AT&T Wireless: Business Analysis AT&T has been a growing company for more than a century. Their mission is to connect people with their world; everywhere they live and work, and do it better than anyone else (AT&T website). Careful analysis of the organization’s strengths, weaknesses, opportunities, and threats will provide a forecast of the likeliness of the company living up to their mission. Looking at the organizations past and current performance it would be difficult to say if the company can and will live up to such an ambitious mission and whether investing in this company is a sound decision.
SWOT Analysis
Strengths
AT&T has many strengths that have made placed it number 12 in the Fortune 500 ranking. Its
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Threats The telecommunications market is an ever-growing market that provides newer and faster technology constantly, which is why the biggest threat to AT&T are the aggressive competition in the wireless services are and the emerging technology they bring. They have lost exclusivity of the iPhone. Not only is AT&T threatened by the market but also by the damage that natural disasters and severe weather can cause to equipment that is crucial to provide services.
Stakeholders
AT&T’s internal and external stakeholders have different wants and needs. AT&T strives to meet them all but making everyone happy all the time is not always possible. All stakeholders are important to a company and could potentially damage the company’s standing. Customers are one of the most important stakeholders because if they develop a negative perception of the company or its products, its sales and profits assuredly will decline (Encyclopedia of Business). The customers are in need of smartphones and wireless services that allow them to keep up to date in today’s fast paced business world. Therefore, AT&T is working on merging with T-Mobile in order to offer uncongested wireless services. Furthermore they are meeting a customer need and contributing to society with their new Drive Mode application that will prevent people to be distracted with the phone while
If they are able to maintain the loyalty of most of their current customers, the companies will then have a shared amount of about 100 million customers. This potential customer volume for the merging companies would greatly outnumber the customer volume of the industry leaders, AT&T and Verizon. This kind of turnout would create greater competition between the two merging companies and the two leading companies (Sprint Wireless News, 2014). Although the outcomes seem promising for Sprint and T-Mobile, there are also potential negative effects of a merger that the companies should take into consideration. Current Sprint and T-Mobile customers have expressed their fear of the possible merger for multiple reasons. The two biggest worries for telecommunication services consumers is the potential for rising costs and a reduction in provider options (John, 2016). In making a final decision, the companies, as well as the Federal Communications Commission, should weigh the advantages and disadvantages of a
Two opportunities presented to USAA are to expand the number of physical locations both domestically and nationally and to provide additional services to programs already being used. Two
The two segments of the general environment that rank highest in their influence on Verizon are technological environment and the social environment. Though the telecommunications industry is heavily regulated, government has an interest in maintaining if not strengthening infrastructure, so tends to not be a major burden. Additionally, regulations apply to all players in the industry, so do not affect Verizon to a degree higher or lower than competitors. The economic environment does affect earnings potential, but for more consumers telecommunications services are not a discretionary purchase, to fluctuations are not strong. Verizon's beta of 0.51 reflects the stability of its revenue streams against the business cycle. The legal environment is complex, but does not have nearly the same effect on Verizon as the other aspects.
AT&T Incorporation operates under the general telephony services. The company gears its main activities to bring up all its customers by offering revolutionary telephony services. The company offer revolutionary telephony solutions that range from smartphones to next-generation TV services. The company also offer sophisticated telephony solutions dedicated for multi-national businesses. The company
Verizon Communications is not well placed against its competitors like AT&T who offer services using technologies like TDMA (time division multiple access) (production).
AT&T has much strengths and weaknesses and threats as an organization. This SWOT will serve as a tool for identifying alternative strategies for the organization and help define a growth plan. AT&T is a corporate business, their global headquarters is located in Dallas Texas, and the current chief executive officer (CEO) is Randall L. Stephenson. For more than a century they have consistently provided innovative, reliable high quality products and services and excellent customer care. They are recognized as the leading provider of IP-based communications services and businesses. They’re also the top U.S. provider of wireless, high speed internet access, WIFI, local and long distance voice, and directory publishing and advertising services.
This organization encourages the development of a comprehensive work environment where all employees are respected and can achieve at their fullest potential. AT&T has a very strong culture and their values are not only shared with management, but by all employees. While mergers are known to affect an organization’s culture, AT & T has proven success with at least three mergers. In October of 2004 AT&T completed a merger with Cingular to become AT&T wireless. In November of 2005, SBC and AT&T finalized their union and with that AT&T Corporation became AT&T Incorporated. The organization became the largest phone company in the United States when they acquired SBC, serving 13 states in the western and southwestern part of the U.S. Their latest acquisition came in Mar of 2006 when Bellsouth was purchased ("AT&T Inc." Notable Corporate Chronologies Online Version, 2006). With the merger of Bellsouth, AT&T picked up another nine states in the Southeast to provide available service in a total of 22 states (Reardon, 2006). The merger of AT&T and BellSouth, along with the consolidation of Cingular Wireless, will continue advancement in the communications and entertainment industry, where they will continue to invent new resolutions for consumers and businesses. These accomplishments prove that AT&T has a successful organizational culture.
AT&T is a leader in telecommunication services, including cell phones, wireless, U-verse, digital TV, high speed internet, DSL, and home phone. AT&T currently employs over 280,000 people worldwide. AT&T is now ranked #7 on Fortune 500 list, where its main competitor, Verizon, is listed as #13. Headquartered in Dallas, Texas, AT&T Inc is the largest U.S. local and long distance phone service provider and second largest wireless service provider, with over 87.0 million wireless customers. AT&T was created in 2005 after SBC Communications acquired AT&T Corp.
The telecommunications industry is a multi-billion dollar industry worldwide. The key success factors in this industry are hard to pin point, because they vary from having the right amount of money to having the right amount of customers. This industry is a very expensive industry to do research and development in. Besides the money required for R&D the companies in this business have to spend tremendous amount of capital on advertising and consumer awareness. The services provided by the different competitors in this industry are essentially the same but with very different reputations. AOL spends millions of dollars every year to send free trial C.D., in order to gain customer awareness. Which in turn shows the results as being very successful, making AOL the largest internet-service provider in the United States.
Over the next four years, AT&T took action to succeed in changing the environment. It invested 35 billion dollars upgrades to its infrastructure. By mid –2000 AT&T had evolving networks- data, broadband and wireless. IN January 2005, AT&T bought SBC for 16 billion dollars and this created the industry’s premier communications and networking company. And just recently AT&T has merged with Cingular to created even more ties to what you like.
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Firstly, the antitrust lawsuit followed by a sudden divestiture could cause uncertainties towards the company’s future and might change the shareholders perception of AT&T in an unfortunate way.
One night in 1981, Jeff Munks, a police office in San Jose, CA responded to an urgent call and arrived at a residence where a Vietnamese immigrant who spoke no English was screaming and waving his arms agitatedly. Next to him, his son was having trouble breathing. After Jeff guessed what had been happening and immediately called for an ambulance, he kept thinking about emergency situations where danger is exacerbated because of a language barrier. This resulted in Telephone Interpretation being offered since that year. This service connects trained interpreters via telephone to Limited English Proficient (LEP) Individuals. Cyracom International is one of those companies that provide critical
AT&T Inc. is the largest provider of wireless telecommunication services in the united states of fixed telephone and the second largest of mobile telephones. This makes the company, a multinational telecommunication corporation in the USA.
AT&T was broken up into the Bell companies in “1974 by the U.S. Department of Justice antitrust suit against the monopoly” (From Wikipedia, the free encyclopedia). Today AT&T has become a competitor vying for control of the telecommunications industry. “In monopolistic competition, there are many firms vying for control of one market. Each firm offers a different type of product, as opposed to perfect competition in which all offer the same product. Each firm, then, has a monopoly in the market of their own product”(Oracle ThinkQuest Education Foundation) AT&T in 1988 began purchasing stock in Sun Microsystems to begin its diversity in product services. Throughout the 90s AT&T continued purchasing more computer companies and cell phone companies to gain market share in the growing telecommunication industry (CyberStreet). Good pricing structures align with costs. AT&T Wireless realized that the marginal cost of a cellular minute was small compared to the cost of acquiring and maintaining customers. Their switch to a flat fee “One-Rate” plan was a huge success, stealing heavy users away from the competition. Prices increased for light users and many became hooked on the cellular lifestyle (Lake Partners Strategy Consultants, Inc. [LPSCI], 2001-2004). AT&T has seen that the ability to change quickly in the ever-evolving telecommunications market will help in gain market share. Its ability to see the value in keeping customers rather