Corporate Strategy of Diversified Growth: Risks and Opportunities

"Technological boom" gave the world smartphones and numerous digital OTT-services that allow people to exchange any kinds of content without the direct involvement of operators. This caused major changes in the telecommunications industry. Traditional types of services, like fixed telephony, are gradually «dying out». In Russia, the situation on the market was aggravated by the economic crisis. In such circumstances, «digital transformation» through the related diversification to fast-growing digital markets became the only right solution for telecom companies to continue their growth. The purpose of this work was to analyze the company PJSC "Rostelecom" for strategic opportunities and directions that can be realized through related diversification in digital markets. Internal diagnostics of the company through financial analysis and strategic tools such as SWOT analysis and a map of strategic groups determined the competitive advantages of the company and its weaknesses. Also, the current strategy of diversified growth of the company in two macro segments: fixed and mobile communications – was studied in this work. The BCG matrix was constructed to analyze a fixed segment. The strategy of diversification in the mobile segment was considered on the example of creating a joint venture with «Tele 2». The analysis of the situation on the market showed main telecommunication and consumer trends. It was found out that "digital transformation" is a leading trend. Companies are trying to get away from traditional communication services, replacing them with new digital products. The competitive environment of the industry was described in detail using the model 5 of Porter's forces. In this regard, the strategy of PJSC "Rostelecom" was considered and evaluated from the point of view of transformation into a "digital provider". As a result of the research, recommendations were developed to further diversification of the company into new digital markets.