Analysis of Verizon Communications 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. Internal Analysis: The IFE (Internal Factor Evaluation) matrix summarizes the major strengths and weaknesses of Verizon Communications. KEY INTERNAL FACTORS WEIGHTS RANKING SCORE Strengths 1. Employee satisfaction. .05 3 .15 2. Well positioned company. .15 3 .45 3. Increase in revenue and EPS. .10 3 .30 4. Offering fiber-optic lines. .20 4 .80 5. Largest directory publisher. .05 4 .20 Weaknesses 1. Not much emphasis on R&D. .05 3 .15 2. Not yet achieved its goal. .05 2 .10 3. Global coverage. .10 3 .30 4. Poor financial position. .20 4 .80 5. Technological competencies. .05 2 .10 TOTAL 1.00 3.35 Strengths 1. Verizon communications has announced salary raise and job security for their employees which will result into increase in employee morale (management). 2. Verizon serves 49 out of the top 50 markets in United States which implies that the company is well positioned among its competitors (marketing). 3. There is increase in the company's revenue and Earnings per share (EPS) which will attract investors to invest their money in the company (finance/accounting). 4. Verizon's plan to offer extended fiber-optic lines to homes and businesses will give the company competitive advantage against cable companies (production/operations). 5. Verizon Communications is the largest telephone directory publisher in the world. Weaknesses 1. Veri... ... middle of paper ... ...s an insignificant change in Avon's sale figures (finance/accounting). FINANCIAL RATIOS FINANCIAL RATIOS 2002 2001 Liquidity Ratios Current Ratios 1.03 1.29 Quick Ratios 0.72 0.87 Leverage Ratios Debt to Total Asset Ratio 1.03 1.02 Debt to Equity Ratio -27 -43.3 Long Term Debt To Equity Ratio 0.23 0.38 Times Interest Earned Ratio 16.06 9.7 Activity Ratios Inventory Turnover 10.03 9.72 Fixed Asset Turnover 3.98 3.84 Total Asset Turnover 1.85 1.87 Accounts Receivable Turnover Average Collection Period Profitibility Ratios Gross Profit Margin 0.14 0.12 Operating Profit Margin 0.13 0.11 Net Profit Margin 0.08 0.07 Return On Total Assets 0.16 0.13 Return On Stockholders' Equity 0.16 0.13 Earnings Per Share 2.26 1.87 Price-Earning Ratio Growth Ratios Sales 0.03 Net Income 0.2 Earnings Per Share 0.2 Dividend Per Share
Verizon Wireless cellular service is inelastic because the products and services it offers makes them the dominant leader in the wireless industry; therefore, a 10% change in calling plan prices (monthly access fees) would not affect the quantity demanded. Verizon Wireless can depend on this inelasticity in their pricing model because of the strength of its brand and the wealth of products and services it offers. Verizon Wireless' competitive advantage comes from its ultra-low churn rate (the percentage of customers who disconnect their service is less than one percent of its 60 million customer base). This indicator suggests that customers are satisfied with the service Verizon Wireless offers and a slight price increase probably would not drive its customers to the competition. This data also suggests that customers probably stay with Verizon Wireless because of its continued expansion of new technologies and services such as its all-digital nationwide CDMA network, EVDO' or its advanced data network (used to wireless send and receive email and other data almost anywhere in the US), and VoIP (Voice over Internet Protocol) that they use for their Push to Talk products. Verizon Wireless markets to a nearly all demographics nationwide and most of its services are offered in the smaller rural markets as a direct result of the one billion dollars per quarter it spends on improving its network as well as acquiring smaller wireless networks to make their nationwide network stronger and larger.
According to cnet.com, “AT&T and Verizon combined control more than 70 percent of the wireless market.” This means that these two phone companies are the peoples favorite everywhere. As of 2012, Verizon had 111.3 million customers and AT&T had 105.2 million customers. That makes a 6.1 million difference between the companies customers. Telling people that majority of the 70 percent wireless market control are Verizon users. On the Verizon website it says that they “Cover over 97% of Americans.” This shows that most people prefer Verizon because of how great it is to have. Having Verizon gives people LTE everywhere meaning that your phone will work faster on the internet than other phone companies. Only Verizon’s 4G network is 100% LTE. That is what makes them different than
In our internal analysis of the merger between Comcast Corporation and Time Warner Cable (TWC) we looked at the internal strengths and weaknesses of the acquired company. By analyzing these strengths and weaknesses we determined that Comcast Corp. proposal to acquire TWC will have potential benefits. Comcast Corporation is already a giant, owning the nation’s largest cable distribution network and TWC is the second largest cable distributor serving roughly 12 million households. A combination of the two companies is said to generate multiple pro-consumer and pro-competitive benefits (Grimes 1).
The mission that Verizon Wireless pursues is as a leader in communications, Verizon's mission is 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. That’s just the beginning on their home page. Verizon has other values like customers first because they are ultimately the people that make them. Integrity always at the heart of everything they do. Respect is the critical component at every level of business. Performance Excellent Verizon holds itself to high standard of performance. Accountability holds each other responsible. “Great Companies are judged by what they do, not by what they say” Verizon Wireless
In conclusion, current trends and significant events concerning T-Mobile were examined. A hard look was given to the economy, demographics, technology, political and legal issues, and social characteristics. T-Mobile is strong across the board, with surprising statistics backing up a variety of topics. The economy is strong, the demographics are not far-fetched, technology is improving, there’s no huge political or legal scandal, and T-Mobile is socially strong.
...ies Sprint can also merge with Comcast and start their dish network capabilities. This would really attract them to other customers and cover more ground in service. They have to improve their customer service which is the number one issue they had for ears. So training employees to have exceptional customer service will help them in the long run to keep their customers.
The article “Verizon is Creating a Culture That Focuses on Shareholder Value,” that is written by Kinicki and Williams (2013) discusses the company’s [Verizon] desire to bestow their direct attention on culture toward the value of their shareholders (pp. 257-258). Through the importance of employee training guidelines, Verizon’s primary goal in business is to form a structure within the company that will benefit the business in becoming an exemplary industry among their competitors in the world of technology (Kinicki & Williams, 2013).
The company that I have chosen is Comcast Cable Company. Currently, Comcast is the leader in the home entertainment industry. Comcast offers their customer's: cable television, internet service, home phone service, television screaming app, home security, and mobile service. The company is working to compete with AT&T/ Direct TV, Dish Network, Hulu, Netflix and sling Tv. The competitors do offer cheaper service, but Comcast is known mostly for its great internet service. Xfinity Instant TV and Xfinity Mobile are the newest product that has been launched by Comcast. Xfinity Mobile has two phone plans, and you must have Xfinity internet service. Xfinity Mobile plans are: By the Gig data and Unlimited data. The By the
Verizon hit a spot in the top ten five times throughout six years, and then they became number one on the “Training Top 125” in 2012 (Kinicki & Williams, 2013, p. 257). Even with the flat training budget and a work stoppage, Verizon stayed focused on its commitment to efficient training that is linked with corporates strategic goals that circle the proper training. The three main goals for Verizon for 2011, was going to be the key to culture change for the company’s fulfillment of Leading for Shareholder Value (LSV) (Kinicki & Williams, 2013, p. 257).
Global ethical issues for Verizon would be global ethical risks, antitrust activity, internet security and privacy, issues with compensation and labor and the right to work. The global ethical risks that Verizon could encounter are the instability of working with foreign markets. The foreign market could have an unstable economy, social unrest or political instability.
The world is experiencing a communications revolution. The Internet, e-Commerce and other developments (including the convergence of communication technologies) are profoundly reshaping economic and social life. AT&T must position itself to meet the challenge of this revolution. The strategic development of information-based industries is a key to the future social and economic development of the world.
Verizon continues to undergo restructuring and consolidation that benefits both the company and its customers. This enterprise wide perspective brings Verizon to Stage 4 making them a true analytic company. The customer experience is improved
The following report will analyse Vodafone and their current position in the international market. This report will cover the competitive strategy of Vodafone and their influence of products and services in relation to the demand of the market.
Channel Exposure- AT&T is adequate in its point of sales. They intend to match most competitors in using Radio Shack, BEST Buy, Walmart, Mall locations, high visible real estate traffic.
Telecom industry now becomes very attractive in terms of mergers and acquisitions. Telecom industry now a days is the fastest growing industry all over the world. In this industry deals with several types of communication medium like fixed line phones, mobile phones ,internet and broad band services .Through mergers and acquisition domestic telecommunication cut down their expenses and they achieve greater market share. Many Telecommunication service provider take mergers and acquisition for growing globally. In the telecommunication sector the growth of mergers and acquisition boosted by the private sector investment and FDI.