Is vertical integration Telstra’s strategy?
Will Telstra remain just a telecommunication company in the future? This is a very interesting question. If the answer is “yes”, we would not be keen in investing in Telstra because there are much more lucrative opportunities elsewhere. We suspect the answer will be “no” because if we were Sol Trujillo, we would have taken the strategic path to transform Telstra to one that is more than a telecommunication company. We believe this strategy is the key to Telstra’s future. To understand the nature of this strategy, we have to understand the concept of “vertical integration.” It is the integration of disparate set of individual technologies, platforms, products and services into a complete package that serves a need. A very good example of vertical integration is Apple’s iPod. An iPod is more than a MP3 player—it is part of an ecosystem of software (iTunes), service (Music Store), hardware (iPod), and content providers (media, record and TV show companies) to deliver to the consumers a co
