TELUS, being one of the three major wireless carriers in Canada, argues against the industry minister’s suggestion to introduce a fourth, cheaper carrier in order to increase competition and reduce prices for the reason of sustaining the quality of their service.
In analysis of Telus’ stance, it can be seen that Telus does not use cost leadership as a competitive advantage. Instead, it utilizes differentiation as a strategy to gain customer loyalty. According to Dan Pontefract, TELUS’ Chief Envisioner’s blog: http://blog.telus.com/team/peeling-back-culture-as-a-competitive-advantage/, Telus has many internal strengths that they focus on, such as customer relations management, community connections, and advanced technology. Though Dan Pontefract may carry biased views for Telus, I analyze that Telus is capable of being one of the three major Canadian wireless carriers due to its unchanging adherence to maintaining these differentiated factors in their approach and service, which attracts more customers.
Upon viewing Dan Pontefract’s blog, I realize that the supreme quality guaranteed by TELUS ensures its brand loyalty, where the customers are less concerned about price than quality. Hence, TELUS is successful in maintaining a unique competitive advantage through differentiation, and should develop more ways to sustain that advantage instead of switch to cost leadership at the expense of quality.