Joshua Wong’s recent blog on Telus’ strategy has intrigued me. I found that he brought up some interesting questions and topics about Telus’ actions of late, and its future. You can find his blog here

“The future is friendly”

The Future Is Friendly

Telus has been renowned to be a price-riser with a sufficient amount of market power, but not anymore. They might have to look back on their slogan “The future is friendly” now that competitors Wind and Mobilicity have entered the market and selling at prices below that of Telus.

Joshua is correct, Telus cannot continue to lower its costs in order to compete with these new brands whose strategy is to become a Cost Leader. He is correct as well in identifying Telus’ unique strategy, where they give back to the community, and focus on consumers. However, I think Telus’ attractiveness to the public will dissipate, now that other companies can give the same overall service with lower prices. In such a market as the one Telus is emerged in, consumers don’t think twice about purchasing at a lower price even if Telus gives back to the community. This is because such a service is a necessity to consumers, and they must pay dues monthly rather than a one time purchase of a unique product such as clothing. In the process of buying shoes, the consumer may wonder if these were produced in sweat shops, or in America when considering the product. But when buying a service such as home phone or cellphone coverage, the consumer does not care as much about the morality of the franchise, and is primarily looking to save money .

Joshua’s blog post is very interesting and insightful and applies many of the terms we’ve covered in our COMM 101 class. I suggest reading it to understand Telus’ situation and strategy better. As well, you may benefit from reading this post because he uses the business terms well enough in a way that you can get a better understanding or review of them.