Sources Of Telmex’s Competitive Advantage

Sources of TELMEX’s competitive advantage:

The barriers to entry due to government restrictions and regulations have been one of the sources of sustained competitive advantage forcompanies such as Telmex.
Telmex holds the technology and the strategic alliances that allow it to provide its multinational customers with the technology, the services, the attention and the supportthey require for their international telecommunications services.
Telmex business is focused on offering services ranging from traditional telephony to total end-to-end solutions for voice, data andvideo including equipment provisioning, administration and monitoring over a wide variety of products and services at national and international level.
Telmex’s short and medium term objective is tocontinue consolidating its presence in the markets by strengthening its competitive position in the global environment.
Another source of Telmex’s advantages is the customer-solutions strategicoption which calls for the development of partnerships and alliances, linking various firms' ability to complement a customer offering. Through a series of acquisitions such as Uunet Technologies, MFSCommunications, Brooks Fiber Communications, and GridNet, it is able to bundle services such as local, long-distance, Internet, and advanced services together to reduce complexity for the customer. “Also,instead of setting up a Spanish portal internally, Telmex entered a joint venture with Microsoft to develop a region-wide Spanish-language portal, counting on Microsoft's extensive softwareapplications, portal applications and strong branding and its own regional expertise and extensive access network” (Hoover, 2000).

Telmex enjoys various competitive advantages over rivals. First verticalintegration, Mexican affiliates of the US long-distance carriers are also vertically integrated.
Second, Telmex’s ubiquitous and irreplaceable local network. Third, Telmex’s inter-city facilities...