BT Group

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This analysis of BT Group is part of our coverage of the world’s 10,000 largest companies.

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Company Description

BT Group is a British multinational telecommunications company headquartered in London, England. Founded in 1984, BT Group is one of the world's leading providers of communications services and solutions, offering a wide range of products and services across fixed-line, mobile, broadband, TV, and cybersecurity. The company serves customers in the UK and 180 countries worldwide, providing services such as mobile, broadband, TV, and landline connections, as well as various business solutions such as cloud hosting, cybersecurity, and Internet of Things services.

Industry Overview

BT Group operates in the telecommunications industry, with global market size estimated to be worth approximately 990 billion US dollars in 2020. The industry is estimated to employ approximately 11 million people, located across many different countries around the world. BT Group is the UK's largest provider of fixed line, mobile, and broadband services, with around 26,000 employees located across the UK and Ireland. The company also has a presence in other countries, such as the USA, India and China.

Industry Classification

In terms of formal classification, Platform Executive has tagged BT Group as a business operating within the Telecommunications Services industry.

Major Products & Services

The main products and/or services commercialised by this business include:

  • Telecoms services, including broadband and mobile services
  • TV, landline and broadband packages
  • Network services, such as Ethernet and MPLS
  • IT services, including cloud hosting and data storage
  • Business services, such as unified communications, security and managed services
  • Retail services, including mobile phones and accessories
  • Wholesale services, such as wholesale voice, data and mobile services
  • Advertising services, such as digital advertising and programmatic media buying

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Competitive Landscape

BT Group operates in a highly competitive environment, where telecommunication companies are constantly vying for market share and customer loyalty. Companies in this space are constantly innovating and improving their services to attract and retain customers. The industry is characterised by rapid technological advancements and changing consumer preferences, making it a dynamic and challenging landscape to navigate. Competition is fierce, with companies offering a range of services such as broadband, mobile, and television packages. Providers also face pressure from regulatory bodies to ensure fair competition. In this environment, BT Group must constantly strive to differentiate itself and stay ahead of the competition to maintain its position as a leading telecommunications company.

Key Competitors

We have identified the following organisations as being key competitors:

  • Vodafone
  • Virgin Media
  • Sky
  • TalkTalk
  • EE
  • O2
  • Plusnet
  • BT Wholesale
  • KCOM Group
  • Hyperoptic

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Key Stakeholders

Stakeholders are individuals or groups affected by a business's actions. Understanding their needs helps a business make decisions that benefit all parties.

Internal and external stakeholders include the following:

1. Customers: BT Group’s customers include both residential and business customers, who purchase telecoms services, such as broadband and mobile services, from the company.

2. Employees: BT Group employees are a key stakeholder in the company as they are responsible for providing the services that customers rely upon.

3. Shareholders: Shareholders are key stakeholders in BT Group as they have invested their money in the company, and therefore need to see a return on their investment.

4. Regulators: Regulators such as Ofcom are key stakeholders in BT Group as they set the rules and regulations the company must abide by in order to operate.

5. Suppliers: BT Group relies upon suppliers for a variety of products and services, making them a key stakeholder in the company.

Customers and Cohorts

The main customers of the organisation include:

  • Residential customers
  • Business customers
  • Public sector customers
  • Wholesale customers
  • Mobile customers
  • Broadband customers
  • Television customers
  • Telecoms customers
  • Network customers
  • IT customers

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Comprehensive Network: BT Group operates one of the most advanced and expansive networks in the UK, with more than 21 million fixed broadband lines, as well as a significant presence in the mobile broadband and pay-TV markets. This allows BT Group to provide a range of services across the country, reaching both consumer and business customers.

Innovative Services: BT Group has been a leader in developing innovative services and products to meet customer needs. Examples include BT Infinity, which provides fibre optic broadband, BT TV, which offers access to hundreds of channels and video-on-demand services, and BT Sport, which broadcasts a range of live sport events.

Broad Customer Base: BT Group serves a broad base of customers across the UK, including both consumers and businesses. This provides the company with a steady stream of revenue, as well as insights into customer needs and preferences, which can be used to develop more targeted services.

Global Reach: BT Group operates in more than 170 countries worldwide, which provides the company with access to a larger customer base and new sources of revenue.

Financial Strength: BT Group is one of the most financially secure telecommunications companies in the world, with a strong balance sheet and healthy cash flow. This provides the company with the resources to invest in new services and products.

Market Trends

Market trends can significantly impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and ultimately affecting the organisation’s ability to remain competitive in the market. Staying ahead of these trends enables businesses to proactively adapt their strategies, mitigate risks, and capitalise on emerging opportunities.

As part of this study, we have identified a number of potential trends that could impact the organisation. These include the following:

Market Trends

Key Performance Indicators

Key Performance Indicators
KPIs (Key Performance Indicators) are important to a business such as BT Group as they help measure progress towards achieving organisational goals and objectives. They provide a useful insight into the performance of different areas of the BT Group business and therefore enable informed decision-making.

KPIs also help to motivate employees towards achieving targets.

Below is a list of Key Performance Indicators we deem relevant to this company:

Brand Strength

Brand strength is more than a logo or name. It reflects a company’s reputation and how it is perceived by customers, investors, and employees. It is built on core values, mission, and a unique selling proposition (USP) that differentiates the business.

Brand strength goes beyond superficial elements and taps into core values, the defined mission, and unique selling proposition (USP) of a company.

Below are key reasons why brand strength matters:

Trust and Credibility: In a market flooded with choices, customers gravitate toward brands they trust. A strong brand signals reliability and quality, fostering customer loyalty. Loyal customers not only make repeat purchases but also advocate for the brand, driving word-of-mouth growth.

Brand Strength Analysis

Differentiation: A strong brand helps a company stand out in competitive markets by clearly communicating its value proposition. It creates a unique identity, establishes a competitive edge, and positions the company as a leader in its industry. For example, Google is synonymous with internet search.

Customer Loyalty: A positive brand experience builds emotional connections, making customers less price-sensitive and willing to pay a premium. Loyal customers generate repeat business and act as brand ambassadors, reducing customer acquisition costs and boosting long-term profitability.

Talent Acquisition and Retention: A strong brand not only attracts top talent but also enhances employee morale and engagement. Employees who identify with a reputable brand are more motivated, productive, and committed, driving better business outcomes.

Benchmarking Brand Strength

Below is a guide as to the scoring mechanism used to gauge the brand strength of this company:

A

The company enjoys an excellent level of brand strength.

  • This score signifies that the company has developed a highly regarded and well-recognised brand.
  • Customers and the wider community perceive the company as trustworthy, reliable, and superior to competitors.
  • The company enjoys a strong connection with customers, who actively engage with and advocate for the brand.
  • The company's brand effectively communicates its unique value proposition.
  • The corporate attracts and retains top talent, and its reputation extends beyond its target market.
B

The company has a good brand strength, indicating that it has a solid and respectable brand presence.

  • Customers generally have positive perceptions of the company.
  • While the company may not be as distinctive or well-known as the top brands, it still differentiates itself from competitors and enjoys a loyal customer base.
  • The brand inspires some level of customer engagement and advocacy.
  • The company attracts top quality employees and maintains a good reputation. People want to work there.
C

The business has an average brand strength, meaning it is neither strong nor weak in the marketplace.

  • Customers perceive the company as ordinary or run-of-the-mill, lacking an emotional connection or distinctiveness.
  • The company faces challenges in standing out among competitors and needs to better communicate its proposition.
  • Decent level of customer satisfaction, but significant there is room for improvement in terms of brand loyalty.
  • The company's reputation is neither a huge positive, or negative.
D

The company's brand is quite weak. Work required to increase its potential.

  • Customers have mixed or negative perception of the company, associating it with average or below-average quality.
  • The business struggles to differentiate itself from its competitors and lacks a compelling value proposition.
  • Customer engagement and brand loyalty may be minimal, requiring some effort to improve the brand experience.
  • The company's reputation may have encountered challenges, poor press, or may not be well-known in the market.
E

The company's brand is weak and fails to resonate with customers and audiences. This needs to be addressed.

  • Customers perceive the company as being too unreliable, lacking in quality, or irrelevant.
  • The company struggles to differentiate itself from competitors, and there is a lack of customer engagement, or loyalty.
  • The company's reputation may be tarnished or negatively perceived, hindering growth efforts.
  • Significant efforts are required to rebuild the corporate brand and establish a more positive image in the market.
F

The company has a severe lack of brand strength. It is a problem that needs addressing with urgency.

  • The company is poorly recognised, and customers have negative perceptions or zero awareness of its offerings.
  • The company fails to communicate its unique value proposition or inspire customer loyalty.
  • The company's reputation may be highly unfavourable, and attracting customers or top talent is challenging.
  • Immediate and extensive actions are likely necessary to revitalise the brand.

Brand Strength Score

Scoring brand strength is subjective because it relies on individual perceptions and interpretations of various factors, such as customer sentiment, market dynamics, and the competitive landscape, which can vary.

Using our scoring methodology, the average score of a business is calculated as being C (average). This differs from the average score of the top 10,000 businesses featured in our coverage. Weighted to that cohort, the average brand strength score increases to a B (good).

The analysis team have noted the following factors impacting its brand strength:

  • Popularity: BT is one of the UK's most recognisable telecommunications and internet service providers, providing services to millions of customers.
  • Quality of products and services: BT's products and services are highly rated and offer a wide range of features to customers.
  • Brand Awareness: BT is well-known and widely recognised, with a strong presence in both online and traditional media.
  • Loyalty: BT has a loyal customer base, with many customers staying with the company for many years.
  • Reputation: BT has an established reputation for providing reliable services and excellent customer service.
  • Brand Strength Score: A

7Ps Marketing Analysis

The 7Ps of marketing are crucial components of strategic decision making for any organisation in any industry vertical.

Using the 7Ps in competitive analysis provides a holistic view of the marketplace, allowing businesses to refine their strategies, capitalise on competitors' weaknesses, and better meet consumer needs. The 7P's are defined as:

  • Product/Service
  • Price/Fee
  • Place/Access
  • Promotion
  • People
  • Physical Evidence
  • Processes

All these elements together frame an organisation's marketing mix, crucial for creating effective marketing strategies.

This 7P analysis is designed to provide a valuable insight into the business strategies of the company. It can be used to reveal strengths and weaknesses in their marketing mix, offering opportunities to compare and enhance a business.

1. Product/Services: The BT Group offers a wide range of products and services to its customers, including fixed-line and mobile telecommunication services, broadband internet, and TV packages. They also offer solutions for businesses, such as cloud computing and IT services. In addition, they offer specialised services such as security and data management.

2. Price/Fees: BT Group's pricing strategy is based on value pricing, where they charge competitive prices for their products and services while also offering extra features and benefits. They have different pricing tiers for their services, catering to different customer segments. They also offer bundle packages to promote cross-selling and upselling.

3. Place/Access: BT Group has a strong presence in the UK, with a wide network of retail stores, online platforms, and partnerships with other retailers. They also have a widespread network infrastructure, providing access to their services in both urban and rural areas.

4. Promotion: BT Group uses a mix of promotional strategies, including advertising, public relations, and sales promotions. They have a strong brand image and use celebrity endorsements to increase brand awareness. They also offer discounts and special deals to attract new customers and retain existing ones.

5. Physical Evidence: BT Group's physical evidence includes their retail stores, website, and customer service centers. They also have a strong online presence, with a user-friendly website and mobile apps. Their physical evidence reflects their brand image and values.

6. Processes: BT Group focuses on providing a seamless customer experience through efficient processes. They have a dedicated customer service team and offer self-service options for customers. They also have a user-friendly online platform for managing services and accounts.

7. People: BT Group's employees play a crucial role in delivering quality services to their customers. They invest in employee training and development to ensure their staff is knowledgeable and capable of providing excellent customer service. They also have a diverse workforce, reflecting their commitment to inclusivity and diversity.

Potential Products

As part of this study, we have carefully examined and prognosticated a range of new products, services, or innovations that this organisation could potentially develop and introduce to strengthen its market position and respond to emerging industry trends.

Cloud Storage Solutions: BT Group could develop cloud storage solutions to help customers securely store, share and back up their data.

Network Security Solutions: BT Group could offer network security solutions such as firewall, antivirus and anti-spam services to protect customers’ networks and data.

Managed Network Services: BT Group could develop managed network services, such as network monitoring, performance optimisation, and troubleshooting, to help customers manage their networks.

Collaboration Tools: BT Group could develop collaboration tools such as online meeting and collaboration software to help customers communicate and collaborate with colleagues and customers.

IoT Solutions: BT Group could develop IoT solutions such as sensors, machine learning algorithms, and predictive analytics to help customers gain insights into their businesses.

Video Conferencing Solutions: BT Group could develop video conferencing solutions to help customers connect with colleagues and customers around the world.

Home Automation Solutions: BT Group could develop home automation solutions such as smart lighting, automated climate control and security systems to help customers make their homes more efficient.

Potential Synergies

Our proprietary product and portfolio-matching algorithm has identified the following organisations as having strong potential synergies with the company, based on strategic alignment, complementary capabilities, and opportunities for collaboration across markets or domains.

1. Sky
2. Microsoft
3. Amazon
4. EE
5. IBM
6. Virgin Media
7. Google
8. Apple
9. Vodafone
10. Nokia

Porter's Five Forces

Developed by Michael Porter in 1979, Porter’s Five Forces is a model used to analyse industry attractiveness and evaluate competitive environments. It considers five forces:

  • Competitive rivalry
  • Supplier power
  • Buyer power
  • Threat of substitution
  • Threat of new entries

We include this framework because it supports strategic planning, investment decision-making, and long-term competitive positioning across industries by highlighting structural pressures, market threats, and potential profit constraints.

The Porters 5 forces for BT Group are:

1. Competitive Rivalry: MEDIUM

2. Threat of Substitutes: LOW

3. Bargaining Power of Suppliers: MEDIUM

4. Bargaining Power of Buyers: LOW

5. Threat of New Entrants: LOW

PESTLE Analysis

A PESTLE analysis is used to evaluate external factors affecting an organisation. It examines (1) Political; (2) Economic; (3) Social; (4) Technological; (5) Legal; and (6) Environmental influences. This framework helps businesses identify potential risks and opportunities in the macro-environment, supporting informed decision-making, strategic planning, and long-term sustainability in dynamic markets.

Reasons to use a PESTLE include:

  • Environmental Scanning: PESTLE helps assess external factors, keeping executives aware of key forces
  • Strategic Planning: It identifies opportunities and threats, aiding market alignment and goal-setting
  • Risk Assessment: PESTLE highlights risks, helping businesses develop mitigation strategies
  • Market Insights: It provides insights into trends, behavior, and regulations for better strategy development
  • Business Adaptation: Regular analysis allows businesses to stay competitive by adapting to changes

Below is the PESTLE analysis for this company:

PESTLE Analysis: political, economic, social, technological, legal, environmental

CATWOE Analysis

CATWOE

The CATWOE analysis helps businesses understand stakeholders' perspectives for informed decision-making, covering six elements:

  • Customers: Beneficiaries of the system’s outputs
  • Actors: Those who influence the system’s functionality
  • Transformation: Converting inputs into value-creating outputs
  • World View: The broader context behind the system’s existence
  • Owner: Decision-makers with authority over the system
  • Environment: External factors impacting the system

The CATWOE analysis is most effective when used alongside a SWOT analysis.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the BT Group business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

SWOT Analysis: strengths, weaknesses, opportunities, threats

Strengths

The strengths of a company refer to its internal attributes or capabilities that provide it with a competitive advantage.

Below is a list of the key strengths we have identified for the business:

1. BT Group has a strong customer base with over 26 million customers.

2. BT Group has a leading position in the UK and Ireland broadband markets with over 4 million customers.

3. BT Group has a strong financial position with over £5 billion in revenue and £12 billion in assets.

4. BT Group has a strong portfolio of products and services including broadband, TV, mobile and fixed line telephony.

Opportunities

Opportunities refer to factors that present potential avenues for growth, advantage, or improvement for an organisation.

Below is a list of opportunities we have identified for the business:

1. Leverage BT Group's customer base to drive customer loyalty and increase market share: By leveraging its customer base of over 100 million people, BT Group can drive customer loyalty and increase market share. This can be done by offering competitive pricing, personalised services, and value-added products. Additionally, BT Group can use its customer base to develop innovative marketing strategies and promotions to attract new customers.

2. Utilise mobile technology to enhance customer experience: BT Group can use mobile technology to provide customers with a seamless experience. This includesutilising mobile apps to enable customers to access services, access account information, and make payments. Additionally, BT Group can develop mobile solutions that enable customers to access services and support on the go.

3. Diversify the product portfolio: BT Group should diversify its product portfolio to include new and innovative products. This can include launching new services such as broadband, digital TV, and mobile services. Additionally, BT Group can develop solutions to enable customers to access services across multiple devices.

4. Invest in new technologies and infrastructure: BT Group should invest in new technologies and infrastructure to increase efficiency and reduce costs. This can include investing in cloud computing, artificial intelligence, and machine learning. Additionally, BT Group should invest in 5G networks to improve customer experience.

Weaknesses

The weaknesses refer to factors that hinder a company's performance or competitive advantage.

Below is a list of the weaknesses we have identified for the business:

1. Lack of clear strategic vision: BT's strategy has been criticised for being too unfocused and lacking a clear long-term vision.

2. Operational inefficiencies: BT has been plagued by operational inefficiencies and poor customer service in recent years.

3. Financial weaknesses: BT's financial performance has been weak in recent years, with the company posting losses in two of the last three financial years.

4. Dependence on UK market: BT is heavily dependent on the UK market, which accounts for around two-thirds of its revenues.

Threats

The threats to an organisation refer to factors that pose challenges or risks to a company's success.

Below is a list of the threats we have identified for the business:

1. Competitor Intensification: BT Group is facing increasing competition from rival telecommunications providers such as Vodafone and Sky, who are offering more competitive products and services. This is putting pressure on BT’s market share and is a major strategic threat.

2. Strategic Misdirection: BT Group is also at risk of misdirecting its strategic decisions, which could lead to a lack of focus and resources in key areas. This could have a detrimental impact on the company’s long-term success.

3. Operational Inefficiencies: BT Group is also facing operational inefficiencies from its increasingly complex and costly IT infrastructure. This could cause delays in the delivery of services, leading to unhappy customers and a decrease in revenue.

4. Regulatory Challenges: BT Group is facing increasing regulatory pressure due to its large market share. This could lead to costly fines and the implementation of new policies and regulations that could hinder the company’s operations.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for BT Group. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to BT Group, as well as areas where the company needs to improve its operations or strategy.
Company: BT Group is a multinational telecommunications services company headquartered in the UK. BT Group provides communications, IT, and network services to customers in the UK, Europe, and internationally.

Collaborators: BT Group has recently collaborated with a number of other organisations, such as EE, Sky, Openreach, and TalkTalk. These collaborations have enabled BT Group to become one of the leading providers of communications services in the UK.

Customers: BT Group's customers include both consumers and businesses. Consumers are provided with services such as telephone, broadband, and mobile services. Businesses are provided with services such as cloud computing, data centre, and managed services.

Competitors: BT Group's main competitors include Vodafone, EE, Sky, Virgin Media, and TalkTalk. These companies all provide similar services to BT Group and compete in the UK market.

Content: BT Group provides a range of content services, including television, radio, and online content. BT Group also provides services such as video on demand, video conferencing, and streaming services. These services are provided to both consumers and businesses.
5C Analysis: company, customers, competition, collaboration, climate

MOST Analysis

MOST Analysis: mission, objectives, strategy, tactics

The MOST analysis framework is used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. The MOST analysis helps executives focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles.

  • Mission defines the organisations purpose and core values, providing a clear direction and inspiration for stakeholders
  • Objectives are specific, measurable targets that support the mission; they indicate what the organisation aims to achieve within a defined timeframe
  • Strategy outlines the high-level approach the organisation will undertake to reach its objectives, detailing how resources will be allocated and initiatives prioritised
  • Tactics are the actionable steps and specific plans that implement the strategy, ensuring that all team members understand their roles in achieving objectives

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

The team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism designed to benchmark innovation.

First, we allocate a score of A-E for the industry, based on the key organisations operating within the space; and then score the individual organisation using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Innovation Scorecard

Industry Score:

A The industry is amongst the most innovative; with the leading players all driving the sector forward.
Example industry: PaaS
B The industry and its leading players have a good track record of innovation; and can quickly react to change.
Example industry: Pharmaceutical
C Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate.
Example industry: FMCG
DBusinesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption.
Example industry: Retail Banking
E The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change.
Example industry: Publishing

 

Company Score:

1 The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2 The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3 The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5 The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.
The team at Platform Executive has judged BT Group as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that we deem helpful in providing a more comprehensive understanding of the report.

Methodology

This study on BT Group forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The report is based on information and learning from the following sources:

  • Corporate websites
  • Proprietary research databases
  • SEC Filings
  • Corporate press releases
  • News articles
  • Financial data API's
  • Product-matching algorithm

Further Reading

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Disclaimer

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Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

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