Verizon Communications Competitive Strategy

Document Type:Essay

Subject Area:Management

Document 1

For instance, GTE was the leading global telecommunication company with a revenue of more than $25 billion in 1999 and around 36 million access lines that were served throughout its subsidiaries domiciled in Canada, United States, the Dominican Republic as well as affiliates in Venezuela, and Puerto Rico (Verizon Fios Internet, TV, Phone | Verizon Official Site. N. p. , n. d. The government has substantively invested in the technological infrastructural development together with the creation of free public Wi-Fi hotspots that support the usage of their devices in the market. Economic The economic environment is pivotal for the establishment of exponential growth by having market segments with a purchasing power together with offering an avenue that lowers the factors of production. The increase in the disposable incomes among developing countries asserts a substantive boost for the markets to have the resources that will seek to influence the desire on spending for the Verizon products.

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The developing countries high economic growth rates have significantly created opportunities for Verizon communications growth strategy across several market niches (Oliveira & Martins, 2010). Social The social-cultural trends are an essential component that defines the trajectory of the consumers' behavior, attitude, and actions towards the consumption of a given product. Legal The Anti-Trust laws equally deny the organization to seek mergers that would offer the development of a system that supports the establishment of a monopoly through taking advantage of synergies. Increased telecommunication legislation that offers more regulation inhibits the freedom to seek new frontiers making business growth a challenging experience (Fernandez-Feijoo, Romero & Ruiz, 2014). The increased consumer protection eliminates bad business practices by firms hence asserting consumer confidence in the product. Political Economic Social -Government Policy to open markets -Government development of IT infrastructure -Provision of Wi-Fi Hotspots -Availability of disposable income in developing countries -Economic Growth in developing countries -Declining information asymmetry -Enhanced use of mobile devices -Growth of interest on online social platforms using mobile devices -Consumer demand for quality products Technological Environmental Legal -Improved information communication networks -Threat to the security of the ICT infrastructure -Technological advancement influencing uptake of mobile devices -Calamities destruction of the IT infrastructure -Existence of steps requiring the uptake of renewable energy -Improved promotion on business sustainability -Existence of Anti-Trust Laws -Enhanced consumer protection regulations.

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Verizon Porter’s Five Forces Analysis Industry Competitive Rivalry The strongest horizontal threat for Verizon hails from the competitive environment of the industry and substitute. Similarly, companies venturing into the telecommunication industry have to comply with complex government regulations. Besides, building a brand name that can compete with the giants in the wireless industry is not easy considering Verizon has been in existence since the emergence of the industry and has managed to create a strong brand. Bargaining power of Suppliers The company’s suppliers exist and operate on low bargaining power framework thus does not threaten the competitiveness of the organization. Verizon works with their suppliers to facilitate the development of the network infrastructure and elements that provide raw materials for the manufacture of items (Basch 2010).

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There are numerous suppliers in which the company can choose from, and there are no large companies like Verizon with whom the suppliers would opt to do business with. Recommendations to Management The recommendation to management includes the need to improve the value chain as a differentiation strategy to root out competitive pressure. Verizon needs to have an effective inventory control to ensure they meet the customers' demand. The company keeps track of the merchandise coming into and leaving the stores by the use of barcodes. It also uses customer surveys and secret shoppers to determine exactly what their customers want and feel about the company's services. Billing and collecting are the most significant operations at Verizon. The research will provide leadership in the industry through the development of products and services that resonate with the consumer expectations.

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Verizon should effectively work on the security threats posed by the telecommunication industry growth to improve the consumer confidence in their products. The organization has a strong brand name that would be significantly improved by a market perception of the product addressing the fears of consumers hence increasing the reliance on the product. Verizon has brand name awareness (Basch 2010). It boasts of extensive mobile telecommunication network coverage and stands out as an unbeatable wireless phone supplier across different markets. " Verizon Fios Internet, TV, Phone | Verizon Official Site. N. p. , n. d. https://www. springer. com/la/book/9783319673790 Basch, B. 100G coherent trials and deployments: Verizon plans and perspective.  36th European Conference and Exhibition on Optical Communication. emeraldinsight. com/doi/abs/10. 1108/14601061211192825?mobileUi=0&journalCode=ejim Chen, S.

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