Executive Summary
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.
The Five Forces analysis revealed that entry barriers have
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- Support systems - Many support systems in the former Bell Atlantic, Nynex, and GTE territories have yet to be consolidated. This leads to inefficient resource allocation that does not provided the synergistic benefits that are supposed to be realized with a merger.
- Processes - In many ways, Verizon is still three companies (Bell Atlantic, Nynex, and GTE). Although Verizon has consolidated and standardized some of their processes, there is still a lot of room for improvement.
Opportunities
An external opportunity is a, "... major favorable situation in a firm's environment" (Pearce & Robinson, 2002). Verizon's opportunities include:
§ Incumbent status - In most areas, Verizon has been the incumbent local exchange carrier (ILEC) for half a century. For decades, Verizon did not have to contend with competition of any kind. This has given Verizon a solid foothold on the industry that new competitive local exchange carriers (CLEC) must contend with.
§ Diverse markets - Telecommunications markets can local, regional, or global. Furthermore, customer can include residential, business, and government markets.
§ Long distance - Due to regulatory restrictions, Verizon was once not allowed to offer long distance services in the former Bell Atlantic territories. These restrictions have been eased and Verizon has been approved to provide long distance in 11 of the 14 former Bell Atlantic states. The
Verizon has gone through many changes in the last few years. The communication industry is extremely competitive and this company would not have had a chance of forming at all, except for the government ordered breakup of AT&T in 1984. Their targeted areas of communication are cellular, paging and PCS services for corporate and individual customers. They have been trying to expand their business for corporate local goods and services.
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.
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 so to speak. 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.
Verizon phones and data cards roam to about 50 countries, including Canada, Mexico, most of the Caribbean, parts of Latin America, China, India, Israel, the Philippines, and New Zealand. Only a few Verizon devices can access networks in Europe. While Verizon is slightly ahead of Sprint's thin roaming list, AT&T's 215-country international roaming is much more globally compatible.
Verizon Wireless officially entered into the communications market on April 4, 2000. A joint project of Verizon Communications and Vodafone, Verizon Wireless is the self-proclaimed leading supplier of wireless communication in the United States, offering service in more places across the country than any other service provider. While Verizon Wireless did not begin corporate operations until 2000, its history can be traced back many years. The company’s roots can be traced to two distinct companies: Bell System and General Telephone & Electronics Corp. (GTE). Verizon Communications was formed on July 27, 1998, from a merger of
Verizon cares what customers are thinking and real puts more efforts on improving customer service.
The mergers that formed Verizon were among the largest in U.S. business history, culminating in a definitive merger agreement, dated July 27, 1998, between Bell Atlantic, based in New York City, and GTE, which was in the process of moving its headquarters from Stamford, Conn., to Irving, Texas.
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.
Verizon utilizes various methods to focus internally, providing stability, effectiveness, and reliability in a timely and efficient manner, all, of course, which directly relates to the development of shareholder value (Kinicki & Williams, 2012).
I would have to say that Verizon has the best strategy. I think this because they are already the largest network and the most reliable network in the United States. I go through Verizon for my phone and I am very pleased with their service and how they do things. I also think this because I feel as though they might be a little more popular than AT&T due to their advertising. Their advertising is a huge advantage for them. Verizon knows what is best for their company, which is wireless business and they are sticking to that but making improvements to stay competing against other companies. That is what a company should do.
Verizon Communications Inc., headquarters is in the state of New York; however they were incorporated in Delaware. As of today, Verizon Communications Inc. operates as a holding company, which provides broadband and other wireless and wireline communications services to consumer, business, and government and wholesale customers (http://www.forbes.com/companies/verizon-communications/). Verizon Communications Inc. was formed on June 30, 2000, evolved from
Looking at Verizon it is easy to see that they would fall under the market category of the competing value framework. They have goals that they are trying to follow and they are all about making those goals and being more competitive than they rest of the market. They have goals to further enhance the experience of the customers by making the process easier with the retail shop in the stores because the retailers are able to pull up the information right there in store on their device so that the sales floor transitions can go faster and be smooth. They are also about being competitive because they have made huge strides in the last couple years with some of the technologies that they have come out with such as the 4G LTE leading the competition in internet speeds. Verizon has the new goal of recruiting top of the line college graduates so that they can further the leave of completion that they can provide by looking for the best of the best. I feel that the market framework best describes Verizon because they are looking into goals and leading the completion if not always being a front runner in the field.
Due to wide coverage and most efficient customer service Verizon has become the largest Wireless communication company in U.S.
Strategy to merge Verizon and MCI merger is to be a customer-focused leader in consumer broadband and video, as well as business and government services, in both the landline and wireless environments. They believe that their superior networks are the basis for innovation and competitive advantage in communications. The combination of our world-class wireless and broadband access networks with the leading global IP (Internet protocol) backbone will allow us to deliver the highest quality end-to-end experience for our customers. Following the merger, Verizon, which continues to be based in New York, has approximately $90 billion in annual total consolidated operating revenues and approximately 250,000 employees, serving customers in 150 countries (Verizon News Release, January 6, 2006).
Verizon focuses on customer service and customer value while driving their future growth. Verizon is not just another wireless provider they are also offer business solutions via their wireline business. Wireline handles Small Business, Medium & Enterprise, and Government customers. This side serves as providers from your neighborhood restaurant to IBM to the federal government. These services include managed security, television, voice and data, internet, and cloud services resulting in over $16 billion in revenue in 2015 ("Verizon Annual Report Downloads 2015," 2016).