Swot Analysis Of Verizon

Decent Essays

Product Differentiation
Verizon provides broadband and telecommunications services as well as wireless technology to millions of customers around the world. There are many different competitive strategies that the company can implement to further expand its market share within the industry. There are a few key factors that make up the market structure; barriers to entry, competing firms, and the degree of differentiation of products/ services. Verizon offers services that are needed in most households. Verizon operates as an oligopoly, where it only has a few major competitors and the number of customers is tremendously high (Octotutor, 2014). The barriers to entry are also very high because, to offer a reliable telecommunications services …show more content…

It faces potential price competition from Sprint, AT&T, and T-Mobile which could diminish Verizon’s market share. However, each of the competitors are limited by the amount of time they can cut prices. This means that if a competitor continued to offer reduced rates than Verizon would eventually drown them based on the different variables discussed earlier. Therefore, when companies like Sprint and AT&T offer huge promotions they only offer them for limited times only. Verizon’s network continuously surpasses the competition in terms of coverage and reliability. Making Verizon the most sought after telecommunications company. On top of all that Verizon offers different types of plans to meet each type of demographic, and target …show more content…

Technology is constantly becoming more advanced, and the consumer always wants more. Verizon is always up to the task and continuously innovates successfully. Verizon introduced the Edge Plan in 2013 to aid customers in upgrading their handsets without waiting extended periods of time or having to pay a high upfront cost (Trefis, 2014). This allowed customers to upgrade their phones after only paying 50% of the retail cost within 18 months. This gave Verizon yet another perk to compete with the other carriers. Verizon continues to sustain the top spot in reliability; from 3g came 4g and in the future, will come 5g reliability, cementing their quality of excellence. Verizon is leading the pack in terms of coverage across the country at 99%. The past three years 4G LTE has been the focus for Verizon in terms of expansion and marketing. The world has become dependent on technology and Verizon is at the forefront of it all. Offering new and innovative products and services, Verizon can constantly stay ahead of the

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