Finance Rmit

Name: FAIZ M, MOKHTAR

Student Number: 3345689

Selected Company: iiNet Limited

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As the leading challenger in the telecommunications market, iiNet Limited is ranked number 510 out of the top 2000 companies in Australia. iiNet Limited's SBUs are the range of internet and telecommunications solutions for both residential and business customers including: internet access, phone, IPTV service, hardware & software, and domain & web hosting.

Internet service products include ADSL, mobile broadband and NBN satellite, whereas phone products are providing plans for mobile, landline and VOIP. Hardware and software involves telecommunication devices, internet security along with online vault system (hosting services). The company also provides IPTV entertainment services delivered through iiNet ADSL broadband.

Main SBU: iiNet generates the majority of its income from the Internet Service Providers (ISP) industry in Australia. The company receives about 10.10% of the market share, and it is the second largest player after Telstra with 42.50%. As such, the relative market share would be .24 times that of its nearest competitor, Telstra. The forecasted growth rate for this market is 9.5%.

Thus, the main SBU for iiNet Ltd is considered in Question Mark area of BCG Matrix as the company enjoys comparable market share in the growing market business. The SBU will then be chosen to develop its situational analysis in the next task.

Source: IBISWorld Company Report, iiNet Limited Premium Report, Balance Date: 30 June 2011

As for ISP SBU, the company was the first national provider of naked DSL: with ADSL2+ broadband delivered without the need for a phone service. The company's most recent ploy has been to market a high-tech modem package called BoB - broadband in a box. The BoB package has extensive features that make it a very competitive product: best-in-class wireless modem, capacity for five wireless phone handsets, home networking capabilities, and USB connectivity for smart devices (e.g. smart-phones and MP3 players).