Moreover, the presence of substitute products remains another force that determines the extent to which the sector is attractive. The use of data as a communication channel in the telecommunication sector is taking over the conventional communication methods because the advent of new technology and applications allow the convenient way of communication. The company policy is based on conviction regarding corporate social responsibility because Telefonica leadership believes in doing things right, and taking care of every action and decision. Through evaluation, the company develops ways of consolidating a transparent and collaborative relationship with its suppliers while at the same time setting up improvement plans. The company develops new applications in order to reach new market niches that in future may be the driving force for development. However, the company faces the challenge of carrying out this process through constant communication with other firms, the public. Nevertheless, the company has identified niches of growth associated with digital inclusion in order to enable access in telecommunications. CSR in Telefonica.
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