling result, he notes that a recent study by the small business association the frequency of citation of small firm patents is more likely to be among the first top one percent, Some of the products by independent and small firm innovation include the airplane, pace maker and the helicopter. This trend is expected to exist in future and that independent inventors over the years open up large firms that perform routine innovation. Large firms on the other hand also contribute to innovation. Large firms specialize in product improvement, provision of user friendly products and finding new consumers for their products. These large firms are characterized by bureaucratic controls that ensure that innovation processes are incremental and predictable, for this reason these control restrict imaginative ideas which may result into disaster and that may also result to revolutionize into a new world. Conclusion: From the above analysis it is evident that Baumol analysis of economic growth advocates for the free market economy, the capitalist society promotes growth whereby it is