Verizon Inc. Analysis Paper Example

Paper Type:  Case study
Pages:  7
Wordcount:  1777 Words
Date:  2022-06-06


Over the years telecommunications has undergone a lot of transformations from simple voice communication to the creation of space where data can be relayed throughout the globe within a split second. Given the necessity of communication, the use of cell phones has grown exponentially since 1984 when they were made available to the public. With this regard, the world has become a global village due to the elimination of physical boundaries of geography which allow people to interact freely in space and time. While information and communication technology continues to be an astounding changing force in the 21st century it is important to recognize Verizon Corporation, a leading company in wireless devices and technology.

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The partnership between NYNEX Corp. and Bell Atlantic Corp. in 1994 marked the beginning of Verizon wireless. In September 1999, Bell Atlantic and a UK based company known as Vodafone AirTouch PLC agreed on a proposal to a joint venture worth $70 billion dollars to create a new wireless service. While the business agreement was underway Bell Atlantic and GTE Corporation agreed to merge. In April 2000, both companies made it public that they would take the name Verizon and henceforth the Bell Atlantic and Vodafone wireless unit adopted the name Verizon Wireless. At the time Vodafone owned 45% of the ownership while Verizon communications retained 55% of the shareholdings. In June 2000, the United States' Federal Communications Commission approved the merger between Bell Atlantic and GTE thus creating one of the largest wireless company in the United States (Champion, 2008).

Since its establishment in 2000, Verizon has managed to acquire several wireless phone companies and assets across the U.S. In 2006, it managed to acquire West Virginia Wireless, Ramcell in 2007, SureWest Communications and Rural Cellular Corporation in 2008. In 2009, the company became the largest cellphone network in the U.S after finalizing its deal to buy Alltel. As of January 2016, Verizon Wireless' 4G LTE covered almost 98% of the entire United States.

SWOT Analysis

The SWOT analysis model identifies key internal factors (Strengths and weaknesses) as well as external factors (opportunities and threats) that are relevant to Verizon Company.


The company is very reputable in terms of network coverage and this has attracted over 100 million wireless subscribers. Verizon offers 4G network capabilities with faster peak speeds and great capacity compared to other networks. Additionally, the company provides services like digital television, fixed-line and broadband internet services, mobile telephony and network services. The organization has employed more than 170,000 workforces which have also allowed the company to reach out to over 150 countries. The Verizon brand presence has been boosted by the sponsorship of events as well as strong marketing. Also, being that the company is the largest wireless carrier in the United States it enjoys good brand recognition and global goodwill.


Increased competition from major players in the industry like Vodafone, Sprint Nextel, Deutsche Telkom and AT&T limits market share growth for Verizon. Low diversification is another weakness that increases Verizon wireless' exposure to market-based risks. For instance, because the company represents one of the largest revenue streams of wireless telecommunications there is high-risk exposure. The company's high cost of infrastructure also presents another weakness. Although it encourages high-quality services, the infrastructure incurs high costs of development and maintenance. As a result, the high cost hinders the company from competing on a price basis (Smithson, 2017). For instance, it is difficult for Verizon Wireless to lower prices to compete against the prices of competitors like AT&T. As such, Verizon's strategy for high quality presents some considerable weaknesses.


To address the corresponding weakness of low diversification the company needs to embrace business diversification. This opportunity entails development of new businesses or entering new markets and industries in order to spread risk while reducing overdependence on a single or few markets. For example, Verizon Inc. is highly dependent on the U.S telecommunications market. Regional acquisitions and international expansion can help the company grow. Strengthening network externalities is another opportunity that can impact positively on large consumer base. In this regard, the company can boost its services value by increasing its market share and customer base. A wide market share has the capability of encouraging more consumers to use Verizon's wireless telecommunication services.


Major competitors in the industry present a threat to Verizon through their aggressiveness and tactical strategies. Additionally, the United States market is saturated due to intense competition and this can decrease the company's market share. Government policies and Federal Communications Commission regulations are likely to affect Verizon's operations. Wireless offerings and Voice over Internet Protocol can lead to cannibalization. The company can also be affected by international operations such as economic instabilities, recession, conflicts, and war.

Evaluation of SWOT analysis

From the analysis, Verizon Inc. has significant strengths that encourage business stability and growth in the telecommunications market. However, the organization needs to address its critical weaknesses, opportunities, and threats present in the external environment. The results of the SWOT analysis are crucial for decision making and strategic development. Based on the external factors of the SWOT analysis the company should consider enhancing its network security measures, competitive advantage, and technological redundancy measures.

Corporate level strategy

The company's mission statement 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". This mission is critical because it reflects full and open commitment towards excellent communication between consumers, employees, and investors. Ideally, the value statement focuses on the company's fundamental belief such a prioritizing their clients, excellent performance, respect and accountability.

Verizon Inc. business strategy is critical to its corporate-level strategy. The "Shared Success" strategy of the company entails long-term goals aimed at enhancing literacy, energy conservation and improvement of delivery and healthcare security. Along with plans to improve health care for children and women the company also seeks to improve their financial performance. Additionally, Verizon Inc also plans to increase the adoption of technology in a classroom environment for the benefit of teachers and students. Increasing social sustainability is paramount to the sustainability of the business. If the company is able to grow successfully in the three areas definitely it will be able to sustain a healthy business.

Verizon Company follows the strategy of differentiation through excellent customer care and reliable wireless coverage. This has enabled the company to gain large market shares, increased profitability, and consumer satisfaction. Despite the company's high prices in comparison to their competitors, Verizon has ensured that consumers of their product receive quality services. A satisfied consumer means more customers and great profit growth.

Analyze Business Management Level Strategy

In making sure that the company is setting their services at the best price possible, it is clear that Verizon must examine the existing economic conditions. Generally, the state of the existing economy is a major factor in the existing industry. This is taking place since some of them are now perceiving Verizon's services and products as items which pertain to luxury and not as essential items in sustaining our daily life. Additionally, the current economic state has played a major factor in how Verizon is working on the general pricing of their products and services in general. Ideally, Verizon must focus on a continuous process of examining the current recession and the general rate of unemployment.

Considering the existing competition, Verizon's degree of rivalry with the competition is relatively higher as compared with other industries that are existing in the market. Some of the electronic communications for example voice, data, email and messaging are seriously growing at a faster rate more so in the smartphone and the cell segments. In the communication industry, competitors have made the switching cost so fair with hardware and contracts exclusive devices. For example, for one to switch from Verizon to other network, consumers would have to wait for their contract to expire or even to pay for breaking it.

Generally, it is important to purchase a new cellular device that is working on the network and spend some time to search for one who has the best prices in terms of meeting the general needs and negotiate a better contract for that service. Verizon has is identified to be having a low threat of substitute since the internet package and offers to make them competitors in email for example voice over Internet Protocol and instant messaging.

Verizon Wireless is making use of value chain analysis when it comes to gaining the general understanding of some parts of their operation that is creating value and those parts that are not contributing any value. This is important since they will start earning returns which are above average. A firm's value chain is segmented into support and primary activities with some of the primary activities that they perform are identified to form part and parcel of operations, inbound logistics, marketing and sales, customer service and after-sales services. All these are being monitored by various means(Hansell,2009). In the telecommunications industry, technology is recognized to be significant for any company to stay competitive.

Verizon is making use of global differentiation strategy as a good marketing tool so as to target a specific section of customers. The major aim is not to target all the clients but work on targeting specific groups of customers by making sure that high-quality service is offered with an improved data transmission rates. Due to an extraordinary performance, Verizon has been identified as one of the leaders in the telecommunication industry. With the company owning up to 55% of the general Verizon wireless, one joint venture with Vodaphone and serving up to ninety-four million clients who are surviving across the United States(Hansell,2009). Through the general performance, they are serving about a total of thirty-three percent of the United States of local phone population and it is owning a long haul network that is identified to be reaching many cities internationally.

When it comes to general marketing, Verizon is already playing a significant job with the company general marketing, though the company has a greater chance of enhancing their strategies. In terms of general advertisement, Verizon has in the past focused on making sure that their wireless service is effectively advertised with more of their products and services being advertised by through making use of television advertisement. One key benefit of Verizon is that when the comparison is made with the overall service that the company is offering, they have a greater advantage over their competitors is they have one of the best 4G experience. According to report raised by Christina, what comes out clearly is that Verizon 4G network has le...

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