AT&T Executive Summary
AT&T provides telecommunication services to consumers, businesses and other entities. More specifically AT&T is classified as a diversified telecommunication services. AT&T has been around since 1876, when Alexander Graham Bell invented the telephone. (http://www.att.com/gen/investor-relations?pid=5711). Headquartered in Dallas, TX, AT&T is the largest landline and wireless service providers in America. They also provide Uverse, which is ultra-high speed internet and interactive high definition cable TV service. AT&T also provides wireless phone and data service, primarily to American customers, in over 200 countries. (http://www.att.com/gen/investor-relations?pid=5711). The US wireless market constitutes
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EXECUTION OF STRATEGIES
AT&T Wireless has successfully executed it strategy growing its Operating revenue by 14%. Through the integration and cleanup of legacy AT&T wireless and Cingular Wireless, churn has been reduced to 1.7%. This is a direct indication of improved value and service to its customers. Contrary to Sprint-Nextel the merger of networks was the best solutions due to the similarities in the GSM technology.
The strategy to enter into a two year exclusive deal with APPLE to market and sell the iPhone has proven successful. Even with the EDGE network the satisfaction of the iPhone has differentiated AT&T from its competitors. The stakes here have been raised and AT&T will look to see even more competition from Verizon, Sprint-Nextel and T-mobile.
MASTER STRATEGY
The Master Strategy for AT&T wireless is to be the only telecom provider their customer would ever need by connecting its customers anywhere – anyway.
COST- AT&T is adequate in this regard. It is positioned to offer competitive pricing to the numerous services it offers. Rollover Minutes, Family Unity Plan
DIFFERENTIATION- AT&T’s exclusive agreement to market and sell the iPhone with Apple Corporation has differentiated itself from its competitors. Utilization of its vast spectrum to offer video conferencing service (video share).
NICHE- AT&T has not engaged in niche market.
NEWEST STRATEGY
AT&T is
If they are able to maintain the loyalty of most of their current customers, the companies will then have a shared amount of about 100 million customers. This potential customer volume for the merging companies would greatly outnumber the customer volume of the industry leaders, AT&T and Verizon. This kind of turnout would create greater competition between the two merging companies and the two leading companies (Sprint Wireless News, 2014). Although the outcomes seem promising for Sprint and T-Mobile, there are also potential negative effects of a merger that the companies should take into consideration. Current Sprint and T-Mobile customers have expressed their fear of the possible merger for multiple reasons. The two biggest worries for telecommunication services consumers is the potential for rising costs and a reduction in provider options (John, 2016). In making a final decision, the companies, as well as the Federal Communications Commission, should weigh the advantages and disadvantages of a
The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.
To summarize, AT&T has a very organized management team that is always planning new things for the company’s well being. The AT&T managers believe in happy employees and happy customers. The company offers great employee benefits and salaries and by doing this they keep the employees working for the company a longer length of time. AT&T realizes that the longer the employees are with the company the more educated they are about the products and services and about company regulations. In turn AT&T spends less money training new employees because the employees that are with the company stay with the company as long as possible. AT&T also manages to keep long lasting relationships with the customers with different things like bundles and by introducing
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.
Apple and Samsung are the two greatest organizations with an industry of the greater part the worldwide cell phone advertise. Consistently, both Apple and Samsung are getting new developments their mobiles, which extraordinarily expands their cell phone deals. Since there is though competition in the present world, Apple created a trend by introducing IPhone to the world, which is one of the best feature smartphone with high security. According to Business Insider, “Though apple is getting more profits and experiencing the first place in the market, then came the competitor Samsung, Samsung introduced the Galaxy S smartphone which made the apple market
AT&T Incorporation operates under the general telephony services. The company gears its main activities to bring up all its customers by offering revolutionary telephony services. The company offer revolutionary telephony solutions that range from smartphones to next-generation TV services. The company also offer sophisticated telephony solutions dedicated for multi-national businesses. The company
Among all the competitors AT&T is the biggest competitor of Verizon, Verizon acquired “Alltel wireless” in beginning of year 2009 to overtake AT&T and become the largest wireless mobile network company in U.S.
I. BACKGROUND: CelluComm and GMCT and the Industry AT&T’s Bell Laboratories cellular telephone networking innovation had enabled several cellular network operators to get licenses from the FCC to operate in separate license territories right about the same time AT&T was broken up in early 1980s. These operators were either companies like Cellular Communication Services, Inc. (CelluComm) or small entrepreneurs who had won license territories through the lottery system. CelluComm’s president and founder Ric Jenkins was known for being an aggressive businessman who had extended it to a 200 million dollar enterprise ranking in the top 20 of the industry. Key to
Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies.
AT&T has much strengths and weaknesses and threats as an organization. This SWOT will serve as a tool for identifying alternative strategies for the organization and help define a growth plan. AT&T is a corporate business, their global headquarters is located in Dallas Texas, and the current chief executive officer (CEO) is Randall L. Stephenson. For more than a century they have consistently provided innovative, reliable high quality products and services and excellent customer care. They are recognized as the leading provider of IP-based communications services and businesses. They’re also the top U.S. provider of wireless, high speed internet access, WIFI, local and long distance voice, and directory publishing and advertising services.
AT&T’s 3G network has recently seen a huge turnaround. In February 2010, AT&T landed a win in a new test of 3G performance in the US. AT&T had both the fastest average download speeds, at 1.4Mbps, and the fastest uploads, at 773Kbps. Both were major improvements and were as much as 84 percent faster than what was seen a year earlier. T-Mobile and Verizon were only periodically able to top 1Mbps while Sprint would only come close to the mark. (Sullivan 2010)
In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,
Over the next four years, AT&T took action to succeed in changing the environment. It invested 35 billion dollars upgrades to its infrastructure. By mid –2000 AT&T had evolving networks- data, broadband and wireless. IN January 2005, AT&T bought SBC for 16 billion dollars and this created the industry’s premier communications and networking company. And just recently AT&T has merged with Cingular to created even more ties to what you like.
As a consequence of the governments intervention, the AT&T lawsuit settlement, as well as the shift in the telecommunication industry, it was clear that AT&Ts local telecommunication business was slowly moving away from a monopoly franchise environment. It was moving towards a more competitive environment characterized with more consumer choice and greater competition. Companies such as IBM saw the divestiture of AT&T as an opportunity to provide new telecommunication equipment and services, which would allow them to gain a higher market share. AT&T's stock had up till then been regarded as a stable utility-type stock because of its steady growth and consistent dividend yield. However, AT&T should have kept in mind that they would not have as much market control in the future as they did prior the divestiture, much due to the intensifying competition and regulatory environment changes.
AT&T was broken up into the Bell companies in “1974 by the U.S. Department of Justice antitrust suit against the monopoly” (From Wikipedia, the free encyclopedia). Today AT&T has become a competitor vying for control of the telecommunications industry. “In monopolistic competition, there are many firms vying for control of one market. Each firm offers a different type of product, as opposed to perfect competition in which all offer the same product. Each firm, then, has a monopoly in the market of their own product”(Oracle ThinkQuest Education Foundation) AT&T in 1988 began purchasing stock in Sun Microsystems to begin its diversity in product services. Throughout the 90s AT&T continued purchasing more computer companies and cell phone companies to gain market share in the growing telecommunication industry (CyberStreet). Good pricing structures align with costs. AT&T Wireless realized that the marginal cost of a cellular minute was small compared to the cost of acquiring and maintaining customers. Their switch to a flat fee “One-Rate” plan was a huge success, stealing heavy users away from the competition. Prices increased for light users and many became hooked on the cellular lifestyle (Lake Partners Strategy Consultants, Inc. [LPSCI], 2001-2004). AT&T has seen that the ability to change quickly in the ever-evolving telecommunications market will help in gain market share. Its ability to see the value in keeping customers rather