Market Research: Verizon Wireless Industry

Currently, per an article on IDG New Service, Verizon has weathered the storms of a few years ago and is acquiring MCI in a deal that is valued at $6.7 billion. They feel this investment will allow them to grow into a position that will make them have a strong portion of the market share for communications and should give them a wider market base globally. They should acquire advanced broadband technology and services which should put them into a better position to serve a larger base of business and government customers, which was their goal several years ago. However, they face their nemesis of governmental involvement, this time through getting regulatory approval, which could take until 2006 to be achieved. Another reason Verizon has made this aggressive buy out is that their direct competitor, SBC is trying to acquire AT&T to grow in much the same way. They must feel that it is worth the expense to hold their market share globally.

Marketing research is very important component of a business used to identify and define the opportunities and problems that they will encounter on the market. The aim

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.

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.

Before launching or expanding a business venture, there needs to be an understanding of the industry, its competitors, and its customers. Market research is vital in assisting companies in the decision-making process and their marketing direction. Data from marketing research is important because it provides companies with ways to identify opportunities, identify market potential, minimize chances of loss, devise effective marketing strategies, gauge customer satisfaction, and serve as an evaluation tool.

The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies

Market research is utilized by companies to make the right decisions when it comes to

In the proposal for Option 3, we significantly decreased our costs, allowing Virgin to slightly lower the price while maintaining a high margin. Because Virgin can buy its handsets at a cheaper basis than their competitors, they can lower the relative handset subsidy while still offering the handset to customers at $50, which is lower than the industry average. Furthermore, “other charges” (hidden fees) will be reduced from $12 to $5, eliminating all fees except taxes and those necessary for operation. We will be able to reduce the cost/minute to $0.18 and will add unlimited text messages for $5 - no on-peak, off-peak times or overage costs. This factor will help Verizon tap into the younger markets by offering straightforward plans at a slightly lower cost, flexibility in contracts, with the benefits of hip apps included in the service. Customer lifetime value would reach $926.90 for those with contracts, $274.29 for those without contracts; and breakeven would be reduced to 5 months.

What is Market Research? When you collect and identify data (qualitative data and quantiative) about customers, the market and competitors.

Verizon Wireless Communications is a wireless telecommunication company. It was formed in June of 2000 with the merger of Bell Atlantic Corporation and GTE Corporation. It is known as America’s first nationwide 3G wireless broadband network and serves more of the United States population than its competitors. Verizon operates two segments of business, Domestic Wireless: wireless voice, data services, plus equipment sales to United States customers and Wireline: voice, Internet access, broadband video and data, Internet protocol (IP) network services, network access, and long distance to the United States and 150 additional companies. Verizon Wireless was one of the first tier-one wireless companies to build and operate a 4G LTE network. The 4G LTE allows their customers access the internet and stream media quickly. According to Verizon’s Data Sheet, “Verizon is s global IP leader, operating one of the world’s most connected public internet backbone networks, delivering solutions that let customers securely connect, communicate and collaborate around globe” (Verizon, 2015). 4G LTE is the fastest and most efficient service available placing Verizon and AT&T in strong positions because their 4G LTE technology covers the two highest portions of the US population in the industry

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 wireless is one the top premier phone service in the United States. Formed in June of 2000, Verizon wireless was created by the merger of two major companies, Bell Atlantic and GTE. Now as one of the leading phone services in the United States, Verizon wireless consists of over 28 million customers; 63 million phone lines, and coverage in 67 of the countries’ major cities. A little over a year later, Verizon went international, creating deals that would eventually lead the company to operating in 40 different countries, creating an extra 27.5 million in customers and over $65 billion in annual revenue. As Verizon continues to grow and look towards advancing into the future, it plans to spend

1. Mission, vision, and primary stakeholders Verizon's corporate mission statement is published in the introduction to the 2010 report, "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" (Verizon, 2011a, p. i.). This conveniently outlines the primary stakeholders, with customers owning the service delivered through contracts they commit to, employees obviously having a stake in compensation, benefits and retirement, and investors including institutions as well as individuals. Other stakeholders include the general public who benefit from corporate giving and responsibility, and the suppliers and distributors, their shareholders and employees who earn profit and wages generated directly and indirectly as part of the Verizon value chain, and perhaps the taxpayers who enjoy public services from direct and indirect (capital gains) taxes thereby.

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

     In today’s telecommunication market there is a lot of competition by industry giants such as Sprint,