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Business Strategy Case Study: Verizon

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Strategic Choice
Verizon is a part of an industry that is in a state of consistent change. Some of the key initiatives for Verizon to be successful are adapting to the constant changing market, as well as creating innovative products to stay at the forefront of the telecommunications industry. As well as being a leader in the industry, Verizon is focused on creating a loyal customer base. It does so by implementing a "Better Matters" mindset. Verizon also puts an emphasis on growth and sustainability, and how important it is to sustain growth year after year. In 2015, Verizon saw shifts in the industry, as well as demographics and technology advances. The world has been transitioning each year into more of a digital world where everything
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Instead the belief was that the company could rely on superior products and services to appeal to the growing demand of customers. Verizon also took great pride on providing customers with exemplary customer service. In addition to superior products, and great customer service, Verizon offers the highest network reliability, as well as innovative promotional product launches, and own the top spot in wireless services in terms of quality, and improved transmission rates of data. Verizon thought by offering all of this, the consumer would be willing to pay a little extra, to ensure they are taken care of. It was successful for a while until the competition started to become more and more aggressive. As of June 2014, AT&T had tied Verizon atop in terms of wireless subscribers in the U.S (Trefis, 2014). Companies like T-Mobile and AT&T which were already lower than Verizon were beginning to cut prices even more to compete. The competition felt that if their product was inferior to Verizon, they would have to lower rates to lure customers away from Verizon. To combat this Verizon implemented a way to promote its cost strategy by lowering data prices for each of the different wireless plans. So, although Verizon is not considered a cost leader it is always adapting to the consistent change in the…show more content…
If the focus was on being the cheapest and most affordable it could potentially destroy the competition and dominate market share. This would be one way to ensure Verizon as a cost leader. The difficult part for Verizon is that this strategy might not be the most profitable for the company. There is a reason Verizon has remained at the top while continuing to charge higher prices. We believe that if Verizon continues to offer promotional pricing on products and services they will find themselves inching farther away from the competition. Timing is everything and if Verizon offers these promotions when the competition is closing the gap it can capitalize from the cost leadership strategy implemented. For example, if Verizon managed to reduce costs by 3% they would create an all new demand for the product. Customers would be receiving the best products in its class for 3% less. This would improve cost leadership characteristics
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