One of the most important goals of a company is to create brand resonance. The rapid growth of the modern markets, along with the growing demand for quality products and services and the intense competition, has made it imperative that organizations focus more on strategies that meet customer expectations, and it’s no different for a company like AT & T. An organization must place its customers before self. Therefore, for any organization, which includes service-oriented organizations, they must view their service or products (iPhones and smartphones for example) in the context of how customers value them rather than the organization. “A reason why many reputed organizations have fallen by the wayside is because of their ineptness to focus on customer needs, and instead, engage in image changes to glamorize themselves and their products” (Pettinger, 2004).
Urban (2009) in his research says that service quality gaps existed in many companies because of the “gap between managers’ perception of customers’ expectation and service specifications existing in organizations.” In Barki’s (2013), The Control Process Effectiveness: Organization vs. Customers, Barki says that, “Some companies failed to keep their strategies and customer desires aligned, while others used service strategy to increase their customer base.” It is therefore important for organizations that are service providers like AT & T to place high importance on the quality of service and their image as perceived by their customers.
With interests in wireless communications, long distance services, local exchanges, video services, internet and data/broadband services, telecommunications equipment, wholesale services and managed networking, AT&T is easily one of the largest telecommunication companies in the world. It employs in excess of 242,000 people and posted over $127,224 million in revenue in 2012. However, because of its wide business/product portfolio, it faces competition from both large, small and niche markets all across the globe. Companies like “Verizon Communications, Time Warner Cable Inc, HP Enterprises, Sprint Nextel Communications, Comcast Corporations, T-Mobile USA, Leap Wireless International, British Telecom and MetroPCS Communications are their major competitors,” (MarketLine, 2013).
In order to succeed against their competitors successfully, AT & T must understand what their customers need. Customer service is most important. Today, more customers are educated and so; understand what they need and what is available in the market. Therefore, along with technological development, new products must be manufactured to ensure that they are analogically in tune with global markets. The iPhone is a product that is in tune with today’s technology trend, and this is a market in which it can flourish. Whatever the product or service, sustainability in a highly competitive global market can happen only if organizations can match price, quality, cost, support and availability. In order to understand AT & T’s competitiveness, a SWOT analysis is mandatory. SWOT is the evaluation of an organization based on their strengths, weaknesses, opportunities and threats.
SWOT Analysis
Strength: AT & T’s strengths are derived from their diversified operations and revenue streams, because of which, the company has a strong user base. (AT&T, 2013)
In addition to this, because of the strong user base and revenue generated out of this, the company can leverage other subscribers of wireless phones by providing a strong video, data and business product.
Also, as the ompany has a strong economic resource low, the ompany can use it for research and development and also in allowing subsidies to customers to attract more customers.
Weakness: AT & T’s Weakness is their contracting of voice and wire line business making them dependent on the contractors.
Because of their size and reach, the company can not focus on any particular service to excel in customer service. There are not many training programs to arm their own people in managing technological developed products or services and are so, at the mercy of the contractors on whom they have to depend.
Opportunity: Opportunities come from the continuous growth for internet and mobile connectivity.
Because of their size and market reach, AT & T can offer wireless services in countries where there is not much development. For a company like AT & T, investment in ne infrastructure would not be a problem and so, they can expand their business reach to other countries as well.
There is a growing market for products that support cloud computing and this is an area in which AT & T can do exceptionally well given its strong customer base.
Threats: Threat comes from small and medium scale industries that can offer wireless service to untapped markets at unreasonable price.
AT & T is dependent on contractors for contracting of voice and wire line business. Should contractors misuse their authority in services to customers, it will hurt AT & T’s brand image considerably.
Strategies/Solutions
Undoubtedly, more preference should be given to research and development to ensure that AT & T does not lack in technological innovations, which shape competition, profitability and even survival. (MarketLine, 2013)
Exploring unrepresented markets can help the company overcome market saturation and minimize competition. Exploring markets like China, India, Vietnam, Brail, Russia and Mexico would be ideal and viable as the company has the money to invest in these countries and gain maximum profits.
Expanding the spectrum of services through strategic partnerships can enhance profits and at the same time, lower costs; a positive in meeting customer needs.
Do away with iPhone and Smartphone subsidies as this will reduce the company’s overheads which can be passed on to customers as reduced prices. Also, such subsidies may not be required as the popularity of iPhones and other smartphones grows (Thomson, 2013).
Training of staff in customer service and technology management is a prerequisite to better customer care. Training of staff should be mandatory and can be done periodically to ensure that employees are able to cope with any situation efficiently.
Owing to the huge synergies in this industry, AT&T should enter lesser known markets through mergers and acquisitions as this will give them the advantage of knowing a new market relatively early and also at reduced operational costs.
References
AT&T. (2013, Nov 28). AT&T Enterprise Business provides wireless, networking, mobility, cloud, security, hosting, application mgmt,UC and voice solutions for medium to large businesses. . Retrieved Dec 3, 2013, from http://www.att.com/gen/landing-pages?pid=9214
MarketLine. (2013). AT&T: Company Profile. New York: MarketLine. Retrieved from http://content.ebscohost.com/pdf29_30/pdf/ddd/dmhco/cfc08cd2-7b59-431d-a773-1f52563178e0.pdf?T=P&P=AN&K=CFC08CD2-7B59-431D-A773-1F52563178E0&S=L&D=dmhco&EbscoContent=dGJyMNLr40SeprE4wtvhOLCmr0uepq9Ssq24SLWWxWXS&ContentCustomer=dGJyMPGvtU2xr69RuePfgeyx44Dt6fIA
Pettinger, R, (2004), Contemporary Strategic Management, Palgrave Macmillan, ISN 1-4039-1327-7, p.215-217
Thomson, A. (2013, Sept 26). AT&T’s European Expansion Seen as Perilous Growth Strategy. Retrieved Dec 2, 2013, from http://www.bloomberg.com/news/2013-09-25/at-t-s-european-expansion-seen-as-perilous-growth-strategy.html
