Good Example Of SWOT Analysis Research Paper

Type of paper: Research Paper

Topic: Business, Services, Market, Company, Wireless, Radio, Competition, Internet

Pages: 5

Words: 1375

Published: 2021/02/16

Verizon Communications Analysis

Verizon communications Inc. is one of the largest companies in the US, involved in the provision of wireline and wireless communications services, including network access, voice, global IP networks, video conferencing and broadband data services. With more than $127.08 billion and $204.53 billion in annual revenues (ttm) and market capitalization respectively, Verizon communications has been immensely successful. The company’s primary services are concentrated in the United States, where it has upwards of 176,800 employees. Verizon’s operations fall in two business divisions i.e. wireline and wireless. The wireless division comprises Cellco partnership/Verizon Wireless, which offers prepaid/postpaid data and voice services as well as communication equipment to businesses, governments and businesses. On the other hand, the wireline division offers video, data and voice communications products and other associated services, including corporate networking solutions, cloud and data center services. The Verizon wireless stores are critical in the distribution of its products and customer service, an thus represent important strategic microcosm for the larger company. Key employees at the store were interviewed for information, which was triangulated against the information the company website and market research reports.

Balanced Scorecard

CSFs Choice

The key to Verizon Wireless increasing its revenues substantially lies in its ability to capitalize on the postpaid ARPA and the FiOS segment. Verizon and AT&T are the most dominant telecom companies in the US with 58% the retail market share, but struggle to increase revenues given the high rivalry and market saturation. However, by focusing on growing the revenue potential from the new or growing product categories, Verizon faces less competitive resistance. The ARPA market expansion is largely being driven by the expansion in the demand for smartphones and 3G/4G LTE networks. On the other hand, Verizon’s bundled internet access telephone and television service (FiOS), has been growing with the increasing demand for broadband and video services. Growth in these segments is also important because it repurposes wireline business, which is struggling as the market gravitates towards wireless technologies. On the other hand, Verizon had an average debt outstanding of $103.2 billion in the first quarter of 2014, which increases the company’s vulnerability to adverse cycles as well as lack of liquidity because of the high cost of debt (Yahoo Finance 2015; MarketLine 2014). These adjustments must be accompanied by value to the shareholders, through increased yield per share as against dividends, in order to allow for substantial debt repayments.
Dropped calls, slow internet speeds and poor mobile phone networks in some places remains a quality challenge for the industry, which is why the need to increase cell towers has been included in the BSC. Similarly, the intense rivalry with AT&T can be eased with increased customer service and brand loyalty, which is why investments in these areas had been prioritized. With the expansion of the Verizon Wireless stores across the country, it would become easy to sell phones and other equipment without customers having to incur high shipping fees, while at once making it easier to provide after sales services. However, since Verizon operates in an oligopolistic market structure, it must refrain from using price competition because this can draw retaliation from competitors to the detriment of the industry’s profit margins. Non-price competition strategies (e.g. advertising and promotions) have been built into this scorecard (Porter 1998; Rugman and Collinson 2012).

CSF Achievement Progress Evaluation

Verizon has already made tremendous progress towards the attainment of key success factors. With regard to increasing its market share in the postpaid ARPA by 12.5%, Verizon’s revenues from this segment grew by 7% between 2011 and 2013 to reach $153.9 million, with the total market having expanded considerably during the same time. Effectively, over the next two years, this segment should expand even further. The global M2M connections rose by 38% between 2010 and 2013, and Verizon already has a strong presence in this segment, being a key supplier to vertical markets that include education, healthcare, utilities and manufacturing. The company offers platform-based products to a variety of industries, and it can leverage this presence to achieve the set goals. Similarly, in 2013, the company added 0.648 million new FiOS connections and 0.536 million FiOS video subscribers, which makes the 1 million target in the next two years perfectly attainable (Hitt, Ireland, & Hoskisson, 2008; Kotler & Keller, 2012; MarketLine, 2014).
On the operational, HR and learning front, Verizon already spends considerably on branding and promotional/advertising, and this may not necessitate an expansion of the budget. The size of the company and its merger with Vodafone also means that other than AT&T, its R&D expenditure is unrivaled. The prestige enjoyed by Verizon communications is immense and so is its appeal to the labor market. However, increased investments are necessary for the human capital development, compensation, and succession planning to ensure that the company remains competitive (Porter, 1998; Hitt, Ireland, & Hoskisson, 2008).


Hitt, M., Ireland, D., & Hoskisson, R. (2008). Strategic Management: Competitiveness and Globalization, Cases, Volume 2. New York: Cengage Learning.
Kotler, P., & Keller, K. L. (2012). Marketing management . Upper Saddle River, N.J: Prentice.
MarketLine. (2014). Verizon Communications, Inc. New York: MarketLine.
Porter, M. (1998). Competitive Strategy. New York: Free Press.
Rugman, A. M., & Collinson, S. (2012). International Business (6th Ed). London: Pearson Education.
Verizon Wireless. (2015, Feb 24). About Us. Retrieved April 12, 2015, from
Yahoo Finance. (2015, Feb 14). Verizon Communications Inc. Retrieved April 11, 2015, from

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