AT&T: Strengths, Weaknesses, Threats, & Opportunities - Essay Sample

Introduction

AT&T is a premium holding company that deals with telecommunication and electronic devices, such as mobile phones, providing internet solutions to most consumers in America. The company provides worldwide, international network facilities to different industries in over fifty nations via the AT&T global network. AT&T contemplates network and information security to be a keystone of the amenities that it provides to global clients. The paper will explain the Strengths, Weakness, Threats, and Opportunities of the AT&T company.

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Strengths of the AT&T Company

First, the firm prides itself as global leading telecommunication firm. As of last year, it was ranked number 9 in the Fortune 500 companies (AT&T, 2016). Secondly, the firm establishes its brand value through Community Social Responsibility (CSR) projects (AT&T, 2016). For example, helping residents turn their food scraps into usable garden soil for farming. The company also has valuable assets that distinguish them from their rivals, such as Asset Management Operations Center (AMOC) which helps them to track the location and movement of high-value shipments. AT&T also has strong R&D facilities, like state of art laboratories to help them incorporate technological aspects into its products and services (AT&T, 2019). The firm is also known as a global provider of Pay Tv services. AT&T has also expanded into foreign markets to tap on oversees clients, thereby widening their revenue. The firm also provides flawless solutions for business, business clients from large companies to startup businesses (AT&T, 2016). AT&T has a strong set of steadfast sellers of raw materials, therefore qualifying the firm to deal with future supply chain bottlenecks (AT&T, 2016). They also have increased level of client gratification with devoted customer relationship management (CRM). The firm also enjoys nice returns on capital spending through implementation of new plans. AT&T also has a sturdy free cash flow that helps them to expand on new projects.

The Weakness of the AT&T Company

The first weakness is great wear and tear rate in employees and spends a lot on training and development that the workers. Secondly, there are great niches in the brand variety vended by firm, and it gives close players with a greater advantage on the market (Fern Fort University n.d). Thirdly, the firm often spends more capital to invest in inventory due to strong competition in the sector. Fourth, they have not been able to address the encounters posed by the new companies in the technological sector (Fern Fort University n.d). Five, the firm has not been successful at merging different firms with diverse work culture. Six, even though they embrace R&D during product development it is still below the threshold in the fast-growing internet world (Fern Fort University n.d). Finally, the firm has a weak position against the main global telecommunication companies such as T-horizon, etc (Fern Fort University n.d).

Opportunities

First, the company is in a strong position to open up new markets after striking a free trade pact by the government. Second, the new ecological policies will establish a firm grown for all firms in the industry to develop new products (AT&T, 2016). Third, plummeting cost of transportation due to lower shipping rates will also reduce the cost of AT&T products, thereby attracting more clients (AT&T, 2016). Fourth, the market development will cause dilution of rival's advantage and assist AT&T to augment its competitive edge. Finally, economic growth, and an increase in consumer expenditure, after years of slow growth rate will help the firm attract new clients and augment its market share (Fern Fort University n.d).

Threats

First, the firm faces the threat of augmenting cost of raw material, which could be detrimental to its profitability index. Second, lack of sufficient workforce poses a great danger to their steady profit and revenue growth (Fern Fort University n.d). Third, due to diverse regulations, the firm can face lawsuits from the clients. Fourth, the company is not strong enough to withstand the intense competition caused by strong competitors in the telecommunications market (Fern Fort University n.d). Five, new laws under the Paris Agreement (2016) could be a threat to the current merchandise type (Fern Fort University n.d). Finally, augmenting pay level, mainly activities such as $14 an hour, and growing prices in the Chinese market can bring uncertainty on the profitability of the firm (Fern Fort University n.d).

Conclusion

In conclusion, the paper has analyzed the Strengths, Weakness, Threats, and Opportunities of the AT&T company. SWOT analysis provides a comprehensive outlook of how the firm is in the market in comparison to its competitors. It can be used by potential investors to understand the nature of the company better.

References

AT&T. (2016). The Report is in: Differences are Vital to Business at AT&T. Retrieved from: https://about.att.com/newsroom/report_highlights_att_diversity_inclusion_success.html

AT&T. (2019). AT&T Inc. Fundamental Company Report Including Financial SWOT, Competitors, and Industrial Analysis. Retrieved from: https://pdf.marketpublishers.com/bac_swot/att_inc_swot_analysis_bac.pdf

Fern Fort University. AT&T SWOT Analysis. Retrieved from: http://fernfortuniversity.com/term-papers/swot/1433/10-at-t.php