Shaping the Competition and Building Competitive Advantage in the Global Telecommunication Industry: The Case of British Telecom

Abstract

Our paper investigates the drivers that shape the global telecommunication industry, and the sources of competitive advantage for the traditional telecommunication operators. The analysis is based on a case study of British Telecommunications Plc. (BT) and the co-operative relationships formed by the company in response to the increasingly dynamic and competitive environment.

A detailed chronology of the co-operative relationships and business networks formed by BT is provided to illustrate the diversity and complexity of strategic responses to globalisation process in the sector. We investigate the key motives that have driven BT in its choices of partners and collaboration agreements, and how the company has repositioned itself for the growing demand of value-added services in communications.

Keywords: internationalisation of services, telecommunications, strategic alliances

JEL Classification: L96