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Telefonica S.A. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Telefonica S.A.

Telefonica is a prominent integrated operator in the telecommunication sector, providing communication, information and entertainment solutions. The company primarily operates in Spain. It is headquartered in Madrid, Spain and employs 232,996 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Significant market position
  • Focus on research and development
  • Strong growth in mobile and broadband segments

Weaknesses

  • Lack of presence in Asia Pacific

External

Opportunities

  • Agreement with Deutsche Post World Net
  • Business expansion
  • Growth of broadband and Pay TV services in Latin America
  • New collaborations

Threats

  • Exchange rate fluctuations
  • Declining ARPU
  • Regulatory environment
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