Abstract
The American telecommunication industry has different players that continue to shape the direction of the industry day in day out. Some of the telecommunication companies that operate in this market include AT & T Inc. AT & T is an American incorporated company that deals in telecommunication services like Wireless or mobile telephony as well as landline services coupled with broadband television services. A clear company analysis reveals some industry strategic plan that has been applied by the company in pursuit of its economic goal in the market. This paper seeks to find the different strategic plans AT & T Company has applied over the years in the telecommunication industry in the United States and World Wide.
Introduction
AT & T Inc. is a company incorporated in the United States of America where it operates in different states around the country. The company is involved in telecommunication where it offers mobile telephony as well as landline services coupled with broadband television services. The company was founded by Alexander Graham Bell in the early 80s and has continued to be in existence ever since. The company has its headquarters in Whitacre Tower, in Downtown Dallas in the state of Texas. The company is governed by a board of directors that is chaired by the CEO and Chairman Randall Stephenson. The company has over 110 million subscribers in the world and its existence in the American market is enormous with vast interests in mobile telephony (Kaplan & David 47). The company has also been involved in selling digital television sets under the U-verse brand. The company operates in most American States like Texas, Illinois and California where most of its market is normally concentrated. The company according to Forbes is the second largest mobile telephony provider in the country after Verizon wireless. The company has over the years been on a growth plan that has seen the company provide more voice and data services to its 110 million customers in the country. The company has continued to enjoy a favorable market due to its hands on approach to customer relations and an enterprise strategy that has been its driving force.
The impact technology has over a human being life is tremendous as daily interactions mostly involve technology. The company decision to engage in offering telecommunication services to its clients continue to receive a boost as the effects of globalization continues to take effect. Globalization refers to the process by which people from all walks of life are connected to one another by telecommunication devices like the internet or mobile telephony. The telecommunication industry in most countries continues to grow as it has been experienced in the developed nations as fiber optic cables continue to connect homes and businesses together. Online marketing and purchases has been possible by several telecommunication companies that operate in an economy. AT & T Inc. has taken this initiative to provide the best services in the market (Kaplan & David 48).
Company strategic position
AT & T strategic goals can be formulated form its vision and mission statements which give the company’s future and present objectives and capabilities. The company’s mission states that they aspire to be the most valuable and admired company not only in the United States but the World at large. The mission statement gives the company a strategic goal that is seeks to achieve each day through interactive forums and involvement of their large customer base. The company seeks to enrich their individual and organizational customers through providing affordable services that can be relied upon by all. The company mission statement seeks to improve the businesses of their individual and corporate clients with improved communication services. AT & T vision statement is geared towards connecting people with the rest of the world at any time or place whether at work or at home (Rothwell et al 12-18).
AT & T has strived to win more customers by advertising through the mass media of the various products it offers in the market. The company has laid a future growth plan that has incorporated several market players in its vision to be a global leader in telecommunication. The company continues to enjoy high revenue per year due to its over 100 million mobile subscribers in the United States. The company’s decision to diversify in other markets has been well received by different stakeholders in the telecommunication industry as they seek to enjoy more support from the government and citizens in the country. Strategic management involves devising new plans of carrying out an activity that is geared towards improving the current one. Different plans have been applied by AT & T Inc. over the years and they have produced better results for the company as evidence by the large customer base the company has.
Market segment
The telecommunication industry in the United States has been under control of two large telecommunication companies by name AT & T Inc. and Verizon Wireless. The two companies compete for favorable market share that Verizon continues to partially control but AT & T has initiated strategic plans to improve and cement its dominance in the industry. The wireless unit in the company continues to grow and it has helped the company in meeting its financial needs and expansion plan. The company by the year 2012 acquired Dobson communication which controls over thirteen million subscribers (Shapiro & Hal 64-65).
Market segment in the telecommunication industry in America is being controlled by public and private incorporated companies. The companies control much of the market with their varied products and services they continue to offer to their customers. Among the largest telecommunication companies in the country are Verizon telecommunication and AT & T Inc. which control much of the market share. There is stiff competition among telecommunication companies as they strive to win more customers and tap in the already untapped markets in other countries. AT & T Company has identified itself as a telecommunication firm with vast resources and assets across the United States where it continues to enjoy considerable growth. The company existence and operation in the country has helped in understanding the changing demographic trends in the country.
SWOT analysis
SWOT analysis seeks to explore the business environment of an organization and ways through which the factors can be merged to help the organization meet its objectives over a given period. An analysis of the market structure for AT & T reveals a growing trend that continues to bring in resources for the company. The telecommunication industry in the United States has experienced immense growth over the years and this has largely been attributed by a changing technological trend among people and the need to improve their lives through technology. Innovations in the market have helped big companies to cut a clear market niche for their products as they continue to compete with other global brands in the country. SWOT analysis model seeks to identify the strengths, weaknesses, opportunities and threats that are present in a given company and how these factors can be used to the advantage of organization (Rumelt 97).
Internal factors
Internal factors in an organization refer to the internal environment present in a company that gives details of its production, management and employee relationship. A clear analysis of AT & T Inc. has revealed an operating management that continues to set better and achievable goals for the organization. The management of AT & T Inc. has been responsible for much of the improvement in service delivery the company continues to enjoy.
Company Strengths
The company strengths are in its interactive management team that has employed skilled employees who engage customers through better service delivery to its large customer base. The company also enjoys a large market share as it has over a hundred million mobile subscribers in the country. This gives the company an edge over its rivals as the customers serve as a business asset that needs to be protected. The company has filed for intellectual property for its state of the art technology ideas and services.
Company weaknesses
The company’s weaknesses include low sales in low season for the company that reduces its profitability. Weaknesses in the operations of an organization may lead to poor production and delivery of goods and services in the market. Technology changes very fast and thus it’s important for companies to adapt quickly to changing technology so that its operations are improved hence wise. AT & T Company operates in a volatile industry that keeps changing and thus it’s important to incorporate modern technology in its service delivery so that it remains viable. Innovations in the telecommunication industry change daily and thus the company require hiring skilled employees who will foster new ideas into the company to improve its competitive advantage.
Company Opportunities
Its opportunities include an un-tapped broadband internet market as more people and businesses continue to access internet services in the country. The company has invested in modern technology that is driven towards improving the operations of the company and how it conducts its business. Opportunities are rare in business and should be utilized early so as to reap great rewards in terms of improving the sales volume and customer satisfaction (Rumelt 97). A business ventures engages in offering better services than its rivals that are at affordable prices. AT &T Telecoms has been favored by a growing telecommunication market in the world and the company has taken this advantage in its move to improve its customer base and increased revenue.
Company threats
The company’s threat includes threat of new entrants into the market that will offer more competition to AT & T products. The threat may come from rival companies like Verizon Communications that has been offering stiff competition to AT & T Inc. in terms of sales and volume of sales. Company threats should be well managed as they may cripple the operations of the company and lead to closure of the firm. Reduced sales will lead to losses and this is likely to affect how business organizations finance their operations (Shapiro & Hal 64-65).
External factors
AT & T Inc. has been able to foster a steady growth over the years and command a large market share in the company due to its approach in the market that continue to attract new clients under its business. External factors refer to external environment that continue to influence and shape the business of AT & T Inc. its relation to its suppliers, political factors and competitors continue to shape the business of the telecommunication company (Freeman 58). The company strengths emanate from its long existence and operation in the market which has created a renowned brand name for the company. This brand name helps customers to relate well with its products and services that include mobile telephony as well as landline services coupled with broadband television services. The brand name also helps the company in its marketing strategy where it has continued to penetrate more markets and acquire more businesses like Dobson communication. The company has a large asset base that has facilitated acquisition of telecommunication devices that have improved the services delivery to its customers. Government policies seek to improve accessibility of telecommunication services among its citizens and thus the company enjoys considerable support from the government. The company faces stiff competition from Verizon Wireless, Sprint Communications, Inc. and T-Mobile USA, Inc. (Rumelt 97).
External environment seeks to affect the operations of the company with outside forces that influence how the company conducts its business. The external forces may offer opportunities or threats to a company and thus should be well analyzed and implemented so as to increase the effectiveness and efficiency of a company’s operations. AT & T Inc. has been able to understand its influences and factors that favor it operations in the country. A clear analysis of its market survey will reveal a growing trend towards smart phone technology that is taking the world by storm. The company has initiated measures through interaction with other tech firms to initiate more innovation in the field of telecommunication. Understanding its business competitors will place the firm at a better position to react to changes in market share and continues to enjoy considerable share in the telecommunication industry.
Government taxation systems also control the business operation and its existence is influenced by its willingness to pay corporation tax to the government. Government may issue tax reliefs to local companies and this helps them in their growth plan as they are able to channel more funds towards expansion and growth strategy. Government policy in regard to labor laws continue to influence the telecommunication industry as it offers more guidelines on how employees should be paid and the conditions of their working environment. In recent years there have been challenges in AT & T Company due to its censor programs in cable television and this always catches the public eye and it may influence its sales and thus a clear public policy in the company should be implemented. Supplier relationship is always a close check as it affects delivery of crucial resources to the company and this is being facilitated by proper management of client-suppler relationship through early payments methods. Maintaining a working relationship with the supplier helps to avoid delays of crucial raw materials which may cripple the operations of the company (Kaplan & David 47).
Strategic options and Porter’s 5 Forces model
AT & T needs a personal interactive strategy that will place the company at reach for most of its customers whether in business or at home. A better marketing strategy would help bring in more customer under the AT & T brand name as it wishes to penetrate other markets in the world (Hitt, Robert and Ireland 78). A good competitive analysis of the company operations would help improve effectiveness as compared to other firms in the same industry as it will strengthen its financial position and service delivery. The company needs to invest more in the fiber optic technology as it is more reliable and fast than wired connection and this will improve customer satisfaction by a great margin and this will encourage more customers to enroll in the company. Better market analysis will improve its market shares on the telecommunication industry and this will translate to a solid financial break-through for the company (Leiderman et al 31). The company’s decision to restructure its operations to include the four segments mode namely; Wireless, advertising solutions, wire line and others has helped in managing the telecommunication services. AT & T Inc. can use the five porter analysis method in developing its business strategy. The Porters ‘five force model involves Bargaining power of customers, threat of new entrants, threat of substitute products, bargaining power of suppliers and competitive rivalry within the industry. The diagram below shows the Porter’s model that can be used to improve the strategic approach of AT & T Inc.
Porter’s 5 Forces model diagram
The Porter’s model helps organizations to take into account internal and external forces that influence business operations. The profitability of a business is solely dependent on the number and volume of sales for its diversified products in the market. AT & T Company needs to apply the Porter’s Five Forces model to boost its operations and compete favorably with its competitors in the telecommunication industry in the world. A clear implementation of the five forces model will improve how the company products sell at the market and how their sales can be improved and the steps to take in improving the operations. The bargaining power of customers will be put in check and thus increase the sales volume as more customers seek to purchase more products of the company. Any threat to the business operations should be dwelt with accordingly by understanding the source and initiating measures to cement its strengths and opportunities in the market (Leiderman et al 31).
Conclusion
AT & T Inc. has been operating in a highly competitive industry in the world but it has continued to grow its customer base through improved service delivery to its customers. This advantage puts the company at par with its fierce rivals in the telecommunication industry like Verizon Wireless Company. A clear understanding of its internal and external environmental factors that influence the business operations of the company will help establish a global leader in telecommunication services. AT & T company review is one to be emulated for its consistence and improved customer services in the United States. The company according to Forbes list 2012 is the second largest telecommunication company in the United States in subscription and sales. The company has been able to offer varied mobile services to its customers which are either in voice or data services. This has placed the company on the list of the biggest companies in the world as they rake in billions of dollars in sales.
Work cited
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Leiderman, Sally, Cheryl S. Garrett, and Wendy C. Wolf. Strengthening Young Families: Lessons Learned from the At&t Family Strengthening Initiative. Bala Cynwyd, Pa: Center for Assessment and Policy Development, 1994. Print.
Rothwell, William J, Robert K. Prescott, and Maria W. Taylor. Human Resource Transformation: Demonstrating Strategic Leadership in the Face of Future Trends. Mountain View, Calif: Davies-Black Pub, 2008. Internet resource.
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Shapiro, Carl, and Hal R. Varian. Information Rules: A Strategic Guide to the Network Economy. Boston, Mass: Harvard Business School Press, 1999. Internet resource.
