Swot Analysis Of Verizon

As of late 2004, Verizon is already considered the world's largest telecommunication company with annual revenue of $67.8 billion. Their continued plans are leading toward acquisition and development of fiber technology, which will allow it to offer cable TV services. Apparently they are still apprehensive regarding business customer and plan to extend add-ons again into the private sector, which worked for them in 2003.

According to the researchers the increased value results from an opportunity to utilize a specialized resources which arises solely as a result of the merger (Jensens & Ruback, 1983; Bradle, Desai and Kim , 1983). For creating operational and financial synergies managers believe that two enterprises will be worth more if merged than if operates as two separate entities. Thus, the two companies, A and B:

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.

Through expansion, technological improvements and more investment leading to continuous network and product upgrade, should lead Verizon to better compete in international services. With emerging competition from countries like China, it is a matter of survival to act or not.

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

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 internal strengths are to have strong market positions, strong business, and ultra-fast FiOS internet connections. Verizon is the known as one of the largest providers of wireless and broadband, so having a strong market positions are crucial. Verizon’s company has four business segments that generates more than $71 billion in revenue. With new technology and software updates, Verizon came up with the Ultra-fast FiOS Internet Connection, which operated from a fiber optic communication network. Verizon FiOS released the newest version called the FiOS Quantum which has a faster

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

Through this idea of “growth” and collaboration with other industries to provide optimal service, Verizon has expanded its products and services in the following areas:

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.

The Verizon Communication Company deals with the sale of products like mobile and fixed telephone and offers broadband wireless internet services in America. It was founded in 1984 as Bell Atlantic and later changed the name to Verizon Company after merging with GTE in 2000 (Sbeit, 2008).

The nature of change being witnessed in the contemporary business environment has made mergers and acquisitions a common feature. In the context of mergers, some two or more companies engage in negotiations and start to operate as a single entity. On the other hand, in acquisitions, one large firm acquires a smaller company. While on paper, these two components, both mergers, and acquisitions, may appear straightforward; the gist of the issue is that there is significant complexity associated with both measures.

In analyzing Verizon's strengths, it is apparent that they have strong brand recognition in the market and industry. They are not only the leader in market share for wireless presence in the U.S., they were also ranked at the top for branding and customer loyalty in the wireless phone category and received the 2005 BrandWeek Customer Loyalty Award as a result (Verizon Customer Satisfaction – Award & Recognition, 2005). In addition to strong brand recognition, Verizon is ranked the