woolies dumping telstra, page-10

winter
interesting insights. Not good to hear, but are you in a position to comment as to whether Thodey is aware of the problem or not? That is the most important point, whether the current management can turn that around. WOW is an extremely well run company with constant surveilance on costs. I am not surprised that they are examining every supplier and crunching them. Perhaps this is a response to DiData pitching to WOW , recommending that they move away from the integrated supplier model and go with a more segmented model. A good selling point and obviously self serving for Didata. The question is will TLS respond with deals that will win back some of those segments? Just like TLS contract ran out with WOW the DiData one will to. WOW will at the end of the day analyse whether their recommendations work or not.
My read of this is that it is a shot across the bow for telstra and they will either chose to respond or continue to do things the same old way. I will be disappointed if management dont respond. They are supposedly concentrating on trimming costs (like WOW) and so these jag driving fat cats as you put it should be in the firing line. In a way it is reassuring that there is still such a huge amount of dead wood in the company, this means that there is plenty of scope for improving the bottom line and maintaing the dividend. I would be more concerned if all the cost cutting had already happened and they were struggling to maintain their bottom line