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Critical analysis of external opportunities Research Paper


Evaluating competitors in the market helps a company to come up with strategic options of having an edge in the market (Jacques 98). One Touch Direct (OTD) is an international provider of marketing and call centers solutions. The company is aimed at providing customers with high quality services for increasing their revenues without violating the integrity of their brands.

Critical analysis of external opportunities and threats can be helpful for exploring the potential sources of revenues and implementing appropriate strategies for meeting the growing demands of the market sector and creating a competitive edge for the company.

Scope of rivalry

Companies are realizing the need for establishing a long lasting relationship with customer even after a transaction has been completed (Lambin 78). This became a precondition for the growing interest to outsourcing of the telephone call services instead of organizing a contact center within the company.

One Touch Direct company was established to provide call services to these companies that can’t afford the costs and human resources to establish their own call centers. The company also offers marketing services to these companies in order to attract customers and thus increase the companies’ revenue.

Competing firms both locally, regionally and internationally have been established in order to offer call services to the large number of customers. Over 100,000 call centers have been established in North America to meet the rising demand of call services to business and therefore, the company competes with these regionally. There are local companies providing call services and thus competing with One Touch Direct Company. These local centers were about 56,900 in Canada. Nationally, the company faces competition from United States which has 3,950 call centers.

The Inktel Direct is the main OTD’s local competitor, working in the same sector and targeting at the same group of potential customers. Analysis of the main strengths and weaknesses of the competitor is needed for taking away its customers and overcoming the competition. For example, the choice of appropriate pricing strategies depends upon the analysis of average prices in the sphere.

At the same time, the company should adopt the experience of its competitors as to implementation of the innovative technologies and reducing the operational costs. Steve Skornia, the director of indirect sales at Eartlink, one of the OTD’s customers, noted that “They [OTD] have the ability and creativity to impact results and maintain quality at a fixed price” (Masi 11). In other words, OTD’s focus on quality and creative approach retains the continuing customers satisfying their needs and increasing their revenues.

Call service providers in United States compete in offering their services to industries in finance, Information technology, transport and travel, media and public service. Managing the customers’ experience is important for establishing the long-lasting business relationships and contributing to their success. Stimulating the new product launches and participating in sales promotions, telephone contact centers are able not only to provide the technical consultations but also to influence the consumers’ preferences.

Size of competition

Competition in United States is very stiff because there are 56,900 call centers established to offer the call services. The OTD has to compete with these many companies in order to attract customers. There are also over 100,000 call centers established in North America.

This indicates that competition is also stiff regionally and therefore the company has to come up with strategies to give it a competitive advantage over other firms. It is possible to explore the opportunities of penetrating new markets and broadening the scope of potential customers, considering the groups whose demands are not satisfied. Regarding the OTD, its main targets might be the Canadian and North American companies to outsource their call center solutions.

Key success factors essential for success

The key factors that have a significant impact on success of any telephone centre company are the implementation of contemporary technologies for increasing the effectiveness of the company’s operations and reducing the costs for providing better quality at a lower price and training employees for ensuring the professionalism of the staff.

Another strategy that firms should consider is differentiation. In order for a firm to provide good call services and have a competitive edge it should offer quality services than the competitors. The call firms should employ experienced employees and use the best communication technology. This will attract more customers to seek the services form the firm (Parry 102).

Market diversification will also help a firm to achieve success in the market. This can be achieved by penetrating new markets either locally or overseas. This will help a firm to increase its market share and thus its revenue. Promotion strategies will help a firm to attract new customers to use the call services (Wilson and Gilligan 206).

Product diversification is also a factor that can help a firm to achieve success and thus competitive advantage. Besides providing call services a firm should provide other services like marketing. This will help a firm to target those businesses that do not have the finances and experienced human resource to carry out these functions.


Analysis of the situation in the market sector and the main competitors is needed for evaluation of the external strengths and weaknesses and choosing appropriate strategies for penetration into new markets, retaining old customers and attracting new ones. Taking advantages of the hidden opportunities and adopting the useful experience of its competitors, the ODT will be able to overcome the competition and use the potential sources of revenues.

Works Cited

Foxall, Gordon, Strategic Marketing Management, Chicago: Taylor & Francis, 1981.

Jacques, Anderson, Strategic Marketing Management, Boston: Houghton Mifflin College, 2005.

Lambin, Jean, Strategic marketing management, New York: McGraw-Hill, 1996.

Masi, Dave. “One Touch Direct: General Capabilities”. PowerPoint Presentation. www.mcsphones.com/gencap.ppt

Parry, Mark, Strategic marketing management: a means-end approach, New York: McGraw-Hill Professional, 2004.

Wilson, Richard and Gilligan, Colin, Strategic marketing management: planning, implementation and control, Heinemann: Butterworth-Heinemann, 2005.

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