Analysis of Verizon Communications Essay

In business, market structure plays an important role, which helps to shape the competitive landscape for businesses at all levels. Each business industry will naturally form a market structure that comes in numerous forms: Perfect competition, monopolistic competition, oligopoly, or monopoly. Verizon Wireless is a well-known communications company and large enough to affect the market. Oligopoly is defined as a market in which only a few firms dominate, and judging from Verizon competition there are only a few firms involve: T-Mobile, AT&T and Sprint. With only few competitors involve the barrier to entry is high, but there still lies a large pool of customers. The barriers are high because of the amount of money that has to into the infrastructure

Verizon Wireless is a big time cell phone company in which for years now, has been widely regarded as the top of competition. Which include companies such as at&t, sprint, and T-Mobile. While there are many other companies these are seen as the tops of competition in regards to others. Verizon in many of its commercials use a variety of rhetorical tactics to persuade you to believe they are truly the best in service. These tactics include providing coverage maps, using colorful balls in which compare between the four companies, and using written text stating facts about their coverage and overall service. While verizon may be the top in service all around I do believe some things are a little stretched.

In order to identify Verizon's core competencies, a SWOT and Five Forces analysis was performed. The SWOT analysis showed internal strengths in technology diversification, a large and talented employee resource pool, and an expansive network footprint. Internal weaknesses were revealed that centered on post merger issues such as corporate culture issues, impending workforce retirements, and a lack of systems or process consolidation. External opportunities include the potential to further capitalize on incumbent status, diverse markets, long distance, and brand identity. Finally, external threats include government regulation, substitution, and a weak economy.

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

Due to wide coverage and most efficient customer service Verizon has become the largest Wireless communication company in U.S.

The acquisition is inimitability because it economic deterrence with an investment into asset that going to increase the company customers and eventually its profits. The strategy to build its investment around such large investment within the wireless market shows customers and stakeholder Verizon communication committed to them. The wireless industry is an industry which will continue to very profitable and with this investment into Verizon Wireless resource will maintain its competitive edge. When it comes to value resources that this acquisition created it was the 100 million loyal customers, 50 percent margins, with no integration risk. The combination of risk and engagement with this investment have increase Verizon communication abilities

While analyzing AT& T a few differences are noted. As with Verizon, the current ratio did improve with an increase of five percent from 58% in 2005 to 63% in 2006. However, even though debt to equity decreased for both companies AT & T's decrease was only 4% compared to Verizon's significant decrease of 23%. The net profit margin ratio did opposite changes between the two companies while Verizon's increase not even one full percent AT &T's decreased by almost 3%. Even with these significant changes AT & T's price to earnings, as of 2006, was at 20.89 (www.hoovers.com). These variances tell us a couple of things. First, that AT& T has taken on more debt in 2006 versus 2005, but along with that debt they have been able to increase their net profit margin, helping the company in the way of earnings. The strong price to earnings ratio of 20.89 also shows that the shareholders are not faring too poorly either.

“As a leader in communications, Verizon's mission is to enable people and businesses to communicate with each other. We are also committed to providing full and open communication with our customers, employees and investors”

Since Verizon is just one of a few cellular companies dominating the industry, they need to establish an image for themselves in order

When it comes to Verizon’s team analysis their overall vision as well as mission is all revolved around different comprehensive assessments that mostly as all based on teamwork. In order to make sales at the end of the day and have provided customer satisfaction different demands are put into play and the main ones focus on the team’s different skills as well as their knowledge and ability to perform different sale tasks and most importantly team’s attitude. Verizon is very big when it comes to team analysis because it has become a mission of the organization to be able to always have great strong teams working for the company and its organization because it allows the business at the end create different structures that at the end concludes

Verizon Communications Inc. is a public sector company operating in the telecommunications industry, providing broadband and other wireless and wireline communications services to consumer, business, and government and wholesale customers. It also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers . Verizon holds the position of the largest U.S. wireless communications service provider as of September 2014 , the carrier outstrips its three main competitors which are AT&T Sprint and T-Mobile across a variety of coverage categories including network speed, network reliability, data and calling. The only category in which Verizon was runner up was in texting to AT&T . Verizon holds position #22 with a $202.5 B market value in Forbes Magazine’s 2015 Ranking list of The World’s Biggest Public Companies, that’s five places before AT&T with a $172 B market value . However many people still choose other providers over Verizon, with that in mind my commentary will focus on analyzing the weaknesses and threats of Verizon that may cause people to choose other providers over it. In a

This paper will discuss how the American Telecom industry would have been impacted if AT&T and T-Mobile would have gone through with their merger. The Telecom is working every day to make itself better and with the increase in the uses of mobile-users, companies are doing their best to provide the best services for their customers. There are a lot of disadvantages of the growing number of customers though and that was the case when AT&T proposed to merge with T-Mobile.

After reviewing all financial reports and reading about Verizon strategy, the recommendation would to take advantage of cost advantage as well as competitive advantage by focusing on its strength as the leader of wireless service. It is evident that Verizon fits well in this industry and it should seek to compete more heavily with AT&T in the digital TV department.

Traditionally, the telecommunication industry was controlled by state-owned, national telecommunication companies usually offer fixed line connections, mobile communication services and internet connections. Nevertheless, the thing has changed. The provision of communication service is now globalizing and technological innovation is breaking down traditional market boundaries as well as structures. Globalization has opened up markets and brought more competition to the telecommunication industry to make it more competitive. Furthermore, the global competition has increased performance standards in many dimensions, for instance,

AT& T Corp, which was formerly recognized as the American Telephone and Telegraph Company, is a telecommunication provider that gives services to individual customers, businesses, and other providers in the United States and other countries internationally. The company provides both wireline and wireless telecommunication services (Krause Fund Research, 2014). AT&T offers different services to its consumers that include data/broadband and internet services, local exchange services, and long-distance services. Further, it provides telecommunication equipment, publishing, video, managed networking, wholesale services, and directory advertising services. The Company provides voice coverage in over 225 countries, data roaming in over 205, and 3G in over 145 countries (Krause Fund Research, 2014). It also operates the world’s largest Wi-Fi. The study conducts strengths, weaknesses, opportunities, and threats (SWOT) analysis of AT&T that is focused on establishing its growth potential.