Gap Analysis: Global Communications

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Telecommunications companies are under tremendous pressure to compete with the masses and maintain profitability. Confidence in the telecommunication industry on Wall Street is waning. Shareholders have lost confidence in diminishing returns and question the industry's ability to rebound. Global Communication has definitely had their share of dissipating returns. In the past three years, the company has watched stocks trade from a high of $28 per share to an alarming $11 per share, which is more than a 50% depreciation. The problem with the telecommunication industry is that there is too much competition among local, long-distance, and international markets. They all are competing for the same business, but with different services and options. Cable companies have taken the lead by offering complete solutions that encompass computers, televisions, and plain old telephone service (POT). In addition, the impact of entering into the international market has yield mixed results in the industry. Global Communication senior leadership team has developed a two-pronged aggressive approach to become more competitive with local telephone and cable company. First, the company plans to focus their new strategy on small business and consumer customers. The plan will increase the company's growth by offering new services in both the local and long-distance market across country. To facilitate this growth, Global will create alliances with a satellite provider to offer video and broadband services. Global will also partnership with a wireless provider to offer small business owners with internet access using wireless telephone or PC cards. Second, the team has identified cost-cutting measures that will improve profitability. The team plans to market Global on an international level with the goal of becoming a global resource with this aggressive approach. Situation Analysis Issue and Opportunity Identification Global Communication and other telecommunication companies are under tremendous pressure due to the abundance of competition amongst local, long-distance, and international markets. In fact, Global stocks have dropped an alarming 50% over the past three years. In order to be competitive, Global has to update their current hardware and services to meet the demands of the market. If not, cable companies will continue to saturate the market by offering complete solutions that encompass computers, televisions, and plain old telephone service (POT). Global's primary focus in the local market has caused major financial pressures for the company to the point where the company's revenue and profits are impacted.

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