BT Group

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This report on BT Group is part of our analysis of the 10,000 largest companies in the world. It is created and updated regularly to ensure that the content is always current.

Only Premium members have access to the full study on BT Group, which includes the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis and a myriad of additional high value sections.

We identify potential new products and services, forecast future market trends, and identify potential synergies between BT Group and other organisations, all separate from the analysis-driven sections.

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 (IoT) 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.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Methods and systems for transferring data between a first and second device
Patent ID: US10693902
Date: March 24, 2020.

Patent Title: Method for packet routing
Patent ID: US10693732
Date: March 24, 2020.

Patent Title: System and method for remote access to a network device
Patent ID: US10693650
Date: March 24, 2020.

Patent Title: Apparatus and methods for managing data transmissions
Patent ID: US10693598
Date: March 24, 2020.

Patent Title: System and method for managing communication sessions
Patent ID: US10693567
Date: March 24, 2020.

Patent Title: Method for controlling transmission of packets
Patent ID: US10693531
Date: March 24, 2020.

Patent Title: Method and apparatus for secure communication between nodes
Patent ID: US10693513
Date: March 24, 2020.

Patent Title: Method and apparatus for managing data transmissions
Patent ID: US10693476
Date: March 24, 2020.

Patent Title: Method and apparatus for providing integrated service in a communication system
Patent ID: US10693430
Date: March 24, 2020.

Patent Title: System and method for authentication of an end user
Patent ID: US10693418
Date: March 24, 2020.

Major Products & Services

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

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

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 who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

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.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like BT Group different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand BT Group and its position within the marketplace.

The value proposition for BT Group is to provide customers with a range of services that make their lives easier. This includes offering a wide range of telecommunications and broadband services, as well as a variety of digital products and services.

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.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

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

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

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

Expansion of 5G Technology: BT Group stands to benefit significantly from the expansion of 5G technology as it has been at the forefront of the 5G rollout in the UK. 5G promises faster speeds and increased bandwidth, which could lead to increased demand for BT’s services, including broadband and mobile services.

Increased Demand for Cloud Services: As businesses increasingly move their data and applications to the cloud, BT Group stands to benefit from the growing demand for cloud services. BT is already a leader in cloud computing, and it is likely that the demand for cloud services will continue to grow in the coming years.

Rise of Mobile Payments: As mobile payments become more popular, BT Group stands to benefit from the increased demand for its payment services. BT Group has already invested heavily in mobile payment technology, and it is likely that it will continue to do so in the coming years.

Emergence of AI and Machine Learning: As artificial intelligence (AI) and machine learning become more commonplace, BT Group stands to benefit from the increased demand for its AI-powered services. BT has already invested heavily in AI and machine learning technologies, and it is likely that demand for its services will continue to grow in the coming years.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for BT Group include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="BT.A.LSE" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

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

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

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

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

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

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

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: BT Group customers consist of businesses, organisations, and individuals who require communications technology, such as broadband, telephone, and television services.

Actors: The actors in the BT Group include customers, employees, suppliers, shareholders, and regulatory bodies.

Transformation process: The transformation process of BT Group is to provide customers with the best possible communication services, including internet and phone services, as well as television and other entertainment services. The company strives to keep up with the latest technology, offering customers the best and most up-to-date services.

World view: The world view of BT Group is that communication technology should be accessible to all, regardless of their location and budget. The company is committed to making sure its services are available to everyone, and that no one is left behind.

Owners: BT Group is owned by its shareholders, who are dispersed around the world. The company is also owned by BT Pension Scheme, which provides pensions to former and current employees of the company.

Environmental constraints: The environmental constraints for BT Group include government regulations, competition from other companies, and market forces. The company also has to consider the environmental impact of its operations and take steps to reduce its environmental footprint.

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.

Strengths

Below is a list of the 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

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. Utilize mobile technology to enhance customer experience: BT Group can use mobile technology to provide customers with a seamless experience. This includes utilizing 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

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

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.

MOST Analysis

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

Mission
Objectives
Strategy
Tactics

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

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business 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 into the marketplace; and/or vulnerable to technological change.

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

Below is a guide to each score:

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
D	Businesses 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.
4	The 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 the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

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 information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

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 Information

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If you require a bespoke study on a particular industry vertical, or marketplace we may also be able to help.

Disclaimer

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.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 29th May 2023

Industry Keywords

Related keywords:

broadband networking Security Telecommunications

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