SWOT analysis of Telefonica, S.A.

Telefonica, S.A. Company profile:

Head Office: Madrid, Spain

CEO: Mr. José María Álvarez-Pallete

Revenue: EUR 48.4 Billion (2019)

Market Cap: $ 30.27 Billion (as on 6th March 2020)

Employees: 120,138 (2018)

Customer Base: 344 Million

Key Markets: Spain, Brazil, Germany and UK.

Telefonica, S.A. is one among the leading firms within the Telecom Services - Foreign. Over the years Telefonica, S.A. has redefined the ways of doing business in Technology.

SWOT analysis of Telefonica, S.A.

Strengths in the SWOT Analysis of Telefonica

Highly skilled workforce is capable of delivering quality customer service and products.

Process automation has helped increased customer satisfaction.

Strong distribution in key markets mainly Spain, Brazil, Germany is one of the main drives of growth for Telefonica, S.A.

Strong cash flow and decreasing debt on books is indicator of strong and capable management.

Return on capital employed is impressive for Telefonica, S.A. over the years.

Weakness In the SWOT Analysis of Telefonica, S.A.


In this area of business technology plays vital role when it comes to competitive advantage. Looking at the way others are innovating Telefonica, S.A. should spend more on R&D to come out with market relevant products to enhance growth.

Decreasing debt on books leaves more room for company to spend more and even bring in efficient ways of servicing.

With presence in many countries integrating work culture remains a challenge. With lean management and flat work culture some of this can be effectively addressed.

There lies a opportunity and weakness when it comes to success in new business for the company.

Opportunities in the SWOT Analysis of Telefonica, S.A.

Focus on Cutting-edge operators can enhance bottom line of the company.

Putting new businesses at the forefront of Technology to embrace growth, recent partnership with Microsoft where Microsoft will leverage Telefónica infrastructure as part of their global strategic partnership. Initiatives like these are big time opportuinities in the new digital world.

Synergy model/economies of scale is by far a proven strategy to reduce cost and show healthy bottom line.

Growth of broadband & Pay TV services in Latin America .

Entry into new markets with opening up of Government for renewables can be a exciting space.

Threats in the SWOT Analysis of Telefonica, S. A.

Threat of New Entrants and product innovations are ongoing threats for the organisation like Telefonica, S. A.

Bargaining Power of Distributors and alternatives available for them is going to make competition tuff for Telefonica, S. A.

Decreasing presence in markets like America can seriously damage topline.

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Author: dwapp