Business Examination of Verizon
Purpose
This project is the second of four projects. It also represents the second part of the external environmental analysis part of a strategic management plan. You will use the tools and apply concepts learned in this and previous business courses to demonstrate an understanding of how organizations develop and manage strategies to establish, safeguard and sustain their competitive position in the 21st century (rapidly evolving/shifting/changing), uncertain hyper-competitive business environment.
Monitoring competitors’ performance is a key aspect of performing an external environment analysis. This project provides you with the opportunity to evaluate the competitive position of your assigned company and integrate that information in a partial SWOT (OT), Porter's Five Forces, External Factor Evaluation (EFE) matrix, and Competitive Profile Matrices (CPM).
In this project, you are presenting a report document. The expectation is that the report provides details to help the audience grasp the main topics and to understand and complete the External Environmental Analysis.
"Analysis" is the operative word. In analyzing the external environment, you are expected to thoroughly research the company. As part of this effort, you will need to take that research and break it into small parts to understand better what is happening in the external environment of the business. In researching an industry, it is important to understand that every company within an industry is different, so gathering information on one company does not mean that the collected information is relevant to other companies. When researching, parsing the material is critical to an accurate analysis. Avoid presenting just any information as that may lead to using irrelevant information.
You will then write the report in your own words to share the external analysis. You are expected to present information and support the ideas and reasoning using the course material and your research. You will not lift any information from source documents without properly citing and referencing. For the technical analysis aspect of the project, you must create the technique on your own and may not use any source material that you happen to find. No work from a clearinghouse or similar website may be used or cited as a credible source.
Outcomes Met With This Project
Utilize a set of useful analytical skills, tools, and techniques for analyzing a company strategically;
Integrate ideas, concepts, and theories from previously taken functional courses including accounting, finance, market, business, and human resource management;
Analyze and synthesize strengths, weaknesses, opportunities, and threats (SWOT) to generate, prioritize, and implement alternative strategies to revise a current plan or write a new plan and present a strategic plan.
Instructions
Step 1 Specific Company for All Four Projects
The company that your Instructor has assigned to you for Project 1 is the company you will use for this project (VERIZON). The assigned company must be used for this project and in subsequent projects in the course. Students must complete the project using the assigned company. Deviating from the assigned company will result in a zero for the project.
After reading the course material, you will complete the steps below.
Step 2 Course Materials and Research
You must research information about the focal company and the environment for this project. You are accountable for using the course materials to support the ideas, reasoning, and conclusions made. Using course material extends beyond defining terms—the 'why and how' of a situation. Using one or two in-text citations from the course materials and then relying on Internet source material will not earn many points on the assignment. A variety of source material is expected, and what is presented must be relevant and applicable to the topic being discussed. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally, showing an understanding of the logical connections between the ideas presented from the research, the course material, and the question(s) being asked.
Note: Your report is based on the research results performed and not on any prepared documentation. What this means is that you will research and draw your own conclusions that are supported by the research and the course material rather than the use of any source material that puts together any of the tools or techniques whether from the Internet, for-pay websites, or any pre-prepared document, video or source material. A zero will be earned for not doing your own analysis.
Success: The analysis is based on research and not opinion. You are not making recommendations, and you will not attempt to position the focal company in a better or worse light than other companies within the industry merely because you are completing an analysis on this particular company. The analysis must be based on factual information. Any conclusions drawn have to be based on factual information rather than leaps of faith. To ensure success, as stated above, you are expected to use the course materials and research on the focal company's global industry and the focal company. An opinion does not earn credit, nor does the use of external sources when course materials can be used. It is necessary to provide explanations (the why and how) rather than making statements. Avoid stringing one citation after another, as doing so does not show detailed explanations.
Library Resources (Required for Company Research)
Statista - All the information needed for your assigned company must be obtained from one of the library's suggested online company research databases. To use these resources, go to the main navigation bar in the classroom, select Academic Support and then select Library. Next, select Databases by Title (A - Z). Since your primary online company research database is Statista, select S from the alphabet list, and scroll down to select Statista Online. See Dr. Kathy's Notes for Week 2 for some more guidelines about using Statista.
Dun and Bradstreet's Hoovers Database, among others, is another excellent source for company research, competitor, and industry information.
You can find relevant and significant additional information required for company project research by using https://libguides(dot)umgc(dot)edu/business-research
Additional Library Resources
Research for Company Financial Ratios: Financial Research.
Research for Industry Financial Ratios: CSI Market.
Use "OneSearch" to find scholarly articles by clicking Library under Academic Support on the classroom main menu bar and checkmark "Scholarly Journals Only" prior to starting a search.
Library Support Personal Assistance
Extensive library resources and services are available online, 24 hours a day, seven days a week at https://www(dot)umgc(dot)edu/library/index.cfm to support you in your studies. In addition, the UMGC Library provides research assistance in creating search strategies, selecting relevant databases, and evaluating and citing resources in various formats via its "Ask a Librarian" service at https://www(dot)umgc(dot)edu/library/libask/index.cfm.
Step 3 How to Set Up the Report
The document has to be written in Word or RTF. No other format is acceptable. No pdf files will be graded. Use 12-point font for a double-spaced report. The final product should be 9 - 10 pages. The final project may not exceed 10 pages, including all tables and matrices, but excluding the title and reference pages. Do not use an Appendix.
Create a title page with the title, your name, date, the course number, the instructor's name.
Create Topic Headings that correspond to exact sections of the project requirements. Use the Headings and Heading Numbers listed below in red font.
Step 4 Write the Report - using the following headings in that are in red below.
I. Porter's Five Forces for the Industry
Perform a Porter Five Forces analysis on the organization's industry
The industry is the industry determined for Project 1 (See Dr. Kathy's Notes for Week Two).
a. First, use the course materials to identify the five forces and what components make up each force.
b. Then, perform an analysis of each force that clearly discusses the ‘why and how’ and concludes with the effect of the given force on the fortunes of the industry (industry profitability) and/or industry dynamics; that is, whether the effect of the force on the industry is weak/modest/average/moderate or strong/severe.Use industry research for support.
You may not use a Porter Five Forces analysis that is already completed and available on the Internet. A zero will result if used as the analysis results from your research and your own development.
II. Porter's Five Forces for the Company
Perform a Porter Five Forces analysis on the focal company in particular.
Perform an analysis of each force that clearly discusses the ‘why and how’ and concludes with the effect of the given force on the fortunes of the focal company; that is, whether the effect of the force is weak/modest/average/moderate or strong/severe on the focal company. Use company research and course materials for support.
You may not use a Porter Five Forces analysis that is already completed and available on the Internet. A zero will result if used as the analysis results from your research and your own development.
III. Competitive Analysis
Perform a Competitive Analysis using the focal company’s closest three competitors plus the selected company. Explain why these companies are competitors, using course materials for support of your rationale. Analyze the competition's products and services, explaining features, value, targets, etc. What are the competition's strengths and weaknesses, and what is the market outlook for the competition? Use industry research and course materials for support in this analysis.
IV. Critical Success Factors
Identify and discuss at least eight (8) key success factors (critical success factors), using both course materials and industry research for support. Each industry has different key success factors, so make sure the success factors fit the industry. Review the Competitive Profile Matrix example under Week 3 Content for clarification.
V. Competitor Profile Matrix (CPM)
Develop a Competitor Profile Matrix (CPM) to compare your company with these three competitors (from section III). Explain how you developed the matrix. Make sure to support your reasoning with course materials and industry research.
VI. Partial SWOT (OT) Table and Analysis
(A SWOT analysis is a tool used to assess the strengths and weaknesses (internal environment) and the opportunities and threats (external environment) of an organization. You will complete a partial SWOT analysis only completing an analysis on the OT (Opportunities and Threats). The information presented is not based on your beliefs but fact-based, data-driven information. The items used in the OT are factors that are affecting or might affect the focal company or those companies within the identified industry.)
VI.A. OT Table
Develop an OT table using your research to identify at least five (5) opportunities and five (5) threats that influence the industry and the focal company. Use industry or company research for support of each opportunity and threat. Make sure to cite the elements within the table.
VI. B. OT Analysis
Perform an OT analysis (separate from the SWOT table). Use course materials and company and industry research for support.
You may not use a SWOT analysis that is already completed and available on the Internet. The OT is for the focal company and no other company. A zero will result if used as the analysis results from your research and your own development.
VII. External Factor Evaluation (EFE) Analysis
The External Factor Evaluation (EFE) matrix will allow you to use the industry analysis and the competitive analysis to assess whether the focal company can effectively take advantage of existing opportunities while minimizing the identified external threats that will help you formulate new strategies and policies. You will use the opportunities and threats from the OT analysis.
Using the information gathered for the OT analysis, develop an EFE matrix using five (5) opportunities and five (5) threats. Discuss how you developed the EFE matrix and the outcome. Make sure to support your reasoning for the weights and ratings with course materials and company/industry research.
VIII. Conclusion
Create a conclusion. The Conclusion is intended to emphasize the purpose/significance of the analysis, emphasize the significance/consequence of findings, and indicate the wider applications derived from the main points of the project’s requirements. You will conclude with the findings of the external environment analysis. Use course materials and industry/company research for support in this section.
Step 5 Review the Paper
Read the paper to ensure all required elements are present.
The following are specific requirements that you will follow. Use the checklist to mark off that you have followed each specific requirement.
Checklist
Specific Project Requirements
Proofread your paper.
Read and use the grading rubric while completing the paper to ensure all requirements are met to lead to the highest possible grade.
Third-person writing is required. Third-person means that there are no words such as “I, me, my, we, or us” (first-person writing), nor is there use of “you or your” (second-person writing). If uncertain how to write in the third person, view this link: http://www(dot)quickanddirtytips(dot)com/education/grammar/first-second-and-third-person
Contractions are not used in business writing, so do not use them.
Paraphrase and do not use direct quotations. Paraphrase means you do not use more than four consecutive words from a source document. Removing quotation marks and citing is inappropriate. Instead, put a passage from a source document into your own words and attribute the passage to the source document. There should be no passages with quotation marks. Using more than four consecutive words from a source document would require direct quotation marks. Changing words from a passage does not exclude the passage from having quotation marks. If more than four consecutive words are used from source documents, this material will not be included in the grade.
You are expected to use the research and weekly course materials to develop the analysis and support the reasoning. There should be a robust use of the course material. The material used from a source document must be cited and referenced. A reference within a reference list cannot exist without an associated in-text citation and vice versa. Changing words from a passage does not exclude the passage from having quotation marks.
Use in-text citations and provide a reference list that contains the reference associated with each in-text citation.
You may not use books in completing this problem set unless it is part of the course material. Also, do not use a dictionary, Wikipedia, or Investopedia, or similar sources. You may not use Fern Fort University or any other for-fee website.
Provide the page or paragraph number in every in-text citation (except videos and podcasts). See Dr. Kathy's Notes for Week One for guidance on this course requirement.
Course materials:
https://leocontent(dot)umgc(dot)edu/content/dam/equella-content/bmgt495/Chapter4_ManagingFirmResources.pdf
https://www(dot)youtube(dot)com/watch?v=5DFd-ZNbNX4&embeds_widget_referrer=https%3A%2F%2Flearn.umgc.edu%2F&embeds_euri=https%3A%2F%2Fumgc.h5p.com%2F&embeds_origin=https%3A%2F%2Fumgc.h5p.com&source_ve_path=MjM4NTE&feature=emb_title
https://www(dot)youtube(dot)com/watch?v=fYWHaOjWnN8
https://www(dot)youtube(dot)com/watch?v=VIHeb4mThOA
https://www(dot)youtube(dot)com/watch?v=U_vzpjzSv5s
https://strategicmanagementinsight(dot)com/tools/competitive-profile-matrix-cpm/
https://leocontent(dot)umgc(dot)edu/content/dam/equella-content/bmgt495/Chapter5_SelectingBusiness-LevelStrategies.pdf
https://leocontent(dot)umgc(dot)edu/content/dam/equella-content/bmgt495/Chapter6_SupportingBusiness-LevelStrategy.pdf
https://www-jstor-org(dot)ezproxy(dot)umgc(dot)edu/stable/256040
https://leocontent(dot)umgc(dot)edu/content/dam/course-content/tus/bmgt/bmgt-495/document/Strategy-Formulation%20Analytical%20Framework.pdf
http://www(dot)netmba(dot)com/strategy/matrix/bcg/
https://www(dot)businessstudynotes(dot)com/finance/strategic-managment/how-to-prepare-the-internal-external-matrix/
https://leocontent(dot)umgc(dot)edu/content/dam/course-content/tus/bmgt/bmgt-495/document/QSPM%20Explained.pdf
https://www(dot)youtube(dot)com/watch?v=U_vzpjzSv5s&embeds_widget_referrer=https%3A%2F%2Flearn.umgc.edu%2F&embeds_euri=https%3A%2F%2Fumgc.h5p.com%2F&embeds_origin=https%3A%2F%2Fumgc.h5p.com&source_ve_path=MjM4NTE&feature=emb_title
Business Examination of Verizon
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Business Examination of Verizon
Introduction
Verizon Communications Inc. is a multinational telecommunications conglomerate based in the United States. The company operates in various segments, including wireless, wireline, and digital media services. It is one of the largest wireless service providers in the United States, with over 100 million subscribers as of 2021. Verizon's primary market is the telecommunications industry, which has seen significant growth in recent years due to the increasing demand for wireless and broadband services. The industry is highly competitive, with major players like AT&T, T-Mobile, and Sprint (Anonymous, 2014A). However, Verizon has maintained its market position by investing heavily in network infrastructure and focusing on providing high-quality services to its customers. One of the primary tactics that Verizon has used to remain competitive is its focus on network quality. The company has invested heavily in building and maintaining its network infrastructure, which has resulted in a reputation for providing excellent service. Additionally, Verizon has introduced a range of data plans and pricing options to attract and retain customers, successfully increasing its customer base. Verizon has stated that it will continue to focus on network quality and innovation (Afful-Dadzie et al., 2014). The company has pledged to invest heavily in its 5G network infrastructure and expand its coverage across the United States. Additionally, Verizon has expressed interest in acquiring more digital media companies to expand its content offerings and diversify its revenue streams.
Discussion
* Porter's Five Forces for the Industry
Porter's Five Forces analysis is a valuable tool for assessing the competitive dynamics of an industry (Daniels, 2023). This analysis will apply the framework to Verizon's initiative to evaluate the key factors affecting industry profitability and dynamics.
* The Threat of New Entrants. The telecommunications industry requires significant capital investment to establish a network infrastructure and compete effectively. As a result, the threat of new entrants is relatively low (Harvard Business Review, 2023). Additionally, regulatory barriers to entry, such as obtaining licenses and permits, make it difficult for new players to enter the market. However, some new entrants in recent years, such as Google Fiber and Comcast, have the potential to disrupt the industry. The threat of new entrants is moderate.
* Bargaining Power of Suppliers. In the telecommunications industry, the primary suppliers are equipment manufacturers, such as Nokia and Ericsson, and content providers, such as HBO and Netflix. The suppliers have moderate bargaining power due to the high level of competition in the industry (Bruin, 2020). However, they do have some authority due to the critical nature of their products and services. For example, if a significant equipment manufacturer were to experience production issues, it could impact the ability of telecom companies to expand their networks. Overall, the bargaining power of suppliers is moderate.
* Bargaining Power of Buyers. The primary buyers in the telecommunications industry are individual and business customers. Customers have significant bargaining power due to the high level of competition in the industry. They have many options, and switching costs are relatively low (Daniels, 2023). Additionally, customers have access to a wealth of information about the products and services available in the market, which gives them more leverage in negotiations. Overall, the bargaining power of buyers is vital.
* The Threat of Substitutes. While there are alternative ways to communicate and access information, such as through email and social media, these do not offer the same level of connectivity and speed that telecom service providers do. However, as new technologies emerge, such as satellite internet and 5G, there is a potential for more excellent substitution. Additionally, some customers may forgo traditional telecom services and rely solely on their mobile devices for communication and internet access.
* Competitive Rivalry. The telecommunications industry is highly competitive, with major players like Verizon, AT&T, T-Mobile, and Sprint vying for market share. The intense competition has led to pricing pressure, significant network infrastructure, and marketing investment. Additionally, the industry is subject to frequent mergers and acquisitions, which can impact the competitive landscape. The competitive rivalry is intense.II. Porter's Five Forces for the Company
Figure SEQ Figure \* ARABIC 1: Porter's Five Forces Analysis of Verizon
As shown in the figure above, Verizon is a dominant player in the telecommunications industry with a significant market share (Harvard Business Review, 2023). The high capital requirements and regulatory barriers make it difficult for new players to enter and compete effectively. Overall, the threat of new entrants is low, which is optimistic for Verizon's fortunes. Verizon relies on equipment manufacturers, such as Nokia and Ericsson, for network infrastructure and devices. However, Verizon is a major customer for these suppliers, which gives it some bargaining power. The bargaining power of suppliers is moderate, which is relatively neutral for Verizon. Customers can access various providers and services, and switching costs are relatively low. Additionally, customers have a wealth of information about the industry and its products, which gives them more power in negotiations (Pai et al., 2019). The bargaining power of buyers is vital, which is a negative factor for Verizon. While there are alternative ways to communicate and access information, such as email and social media, these do not offer the same connectivity and speed as Verizon's services. Additionally, Verizon invests heavily in developing new technologies, such as 5G, to stay ahead of potential substitutes. III. Competitive Analysis
Verizon is one of the largest telecommunications companies in the world, but it faces fierce competition from other industry giants. AT&T is Verizon's closest competitor and one of the world's largest telecommunications companies. Like Verizon, AT&T offers many services, including wireless, internet, TV, and home phone. However, AT&T has faced criticism for its customer service and pricing practices, which has led to customer churn. The market outlook for AT&T is positive, with a strong position in the wireless and entertainment industries. Similarly, T-Mobile is a relatively new player in the telecommunications industry but has quickly gained market share through aggressive pricing and marketing strategies. T-Mobile's "Un-carrier" branding has resonated with customers, who appreciate the company's focus on transparency and simplicity. T-Mobile's wireless network has improved significantly in recent years, and the company now offers 5G coverage in many areas (Afful-Dadzie et al., 2014). T-Mobile's acquisition of Sprint in 2020 has also strengthened its position in the market. However, T-Mobile's network coverage still lags behind Verizon and AT&T in some areas, and its lack of a full TV and internet offering is a weakness. The market outlook for T-Mobile is positive, with continued growth expected through aggressive pricing and marketing.
In the same way, Comcast/Xfinity Comcast is primarily known as a cable TV and internet provider. Still, its Xfinity Mobile service also makes it a player in the wireless industry. Xfinity Mobile operates on Verizon's network, providing a competitive network quality and coverage advantage. Additionally, Xfinity Mobile offers significant discounts for customers who bundle their wireless service with other Comcast products (Pai et al., 2019). The market outlook for Comcast is mixed, with solid growth potential in the cable and internet industries but little room for growth in the wireless industry.
Strengths and Weaknesses Comparison. Verizon's main strengths are its strong network quality and coverage, reliable customer service, and investment in technological innovation, such as 5G. However, its pricing can be higher than some competitors, and it lacks the entertainment content offered by AT&T and the aggressive pricing and marketing of T-Mobile. AT&T's strengths are its wireless, solid, and entertainment offerings, including unique content from WarnerMedia (Tyrväinen & Mazhelis, 2009). However, it has faced criticism for its customer service and pricing practices. T-Mobile's strengths are its aggressive pricing and marketing strategies and its focus on transparency and simplicity. However, its network coverage still lags behind Verizon and AT&T in some areas and lacks a complete TV and internet offering. Comcast's strengths are its bundling discounts and its use of Verizon's network for Xfinity Mobile. However, it lacks a standalone wireless offering and has a limited device selection.
Market Outlook. The market outlook for the telecommunications industry is positive, with continued growth expected in wireless, internet, and entertainment services. Verizon is well-positioned to maintain its market share with its strong network quality and investment in technological innovation. AT&T's acquisition of WarnerMedia gives it a unique advantage in the entertainment industry, while T-Mobile's aggressive pricing and marketing will likely continue to win over customers. IV. Critical Success Factors
Critical Success Factors (CSFs) are the key elements an organization must focus on to achieve its business goals and remain competitive in its industry. For the telecommunications industry, some of the critical success factors are:
Network Quality and Coverage. The quality and coverage of a telecommunications company's network are critical success factors. Customers expect to be able to use their devices anywhere without dropped calls or slow data speeds (Tyrväinen & Mazhelis, 2009). Companies that consistently provide a high-quality network experience will have a competitive advantage.
Technological Innovation. Telecommunications is a rapidly evolving industry, and companies that invest in technological innovation will have a competitive edge. For example, the development of 5G technology is a significant opportunity for companies that can quickly roll out their networks and devices.
Customer Service. Customer service is a critical success factor in any industry but is particularly important in telecommunications. Customers expect prompt and reliable support for any device or service issues. Companies that can provide exceptional customer service will have a loyal customer base.
Brand Recognition. Strong brand recognition is a critical success factor for telecommunications companies (Owens et al., 2021). Customers are likelier to choose a company with a well-known brand and reputation for quality service and products.
Pricing Strategies. Pricing is a crucial success factor for telecommunications companies. Companies offering competitive pricing and flexible plans will be more attractive to potential customers. However, companies must also ensure that their pricing strategies allow them to maintain profitability.
Strategic Partnerships. Strategic partnerships with other companies can be a critical success factor for telecommunications companies. For example, partnerships with device manufacturers can help companies ensure their devices are compatible with their networks, while partnerships with entertainment companies can provide unique content for customers.
Product and Service Offerings. A diverse range of products and services is a critical success factor for telecommunications companies. Companies offering wireless, internet, TV, and home phone services will be more attractive to customers who want to bundle their services.
Regulatory Compliance. Telecommunications is a heavily regulated industry, and compliance with regulatory requirements is a critical success factor (Owens et al., 2021). Companies must comply with regulations around data privacy, network security, and other areas to avoid fines or other penalties.
V. Competitor Profile Matrix (CPM)
A Competitor Profile Matrix (CPM) is a strategic tool to evaluate a company's strengths and weaknesses against its competitors (Jurevicius, 2022). Identifying the critical success factors (CSFs) ...